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Old 01-04-2010, 03:01 PM
 
8,190 posts, read 11,905,691 times
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Quote:
Originally Posted by loveautumn View Post
These days early retirement is a pipe dream unless you have a government pension (high) with medical benefits.
There are over 9,000 members of this online community who would beg to differ with you.

Early Retirement & Financial Independence Community
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Old 01-04-2010, 04:52 PM
 
71,507 posts, read 71,674,131 times
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Quote:
Originally Posted by loveautumn View Post
Really, 59 is quite young to be retiring unless you have some serious physical limitations and why collect SS @ 62? I'd say keep working until you absolutely can't anymore. These days early retirement is a pipe dream unless you have a government pension (high) with medical benefits.


yep thats the retirement plan for most of america, WORK UNTIL YOU CANT..


not my idea of how i want to do it, retiring at 58 next year...no pension to speak of and no paid medical. just doing it on a lifetime of planning, investing and to some extent luck.

Last edited by mathjak107; 01-04-2010 at 05:46 PM..
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Old 01-04-2010, 04:54 PM
 
71,507 posts, read 71,674,131 times
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Quote:
Originally Posted by MadManofBethesda View Post
There are over 9,000 members of this online community who would beg to differ with you.

Early Retirement & Financial Independence Community
one of my favorite forums.. quite a few very very smart folks... even smarter then us madman lol
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Old 01-04-2010, 05:41 PM
 
Location: Sierra Vista, AZ
16,133 posts, read 20,817,345 times
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Quote:
Originally Posted by MadManofBethesda View Post
There are over 9,000 members of this online community who would beg to differ with you.

Early Retirement & Financial Independence Community
Depends on where you live. I went out at 53, my expenses run $36K to $39K. I live in Arizona. If you can get through until Social Security, you should never have to touch your 401K
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Old 01-05-2010, 06:45 AM
 
29,772 posts, read 34,856,103 times
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Quote:
Originally Posted by dave w View Post
the reason i have the 300k is because i was out of the stock market when it crashed earlier this year. I'm sitting in money markets waiting for interest rates to go back up to purchace CD's.I don't trust the market anymore and i don't trust the government.
but my 2800.00 pension is cut in half at age 62 and 1 month,then i have to apply for
SS to make up the difference or postpone SS and make up the diff.I was given a suppliment to get to that age.But im trapped like everybody else i have 2 houses that are worth less now ,saving that doesnt keep up with inflation.no debt though
Please clarify, did you get out in March at the bottom and lock in you market losses? You only lose or gain when you sell and if you hadn't look how much the market has come back and how much more you would have today if you had maintained the same portfolio. Have you decided to wait until this record run is over to make money again in some investment format? Even if low in a low interest CD?
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Old 01-05-2010, 10:03 AM
 
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I was fortunate and exited the market in Aug 08, knowing i was retiring and did'nt want to lose what i had built up. Since April of 09 i bought an sold a couple of short term equities.yes the market has come back 60% but i'm still ahead 40% ,not that i'm a great market timer.I still believe this current bull run is predicaded on stimulus from the government and is unsubtainable and the markets will fall back.I feel you can't be
a buy and hold investor anymore.If i'm right and the market retraces i might dabble a little, but very cautiously. I feel interest rates will rise and i will be able make some money in bonds and cd's but won't possibly lose thousands by being fully invested and able to sleep at night.That the way i roll, i probably haven't made the most but i haven't lost the most.You've heard the old adage its not what you make it's what you keep.
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Old 01-05-2010, 10:10 AM
 
