Any early retirement stories you can share?

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Bennie
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Any early retirement stories you can share?

Post by Bennie »

Looking to hear from people who have retired early and have some wisdom to impart and some stories. I am all ears!

Good or bad. Significant or small.

Financial mostly.

Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?

I am on the jumping off point (55) and very nervous! :|

Thank you! Thank you! Thank you! :sharebeer
ModifiedDuration
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Re: Any early retirement stories you can share?

Post by ModifiedDuration »

The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
Wow, thanks, ModifiedDuration!

So the lower your year-63 income the less you pay?

I heard from a friend who just lost his job at 66 (did not want to retire) how aweful Medicare is for him to understand. The irreversible choices are the most scary part. And he said he has a health spending account with over 60K in it because his company allowed him to save that much in it and now there may be a penalty for the rest of his life because he has too much in that account. I did not understand it all, but that sounded almost unreal.
ModifiedDuration
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Re: Any early retirement stories you can share?

Post by ModifiedDuration »

If you have Modified Adjusted Gross Income of $97,000 if single or $194,000 if married you start paying more for Medicare - the Income-Related Monthly Adjustment Amount (IRMAA).

People don’t realize that IRMAA is based on your income two years prior. They think they will do things like Roth conversions before they turn 65 and beat the IRMAA surcharge and then find out that the IRMAA surcharge at age 65 is based on age 63’s income.

I don’t know what your friend’s issue is with the HSA balance. There is no penalty. It’s a good thing to have that much money in an HSA to help fund retiree health care. There will be plenty to spend it on!
worthit
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Re: Any early retirement stories you can share?

Post by worthit »

Bennie wrote: Tue Oct 04, 2022 4:52 pm
ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
Wow, thanks, ModifiedDuration!

So the lower your year-63 income the less you pay?

I heard from a friend who just lost his job at 66 (did not want to retire) how aweful Medicare is for him to understand. The irreversible choices are the most scary part. And he said he has a health spending account with over 60K in it because his company allowed him to save that much in it and now there may be a penalty for the rest of his life because he has too much in that account. I did not understand it all, but that sounded almost unreal.
Does this penalty refer to unused funds in a HSA? If so, yes that is terrible. What can one do to avoid this?
ModifiedDuration
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Re: Any early retirement stories you can share?

Post by ModifiedDuration »

worthit wrote: Tue Oct 04, 2022 5:08 pm
Bennie wrote: Tue Oct 04, 2022 4:52 pm
ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
Wow, thanks, ModifiedDuration!

So the lower your year-63 income the less you pay?

I heard from a friend who just lost his job at 66 (did not want to retire) how aweful Medicare is for him to understand. The irreversible choices are the most scary part. And he said he has a health spending account with over 60K in it because his company allowed him to save that much in it and now there may be a penalty for the rest of his life because he has too much in that account. I did not understand it all, but that sounded almost unreal.
Does this penalty refer to unused funds in a HSA? If so, yes that is terrible. What can one do to avoid this?
There is no penalty for unused funds in an HSA.

The balance just sits there until you use it. If used for medical expenses, the withdrawals are tax free.

Alternatively, once you reach 65, you can just withdraw the money and pay income tax on it if you want (like an IRA).

If you pass away with a balance in your HSA, income tax would be due on the balance.

Having a large HSA balance going into retirement is a good thing.
worthit
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Re: Any early retirement stories you can share?

Post by worthit »

ModifiedDuration wrote: Tue Oct 04, 2022 5:13 pm
worthit wrote: Tue Oct 04, 2022 5:08 pm
Bennie wrote: Tue Oct 04, 2022 4:52 pm
ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
Wow, thanks, ModifiedDuration!

So the lower your year-63 income the less you pay?

I heard from a friend who just lost his job at 66 (did not want to retire) how aweful Medicare is for him to understand. The irreversible choices are the most scary part. And he said he has a health spending account with over 60K in it because his company allowed him to save that much in it and now there may be a penalty for the rest of his life because he has too much in that account. I did not understand it all, but that sounded almost unreal.
Does this penalty refer to unused funds in a HSA? If so, yes that is terrible. What can one do to avoid this?
There is no penalty for unused funds in an HSA.

