Comments on: Early Retirement Requires Financial and Lifestyle Planning http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Thu, 23 May 2013 00:17:28 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Bill http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131986 Bill Mon, 12 May 2008 23:47:56 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131986 I retired in my late 20s - not by choice, but because there was no one else to take care of mom. I didn't hate my job, but after 18 months of trying to do both I concluded I couldn't both do my corporate job and take care of mom. It took a decade for her illness to claim her. I'd love to be working back in the Fortune 500, but realistically, I wonder if I'll ever be able to get a corporate job again. I retired in my late 20s – not by choice, but because there was no one else to take care of mom.

I didn’t hate my job, but after 18 months of trying to do both I concluded I couldn’t both do my corporate job and take care of mom.

It took a decade for her illness to claim her.

I’d love to be working back in the Fortune 500, but realistically, I wonder if I’ll ever be able to get a corporate job again.

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]]> By: Rick Francis http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131891 Rick Francis Mon, 12 May 2008 16:58:41 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131891 After thinking about early retirement- I started wondering about how much the years not contributing to retirement plans would affect my nest egg. I'm 38 and have been saving since my mid 20's and have accumulated ~$150K for retirement. Due to the wonders of compounding- I found that if I stopped contributing at 55 but let the money grow for another ten years it would only cost me ~10% of my nest egg! If I stopped contributing at 50 I would still have around 80%. It's not a bad tradeoff for years of freedom. Of course I would still need to work somewhere to cover our living expenses, but by then the house would be paid off, the kids would be on their own and I wouldn’t have to save for retirement anymore either. -Rick Francis After thinking about early retirement- I started wondering about how much the years not contributing to retirement plans would affect my nest egg. I’m 38 and have been saving since my mid 20′s and have accumulated ~$150K for retirement.
Due to the wonders of compounding- I found that if I stopped contributing at 55 but let the money grow for another ten years it would only cost me ~10% of my nest egg! If I stopped contributing at 50 I would still have around 80%. It’s not a bad tradeoff for years of freedom.
Of course I would still need to work somewhere to cover our living expenses, but by then the house would be paid off, the kids would be on their own and I wouldn’t have to save for retirement anymore either.

-Rick Francis

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]]> By: TosaJen http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131865 TosaJen Mon, 12 May 2008 14:46:58 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131865 I find it interesting that people think that retiring early is a binary thing -- "you must hate your job, you must not be having any fun". We're having plenty of fun at my house. We just want to have the financial freedom to choose what we want to do, when, where, and how we want to do it. I agree that doing what you love rocks. Doing what you love on your own terms rocks even harder. I find it interesting that people think that retiring early is a binary thing — “you must hate your job, you must not be having any fun”.

We’re having plenty of fun at my house. We just want to have the financial freedom to choose what we want to do, when, where, and how we want to do it.

I agree that doing what you love rocks. Doing what you love on your own terms rocks even harder.

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]]> By: plonkee http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131823 plonkee Mon, 12 May 2008 09:02:58 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131823 Don't get me wrong, I'd love not to have to work for money. The security that would give would be amazing. The problem is that because it's not a major driver for me, I can't get excited about focussing my money there. Doing something you love rocks. Don’t get me wrong, I’d love not to have to work for money. The security that would give would be amazing. The problem is that because it’s not a major driver for me, I can’t get excited about focussing my money there.

Doing something you love rocks.

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]]> By: J.D. http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131814 J.D. Mon, 12 May 2008 05:33:38 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131814 I think a lot of people are anxious to quit NOW because they don't like their jobs. I used to be one of those folks. Now that I'm doing something I love, the drive for early retirement isn't so pressing. But I'd like to prepare financially to make it an option... I think a lot of people are anxious to quit NOW because they don’t like their jobs. I used to be one of those folks. Now that I’m doing something I love, the drive for early retirement isn’t so pressing. But I’d like to prepare financially to make it an option…

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]]> By: adfecto http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131812 adfecto Mon, 12 May 2008 05:21:31 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131812 I'm with plonkee. You'd have to give me at least $10 million before I'd consider quitting my job, I don't understand why people are in such a rush to quit working. I think it is more to do with the "grass is always greener" than it does anything else. Take vacations NOW. Do the hobbies you enjoy NOW. Don't put all of your energy to what comes next and instead maximize what you've already got. I’m with plonkee. You’d have to give me at least $10 million before I’d consider quitting my job, I don’t understand why people are in such a rush to quit working. I think it is more to do with the “grass is always greener” than it does anything else. Take vacations NOW. Do the hobbies you enjoy NOW. Don’t put all of your energy to what comes next and instead maximize what you’ve already got.