29,772 posts, read 34,856,103 times
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Quote:
Originally Posted by dave w View Post
I was fortunate and exited the market in Aug 08, knowing i was retiring and did'nt want to lose what i had built up. Since April of 09 i bought an sold a couple of short term equities.yes the market has come back 60% but i'm still ahead 40% ,not that i'm a great market timer.I still believe this current bull run is predicaded on stimulus from the government and is unsubtainable and the markets will fall back.I feel you can't be
a buy and hold investor anymore.If i'm right and the market retraces i might dabble a little, but very cautiously. I feel interest rates will rise and i will be able make some money in bonds and cd's but won't possibly lose thousands by being fully invested and able to sleep at night.That the way i roll, i probably haven't made the most but i haven't lost the most.You've heard the old adage its not what you make it's what you keep.
That explains and you have good reason for your position. Only thing better would have been to come out in October 07. Wish I had and come back in March 09. However you can't time and with a balanced portfolio etc I have no current complaints.
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Old 01-05-2010, 10:13 AM
 
Location: Sierra Vista, AZ
16,133 posts, read 20,817,345 times
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This thing with the CDs is getting old, I still have a 5.3% and a few 4.4%s but after that I'm tanking.
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Old 01-05-2010, 10:53 AM
 
4,572 posts, read 7,055,913 times
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Hey, I'm very happy for those who can retire "early" if that's what they want to do...but 9,000 people is a drop in the bucket compared to the millions of baby boomers who are headed for the pipeline now. Everyone's situation is different, some made lots of money, most have a considerable amount saved but it may or may not be enough, and alot of people have very little in the way of retirement funds. I started cutting back on spending about 15 years ago and I find as I get older, the less stuff I need anyway.
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Old 01-05-2010, 11:07 AM
 
Location: zippidy doo dah
895 posts, read 1,330,598 times
Reputation: 1928
Default Hindsight's 20/20 foresight

Hindsight2020 "good-pointed" Dave's line of questioning and then added some very thought-provoking considerations.

"Houston, we DO have a problem."

There are many many boomernistas out here that do not have anywhere near 300K put aside, nor are we packing 2800. a month pensions and owning multiple homes that provide shelter and likely have some residual value. If some of you think Dave is in trouble, I echo Hindsight with the "uh oh" but I don't think it's 30 years in the offing. I had an excellent nest-egg which was shattered by the housing collapse, stock market debacle, job loss, marital disruption and health issues. And somehow, I don't think my situation is extraordinary. I often thank God that I actually still have SOMETHING put away (far short of 300k), that I have simplistic needs and desires and that I have approximately 2000.00 a month to live on. And while I no longer have a mortgage, I have its sister called "rent". Equity is a faint memory buried in the ever-eroding sands of southwest florida.

If one can't make it on 40K plus in the future with a sizable nest egg, then those of us anticipating approximately 1/2 of that with so-so or no nest-eggs are completely screwed. I suppose I'm too much the optimist - I'm not worrying about it. I played the game - I did the right things - I achieved the American Dream in all senses of the word. If this is what is the result, this country is in far more serious trouble than any of us ever imagined. Something is seriously wrong with the evolving picture.

Quote:
Originally Posted by hindsight2020 View Post
Dave w brings up a good point of discussion about the fate of future generations. As we can see the folks retiring today are mostly a hybrid of remaining pension beneficiaries with 401Ks. Most here have a scathingly negative outlook on our friend dave's ability to outlast his money.

This poses the question then, what is the social landscape going to look like in 30 years when pretty much ALL retiring workers are of the kind that never had a pension benefit and only had the benefit of 401K for retirement since day one at work? Mind you, the average balance on these accounts is a measly 50K, which frankly makes our friend Dave a statistical outlier in terms of 401K balances as a 55+ individual....

I ask again, if our friend dave, with a 1/2 a pension and 4 times the mean balance of 401K holders can't outlast his money, what's the outcome for the millions of people with no pension and 50-100K in a 401K???? We got a big problem folks. Where are all these people gonna go? Die quiet deaths? Heck no. Somebody is going to have to pony up the difference for millions of people working full-time till they're too sick to stand. I really don't see this as a matter of 'that's your problem joe' anymore, we're all about to get a bill for this generational short fall. Mr Dave already alluded in jest to his plan B if the money runs dry, "let the state take care of me". Jest aside, this is coming from a guy with a pension and above average 401K balance. Remove the pension and 50% off that 401K, that's dave's equivalent 30 years from now. Anybody else not alarmed by this? Thoughts?
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