EARLY Retirees: what age did U retire, what did U earn? how did U save/budget?

[gunslinger256]

I'm retired at 50 but honestly struggling on 1 income for the time being.

From a retirement fund perspective we are comfortable for the simple fact that we started as early as we could saving as much as we could in tax deferred accounts (virtually nothing in savings though). Add to this the fact that some of our jobs still payed a pension when we worked there and our retirement picture looks pretty good as long as we're not spending on travel and kids.

combining all of our retirement funds would put us close to the $1M mark but not quite there. Some of my assets throw dividend income of around $10k per year and hopefully the funds will continue to grow past the M mark.

Right now we are working on paying down our substantial credit card debt and I am looking for work to speed things along.

Have been retired for about 2.5 years and have really enjoyed not working so not looking forward to going back to work to pay some bills.

without the credit card bills, the one income would work out great for us.

We live frugally these days, buying items we need at thrift stores whenever possible. No cell phone contracts, no cable bills. Most of our debt is from travel and furnishing our new house.

I understand now that young people spend too much money on unnecessary things (some stuff from my own experience: big house, home theater, motorcycles, luxury cars, electronics, summer camp, day care, etc).

Travel is questionable. One one hand it's expensive to see the world. On the other hand, it expands your children's understanding of the world.

[mysticaltyger]

Originally Posted by Submariner

You do not need very much to retire.

It depends on where you live and the desired lifestyle. Generally speaking, I agree. But some people really do have low incomes or made choices that can't be reversed that really do make early retirement impossible or nearly so.

[Harpaint]

We did it by emulating my Dad. Buy low and sell high in real estate and equities. Also buy small houses that need primarily cosmetic improvements and then rent out or sell. Buy some equities for the dividends and just ride the highs and lows.

[mysticaltyger]

Originally Posted by Submariner

A family earning $25k here is well above the average household income level, regardless of how many children they are raising.

That sounds really low to me. No offense, but it's probably not a place I'd want to live.

But 25K for a single person in an average cost metro area whose house is paid for can be ok. I have a friend in this situation. He works part time for about 30K per year and his condo is paid for. It's not luxury living, but it's definitely not poverty, either.

[tgbwc]

Originally Posted by saralvr

A couple of friends retired around 55 from teaching. Again, full pensions and medical insurance. All raised children and put them through college.

Full pension as in the same as their salary and full medical meaning they didn't have to pay premiums?

I will be able to retire from teaching at 55, but the state system pays 51% of our highest three years. Medical insurance for retired teachers costs the retiree between $500 and $550 for the individual, depending on the plan.

[stan4]

Originally Posted by richrf

We were both working and always tried to save one income. We retired at 50. The trick is not how much you make but how much you spend.

This is so true.
Here is an extreme example that is happening right now:


We are revamping some scheduling issues.
Most people involved make $20k-35k a month.
The schedule revamp will make it so one month you will make maybe $3-6k less but for two months you will make it up.
We're having to revamp the pay structure because some people can't take a pay cut for one month despite making it up the next two months.
My opinion? You are doing something VERY WRONG if you can't handle a little variability month to month (if the year winds up being the same).
Why can't they handle it?
They are spending every last freakin' dime.
Not smart.
Doubt they will be retiring early.