This guest post from Jacq Jolie is part of the “reader stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes. You can read more about Jacq’s story at Single Mom Rich Mom.
On 31 December 2009, I finished what I hope will be my last full-time, permanent job. I’ve worked a bit here and there over the past year, but it’s on my own terms, and not because I have to. I’m now semi-retired at the age of 45. But what does that mean?
About nine years ago, after reading Your Money or Your Life, I changed from an under-earning, confused woman to a woman with a mission: to never have to work again (unless I wanted to). In November of last year, I reached the Crossover Point, where the income from investments exceeded my expenses. (I think it actually happened sooner than that, but I hadn’t been paying attention.) At last, nine years after first figuring out what I wanted to work hard and save money for, I’d reached Financial Independence.
I’m fortunate that in the last few years, I’ve managed to raise my income so that I can work a few months a year and earn the same amount as I have working full-time (and overtime!) in previous jobs. I’m also fortunate that my wants remain relatively small and I never succumbed to lifestyle inflation. I’ve never wanted a big house, a fast car, or exotic travel.
In a “normal” year, I can easily live on about $36,000, including mortgage payments of about $15,000 per year (that I’m prepaying). So I knew that my Crossover Point was somewhere around $20,000/year with a paid-off house. In the next year, I intend to downsize and move to a (mortgage-free!) townhouse that will be close to public transit for those times I choose to work, and, more importantly, be low maintenance to allow for periods of long travel during the summers.
I’m trying not to plan too far in advance. I want to be flexible. My hope is that I can continue to work part-time or a few months a year for the next 5-10 years until a part of my pension is eligible for withdrawal. My net worth is somewhere around the $500-600k mark, not including pensions. Since I don’t have any intention of touching my savings for the next ten years, I’m hopeful that it will last as long as I need it. If not, I’ll go back to work full-time for a couple of years.
I think what Financial Independence has given me has been a confidence in life itself — that I can handle anything that comes up. If life is difficult, sometimes throwing a bit of cash at a problem resolves it. It’s also given me the freedom that I first dreamed of when reading Your Money or Your Life — that I could work because I enjoyed working, and that I could have my life be about more than work. I have the flexibility to leave any work situation that doesn’t contribute to my overall happiness.
Having lived very frugally for long periods in the past, I experienced frugality burnout earlier this year. I’ve consciously been spending more lately on the things that I’ve “deprived” myself of over the last almost 30 years I’ve been working. For example, my bed was over 50 years old and desperately in need of replacement. A new bed is being delivered this week, and I couldn’t be happier. I’ve also stopped thinking that I should DIY everything; I’ve had house cleaners come in this last month — something I would never have considered doing just six months ago.
Part of me still worries about the future:
- What is it like to be looking for a job and networking once I get over 50?
- Will it be hard — or impossible — to find work if I stay out of the job market too long?
- What if the stock market falls again?
- Are my investments too aggressive or not aggressive enough given that I hope not to draw down on them for quite some time?
- Am I jumping too fast? Should I keep working full-time for a few years and get to that magical million and give myself even more of a buffer?
I only have a year of semi-retirement under my belt, so I’m not sure if that’s necessarily a “success”; I’m still just learning what works. I do know I’ll never go back to a regular job again though and definitely not go back to driving myself as hard as I have in the past again. My hope is that my approach is flexible enough and that I’m resourceful enough to survive and thrive through whatever lies ahead.
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This is quite inspiring. I am still a few years short of the normal retirement age but early retirement is my goal and I’m almost there.
Financial freedom is not an automatic inoculation against life’s troubles but it definitely helps.
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..am interested in hearing how it works out. Could this be a monthly post?
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I would recommend building up a buffer. Like those that live check to check, they are one financial hiccup from starting the domino effect. The potential problem with what she has done is that she is cutting it too close. She should decide on a buffer amount (additonal % above what she originally thought). There will always be items that may pop up that may prevent her from earning an income in the future, ie disability.
