Announcement

Collapse
No announcement yet.

Financial Samurai Out of Retirement

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    I don't think I'd be able to stay retired right now. So I haven't. Not surprised others have found the same. A 7 year sabbatical doesn't sound too bad though.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

    Comment


    • #17
      Sometimes I feel very poor when I read this forum.

      Comment


      • #18
        Sometimes I feel poor when reading about other people's portfolios, but then I realize that I'm very comfortable and not living paycheck to paycheck like a lot of Americans. Also whenever I feel like I'm having a bad day at work, I realize that I'm not a patient and things could be a lot worse.

        Comment


        • #19
          Originally posted by Lordosis View Post
          Sometimes I feel very poor when I read this forum.
          You think you feel poor here...move on over to the Bugatti Owner's Club!

          Comment


          • #20
            Looks like Suzie is right. A net worth of at least $5M to RE makes sense, especially when you have children and/or live in H/VH COLA. If you're looking at RE prior to 40, $10M is probably a more practical number to cover another potentially 60+ years of living expenses (that comes out to about $167K/year in today's dollars, a scary early drawdown on Dogen's budget of double that.). No general Social Security, IRA/401(k) or Medicare access in the earlier years of RE so cash flow restrictions have to be factored in at least until age 59 1/2.

            The RE crowd really should produce a set of rules needed to educate people on what it really takes to actually RE - as one can see it is very, very difficult and elusive even to the "guru's". Those rules have to factor in anticipated length of retirement, lean or moderate or fat FIRE, geographic COL, number of children, etc. The 4%/25x annual spending rule obviously don't hold for a 60 year retirement, and was never designed to. 2%/50x as a gut feeling seems more appropriate for a 60 year retirement?

            Even retired millionaires worry about things like health care/long term care costs, inflation, funding children's education, recessions, etc. The sweet spot to avoid those worries in RE is probably somewhere around $20M it seems. My target is significantly higher than that to include philanthropy and legacy planning for multiple generations. At this time I'm personally not interested in RE.

            Comment


            • #21
              Originally posted by EntrepreneurMD View Post

              The RE crowd really should produce a set of rules needed to educate people on what it really takes to actually RE - as one can see it is very, very difficult and elusive even to the "guru's". Those rules have to factor in anticipated length of retirement, lean or moderate or fat FIRE, geographic COL, number of children, etc.
              You think that something this complicated can be distilled down to a few boilerplate "rules?"

              Comment


              • #22
                Originally posted by Lithium View Post

                You think that something this complicated can be distilled down to a few boilerplate "rules?"

                Yes, it's like the regular retirement boilerplate rules, no difference. Problem is RE crowd is using the regular retirement rules without bothering to factor in the extra, more expensive early years of RE (as evidenced by their vocal disagreement with Orman), with their increased obligations (kids, etc.) and withdrawal restrictions, thus most are forced out of RE. Some RE guidelines can be used in the same way financial advisors use on time retirement rules as a general guide. Some on time retirees need 4%, some 3.6%, some 5%, others 2% - they are general not hard rules but do provide reasonable guidance to increase the odds of RE success.

                Comment


                • #23
                  Rules to retire early:

                  1.) Have more than you need.
                  2.) See Rule #1.

                  Comment


                  • #24
                    Originally posted by Hatton View Post
                    I recently retired. I am making 250k passively from investments. I feel like this is more than enough to support me. Not having a job is definitely an adjustment. I am finding lots of things to do during the day when I used to work. It is a great opportunity to meet new people. You have to expend some effort to fill up the time with productive healthy activities rather than watching TV and wishing you had a job.
                    That’s terrific. Can you provide some general details of your retirement sources for $250k of passive income? Is that only dividends and interest or are you spending principal? Do you have other rental or business income?

                    Comment


                    • Hatton
                      Hatton commented
                      Editing a comment
                      No real estate. Mainly dividends and interest.

                  • #25
                    Originally posted by EntrepreneurMD View Post
                    Looks like Suzie is right. A net worth of at least $5M to RE makes sense, especially when you have children and/or live in H/VH COLA. If you're looking at RE prior to 40, $10M is probably a more practical number to cover another potentially 60+ years of living expenses (that comes out to about $167K/year in today's dollars, a scary early drawdown on Dogen's budget of double that.). No general Social Security, IRA/401(k) or Medicare access in the earlier years of RE so cash flow restrictions have to be factored in at least until age 59 1/2.

                    The RE crowd really should produce a set of rules needed to educate people on what it really takes to actually RE - as one can see it is very, very difficult and elusive even to the "guru's". Those rules have to factor in anticipated length of retirement, lean or moderate or fat FIRE, geographic COL, number of children, etc. The 4%/25x annual spending rule obviously don't hold for a 60 year retirement, and was never designed to. 2%/50x as a gut feeling seems more appropriate for a 60 year retirement?

                    Even retired millionaires worry about things like health care/long term care costs, inflation, funding children's education, recessions, etc. The sweet spot to avoid those worries in RE is probably somewhere around $20M it seems. My target is significantly higher than that to include philanthropy and legacy planning for multiple generations. At this time I'm personally not interested in RE.
                    So your target is significantly higher than 20 million? keep plugging away buddy.

                    Comment


                    • #26
                      Rules for RE are simple:
                      Rule 1.) Zero earned income
                      Rule 2.) See Rule 1


                      Comment


                      • #27
                        The problem is the unknowns. It is possible to have a family and only modestly increase your spending. Not if you plan on private daycare for a 2 year old.

                        it is hard to predict how much money you are going to spend when you are only a third of the way through your life.
                        ​​​​​​​

                        Comment


                        • #28
                          250K per year sounds a lot but in the Bay area it is average income. So I understand his wanting to earn more per year, especially if he has to fund college expenses or one, and maybe 2 children.

                          I also agree that stay at home dad is hard. I would not do it. I will gladly work and pay a nanny $30K a year or more rather be a full time caretaker for my child. I need the mental stimulus of work as a physician and feel better and will be a more loving father after returning from daily work. I don't know how stay at home Dads do it.

                          But sometime he comes off a bit too smug in his blog. I don't read it on a regular basis but from what I saw in the past he seemed a bit too self centered. He may not feel like uprooting and moving to Midwest or South but stating that he cannot get the Chinese culture except in California is ludicrous. I have found Indian culture in the deep South and there are quite a few Chinese here too.

                          Maybe returning to work is the right thing for him.

                          Comment

                          Working...
                          X