OT: Retiring early

[koleszar]

With that goal met, I've discovered I'm not sure how to live and what to do. I've come to the realization that I don't have hobbies that I'm passionate enough about to occupy my time. I'm also unsure about what my purpose is.

It's one of the main reasons I agreed to buy a small farm with my wife. I don't know what to do without work and while I once had hobbies, they've all slowly dwindled away. Right now, it's a pain in the ass as we're still doing upgrades and maintenance (animals/pastures/orchard). But once I'm retired, everything I do in a weekend/ weeknights could be spread out over a week and still give me that sense of purpose.

 

[JayDogSmooth]

When I first started working, we had an HR benefits presentation where we were basically told we needed millions to retire.

Talk about scared straight.

Since then, all financial decisions are made with that goal in mind.

That said, either everyone else around me is in a 300K+ household income or there a boat load of people on YOLO mode...

I think there’s a little bit of both

There’s definitely people that are making some bank money, and there’s other people that don’t have a pot to piss in and act like they’re making bank money

I prefer the people gonna act like mafia members (besides the whole killing people part), blend in to the neighborhood and don’t say two words, yet they have a lot of money and aren’t flashy

 

[JayDogSmooth]

It's one of the main reasons I agreed to buy a small farm with my wife. I don't know what to do without work and while I once had hobbies, they've all slowly dwindled away. Right now, it's a pain in the ass as we're still doing upgrades and maintenance (animals/pastures/orchard). But once I'm retired, everything I do in a weekend/ weeknights could be spread out over a week and still give me that sense of purpose.

I’ll give you credit my man
I don’t think I would have motivation to do that

 

[rudad02]

I've always had aspirations of retiring in my 40's as there's so much else I want to do in life that work prohibits, both from a time and monetary standpoint.
Then I got married, bought a house and had a child and while that doesn't seem realistic now, retiring in my early - mid 50's is the goal.

We do the traditional saving methods - Roth IRAs, Roth 401 K's, 403-B, and mix in some life insurance we can cash out
Barring something crazy, we'll likely get a modest amount when our parents pass away, and have a decent SS paycheck when it comes time for that
My wife will also have a pension, but accessing that anytime before 55 is a 3 % / year reduction in the amount (also needs to put 25 years in teaching, or reach 55)

We do ok financially - nothing over the top, but not going homeless either
Could probably have some nicer things, but prefer to save $ right now (but not at the expense of vacations, sporting events, Broadway shows, etc.) - more in the realm of pre-owned cars, not going out to eat 4 times a week and having a nice but not over the top wardrobe (nothing wrong w/nice things, just using this as an example)

For those of you that have been able to retire at that age, or at/near 60, what was your methodology?
Was it saving, investing, real estate, inheritance, making big $ for a lot of years, invented or patented something, owned/sold a business or some sort of combination?

Retired at 62. Been retired for 19 yrs. Never looked back. Made it work with Soc Sec for both my wife & myself, pension & a small one for my wife, deferred compensation from NYS for ten yrs, then IRA distributions from previously cashed out prior pension. All fixed income. Also had some savings.
Live within our means & comfortably & able to save as well.

 

[yesrutgers01]

I think there’s a little bit of both

There’s definitely people that are making some bank money, and there’s other people that don’t have a pot to piss in and act like they’re making bank money

I prefer the people gonna act like mafia members (besides the whole killing people part), blend in to the neighborhood and don’t say two words, yet they have a lot of money and aren’t flashy

We had a neighborhood in Mahwah that started that way and eventually, early 2000's- it became all about those not making bank but qualified for the loans- anyone from here knows Rio Vista. After 2008- ghost town or people living in the houses with almost no furnishings. It has come back a little but not like it was.

Where I currently live- it is almost all people that have the bank and just don't talk about it. But you can't even look at a fixer upper or tear down for under 900k.
Almost everyone in our neighborhood- maybe 500 homes- retired C Suite, hedge fund or professional athletes. The younger families are usually two income and both making serious cash.
But, no one really flashes it or talks about it. Our best friends in the neighborhood are the ex VP/Limited Partner of Appaloosa Management. He and his wife are two of the nicest people you would ever meet- meanwhile- he is a most likely a complete bastard in business. Kerry Kittles lives between us.
No way I can retire here but it is the type of neighborhood we like. Established and yet- no one acts like it.