Either way, congrats on making it to that point. Well done.
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This is awesome! It’s great to see semi-retirement working out. Obviously it’s something a lot of people strive for, but being debt free and able to live off small expenses is a great thing, especially if you can still work on the side on things you’re passionate about.
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I would adjust that cross-over point a little higher to accommodate all the free time on your hands.
I would like to know what income streams from investments you have. Your worries tell me that you are not completely comfortable with this decision and it seems to me no one should be truly comfortable doing this unless they had the majority of their assets invested in bonds and treasuries. I personally would love to get to a point to where I could just reduce my hours from 40-50 to 25-30, especially when I start having children.
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There are still various problems I haven’t seen that you have addressed.
1. Inflation. 45, with a likelyhood of another 45 years to go, its a serious issue. Think back to when you were a child as to the prices of items. Think what they cost now. Now you need that income in the future.
2. Volatility. Returns vary over time. There are crashes. If you can’t work, (for example, because you are older), then you have to eat into capital. That increases dramatically the risk of running out of money.
3. Assumptions of income. Social security. With government debts as they are, they will default. That includes social security payments, in full or in part.
4. Assumptions if expenses being low. Medical care? If you need to go into a care home? …
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Sounds to me you have some great ideas going. I am still working full time and it is about to kill me so at the most I’ll give it another year. You might try coming up with something you like to do and sell items or services on a small scale. That will give you work after 50 that you can count on even if the income is small. I am 60 and finding that getting a job in my area once I retire will be next to impossible. I cannot stand on my feet for long periods of time and I have never been able to. So I will work to earn an income from my home once I retire. I’m doing lots of research now and getting a book for Christmas that tells me others experiences with the craft I’d like to try. I wish you the best and think your idea is much better than working yourself to death.
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Congratulations. You appear to have options to work when needed and you also are willing to “splurge” on what is important to you. I really enjoyed your inspiring post.
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Where do you live? And I gather you have no close family (spouse, children) to consider. For those of us with families, how can we apply your advice?
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I don’t know about the income streams, since whatever dividends I make I haven’t had to withdraw and spend. My hope is that having the nest egg just sit there untouched and appreciate for 5-10 years will take care of the crossover point issue and some of the risk. If it doesn’t, I’ll just keep working part-time or part of the year if I can but I’ll probably do that anyway since I like what I do. Plus both of my kids should be completely independent by then (both adults anyway!)
I’m at the 30 hour per week mark right now (on a six month contract) with work and it’s a great balance of enough free time yet enjoyable work with great people. I highly recommend it.
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Do you think it is more difficult for women to make that full jump than men? You have written my story. As I go back to work for the next three months, I wonder why it is so much easier for my husband to internalize that we are “there”- where we want to be. I worry, he does not.
As far as finding work in your fifties (I am 53), I found it quickly. I am not being paid anything near what I was paid before, but the pressure is much less. The three months will add just enough cushion to make me happy.
I worry that I will be that woman on the street one day- pushing the cart. Then I remember that if my income went down that quickly, the entire country would be on the streets as well. Bag-lady syndrome still reigns- so I will be working in LA next week (yuck).
Take the leap- it is worth it.
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Congratulations, Jacq. Your discipline has paid off, and I respect that you see the early retirement as an experiment, i.e. it has a few unknowns and may need some tweaking — just like many things in life.
While my husband and I are moving fairly aggressively toward financial independence ourselves, I experience work differently than you do. I actually wouldn’t be happy without working.
One factor here is that I get to set my own hours and can work from home (telework) frequently, which reduces commuting stress. But the bigger reason I have no yen for retirement is that I’m doing work I love. It’s mission-driven (and so am I). While I fully agree that the frugal lifestyle you describe is a creator of freedom, the other creator of freedom, in my experience, is finding work you’re passionate about, from which you don’t need to escape into retirement. I explain this more here: http://www.diamondcutlife.org/the-pacing-of-passion/
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Congratulations. I hope to be in the same place at about the same age.