The balance just sits there until you use it. If used for medical expenses, the withdrawals are tax free.

Alternatively, once you reach 65, you can just withdraw the money and pay income tax on it if you want (like an IRA).

If you pass away with a balance in your HSA, income tax would be due on the balance.

Having a large HSA balance going into retirement is a good thing.
Thank you.
tallguy3891
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Re: Any early retirement stories you can share?

Post by tallguy3891 »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Looking to hear from people who have retired early and have some wisdom to impart and some stories. I am all ears!

Good or bad. Significant or small.

Financial mostly.

Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?

I am on the jumping off point (55) and very nervous! :|

Thank you! Thank you! Thank you! :sharebeer
1) Someone told me something to the effect, after they had retired, and my own 12 years in retirement seems to agree (for us anyway): figure out your budget, then add half more to that.
2) It took me about 6 months just to adjust from the adrenaline of working, and a year before I felt comfortable in retirement.
3) In my opinion a paid off house can make things much more comfortable.
4) I found that, being retired in my mid-fifties, I didn't seem to fit in when I joined things; the retirees seemed to be at least 65+, or ++, or +++, and most of my age group was still working and didn't quite get it.

Having said all that, it is important in my opinion to have enough money, varied interests, something to do and somewhere to go, and loving supportive relationships. Not necessarily in that order.
Last edited by tallguy3891 on Wed Oct 05, 2022 6:19 pm, edited 1 time in total.
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JoeRetire
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Re: Any early retirement stories you can share?

Post by JoeRetire »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?
I had planned to retire around 65. I actually ended up retiring at 60. So I guess it depends on your definition of "early".

The megacorp where I was working had yet another reorg (seemed to happen every 3 months or so). The individual that inherited myself and my team was in another state, wanted me to manage teams in 2 countries and 4 states, and wanted me to be on the road visiting them for at least a week every month.

That didn't fit in with what I or my family wanted, but my new boss was adamant. So it was either find a new job or retire. After going over our financial situation with my wife a few times to try to assure her that we were easily financially able to get by, I chose to retire. Financially, we had been capable of retiring for a long time. Finally, I was ready emotionally.

It worked out quite well.

After trying out a bunch of different activities, I was surprised how many fulfilling activities I found to do in retirement. I do some volunteer work. I am on the board for our HOA. We have a bunch of activities with our neighbors. I play pickleball almost every day. We babysit our grandkids. We travel some. I play my guitar. I do some photography. I get outside and walk a lot. Life is good. I tell my friends that I don't know how I ever had time for work.

I was surprised by how nervous my wife was initially. Despite the clear numbers, despite the talks with our financial advisor, despite my reassurances, she was still nervous. We both came from families where people essentially worked until they either couldn't or died, and nobody ever retired early. It was hard for her to wrap her head around retirement. She eventually calmed down.

She continued to work for a few more years until we moved into our retirement house. Then she still went to work part-time, two days per week. I think it's mostly for the social aspects. But I suspect there's still a tiny bit of fear remaining. She's working on that.

Finally, I was surprised (and pleased) with how well our investments have done. We were fine financially when I retired almost 8 years ago. We are even finer now. We'll almost certainly be able to leave a larger legacy than we had planned.
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lvswts
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Re: Any early retirement stories you can share?

Post by lvswts »

Retired 2 years ago at 55. Make sure you keep/get your letter of separation. My wife is a bit older and she went on Medicare recently. I got the IRMAA notice but retiring is one of the reasons you can get it waived. Very simple form to fill out and one of the pieces of documentation you can use to justify removing the IRMA charge is the letter of separation. Very easy to get rid of that. If Medicare isnt' in the cards in the next 3 years it isn't something I would have needed to worry about as I am managing my income a lot more now than I could while I was working.

I was super worried about healthcare costs before I retired. Found a good high deductible private plan that works for me and I was surprised that it isn't as expensive as I had feared. This allows meet to keep putting the max into a HSA.