 

[Knightmoves]

I've been at it for 1 month and am definitely struggling although I'm certainly eating better, exercising and de-stressing. Have 2 kids, one in NYC and the other in Scotsdale. At least my older one is coming to visit in 2 weeks. I played Ping Pong last night for the first time in 45 years. I'm willing to join any club to be more active. Thanks.

If you are physically well there are lots of outdoor activities to get involved with - senior softball, pickleball, walking, etc that will provide some structure for your time.

I also have a volunteer job delivering meals to seniors one day per week. It’s quite satisfying and feels productive for me. In FL and other states there are water and wildlife and many other local committees to join.

You will need to pursue these new opportunities in order to get involved. Your phone won’t be ringing if you dont initiate interest in a group. It is easily done and you will make some good relationships by joining in. Give it a try.

 

[RU in IM]

Retired at 59

- medical costs need to be assessed before anyone retires. I was a government employee, so 75% of premiums are paid, and I pay about 25%
- paid the mortgage off on 1st and 2nd home before retirement. No consumer debt, other than monthly credit card purchases….. but eventually will need to replace our cars. Second home is in SC, so we can enjoy more outdoor living (golfing/biking).
- I estimated my living expenses, and then made sure I had a 25% cushion of income (from pension, 401k and social security/social security supplement) above projected expenses.
- used a conservative estimate of only a 4% average yearly return on my 401k. I have a very conservative investment strategy.
- I do some very limited consulting to keep my mind fresh.
- built wealth by contributing the max into the 401k, and very sensible expense management.

 

[phs73rc77gsm83]

For a long time, I had been planning on a retirement at 50. Then the company I was making serious cash at went under and my wife was with Washington Mutual when they went under and lost the full value of all their stock she had earned, they didn't pay out her vested deferred commission etc and she lost nearly 2 mil and I was basically starting my career over. Life throws curves every once in a while. I figure I will be working until 70. But, the plan for me to retire very comfortable but not crazy would to have no mortgage and between 2.5-3 mil liquid or fairly liquid and both my wife and I would be at the SS max, so that in itself would be able to carry most of our expenses.

Good for you to have the fortitude to push the reset when adversity hit!

 

[jaydogsmooth1]

We had a neighborhood in Mahwah that started that way and eventually, early 2000's- it became all about those not making bank but qualified for the loans- anyone from here knows Rio Vista. After 2008- ghost town or people living in the houses with almost no furnishings. It has come back a little but not like it was.

Where I currently live- it is almost all people that have the bank and just don't talk about it. But you can't even look at a fixer upper or tear down for under 900k.
Almost everyone in our neighborhood- maybe 500 homes- retired C Suite, hedge fund or professional athletes. The younger families are usually two income and both making serious cash.
But, no one really flashes it or talks about it. Our best friends in the neighborhood are the ex VP/Limited Partner of Appaloosa Management. He and his wife are two of the nicest people you would ever meet- meanwhile- he is a most likely a complete bastard in business. Kerry Kittles lives between us.
No way I can retire here but it is the type of neighborhood we like. Established and yet- no one acts like it.

You're in Franklin Lakes right? Briefly dated a girl from there in mid 20's and was amazed that the homes, but even more so the people they interacted with were totally down to earth. Great town, and now that I think about it, I should have come and worked for you!!

 

[mildone]

It's one of the main reasons I agreed to buy a small farm with my wife. I don't know what to do without work and while I once had hobbies, they've all slowly dwindled away. Right now, it's a pain in the ass as we're still doing upgrades and maintenance (animals/pastures/orchard). But once I'm retired, everything I do in a weekend/ weeknights could be spread out over a week and still give me that sense of purpose.

I was thinking about creating a small farm just to raise sheep. I have a real sense of purpose for that. 😃

 

[yesrutgers01]

You're in Franklin Lakes right? Briefly dated a girl from there in mid 20's and was amazed that the homes, but even more so the people they interacted with were totally down to earth. Great town, and now that I think about it, I should have come and worked for you!!

Yeah- Franklin Lakes. Everyone that knows the area knows the Market Basket. I am in that area called Urban Farms. Great neighborhood for walking.

 

[bethlehemfan]

I was thinking about creating a small farm just to raise sheep. I have a real sense of purpose for that. 😃

Goats for me but I’m thinking we have different motives.