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]]> By: plonkee http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131781 plonkee Sun, 11 May 2008 22:56:12 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131781 You know, I sometimes wonder if I'm the only one not into this early retirement lark. I think if I won the lottery (which I don't play), I'd still keep my job although I *might* cut down to 3 days a week - more time for blogging. I guess that means that my life is pretty good really. You know, I sometimes wonder if I’m the only one not into this early retirement lark.

I think if I won the lottery (which I don’t play), I’d still keep my job although I *might* cut down to 3 days a week – more time for blogging. I guess that means that my life is pretty good really.

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]]> By: A.M.B.A. http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131722 A.M.B.A. Sun, 11 May 2008 12:38:34 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131722 Way to go Soultravelers3! We too, retired early (at age 50 and 41) in 2006, are living overseas with our 2 young children and loving it. However, we will be alternating between overseas and the U.S. We do have a home in the U.S. which is our "base". To those who are worried about being bored during retirement - don't! We're enjoying life too much. I know boredom - chained to a job on someone else's schedule. We work for money when WE want to. As Dave Ramsey says "live like no one else now, so later, you can live like no one else". Way to go Soultravelers3! We too, retired early (at age 50 and 41) in 2006, are living overseas with our 2 young children and loving it. However, we will be alternating between overseas and the U.S. We do have a home in the U.S. which is our “base”. To those who are worried about being bored during retirement – don’t! We’re enjoying life too much. I know boredom – chained to a job on someone else’s schedule. We work for money when WE want to. As Dave Ramsey says “live like no one else now, so later, you can live like no one else”.

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]]> By: Marc Goodin http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131672 Marc Goodin Sun, 11 May 2008 01:10:46 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131672 Ever since I was 30 i was going to retire in 5 years. Well I'm 49 now and several 5 year periods Have gone by. I always new it was going to take money but in the end there was never going to be enough for the perfect retirement. In addtion to the money its about what to do every day and how to enjoy every day. so i made sevearal decsions. The first decision- retire 6 days before I'm 50 - 11 months from now. - from my engineering job The second - Enjoy the summer at home on the lake. The third - spend the fall ans winter traveling - out west ans florida - where it is warm. The fourth - build and internet business (T shirt comapny). Have something to do, maybe make some money. I always happyness is someone to love, something to do and something to look forward to. What are you going to do when you retire? marc Ever since I was 30 i was going to retire in 5 years. Well I’m 49 now and several 5 year periods Have gone by. I always new it was going to take money but in the end there was never going to be enough for the perfect retirement.

In addtion to the money its about what to do every day and how to enjoy every day. so i made sevearal decsions.

The first decision- retire 6 days before I’m 50 – 11 months from now. – from my engineering job

The second – Enjoy the summer at home on the lake.

The third – spend the fall ans winter traveling – out west ans florida – where it is warm.

The fourth – build and internet business (T shirt comapny). Have something to do, maybe make some money.

I always happyness is someone to love, something to do and something to look forward to.

What are you going to do when you retire?

marc

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]]> By: Dickyvman http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131646 Dickyvman Sat, 10 May 2008 21:09:08 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131646 I talk a lot on my website about the very idea of getting to retirement early by being frugal. My objective is to get there by the time I turn 52! I agree with a lot of the other posts that life is way to short. I don't want to work for the rest of my life. http://frugalretirment.blogspot.com I talk a lot on my website about the very idea of getting to retirement early by being frugal. My objective is to get there by the time I turn 52! I agree with a lot of the other posts that life is way to short. I don’t want to work for the rest of my life.