For the comment, about families, I have a husband, but no kids. Our expenses are a bit bigger than if we were single, but our combined income is a lot bigger. We’re both thrifty and committed to eventual semi-retirement, so that helps. It would be harder if we had kids, but not impossibly so. It seems that most parents I know buy their kids lots of possessions, but time and knowledge is more important than money. You can apply the Your Money or Your Life principles to families too, by purchasing (or not purchasing) according to your values, and being thrifty in areas that don’t matter.
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Great story! I wish my FIL was able to do what you’re doing… he’s currently dying (not literally) working too many hours for too little pay and too little respect.
What do you do about health insurance?
I look forward to following your story and your blog in the future!
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Dynamic and interesting post! My soul felt light just by reading it. Phenomenal Job, Jacq. You must feel so in control and free. I am going to make it a priority to read Your Money or Your Life. Sometimes it’s incredibly difficult to set a goal in Personal Finance beyond the basics, retire all consumer debt, pay off my Student Loans, bolster savings and save for retirement. However, I REALLY like the concept of the “Cross-Over” point as a goal to strive for beyond the basic building blocks of Personal Finance.
One last observation – assuming you live in the US, how are you dealing with health care? Do you just pay for it? I know you also have children. Are they covered?
Congrats Again on a job well done.
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Wow! What an inspiring story! My husband and I where just talking about semi- retirement this morning. We both 28 and hoping this year to pay off the rest of our consumer debt and then next year off our house. Due to stress from my job I recently went part time. We realized me working part time saves so much money as I cook dinner 6-7 days a week. Prior it was 1-2 nights. I plan on rereading Your Money or Your Life this week. Thanks for the inspiration!
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You’re my hero! I am 37 and working toward early semi-retirement just like you. It’s going to be difficult, but I’m on the way there. We don’t have any consumer debt, but our mortgage is not small….
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About 18 months ago, my employer cut my hours from 40 to 32, from five days to four. I looked on it as a “semi-retirement” and decided that at the beginning of 2011, I wanted to do even more.
I made a proposal to the company to cut back to three days, 24 hours and no benefits, but with a specific job (one I’ve been doing for over 20 years) that’s only part of my current overall responsibility.
It was rejected and I am leaving the company altogether after Dec. 31.
Even though I am much older than you (65), I don’t feel rocking-chair-ready yet and will seek out some part-time or free-lance opportunities.
Fortunately, I am single, have no debts and live in a major city.
And, like you, my guaranteed income meets all my expenses and provides plenty more.
As Bobj @2 said, maybe you could post regularly on how this works out for you; I’m sure many of us would follow those comments.
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More details, please! Again, this is a nice and vague story – you have a pension, how did you earn it? Also, as someelse asked, what about health insurance?
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@BB (#9) – I’m Canadian, and I just have 2 kids, no spouse, I imagine things would be different if I was supporting a house-spouse and more children as well. Neither of my kids are particularly materialistic and that helps. Maybe they could do the house cleaning? Or maybe work part-time too?
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You are obviously someone who has their head on straight and knows what they want. You are also a great example to your kids to show them to reach for what their dreams are.
Did your net worth include your house too?
Congratulations, and keep on loving life!
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Can someone define “retired” or “retirement” for me?
The original poster describes her current work schedule as 30 hours a week. That’s really “semi-retirement”? My uncle is “retired” from a 40 year career with the National Park Service, but now he owns and runs a candy store. That doesn’t seem very “retired” to me. By the definition laid out in this article, my wife is “semi-retired” as well, because she only works part-time and would quit if she didn’t like the work she was doing.
I’m guessing that when financial sites talk about needing to save X% of your income for retirement, they’re probably not thinking of a “retirement” where you’re working 30 hours a week for a higher hourly rate than you were making before you “retired”, are they?
If we’re going to talk about retirement, it’d be nice if we knew we were all talking about the same thing. This is nothing against the author — it sounds like she’s made great improvements in her life, and she deserves some respect for that. I just don’t know if she’s “retired” by any common definition of the word.