 

[e5fdny]

If you are physically well there are lots of outdoor activities to get involved with - senior softball, pickleball, walking, etc that will provide some structure for your time.

I also have a volunteer job delivering meals to seniors one day per week. It’s quite satisfying and feels productive for me. In FL and other states there are water and wildlife and many other local committees to join.

You will need to pursue these new opportunities in order to get involved. Your phone won’t be ringing if you dont initiate interest in a group. It is easily done and you will make some good relationships by joining in. Give it a try.

Always liked ya, @Knightmoves.

But after reading the bolded, you’ve moved up a notch. Good job, man. 👍🫡

 

[yesrutgers01]

Goats for me but I’m thinking we have different motives.

As I am eating curry goat…yum

 

[jtung230]

As I am eating curry goat…yum

There is a Jamaican food truck on 48th and Park Ave that serves a curry goat. They used to have the best fried chicken because they fried it the old school way.

 

[czxqa]

Haven't considered supplemental insurance, if you mean AFLAC?
We pay through nose for our LLC health insurance. It's 32-36K/month currently for family coverage, which is absolutely ridiculous because we have minimal health issues (yeah, I know, it's insurance).

No with respect to the AZ home. We made some very fortunate moves 15 years ago, and they paid off. Pure luck on the timing and our need/desire to sell one and build another. We have no expenses for the AZ home except for property taxes (dirt cheap) and hot tub maintenance (yeah, ladi freaking da!- we love our hot tub). Utilities are all electric and we have solar panels on the roof. It's under $5K/year for both. Plus we have rental income on two properties in NJ. We decided we did not want to have strangers staying in our second home, and we are good with that. On top of that, there have been stories of unsavory renters causing problems in our area. We love our neighbors and want to respect their full-time homes, so we leave it be.

With security cameras being cheap and easy to deploy, we have an eye on the house, and the hot tub guy stops by every week, and he can let us know if something looks wrong. Plus our neighbor across the street will let us know if anything looks out of whack.

I'm sorry, you pay $32,000 to $36,000 a month for health insurance? Or is there an implied decimal there?

 

[Knight Shift]

I'm sorry, you pay $32,000 to $36,000 a month for health insurance? Or is there an implied decimal there?

Whoops, that's per year. Sorry, will fix.

 

[T2Kplus20]

I've always had aspirations of retiring in my 40's as there's so much else I want to do in life that work prohibits, both from a time and monetary standpoint.
Then I got married, bought a house and had a child and while that doesn't seem realistic now, retiring in my early - mid 50's is the goal.

We do the traditional saving methods - Roth IRAs, Roth 401 K's, 403-B, and mix in some life insurance we can cash out
Barring something crazy, we'll likely get a modest amount when our parents pass away, and have a decent SS paycheck when it comes time for that
My wife will also have a pension, but accessing that anytime before 55 is a 3 % / year reduction in the amount (also needs to put 25 years in teaching, or reach 55)

We do ok financially - nothing over the top, but not going homeless either
Could probably have some nicer things, but prefer to save $ right now (but not at the expense of vacations, sporting events, Broadway shows, etc.) - more in the realm of pre-owned cars, not going out to eat 4 times a week and having a nice but not over the top wardrobe (nothing wrong w/nice things, just using this as an example)

For those of you that have been able to retire at that age, or at/near 60, what was your methodology?
Was it saving, investing, real estate, inheritance, making big $ for a lot of years, invented or patented something, owned/sold a business or some sort of combination?

My wife and I are in our mid/late 40s. Honestly, we can retire anytime we want now. No plans to do so. We enjoy work and certainly would like to continue to build our investments.

The secret is simple = save as much as reasonably possible + invest aggressively + live below your means

When I say reasonable, I mean you need to live life now. Enjoy vacations, friends, family, etc. However, don't waste your money on things you don't truly value. Don't spend to spend!

Invest aggressively means all/most equities. It's all about time to compound. Bonds and fixed income are financial death at younger ages. You don't need to go crazy with stocks and trading, there are plenty of exceptional ETFs and mutual funds.

The 3rd "secret" is self-explanatory. Live below your means! Spend on what you value but make compromises. We decided to invest in our daughter's education and development, so she goes to private school. In return, we never bought that McMansion, which turned out to be a great decision for many reasons.