http://frugalretirment.blogspot.com

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]]> By: Soultravelers3 http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131644 Soultravelers3 Sat, 10 May 2008 20:56:05 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131644 We retired early at 50 with a young child and we are traveling the world having a ball living large on little ( since 2006)! It was the best decision of our lives and think this kind of freedom is the way life is meant to be lived. It has been an amazing experience for us as individuals, for our child and for our family. There is nothing better than the gift of time and shared adventures with those you love most. Mobile living is so easy to do today & webcam free skype calls keep us connected to friends and family as we roam. We travel the world for much cheaper than we can live at home. We usually travel for 7 months slowly and then winter in a warm, ocean view villa for very little in the winter months. Here is our website and story: http://www.slowtalk.com Two couples that inspired us, retired in their 30's over twenty years ago and became permanent travelers. You might want to check out their sites and or the early retirement forum. Paul wrote a famous book on the topic: http://www.geocities.com/TheTropics/Shores/5315/ Billy and Akaisha wrote a great ebook too: http://www.retireearlylifestyle.com/orderpage.htm We have become friends with both couples and they are really terrific people. Retiring early is not only doable, it is quite easy and is a fantastic way to live. Life is too short to be chained to long hours of work. The opportunities are boundless for those willing to look. We retired early at 50 with a young child and we are traveling the world having a ball living large on little ( since 2006)!

It was the best decision of our lives and think this kind of freedom is the way life is meant to be lived. It has been an amazing experience for us as individuals, for our child and for our family.

There is nothing better than the gift of time and shared adventures with those you love most. Mobile living is so easy to do today & webcam free skype calls keep us connected to friends and family as we roam. We travel the world for much cheaper than we can live at home. We usually travel for 7 months slowly and then winter in a warm, ocean view villa for very little in the winter months.

Here is our website and story:

http://www.slowtalk.com

Two couples that inspired us, retired in their 30′s over twenty years ago and became permanent travelers. You might want to check out their sites and or the early retirement forum.

Paul wrote a famous book on the topic:

http://www.geocities.com/TheTropics/Shores/5315/

Billy and Akaisha wrote a great ebook too:

http://www.retireearlylifestyle.com/orderpage.htm

We have become friends with both couples and they are really terrific people.

Retiring early is not only doable, it is quite easy and is a fantastic way to live. Life is too short to be chained to long hours of work. The opportunities are boundless for those willing to look.

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]]> By: Kristi Wachter http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131635 Kristi Wachter Sat, 10 May 2008 19:09:38 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131635 <a href="http://www.shirky.com/herecomeseverybody/2008/04/looking-for-the-mouse.html" rel="nofollow">Clay Shirky has some thoughts</a> about the gradual shift toward using leisure for fun and useful tasks (like Wikipedia). Personally, I can't imagine being bored in retirement. I'm hoping to take up gardening (loved the article on suburban farming, JD, and your series on your own garden is just great), and I imagine that will take up as much of my time as I want to put into it. I also play guitar and piano, and I'd love to spend time getting better at those, and I own literally thousands of books, including a lot of the kind of book that takes a lot of time to read well (Homer, Euclid, Bertrand Russell). Add in a few long walks a week to keep in shape and enjoy the neighborhood, plenty of time for leisurely meals, and the occasional project like what Clay Shirky talks about in that link (contributing to Wikipedia or Project Gutenberg or participating in NaNoWriMo or whatever), and I'd STILL feel like there weren't enough hours in the day for all the things I love doing. I try to set aside as much time as I can for those things now, and I'm looking forward to the time when I'll be able to spend all my time that way. Clay Shirky has some thoughts about the gradual shift toward using leisure for fun and useful tasks (like Wikipedia).

Personally, I can’t imagine being bored in retirement. I’m hoping to take up gardening (loved the article on suburban farming, JD, and your series on your own garden is just great), and I imagine that will take up as much of my time as I want to put into it. I also play guitar and piano, and I’d love to spend time getting better at those, and I own literally thousands of books, including a lot of the kind of book that takes a lot of time to read well (Homer, Euclid, Bertrand Russell). Add in a few long walks a week to keep in shape and enjoy the neighborhood, plenty of time for leisurely meals, and the occasional project like what Clay Shirky talks about in that link (contributing to Wikipedia or Project Gutenberg or participating in NaNoWriMo or whatever), and I’d STILL feel like there weren’t enough hours in the day for all the things I love doing.

I try to set aside as much time as I can for those things now, and I’m looking forward to the time when I’ll be able to spend all my time that way.