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@Tyler (#22)
That’s a good (and fair) question. It reminds me of a conversation I had recently while we were in France.
On the river cruise, we met a 70-something fellow named Parl, who used to be a factory worker (or something like that). He told us that when he retired, he didn’t stop working. Instead, he became a limousine driver. He loves the job, but he admitted that his retirement is different than the popular perception. I wrote down this quote from him:
“I never retired; I just work for less money now!”
I thought that was hilarious. But from the “retirees” I know, most of them are like this, even those who don’t need to work. You know the millionaire who lives across the street from me? He spends four months of every year in New Zealand — working. (And he does it for room and board, not actual pay.)
Work is more than just a way to make money. For many folks, it provides a sense of purpose.
To me, semi-retirement (at least when coupled with Financial Independence) means that you’re working out of choice, not because you have to, just as Jacq describes.
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I love this idea. You can remain active and see the world. I am currently working towards staggering CDs, putting$200 a month in svgs, maxing out my retirement, and paying an extra $100/mo on my mortgage. I want to pay off my mortgage in 10 years and apply the money to my savings account. My car will be paid off in 2 years instead of 6 and with the Public Service Loan Forgiveness program my student loans will be cancelled after 120 payments.
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This plan is destined for failure. The writer neglects the effects of inflation on her portfolio and on her expenses. If she needs x dollars today, she is likely to need 2x dollars in ten years to maintain her standard of living. Unless the income from her assets and her work keeps up, she will fail, and at an age where she is much less likely to find well-paying work. She would be much better off going back to work full time for a few years and maxing out her savings.
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I would love to hear more of the details of your plan Jacq- what have been the biggest surprises, how have you structured your investments.
I am currently reading Your Money or Your Life and have found it very inspirational. It is great to read about someone who has actually put the book into action and made some big life changes as a result. Thank you for sharing!
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@ Rita (#7) – I like your ideas too, and wish you all the best in your side-income gigs!
@ Janette (#11) – I don’t know about most women, but for this particular one, it’s probably harder because I tend to be somewhat pessimistic and worry too much. I have fears of being a bag lady too-OTOH, like my dad says (he grew up in the Great Depression), some people who had capital made most of their money then.
@ Alison (#12) – oh, I do like working, but not from home. I like the camaraderie of offices and working as a team. Different strokes, it’s all good!
@ Kestra (#13) – I totally agree on the child-rearing philosophy. That’s what my youngest son asks for – my time. And to go camping.
@ Dreamchaser (#15) – I can’t recommend YMoYL highly enough. I didn’t “use” the 9 step program religiously the whole time, really just the first 6 months, then I just got things on autopilot.
@ Tyler (#22) – The dictionary definition of semi-retired is reduced work because of age or ill health. We’re seeing a lot of people today who are also working less by choice. I guess I consider it semi-retired if I’m working about 25% of what the average person does in a given year. Right now it’s 30 hours a week, I didn’t work at all for about 5 months this year and likely won’t work for more than 4-500 hours next year. How is that different from your wife or your uncle? I don’t know, I sometimes have issues with semantics too.
AR (#24) – you’re suggesting that I factor in 10% inflation rather than ~3% ? Since it’s averaged 4.4% in the last 45 years, that’s about as high as I’d be willing to calculate it at. I think there’s enough fat in my budget if need be (trust me, I can “do” frugal). And why go back full time when I could just work 50% more and still take loads of time off every year?
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CONGRATULATIONS! I too found a way to “take the road less traveled” at age 45. That was eighteen years ago and I have no regrets. I travel extensively but always watch my expenses to income ratio. In the early going you may question what you’ve done…how you’ll spend your time….potential contact with friends at work. Trust me, it all works out. You’ll get involved with volunteer efforts that interest you and you’ll find a whole set of new friends. BEST OF LUCK!