One more thing. What do you want to do beyond work? All industries are different but, I was able to do a ton of volunteer/community service while employed and a father. Sure, I can't fly around the world for 6 months. However, you should have some time to pursue your passions.

Let me know if you have any specific questions!

 

[T2Kplus20]

What number do you think is needed to retire in your early 50’s and live comfortably? It all depends on your burn rate.

I personally know people that “retired” in their mid 40’s with 20+ million and were back to work by mid 50’s because burn rate and market downturn. Also know people that retired mid 50’s with nowhere near 20 mill (roughly 3 mill) and are going strong 10+ years later. Don’t have 9-5’s but still have income sources.

Lots of people get bored in retirement because they had no plan to replace what work provides. This includes social connections, purpose, filling up time, and financial resources.

 

[Knight Shift]

I've been at it for 1 month and am definitely struggling although I'm certainly eating better, exercising and de-stressing. Have 2 kids, one in NYC and the other in Scotsdale. At least my older one is coming to visit in 2 weeks. I played Ping Pong last night for the first time in 45 years. I'm willing to join any club to be more active. Thanks.

A guy named SkiBoy retires to Naples. Seems like a mismatch. Can you take up water skiing? 😜

If you like cars, or perhaps even if you do not like cars, go check out the Revs Institute in Naples. All of the docents their seemed to thoroughly enjoy what they were doing. Or if that is not your thing, there is probably another museum or volunteer opportunity to get involved with.

 

[jtung230]

Lots of people get bored in retirement because they had no plan to replace what work provides. This includes social connections, purpose, filling up time, and financial resources.

You know this site is 24/7

 

[RU848789]

Haven't considered supplemental insurance, if you mean AFLAC?
We pay through nose for our LLC health insurance. It's 32-36K/year currently for family coverage, which is absolutely ridiculous because we have minimal health issues (yeah, I know, it's insurance).

I see you fixed that 10 minutes ago, lol. But even ~$34K/year for a family sounds crazy high. When I retired 4 years ago the Merck subsidized retiree family plan (which is quite good) was only $14K/year and we got to drop our son when he turned 26 and it's now just $9K/year for my wife and I. I vaguely recall looking at what health care costs would've been on the outside before I retired and I thought it was around $20K/year - maybe costs have gone up a lot in 4 years, although ours haven't gone up more than 10%.

 

[T2Kplus20]

You know this site is 24/7

LOL! 24/7 is the other site. :)

 

[T2Kplus20]

I see you fixed that 10 minutes ago, lol. But even ~$34K/year for a family sounds crazy high. When I retired 4 years ago the Merck subsidized retiree family plan (which is quite good) was only $14K/year and we got to drop our son when he turned 26 and it's now just $9K/year for my wife and I. I vaguely recall looking at what health care costs would've been on the outside before I retired and I thought it was around $20K/year - maybe costs have gone up a lot in 4 years, although ours haven't gone up more than 10%.

At worst, most pharma/biotechs will let you COBRA their current plans at retirement until Medicare age. Likely would pay $20-25K per year for a family. Something like that.

 

[RUBlackout]

My wife and I are in our mid/late 40s. Honestly, we can retire anytime we want now. No plans to do so. We enjoy work and certainly would like to continue to build our investments.

The secret is simple = save as much as reasonably possible + invest aggressively + live below your means

When I say reasonable, I mean you need to live life now. Enjoy vacations, friends, family, etc. However, don't waste your money on things you don't truly value. Don't spend to spend!

Invest aggressively means all/most equities. It's all about time to compound. Bonds and fixed income are financial death at younger ages. You don't need to go crazy with stocks and trading, there are plenty of exceptional ETFs and mutual funds.

The 3rd "secret" is self-explanatory. Live below your means! Spend on what you value but make compromises. We decided to invest in our daughter's education and development, so she goes to private school. In return, we never bought that McMansion, which turned out to be a great decision for many reasons.

One more thing. What do you want to do beyond work? All industries are different but, I was able to do a ton of volunteer/community service while employed and a father. Sure, I can't fly around the world for 6 months. However, you should have some time to pursue your passions.

Let me know if you have any specific questions!