I found that I have a wonderful opportunity now to manage my income from a tax perspective. I am using this time until I start taking social security to convert a little of my 401k to a ROTH IRA every year. I can estimate how much I am living off of with dividends and capital gains and then convert a bit to stay in a lower tax bracket. I never had that much control when I was working.

I had to adjust my asset allocation in retirement a bit. I lost a fair amount in 2020 but luckily everything came back and allowed me to adjust to something a bit more comfortable. I knew I needed more bonds before I retired but in my stupidity I had put a lot of my bond allocation in high yield bonds thinking I needed the income. in 2020 I realized how much risk I was taking but got lucky and was given a chance to move things around when things recovered.

One of the things that I struggle with a bit is how to have my money flow into my checking account so that I "simulate" a paycheck every month. How much to keep in cash, where to keep that cash, how much to keep in the checking account, etc. is a struggle that I am still working out. I like things to be automatic but how the spending money "flows" from my investments to my regular checking to pay the bills is a work in progress.

Overall, I would highly recommend it. I should have done it a few years earlier. Good luck.
lws6772
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Re: Any early retirement stories you can share?

Post by lws6772 »

ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
I think the next "Mission Impossible" movie should have Tom Cruise pick out a Medicare plan. :oops:
jebmke
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Re: Any early retirement stories you can share?

Post by jebmke »

lws6772 wrote: Tue Oct 04, 2022 5:43 pm
ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
I think the next "Mission Impossible" movie should have Tom Cruise pick out a Medicare plan. :oops:
Many states have counselors under the program SHIP - State Health Insurance Assistance Program (I think that is the full name). These counselors are well versed on the intricacies of Medicare and can guide one through the decision process. Although I did my own research and made a preliminary choice, I still met with the SHIP counselor to confirm that I wasn't missing anything.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
ModifiedDuration
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Re: Any early retirement stories you can share?

Post by ModifiedDuration »

jebmke wrote: Tue Oct 04, 2022 5:50 pm
lws6772 wrote: Tue Oct 04, 2022 5:43 pm
ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
I think the next "Mission Impossible" movie should have Tom Cruise pick out a Medicare plan. :oops:
Many states have counselors under the program SHIP - State Health Insurance Assistance Program (I think that is the full name). These counselors are well versed on the intricacies of Medicare and can guide one through the decision process. Although I did my own research and made a preliminary choice, I still met with the SHIP counselor to confirm that I wasn't missing anything.
I’m glad that you such had a good experience with your SHIP counselor.

Unfortunately, when I met with my SHIP counselor it became apparent that after doing my research, I knew a lot more about Medicare than she did. For example, when I mentioned that I would like to discuss high-deductible Medigap plans, she said that she was unfamiliar with them.

Of course, that was just my experience.

I wish that I had more of an experience like yours.
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

ModifiedDuration wrote: Tue Oct 04, 2022 5:04 pm If you have Modified Adjusted Gross Income of $97,000 if single or $194,000 if married you start paying more for Medicare - the Income-Related Monthly Adjustment Amount (IRMAA).

People don’t realize that IRMAA is based on your income two years prior. They think they will do things like Roth conversions before they turn 65 and beat the IRMAA surcharge and then find out that the IRMAA surcharge at age 65 is based on age 63’s income.

I don’t know what your friend’s issue is with the HSA balance. There is no penalty. It’s a good thing to have that much money in an HSA to help fund retiree health care. There will be plenty to spend it on!
Thanks for that information, ModifiedDuration!

It is very useful to know. I hope it worked out well for you!

Thanks for sharing this. I will definetly keep in in mind when I plan to convert IRAs to Roth or cash out lump sums or anything like that.
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

ModifiedDuration wrote: Tue Oct 04, 2022 5:13 pm
worthit wrote: Tue Oct 04, 2022 5:08 pm
Bennie wrote: Tue Oct 04, 2022 4:52 pm
ModifiedDuration wrote: Tue Oct 04, 2022 4:15 pm The one thing that surprised me the most was when it was time to switch to Medicare just how complicated Medicare is.