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I wish we knew a. how she saved so much and b. what she is doing with her time now. I would think that when she tells people that she is semi retired at 45 they must ask those questions first. Luckily I can start reading her blog to find out.
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Don’t know about you, but my medical insurance premiums and copays are increasing at a compound rate of well over 10 percent. Have you been to the grocery store recently? My “market basket” is up 15 to 20 percent in the last year. How about gas prices? Are you planning to give up the car in retirement?
Look at how that 4.5 percent is calculated, and then look back at what you spent five years ago and in the last year. See if you agree that 4.5 percent is a reasonable assumption for a retired individual consumer after making the comparison. I don’t. The things we need – food, fuel, health care, and rent (or your house payment with taxes and insurance included) are all going up at a rate that’s significantly higher than the government-calculated overall 4.5 percent.
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Very inspiring blog post. It does illustrate that semi-retirement has its stresses, which is basically “Will I be able to continue this lifestyle and will I be able to recover if I can’t?”.
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Your story is inspiring, but you have the good fortune to be Canadian. Here in the US we cannot count on our systems to support us in the future. I met with our financial planner a month ago, and although he praised my spouse and me for the amount we have invested, and he predicts we will retire with dignity, he advised us not to expect any income from Social Security.
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@26 Jacq – By your definition my husband and I are semi-retired in our low 30′s! We are unpaid volunteers in our free time. I enjoyed your story. After reading it I wondered what you did in your free time. In one of your responses I see it had to do with remodeling your home.
Is the town home you’re going to purchase going to be newer to prevent you from spending part of your nest egg on future remodeling expenses?
Sounds like you have no car–correct? What do you do now?
I’d like to know what your expenses are made of!
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http://www.getrichslowly.org/blog/2009/10/15/five-steps-to-six-figures-in-seven-years/
@ AR (#29) – I believe that the greatest hedge against inflation is an individual’s creativity, willingness and ability to reduce their personal costs. Having stock in oil and gas companies probably helps too.
I haven’t experienced the inflation that you mention to that extent personally except for those areas where I *chose* to inflate consciously. While there’s many areas that have gone up, many have also gone down. In inflation-adjusted dollars, my previous vehicle (bought in 1993 for $15k) was cheaper than the last vehicle (bought in 2007 for $18k). My first home computer (1995) cost more than my second (2004) and both cost more than my latest (2010). I’m not saying that inflation doesn’t exist, but surely my expenses will go down, not up (or even just stay stable) as the kids get older and more independent, and you definitely have more time to DIY things than you do when you’re working 70 hours a week as I have at times in the past.
Landon (#31) – I don’t know exactly how your system works, my guess is that they’ll raise the age limits first and maybe lower the benefits. It’s not a good time to be on the tail end of the boomers.
Amanda (#32) – how awesome for you! No, my oldest son and I share my vehicle so I do have a car. I did some volunteering earlier this year too. I’d really love to do something like help out with building a Habitat for Humanity house. I’m going to look into that when I’m off this spring. I’d also like to check into volunteering with an organization like Debtors Anonymous since I’ve BTDT and got out. This last year, I focused on playing and puttering though – cross country skiing, hiking and biking with the kids and dog, playing piano, knitting, very slow, leisurely travel…
early and they did it off of fixing up houses in the summer, flipping them and taking off in their RV in the winters. One of my favorite blog buddies retired early in her mid-30′s from renovating houses.
Prior to that, for a long time I lived on one paycheck and saved and invested the other one and anything extra like bonuses, just using it for one trip a year, annual insurance, stuff like that. It was an easy method for me to be lazy and save quite a bit without analyzing the minutiae. Having variable income has kind of thrown me for a loop and I’m trying to build the right system – which will probably be just giving myself a monthly allowance.
I’d like the house to be newer in a way since I’m kind of burnt out on remodeling (this is the 3rd time). I wouldn’t rule out buying another just cosmetic fixer-upper again though. I have friends that retired (Semi-retired? What do I call it?)
