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Old 12-03-2019, 08:12 AM
 
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How do you invest?

$0 debt. 3br home paid for. Car paid for.

How much do you live on per year?

Can you have fun?

 
Old 12-03-2019, 08:16 AM
 
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No. You can’t have fun. Go work. I couldn’t deal with that much time on my hands.
 
Old 12-03-2019, 08:31 AM
 
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Nope but you could retire at say 55-60 and live well if you continue to save/invest and live within your means.
 
Old 12-03-2019, 08:42 AM
 
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Quote:
Originally Posted by SWFL_Native View Post
Nope but you could retire at say 55-60 and live well if you continue to save/invest and live within your means.
Why 55? How much do you need? Would you be running low by 55?
 
Old 12-03-2019, 08:52 AM
 
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The amount you need to retire goes up substantially as you reduce your retirement age. Eventually market forces, inflation, medical costs, maintenance etc would destroy your principal and you would be looking at returning to work 20 years or so into your break which would be very difficult.

You would be stuck chasing very risky, high return assets to try and spin off a decent return. Any market disruption would be quite devastating as you draw down while the bear is feasting.

The numbers look like they could work. Market returns 10%, that is 80k a year. I can live on less than half of 80k a year in a low COL area. While that math has held true for very long periods the problem is when you hit a patch of 3 or 5 years (or more) where returns suck or you are forced to draw down during a 50% downturn and you get a sudden realization the math isn't so simple. Insurance gets progressively more expensive, that house will require updates to the roof, HVAC, appliances etc and you'll need new vehicles. I also assume you want to do something besides sit at home and play on the internet all day.

I won't tell you it is impossible to do it. You could forgo health insurance and make the mad dash to 65 hoping you don't lose the genetic lottery. You could leverage your house and use the money to buy on downturns, juicing your portfolio and or fund yourself should markets take a short term dump. Your needs could be modest, you could live on a farm out in BFE and the only thing you need is to harvest your eggs and green house plants while you sit in the deer stand counting the points on the antlers.

People can live on virtually nothing. That isn't most folks though and trying to cut out in your 30's is far more likely to lead to failure than long term happiness.


One other thing, how much you needs varies tremendously. Some people can barely pay their bills and make 15k a month, others live on 700 a month somewhere cheap and do ok.
 
Old 12-03-2019, 09:15 AM
 
75,712 posts, read 75,109,792 times
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Quote:
Originally Posted by eddiehaskell View Post
How do you invest?

$0 debt. 3br home paid for. Car paid for.

How much do you live on per year?

Can you have fun?
why you asking now after all these years of supposedly not working based on your prior posts
 
Old 12-03-2019, 10:06 AM
 
13,087 posts, read 10,434,352 times
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Quote:
Originally Posted by eddiehaskell View Post
How do you invest?

$0 debt. 3br home paid for. Car paid for.

How much do you live on per year?

Can you have fun?
Me personally or the average person? The answers will be different for each person due to differences in preferences and family size.

Me personally, I would probably sell the house and move to a place where I can work at a very high risk green energy tech startup, with most of the wealth in mutual funds. If the startup fails, I can just live off the investments until I find the next thing that is more enjoyable than not having a job, which could happen in a few months or might take a long time. With that amount of freedom there would be no need to pre-commit one way or the other, I could explore different options and see what I like best.
 
Old 12-03-2019, 10:13 AM
 
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I ran the basic numbers from the OP in firecalc.com, just as a crude 'what if'.

$800k for 50 years (so, assuming OP is 35 for 50 years and dies at 85).

In order to get a 95% success rate using the defaults - that means he'll have to manage on $28K per year for ALL expenses.

Not the kinda lifestyle I would want to have.
 
Old 12-03-2019, 10:23 AM
 
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Using the 4% rule that’s not enough for someone so young. Plus cars have to be replaced and houses maintained.
 
Old 12-03-2019, 10:27 AM
 
917 posts, read 241,343 times
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Isn't the 4% 'guideline' only for a 30 year retirement horizon?
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