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Old 02-26-2016, 12:58 AM
 
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Quote:
Originally Posted by Vision67 View Post
I know some who voluntarily quit working by mid-50s because they have saved enough. They are typically very successful professionals who had no need to continue working.
This description fits Mr. Money Mustache. Except he and his wife saved 2/3 of their professional salaries and retired around age 30.
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Old 02-26-2016, 01:01 AM
 
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Quote:
Originally Posted by hikernut View Post
Some of them are still working... granted on their own terms. Others are living what I would call a dangerously thin existence. It might all pencil out today but I think they underestimate the difficulty of supporting themselves for potentially 50-60 years on savings and investments. The danger here is that one might be fine for a couple of decades, but then realize they've cut it too thin. Good luck with that job hunt at age 55 or 60 when one's most recent work history is 25 years in the past.
Actually, if you set your investment portfolio up to last 30 years, the amount you need for a 60 year portfolio is really only a tiny bit larger (or your withdrawal rate only a tiny bit smaller). If you just make small adjustments along the way (some side income here and there, reducing what you take out of your portfolio in bad years), you can make it work pretty easily. The math pencils out.
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Old 02-26-2016, 01:06 AM
 
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Quote:
Originally Posted by hikernut View Post
I "get" the message of not waiting until it's too late to do the things we want, but there is always the middle ground here. It doesn't have to be an all-or-nothing proposition.
But typically people who retire early in their 30s and 40s (I'm not talking bums or people living off disability--I'm talking people who saved and invested a high percentage of their salaries for a decade or 2) will have bit of side income here and there. The advantage to early retirement is if you see trouble coming, you have time to maneuver and make adjustments. If you're a typical worker today, only saving 5% or 10% of your salary, and your job gets automated away or offshored, you have to make very radical adjustments in a short period of time--and clearly a lot of of people are not successfully doing it for the simple reason that it's much harder to pull off than getting a part time job or taking a little less out of your investment portfolio (or maybe a little of both).
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Old 02-26-2016, 01:09 AM
 
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Quote:
Originally Posted by Serious Conversation View Post
The economy isn't that bad now, but going forward, I think automation and political upheaval in the US is going to greatly disrupt the economy. Maybe my thinking is along the lines of partying while the Titanic sinks.
You could be right, but if that's the case, it won't matter if you're retired or not. In fact, the retirees may actually have room to maneuver, because they have the time and energy to take a bird's eye view and take action if they see difficulty coming. People stuck in the rat race are more likely to have tunnel vision and/or have less ability to do something about it even if they see trouble coming.

I think of Jacob from Early Retirement Extreme. Lives on very little money. Grows some of his own food. Has lot of handyman skills. People like him are much more likely to do well in times of crisis than people with no money and over-specialized skills.
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Old 02-26-2016, 01:18 AM
 
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Originally Posted by dmills View Post
I have strong feelings about this topic, because it used to be a term that recognized and honored a person for a lifetime accomplishment. I think in recent years, the term has been hijacked and has lost it's meaning.
The thing is, for people with above average incomes, it really doesn't take a lifetime to achieve retirement provided they reject many of the usually trappings of middle and upper middle class life.

Most early retirees focused on few key strategies:

--They live in smaller living quarters than people of their peer group.

--They keep transportation costs low by skipping cars completely, or driving used cars (but still living close to work to reduce their dependence on them).

--General frugal shopping (for groceries, etc. Rejecting lots of "necessary" entertainment spending like cable TV and eating out in favor of going to the library, learning practical skills, spending quality time with friends, family, and/or volunteering in the local community).

--They buy stuff used, not just cars, but also stuff like furniture. They have practical skills (like learning how to refurbish furniture & learning to fix cars)

--Not having kids or only having one. They definitely wait until they are really ready to have them. They generally avoid out of wedlock births and divorce like the plague.
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Old 02-26-2016, 04:35 AM
 
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"They generally avoid out of wedlock births and divorce like the plague."

Looks as if we have the morality police among us. Me and my fiancé are happily unmarried with a 3-year-old boy (planned). We are in no big hurry. Kurt Russell and Goldie Hawn have been happily unmarried for three decades. :ver and out::
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Old 02-26-2016, 06:42 AM
 
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Most "out of wedlock births" refer to a situation in which the Baby Daddy is not in the picture or at least not supporting the woman and child; not committed, longtime couples who simply didn't fill out the paperwork and that being the only difference.
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Old 02-26-2016, 07:24 AM
 
Location: NC Piedmont
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I am no prude and not on the morality police force, but while sweeping generalizations are bad, they are often based on correlations that are statistically significant. There are no guarantees and there are definitely exceptions.
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Old 02-26-2016, 09:23 AM
 
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Originally Posted by daisy2010 View Post
I wouldn't call a college professor who works 70 hours a week "retired". Retirement to me involves voluntarily leaving a long term, full time career, focusing on something other than your prior career, and not putting in full time hours anymore. If you're still working 70 hours at your career then you're not "retired". Perhaps you're putting in 70 hours because you love doing that and you don't consider it "working" but to me it's still not retirement.

I agree with dmills. It's rare that someone under 55 acquired enough wealth to voluntarily leave a job.

.
Agree! And I wouldn't consider someone retired if they ARE busy full time with a new business, or a different line of (paid) work.

Last edited by Tim Randal Walker; 02-26-2016 at 10:32 AM..
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Old 02-26-2016, 09:46 AM
 
Location: Paranoid State
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I was financially successful, so I semi-retired in my mid-40s and fully retired before 50,

Except, IMHO, there is no such thing as retirement; you just change what you do every day. You don't sit at home watching Wheel of Fortune. You have goals and objectives. You make & execute plans. Perhaps it is endowing a chair or new engineering building at a research university; perhaps it is endowing an expansion in a hospital; perhaps it is establishing a charitable trust; perhaps it is being a "Big Brother" or "Big Sister"; perhaps it is volunteering in the community or even a hospice; perhaps it is supporting aging parents & relatives.
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