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If I hadn't have accidentally discovered Mr. Money Mustache in early 2014 when I was 55, I'd be in deep **** now financially. It woke me up to getting completely out of debt as quickly as I could, which I did within 5 months on everything except the house mortgage, and started packing my 401k as much as I could and otherwise get financially fit.
By June 2016, the company I had been working for the last 28 years had been sold 100% to one of the former 50% owners, and they started on a path of reduction in force. I ended up losing my job at the end of September, and was able to early retire at the age of 57.
I got 1 year separation pay, 1 year medical and dental, and had enough retirement points to actually get a monthly pension, though that's minuscule. However, since I was over the age of 55, I had the ability to tap my 401k at regular tax rates, without having to pay additional 20% penalty. I didn't have to touch the 401k for over a year as we lived on the sep pay left over after I paid off the mortgage and got 100% debt free. As a retiree, I also qualify to continue to keep my 401k in their system, which is one of the top 401k's in the USA. I also qualify for the company pre-medicare eligible medical insurance at MUCH reduced cost.
I owe a lot to him slapping me awake, and only wish I had found him 5 years earlier...
@mikebear, It's great that he was helpful to you. I have read both MM and Ms Orman and simply come to the conclusion that they are sales people like any other sales person (including Dave whats his name) trying to hawk a product.
I dislike their "holier than thou' attitudes and "I'm the smartest cookie in the bunch" mentality. Just my take.
lol, millions of folks have been doing pretty much what they sell for years without any fanfare or PBS specials.
Personally I got the message for free from my parents.
1) don't spend more than you make
2) don't use credit cards.
3) Save for a rainy day.
I totally agree though, that Mz Orman hawks fear. I've watched her show and seen her PBS specials. Her overriding them is "you are in deep dooodoo unless you follow my advice".
Personally I'm getting ready to listen to a Webinar from a guy named Wade Pfau. it's on factors determing
your retirement portfolio distribution/ Much more useful than anythng these two could give me.
Last edited by eliza61nyc; 10-23-2018 at 03:05 PM..
Oh yes, Dr. Wade Pfau has impeccable credentials and writes extensively about portfolio withdrawal strategies (among other things). I don't doubt his webinar will be very informative.
Nonetheless, I am a fan of MMM. His writing style doesn't bother me; it's just a means to catch people's attention.
If I hadn't have accidentally discovered Mr. Money Mustache in early 2014 when I was 55, I'd be in deep **** now financially. It woke me up to getting completely out of debt as quickly as I could, which I did within 5 months on everything except the house mortgage, and started packing my 401k as much as I could and otherwise get financially fit.
By June 2016, the company I had been working for the last 28 years had been sold 100% to one of the former 50% owners, and they started on a path of reduction in force. I ended up losing my job at the end of September, and was able to early retire at the age of 57.
I got 1 year separation pay, 1 year medical and dental, and had enough retirement points to actually get a monthly pension, though that's minuscule. However, since I was over the age of 55, I had the ability to tap my 401k at regular tax rates, without having to pay additional 20% penalty. I didn't have to touch the 401k for over a year as we lived on the sep pay left over after I paid off the mortgage and got 100% debt free. As a retiree, I also qualify to continue to keep my 401k in their system, which is one of the top 401k's in the USA. I also qualify for the company pre-medicare eligible medical insurance at MUCH reduced cost.
I owe a lot to him slapping me awake, and only wish I had found him 5 years earlier...
Glad you were able to do it! I'm going to step out on a limb here and ask. Did you retire with 5 million in retirement funds?
Glad you were able to do it! I'm going to step out on a limb here and ask. Did you retire with 5 million in retirement funds?
Nope, nowhere near $5 million, and we are doing just fine 2 years later. I live in Mid-Michigan, and the cost of living here is fairly low. I'm not going to jet-set around the world anytime soon, but I have enough to pay all the basic monthly living expenses bills with some left over until full SS, which will more than double what I will still have available to spend from my personal accounts.
@mikebear, It's great that he was helpful to you. I have read both MM and Ms Orman and simply come to the conclusion that they are sales people like any other sales person (including Dave whats his name) trying to hawk a product.
I dislike their "holier than thou' attitudes and "I'm the smartest cookie in the bunch" mentality. Just my take.
lol, millions of folks have been doing pretty much what they sell for years without any fanfare or PBS specials.
Personally I got the message for free from my parents.
1) don't spend more than you make
2) don't use credit cards.
3) Save for a rainy day.
I totally agree though, that Mz Orman hawks fear. I've watched her show and seen her PBS specials. Her overriding them is "you are in deep dooodoo unless you follow my advice".
Personally I'm getting ready to listen to a Webinar from a guy named Wade Pfau. it's on factors determing
your retirement portfolio distribution/ Much more useful than anythng these two could give me.
I read all of MMM's stuff, but didn't notice him selling anything. I have no tolerance for Suze. Fear-mongering. We just sat down with a financial advisor and ran some numbers to decide if we could retire or not. And here we are 2 years later, doing fine.
Credit cards are a wonderful tool. Just pay them off each month. Dealing with cash is a PITA and we have to do it enough here as it is.
Points #4 & 8 of the article in the OP are the most important in my opinion. I'm not a big Suze Orman fan at all. She is such an advocate of not taking SS until you're 70. Her "One Size Fits All" advice is just like OSFA clothing, it really fits no one particularly well. There are as many right answers to the retirement puzzle as their are people who retire.
I like MMM's writing quite a bit. But to be fair, Suze Orman wrote a response after all the backlash from the FIRE movement including the linked article, in which she acknowledged and agreed with many of his points. She contended that FIRE had not been explained to her properly, and she understood it to mean actually retiring in your 30s/40s etc. NOT retiring from your regular job to seek more fulfilling income sources elsewhere. Certainly FIRE does not necessarily mean continuing to work, but in the vast majority of cases the plan is indeed to find supplemental income of some sort.
Anyway, she went on to say something to the effect that the way she understands it now, she was fully on board FIRE long before it became a popular movement, as she has long preached controlling your spending, investing wisely, and seeking financial freedom for the opportunity to pursue more fulfilling endeavors and passions.
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