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]]> By: elisabeth http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131619 elisabeth Sat, 10 May 2008 15:13:25 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131619 JC at 17 and others -- I think "introverts" might actually make an easier transition to not working, since they may not miss the constant social interactions of regular work life. I wonder if the "boredom" reaction doesn't reflect the fact that too many people have to work so much overtime that they aren't able to develop any real life, real activities and interests that are separate from their employment. Which is really sad! And yet, no one starts out like that do they? Or maybe they do -- when I see the college students here who have no interests beyond going out to get drunk, one does wonder what they'll do later in life... anyway, it is important to have some ideas beyond travel -- my mother is now in her later 80s and says that not even a cruise interests her and her equally aged husband anymore. But she does enjoy bridge and other activities and I'm delighted that she's not vegetating in front of a tv... JC at 17 and others — I think “introverts” might actually make an easier transition to not working, since they may not miss the constant social interactions of regular work life. I wonder if the “boredom” reaction doesn’t reflect the fact that too many people have to work so much overtime that they aren’t able to develop any real life, real activities and interests that are separate from their employment. Which is really sad!
And yet, no one starts out like that do they? Or maybe they do — when I see the college students here who have no interests beyond going out to get drunk, one does wonder what they’ll do later in life… anyway, it is important to have some ideas beyond travel — my mother is now in her later 80s and says that not even a cruise interests her and her equally aged husband anymore. But she does enjoy bridge and other activities and I’m delighted that she’s not vegetating in front of a tv…

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]]> By: TosaJen http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131612 TosaJen Sat, 10 May 2008 14:22:40 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131612 We're hoping to have enough funds to retire in a few years (I'm 40, DH is 46.) Retirement to us means having enough money to choose how we spend our time. If we choose to work, we can choose work we enjoy, and only work as many hours as we want to. We won't have to worry about sustaining high-paying careers that require overtime and don't offer more than a few weeks off per year. We can choose jobs we enjoy and move on if we want to, because we have enough money to live on without the jobs. DH has been a SAHD for 6 years, so he considers himself "semi-retired" already. I have the opportunity to perform part-time contract work for a good hourly rate, and moving from being a cog in a corporation to that would feel like retirement to me. What is our gating factor for actually retiring early? Waiting to see where health insurance is going. I don't care so much about universal coverage with a single supplier, which conservatives are railing against. I want to see universal access to reasonably-priced health care, even when you're not working for a major employer. DH has preexisting conditions, so individual insurance coverage for him is expensive. We’re hoping to have enough funds to retire in a few years (I’m 40, DH is 46.)

Retirement to us means having enough money to choose how we spend our time. If we choose to work, we can choose work we enjoy, and only work as many hours as we want to. We won’t have to worry about sustaining high-paying careers that require overtime and don’t offer more than a few weeks off per year. We can choose jobs we enjoy and move on if we want to, because we have enough money to live on without the jobs.

DH has been a SAHD for 6 years, so he considers himself “semi-retired” already. I have the opportunity to perform part-time contract work for a good hourly rate, and moving from being a cog in a corporation to that would feel like retirement to me.

What is our gating factor for actually retiring early? Waiting to see where health insurance is going. I don’t care so much about universal coverage with a single supplier, which conservatives are railing against. I want to see universal access to reasonably-priced health care, even when you’re not working for a major employer. DH has preexisting conditions, so individual insurance coverage for him is expensive.

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]]> By: JC http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131611 JC Sat, 10 May 2008 13:48:50 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131611 I don't know about early retirement at all - my grandfather is retired, and my grandmother still works - because she's BORED. And my grandfather SHOULDN'T help the young man who is renting his farmland, but he still does because HE's bored. They've been telling my parents (both who will be FORCED to retire soon - railroad and special services at a school only want to let you stay for a certain amount of years) to be careful about being excited about it and to consider looking for something to do because, while they thought retirement would be fun and relaxing, they've found that it's more boring than anything else because their friends still HAVE to work. Makes me think hard about what WE want to do when we (my husband and I) reach that age, as I KNOW I'm not as extroverted as my grandparents (or even my parents or husband) are. I don’t know about early retirement at all – my grandfather is retired, and my grandmother still works – because she’s BORED. And my grandfather SHOULDN’T help the young man who is renting his farmland, but he still does because HE’s bored. They’ve been telling my parents (both who will be FORCED to retire soon – railroad and special services at a school only want to let you stay for a certain amount of years) to be careful about being excited about it and to consider looking for something to do because, while they thought retirement would be fun and relaxing, they’ve found that it’s more boring than anything else because their friends still HAVE to work.