I used to do monthly income and expenses on my blog in the early days but people seemed to think it was boring so I stopped.
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Congratulations Jacq Jolie on your freedom. I like your story and am wondering if you would consider a blog of your own. One way to generate wealth is to have a distribution system like a blog, and a product such as an eBook. It seems to me that you have within you the potential for both and it may be fun writing a memoir. What do you think? check this out. http://thingsoftayloria.com/2010/11/14/education-ebooks-and-economy/ For education, you have your interesting experiences.
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Congrads on meeting your goal. I really find it interesting to see all the negative comments about not making it over time. I would rather take the time at 45 to enjoy life while I was healthy. You never know when your chips will be called in. Live each day to the fullest and be grateful.
PS. But live within your means and try to give back when you can. Enjoy your choice!!
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What a refreshing story! Congratulations! I am so glad to have discovered your blog and am really enjoying it. I agree with Deas’ comment – enjoy life while you’re healthy. I was diagnosed with breast cancer at age 54, went through surgery, chemo and radiation. That was the best wakeup call I could have ever had. Since then, I have completely changed my life. I have no debt, live on $27k/year, have a simple and fulfilling life, travel much more than I ever have, and don’t touch my savings. I have owned my own company for 28 years, work at home, and have private health insurance. I am thankful that years ago I took out a life insurance policy with 300k benefit for my two grown sons. I admire your healthy balance of finances vs. enjoying life!
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Great post and superb questions by others also……For someone in the US to replicate it without health care after age 45 is going to be challenging unless a spouse is working, or one is too brave to take the risk with little to no health care coverage. Healthcare is the BIGGEST and LARGEST issue to retiring early for many people here since employers have cut back on giving healthcare to employees who take the golden parachute. So, one has money, great portfolio, and a superb plan to retire (and stay busy), but one illness or no nursing home plan can wipe out years of savings in the accounts.
Canada does not have that issue due to socialized health care system (same in UK).
Most people above have not addressed this point, hence mentioning it here.
Jacq, you are brave to do it. Congratulations, and for sure build in contingencies, have a short term, medium term and long term lucid plan of action, and then conduct this going forward (esp. after kids leave for college or for their own lives).
Kenny
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s (#19) – the pension is just a regular defined contribution type, part of which I think I’m eligible to withdraw when I’m 50, the remainder at 65. It’s not huge (around $100k) and has come from various jobs that I just rolled into one investment.
Everyday Tips (#21) – Oh my kids have taught me more about how to live and who I want to be than I think I will ever teach them. Re. the house, our prices have stayed pretty steady where I live but I’ve mentally low-balled the value to myself because I want to be pleasantly surprised when I sell. (I really am quite pessimistic and conservative).
No Trust Fund (#25) – the investments are mostly in dividend or index type mutual funds. A few stocks of companies that I have had experience with.
The biggest surprise? That I would miss work as much as I did early this year. And that slow travel with no itinerary is the best kind.
Deas (#36) Thanks so much. I know what you’re saying, one of my sisters died at 39. Life can be way too short. I’d like to enjoy my kids and life while we’re all young. Pessimists (aka realists) don’t bother me, I tend towards that way of thinking myself. I think everyone that isn’t retired yet but wants to benefit from the social security they’ve paid into is very worried about their own situation (I’m worried too) – and the health care situation doesn’t help.
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@ Kenny, I also wondered how she was dealing with health care concerns with early retirement until I realized Jacq was Canadian. That is a huge issue those in the US have to deal with, especially when you’re dealing with ensuring coverage is there for your kids that she doesn’t have to take into account.
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Wow — truly inspiring! I hope to be in your shoes in two years, when our house is paid off.
One question: what are you doing about your children’s college expenses? Is it up to them to cover college, do you already have enough saved up, or are things different in Canada?
Thanks again for the great post!