That is awesome you are in the situation. i am in my late 40s and not in a place to retire. I am targeting $6mm as my retirement goal and factoring in 4% yield on that to not rely on Social Security or any other income sources.
My main issue is having a single income household and I roughly save around $100k per year towards that goal after all expenses. Still live within means but will take much longer to get there,

 

[jmc11201]

My wife and I are in our mid/late 40s. Honestly, we can retire anytime we want now. No plans to do so. We enjoy work and certainly would like to continue to build our investments.

The secret is simple = save as much as reasonably possible + invest aggressively + live below your means

When I say reasonable, I mean you need to live life now. Enjoy vacations, friends, family, etc. However, don't waste your money on things you don't truly value. Don't spend to spend!

Invest aggressively means all/most equities. It's all about time to compound. Bonds and fixed income are financial death at younger ages. You don't need to go crazy with stocks and trading, there are plenty of exceptional ETFs and mutual funds.

The 3rd "secret" is self-explanatory. Live below your means! Spend on what you value but make compromises. We decided to invest in our daughter's education and development, so she goes to private school. In return, we never bought that McMansion, which turned out to be a great decision for many reasons.

One more thing. What do you want to do beyond work? All industries are different but, I was able to do a ton of volunteer/community service while employed and a father. Sure, I can't fly around the world for 6 months. However, you should have some time to pursue your passions.

Let me know if you have any specific questions!

I'm mostly in your boat (mid 40s) and could probably retire with the same lifestyle I'm living now, but without total confidence in the math working just yet. I definitely have fomo on having too much balance in my investments (i.e. too much fixed income vs just buying the s&p). That said a few more years should get me there and I agree that you have to plan for the future but not totally deprive the present.

 

[T2Kplus20]

That is awesome you are in the situation. i am in my late 40s and not in a place to retire. I am targeting $6mm as my retirement goal and factoring in 4% yield on that to not rely on Social Security or any other income sources.
My main issue is having a single income household and I roughly save around $100k per year towards that goal after all expenses. Still live within means but will take much longer to get there,

Don't get me wrong, if we retired now, we would have to make compromises. No beach house (or a very different/less costly option). But we can make it work and live our current lifestyle.

We were tracking to around $6m'ish as well, but then made some really good investment decisions in 2019/2020/2021 and that put us on a new level. Nothing fancy, just pushed new cash into the market at the right times.

 

[miketd1]

What rate of return are y’all plugging into the calculators..? Is 8% pre and 6% post retirement the standard?

 

[yesrutgers01]

There is a Jamaican food truck on 48th and Park Ave that serves a curry goat. They used to have the best fried chicken because they fried it the old school way.

Want to say it is Jerk Pan - right up near the corner. You know it is good when the line is 90% Jamaican. They serve huge portions too.
I never had their fried chicken. But their Brown or “stewed” chicken is good. I usually get the Oxtail.

 

[T2Kplus20]

I'm mostly in your boat (mid 40s) and could probably retire with the same lifestyle I'm living now, but without total confidence in the math working just yet. I definitely have fomo on having too much balance in my investments (i.e. too much fixed income vs just buying the s&p). That said a few more years should get me there and I agree that you have to plan for the future but not totally deprive the present.

Obviously, the key is to have enough cash and brokerage money to make it until you can tap into retirement accounts at 55 or 59.5. Then you are pretty much good to go.

Yes, you need to minimize that fixed income. In your mid-40s, it's all about equities. Go beyond the S&P 500, but that should be everyone's core position. This is a world/society based on technology. Gotta lean that way to optimized returns.

 

[newell138]

I just retired at 60. Last month my wife and I moved into a house that we built in Naples. It took a combination of saving (living modestly i.e. not driving fancy cars), investing, an inheritance and selling our NJ house last year to be very comfortable that we have enough money to not outlive it. I've really noticed over the past few years how money works to make more money.

We currently live off fixed income. We've not started SS yet as my wife is a year off and I'm a few years from meeting the minimum age. We're just not big spenders and we don't travel often. I'm currently paying for COBRA to cover our healthcare as AMA (we priced out for our situation) is just as expensive as COBRA and I really like my prior Japanese company's healthcare plan (no deductibles etc.).

The hardest part of retirement once the money is figured out, is what to do with your time. For many years, my sole goal was to build wealth and retire. With that goal met, I've discovered I'm not sure how to live and what to do. I've come to the realization that I don't have hobbies that I'm passionate enough about to occupy my time. I'm also unsure about what my purpose is. I can easily see myself going back to work, although I disliked what I did for a living, simply to feel like I have purpose.