Makes me think hard about what WE want to do when we (my husband and I) reach that age, as I KNOW I’m not as extroverted as my grandparents (or even my parents or husband) are.

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]]> By: A.M.B.A. http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131607 A.M.B.A. Sat, 10 May 2008 12:17:00 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131607 I am an early retiree - now enjoying my second year at age 52. It is all about lifestyle. We lived on my "retirement salary" for about five years prior to the actual retirement date (2006). I am fortunate to have a pension (which is about a third of what my final position paid) and that's our income, along with any "very small additional work" to supplement it. IRAs, 503b, savings, etc. will be utilized when I'm in my 60s and beyond. I now am teaching and living in China with my husband and two young children. My salary in China pays our living expenses and my pension covers the at home expenses. I was able to save about 12K from my pension, just by not living in the US. It is all about freedom. I never want to return to full time work and be chained to someone else's schedule. Life is way too short. Plan, be realistic and it's doable Check out our blog if you like - www.gaceinchina.blogspot.com I am an early retiree – now enjoying my second year at age 52. It is all about lifestyle. We lived on my “retirement salary” for about five years prior to the actual retirement date (2006). I am fortunate to have a pension (which is about a third of what my final position paid) and that’s our income, along with any “very small additional work” to supplement it. IRAs, 503b, savings, etc. will be utilized when I’m in my 60s and beyond. I now am teaching and living in China with my husband and two young children. My salary in China pays our living expenses and my pension covers the at home expenses. I was able to save about 12K from my pension, just by not living in the US. It is all about freedom. I never want to return to full time work and be chained to someone else’s schedule. Life is way too short. Plan, be realistic and it’s doable Check out our blog if you like – http://www.gaceinchina.blogspot.com

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]]> By: Frugal Dad http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131590 Frugal Dad Sat, 10 May 2008 03:21:45 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131590 I just recently read through The 4-Hour Workweek and really enjoyed it. I've bumped Clyatt's book up in my queue based on your recommendation - thanks. My ideas for early retirement are based around the idea of freedom. Freedom to set my own pace; to do what I want to do with my time and remaining life energy; to spend remaining time with those I really want to spend time with. It has little to do with rest and relaxation, and more to do with making a difference in the lives of loved ones, and in the lives of those I truly want to help. Unfortunately, I am not receiving that type of fulfillment in the corporate world and look forward to financial independence. I just recently read through The 4-Hour Workweek and really enjoyed it. I’ve bumped Clyatt’s book up in my queue based on your recommendation – thanks.

My ideas for early retirement are based around the idea of freedom. Freedom to set my own pace; to do what I want to do with my time and remaining life energy; to spend remaining time with those I really want to spend time with. It has little to do with rest and relaxation, and more to do with making a difference in the lives of loved ones, and in the lives of those I truly want to help. Unfortunately, I am not receiving that type of fulfillment in the corporate world and look forward to financial independence.

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]]> By: Andrea >> Learn how to set your hourly rate http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131589 Andrea >> Learn how to set your hourly rate Sat, 10 May 2008 02:51:21 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131589 When I retire, I won't have a mortgage, kids to feed/clothe/school, term insurance or a need to make retirement contributions. I don't know why they save 80%. That's crazy, IMHO. When I retire, I won’t have a mortgage, kids to feed/clothe/school, term insurance or a need to make retirement contributions. I don’t know why they save 80%. That’s crazy, IMHO.

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]]> By: BPT - MoneyChangesThings http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131584 BPT - MoneyChangesThings Fri, 09 May 2008 23:36:46 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131584 JD, take a look at Get a Life: You Don't Need a Million to Retire Well by Ralph Warner. It's a great read. His basic take is that you're better off investing in what will make you happy in retirement, and happiness is less related to income. Instead: develop friends, close family relationships, interests, and take good physical care of yourself. If you're not in debt, the money will take care of itself. He thinks most spreadsheets which say what you need are generated by FPlanners who sell people the goods. He interviews dozens of retired people who live comfortably and enjoy their lives immensely, despite not having a big cushion. Makes sense to me, but I also have a big IRA, so it's not either/or. Best would be both/and JD, take a look at Get a Life: You Don’t Need a Million to Retire Well by Ralph Warner. It’s a great read. His basic take is that you’re better off investing in what will make you happy in retirement, and happiness is less related to income. Instead: develop friends, close family relationships, interests, and take good physical care of yourself. If you’re not in debt, the money will take care of itself.
He thinks most spreadsheets which say what you need are generated by FPlanners who sell people the goods.
He interviews dozens of retired people who live comfortably and enjoy their lives immensely, despite not having a big cushion.
Makes sense to me, but I also have a big IRA, so it’s not either/or. Best would be both/and