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I’m glad Kenny and some others spoke up about the health care issue. She should have mentioned in her post that she was Canadian. What she has done is not really feasible for most Americans because of health care. I remember watching a 60 Minutes about early retirement and the rude awakening that many people in their fifties seeking early retirement have when they realize how much their premiums would be. Many decide to keep on working.
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“AR (#24) – you’re suggesting that I factor in 10% inflation rather than ~3% ? Since it’s averaged 4.4% in the last 45 years, that’s about as high as I’d be willing to calculate it at.”
Do you equate ten years of inflation at 10% to mean things will pretty much double in price at the end of that time?
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Jacob from Early Retirement Extreme has had some posts on how he deals with health care in the US:
http://earlyretirementextreme.com/my-hdhp-hsa-and-some-comments-on-health-care.html
I’d probably do what he does with the catastrophic insurance, since my family has been fortunate / healthy enough that we very rarely need medical care. It seems to me that it could be possible that taking more time off when you’re younger and able to lead a lower stress, healthier lifestyle and therefore actually avoid sickness would be smarter than waiting until you’ve worked yourself to death – no?
Trina #41 – Re college, my oldest and I had a deal that I would pay tuition and books (~$3k/semester) and he would take care of his living expenses.
Tony #43 – with the magic of compounding it would be more like 2 1/2 times, not just doubled. With respect to inflation, for interest sake, I checked my total expenses from 1995-6, and I actually spent less than I did last year (not including taxes of course, unless it’s my very own stupid tax).
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Whoops (on #44), I meant that I spent less in 2009 than I did in Oct 1995-Oct 1996.
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I already commented on your wonderful blog. I am surprised to see all the wistfulness re Canada’s healthcare system. This does not jibe with the sense I got of massive opposition in the US.
For a while, my son was interested in going to McGill. I fantasized about his marrying a Canadian and getting that great healthcare!
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This story is very encouraging. I don’t want to work until I die. I understand that retirement is a new concept in human history but I believe that’s one reason why we live longer these days is because we can do other things and not slave to death like our ancestors did.
Its nice to hear a good story, I hate reading those depressing stories of seniors who will die with debt. Its actually their stories that made me get out of debt and start saving, but its also nice to hear the good side of those who did things right.
Good for you. I wish the writer well.
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I’m a few days late, but just wanted to say kudos to you for showing that you can retire on less than a couple million dollars, contrary to what Money magazine and other pundits say.
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Thx for responding!
I’ll have to see if you have a blog. Your writing style is easyto follow and helpful info.
Debtors anonymous needs you!
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I am 34 and have a house paid off, $20,000 in cash, no kids and never will have any. I am making $40,000 a year after taxes $60K before.
I plan to semi-retire in 4-years. I think most Americans live far too complex lives and we can all get by on much less than you think.
I can work two nights a week and still make $30,000 a year after taxes. I can live on $14,000 a year.
We all need to simpilfy our lives.
$100,000 in cash
50,000 saved for things like a new roof-A/C for house, sewer pipe, wiring problems, etc.
So on $150,000 in cash making 4% in CD’s is $6,000 a year pre tax.
Go simple, drive a cheaper car, I have a 2003 Lincoln Town Car with over 240,000-miles. I got it 2-years ago for $4500 cash.
My house was a HUD foerclosure. I got it for $56,000. It is in a good area of a safe town and is all brick on slab. 1,200 sqft. Simple, cheap on insurance, utilities, property taxes and no POA dues.
I see many people who are living too “high on the Hog”. 3,200 sq-ft home, new $45,000 SUV’s every 2-years(not a tax write off- they are actually paying for the vehicles). Spending money like it grown on trees.
Go small, go simple, go smart. My time is worth more to me than the money.
The bigges thing for me would be health insurance, but I work in a job that I can still get great health insurance if I work only 2-nights a week.
Just sell down and go smaller. Drive an older car, but have money for repairs if needed.
Live life, take 1-month vacations in the summers, work only 2-nights a week, have the peace of mind of no debt, money in the bank, and great health insurace.
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