That’s been my thought as well. I don’t really have any crazy hobbies or anything I’m passionate about like golf or even pickleball so why retire early? I could retire now but I still love my job and only have to go to the office 1x per month. With 6 weeks vacation and 15 paid holidays along with a company wide shutdown for another 2 weeks at the end of the year, free time is also not an issue. So I plan to keep working until they tell me to stop.

 

[T2Kplus20]

That’s been my thought as well. I don’t really have any crazy hobbies or anything I’m passionate about like golf or even pickleball so why retire early? I could retire now but I still love my job and only have to go to the office 1x per month. With 6 weeks vacation and 15 paid holidays along with a company wide shutdown for another 2 weeks at the end of the year, free time is also not an issue. So I plan to keep working until they tell me to stop.

Hard to say no to getting paid a lot of money for doing something you enjoy and is very flexible (with location, travel, and logistics).

 

[KK1827]

What will you do on a daily basis if retired in your 40’s? I personally could never retire, id be too bored

 

[ClassOf02]

That’s been my thought as well. I don’t really have any crazy hobbies or anything I’m passionate about like golf or even pickleball so why retire early? I could retire now but I still love my job and only have to go to the office 1x per month. With 6 weeks vacation and 15 paid holidays along with a company wide shutdown for another 2 weeks at the end of the year, free time is also not an issue. So I plan to keep working until they tell me to stop.

Perfect situation. If you enjoy what you do, keep that revenue stream flowing!

 

[RUBOB72]

Interesting take on the medical needed in retirement. After 9 years of retirement we are still going through my former company and it is an excellent plan Aetna National Medicare Advantage PPO. included are an above average dental plan and eye care. Co pays for prescriptions 5-10-20 no limits. The cost $ 380 each per month but has been well worth it. That was a topic of discussion with many former classmates who were retiring around the same time in 2015.

 

[SkiBoy]

That’s been my thought as well. I don’t really have any crazy hobbies or anything I’m passionate about like golf or even pickleball so why retire early? I could retire now but I still love my job and only have to go to the office 1x per month. With 6 weeks vacation and 15 paid holidays along with a company wide shutdown for another 2 weeks at the end of the year, free time is also not an issue. So I plan to keep working until they tell me to stop.

You’re very fortunate to have a job that you love and without the stress of a bad commute. I was in a hybrid job having to go into NYC 3 times a week and hated everything about the commute. Add that to a job that I was no longer excited about.

as for the post above ”Ski” is a Nickname based on my last name and not related to skiing. I haven’t skied since my 20s due to my knees. It’s a retirement activity that I will pass up. I feel the same about golf and pickleball

 

[newell138]

You’re very fortunate to have a job that you love and without the stress of a bad commute. I was in a hybrid job having to go into NYC 3 times a week and hated everything about the commute. Add that to a job that I was no longer excited about.

as for the post above ”Ski” is a Nickname based on my last name and not related to skiing. I haven’t skied since my 20s due to my knees. It’s a retirement activity that I will pass up. I feel the same about golf and pickleball

Naples is not a bad place to retire lol. We were just there last week and some of those homes are ridiculous

 

[RUBlackout]

What rate of return are y’all plugging into the calculators..? Is 8% pre and 6% post retirement the standard?

I’m much more conservative in just flat 4% pre and post retirement. I do that to just look at worst case scenarios and anything above and beyond d is gray. If I get 8-10% pre I would reach my goals in much shorter term frames

 

[RU848789]

That’s been my thought as well. I don’t really have any crazy hobbies or anything I’m passionate about like golf or even pickleball so why retire early? I could retire now but I still love my job and only have to go to the office 1x per month. With 6 weeks vacation and 15 paid holidays along with a company wide shutdown for another 2 weeks at the end of the year, free time is also not an issue. So I plan to keep working until they tell me to stop.

And if you're lucky, they'll give you a nice separation package to leave...

 

[vkj91]

What will you do on a daily basis if retired in your 40’s? I personally could never retire, id be too bored

Give it another 15 years of managing people and putting up with their BS. Lol
I’m Meeting your buddy in Tampa tomorrow