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]]> By: Karl Staib - Your Work Happiness Matters http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131583 Karl Staib - Your Work Happiness Matters Fri, 09 May 2008 23:25:42 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131583 Understanding where you want to be in the future is vital to understanding how much you need to make and save to reach that goal. A lot of people just have this dream, but never actually plan it out. We should also think about what we want to do when we retire. There are a lot of people who reach their goal and they are bored. They go back to work because they don't know what to do with all their free time. Understanding where you want to be in the future is vital to understanding how much you need to make and save to reach that goal. A lot of people just have this dream, but never actually plan it out.

We should also think about what we want to do when we retire. There are a lot of people who reach their goal and they are bored. They go back to work because they don’t know what to do with all their free time.

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]]> By: elisabeth http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131576 elisabeth Fri, 09 May 2008 21:41:39 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131576 I've always thought there were at least two things wrong with the "80% of your current income" idea. First, it seems to assume that you're saving no more than 20% now and thus are already living on 80% of your income. If you're saving more now, and could live on even less in retirement (say after your mortgage is paid off) then you surely don't need 80%. Second, I've heard that figure in large group meetings -- and if the person next to you can live on 80% of his/her income -- which could be half of what you're making -- then why couldn't you? I’ve always thought there were at least two things wrong with the “80% of your current income” idea. First, it seems to assume that you’re saving no more than 20% now and thus are already living on 80% of your income. If you’re saving more now, and could live on even less in retirement (say after your mortgage is paid off) then you surely don’t need 80%.
Second, I’ve heard that figure in large group meetings — and if the person next to you can live on 80% of his/her income — which could be half of what you’re making — then why couldn’t you?

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]]> By: Jay http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131574 Jay Fri, 09 May 2008 21:35:32 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131574 The more I plan for and research early retirement, the happier I am that I've chosen the Army as my career. Even though my salary is less than I could make as an attorney on the outside, the austere lifestyle and comprehensive benefits make retiring at 46 an easily-attainable goal. My medical expenses will be covered for life, and at age 65, my Roth IRA (maxed out every year) will kick in as an additional income over my military pension check. My fellow officers either think I'll stay in longer than 20 years, or that I'll get out and have a second career. Sorry to tell them that the plan is to do whatever I want all the time. After 20 years as a Soldier, I think one can feel confident they've made their contribution. I'm 28 now, and only 17.5 years left in the workforce. And almost like a bonus, I love my job! The more I plan for and research early retirement, the happier I am that I’ve chosen the Army as my career. Even though my salary is less than I could make as an attorney on the outside, the austere lifestyle and comprehensive benefits make retiring at 46 an easily-attainable goal. My medical expenses will be covered for life, and at age 65, my Roth IRA (maxed out every year) will kick in as an additional income over my military pension check.

My fellow officers either think I’ll stay in longer than 20 years, or that I’ll get out and have a second career. Sorry to tell them that the plan is to do whatever I want all the time. After 20 years as a Soldier, I think one can feel confident they’ve made their contribution.

I’m 28 now, and only 17.5 years left in the workforce. And almost like a bonus, I love my job!

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]]> By: J.D. http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131573 J.D. Fri, 09 May 2008 21:33:31 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131573 <b>@Jarick</b> I think retirement means different things to different people. I always used to crave early retirement because I didn't want to work. Now I love my work. I love writing this blog. It almost feels like I <i>am</i> retired. (I work too much for that to be true.) So now I need to decide what early retirement means to me. Mainly, I want to save enough money that I have the option to do what I want in life, not what I <i>have</i> to. To me, that's retirement, no matter what I'm doing. (I think I need to write about the notion of Financial Independence, which is really what I'm describing.) @Jarick
I think retirement means different things to different people. I always used to crave early retirement because I didn’t want to work. Now I love my work. I love writing this blog. It almost feels like I am retired. (I work too much for that to be true.) So now I need to decide what early retirement means to me. Mainly, I want to save enough money that I have the option to do what I want in life, not what I have to. To me, that’s retirement, no matter what I’m doing. (I think I need to write about the notion of Financial Independence, which is really what I’m describing.)

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]]> By: Jarick http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131571 Jarick Fri, 09 May 2008 21:29:33 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131571 I've never really understood the appeal of early retirement, but then again, maybe it's because I view retirement as golfing and camper trips? My dream is to live comfortably, provide for a family if I go down that path, and at some point, to shift to a more enjoyable vocation. Maybe that IS retirement for some people, finally doing what they dreamed of doing for a living? I’ve never really understood the appeal of early retirement, but then again, maybe it’s because I view retirement as golfing and camper trips?

My dream is to live comfortably, provide for a family if I go down that path, and at some point, to shift to a more enjoyable vocation. Maybe that IS retirement for some people, finally doing what they dreamed of doing for a living?

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]]> By: getagrip http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131567 getagrip Fri, 09 May 2008 21:16:26 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131567 <div class="greatcomment"> I highly recommend that if you are married, that you get with your spouse and consider what you're retirement lifestyle will be together. I did that with my wife about a year ago and she had some very different ideas about retirement than I did. As a small example, I always envisioned downsizing to a two bedroom condo. Her idea was a sprawling rancher in a more rural area with a big lot and plenty of room for future grandkids to play. We've plenty of issues to work out over the next twenty plus years :-) But better we start working them out now than a month before we're ready to stop working. </div> I highly recommend that if you are married, that you get with your spouse and consider what you’re retirement lifestyle will be together. I did that with my wife about a year ago and she had some very different ideas about retirement than I did. As a small example, I always envisioned downsizing to a two bedroom condo. Her idea was a sprawling rancher in a more rural area with a big lot and plenty of room for future grandkids to play. We’ve plenty of issues to work out over the next twenty plus years :-) But better we start working them out now than a month before we’re ready to stop working.

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]]> By: Dividends4Life http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131561 Dividends4Life Fri, 09 May 2008 20:31:51 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131561 Good information. Retiring early takes a vision and a plan. Most people have one, few have both. Those that do are the ones that succeed. Best Wishes, D4L Good information. Retiring early takes a vision and a plan. Most people have one, few have both. Those that do are the ones that succeed.

Best Wishes,
D4L

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]]> By: Kenney http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131559 Kenney Fri, 09 May 2008 20:28:16 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131559 Yeah, I think I'm going to want to retire early, or semi-retire early. I would totally be open for having a part time job at a book store or something like that, but I think I'm going to want to leave the 40 hour work week grind behind me a few years early. Now, to get off my ass and make sure I can do that. Yeah, I think I’m going to want to retire early, or semi-retire early. I would totally be open for having a part time job at a book store or something like that, but I think I’m going to want to leave the 40 hour work week grind behind me a few years early.

Now, to get off my ass and make sure I can do that.

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]]> By: Chris http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131557 Chris Fri, 09 May 2008 20:23:05 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131557 I heard that report on NPR, it was pretty depressing. Oh well, just more fuel for my saving motivation. I heard that report on NPR, it was pretty depressing.

Oh well, just more fuel for my saving motivation.

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]]> By: B Smith @ Wealth and Wisdom http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131556 B Smith @ Wealth and Wisdom Fri, 09 May 2008 20:21:02 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131556 I think Tim Ferriss has it right. Do you want to spend the best years of your life working your fingers to the bone? How many people die before they get there? JD's taken the first step by becoming a full time blogger. Hopefully someday soon I can say the same thing! I think Tim Ferriss has it right. Do you want to spend the best years of your life working your fingers to the bone? How many people die before they get there?

JD’s taken the first step by becoming a full time blogger. Hopefully someday soon I can say the same thing!

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]]> By: Andy http://www.getrichslowly.org/blog/2008/05/09/early-retirement-requires-financial-and-lifestyle-planning/comment-page-1/#comment-131552 Andy Fri, 09 May 2008 19:56:08 +0000 http://www.getrichslowly.org/blog/?p=1792#comment-131552 Retired early is one of my goals, and that sounds like great advice. I'm only 22, and it isn't that I don't want to work or do productive (even money making) things, but I want the freedom to do what I want when I feel like it, without other obligations. Retired early is one of my goals, and that sounds like great advice. I’m only 22, and it isn’t that I don’t want to work or do productive (even money making) things, but I want the freedom to do what I want when I feel like it, without other obligations.

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