Parts A and B, Medicare Advantage, Part D, all those different Medicare Supplement plans…..and, depending on where you live, some of your decisions might result in you being unable to make changes that you later want to.

Ugh

Oh, and you have to watch your income the year you turn 63 because that will determine what you are going to pay for Medicare during the year you turn 65.
Wow, thanks, ModifiedDuration!

So the lower your year-63 income the less you pay?

I heard from a friend who just lost his job at 66 (did not want to retire) how aweful Medicare is for him to understand. The irreversible choices are the most scary part. And he said he has a health spending account with over 60K in it because his company allowed him to save that much in it and now there may be a penalty for the rest of his life because he has too much in that account. I did not understand it all, but that sounded almost unreal.
Does this penalty refer to unused funds in a HSA? If so, yes that is terrible. What can one do to avoid this?
There is no penalty for unused funds in an HSA.

The balance just sits there until you use it. If used for medical expenses, the withdrawals are tax free.

Alternatively, once you reach 65, you can just withdraw the money and pay income tax on it if you want (like an IRA).

If you pass away with a balance in your HSA, income tax would be due on the balance.

Having a large HSA balance going into retirement is a good thing.
Thanks for the clarification! Sorry, I did not want to cause unncessary concern - my friend is a little overwhelmed at the moment, maybe he understood that wriong. He is working his way through the Mecidare choices right now and seemed upset at this HSA balance penalty he thought he would have to pay. I'll talk to him. Again, thanks for clarifying this.
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

tallguy3891 wrote: Tue Oct 04, 2022 5:17 pm
1) Someone told me something to the effect, after they had retired, and my own 12 years in retirement seems to agree (for us anyway): figure out your budget, then add half more to that.
2) It took me about 6 months just to adjust from the adrenalin of working, and a year before I felt comfortable in retirement.
3) In my opinion a paid off house can make things much more comfortable.
4) I found that, being retired in my mid-fifties, I didn't seem to fit in when I joined things; the retirees seemed to be at least 65+, or ++, or +++, and most of my age group was still working and didn't quite get it.

Having said all that, it is important in my opinion to have enough money, varied interests, something to do and somewhere to go, and loving supportive relationships. Not necessarily in that order.
1) Yeah, ouch, 1.5 times the monthly, I thought I would have to buffer it some, but that is a lot.

2) Your second point makes me want to do it, though: I am really stressed at work all the time and my life has been turbulent. Something in me seems to tuck me on the sleeve and say that "we need a break down here, before something breaks, please" - I can totally see where it would take some time to really relax - one does not realize how stress get into your system and changes your life - a year sound totally realistic to significantly change that - I have been on my last job over 20 years - it is quite a habit (stress included). That's why I am so careful, though, to make sure I don't mess this up: don't want the other kind of stress later of not having enough to live on.

3) Got the house! :sharebeer But real estate taxes just went up a lot, even though my house needs a lot of repairs and would never sell for their assessment, and it feels a little like paying rent again...

4)Sorry about the odd feeling in social groups. I hope it works out for you in the end! I always had the opposite problem as a woman: people in my quilt guild counted it against me that I did not volunteer as much (one woman even stopped talking to me because I declined to help with her volunteer project on a deadline she had), but they did not work and I did! Then they didn't like it that I could afford things they could not without asking their husbands first. Eventually, I did not go anymore. I don't miss it. I got sooooo much I want to do with or without people. I love my life! I get your point about not fitting in. That may be a bigger problem for some people.

Thanks so much for sharing your experiences and having this discussion! :happy
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

JoeRetire wrote: Tue Oct 04, 2022 5:23 pm
Bennie wrote: Tue Oct 04, 2022 4:08 pm Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?
I had planned to retire around 65. I actually ended up retiring at 60. So I guess it depends on your definition of "early".

The megacorp where I was working had yet another reorg (seemed to happen every 3 months or so). The individual that inherited myself and my team was in another state, wanted me to manage teams in 2 countries and 4 states, and wanted me to be on the road visiting them for at least a week every month.

That didn't fit in with what I or my family wanted, but my new boss was adamant. So it was either find a new job or retire. After going over our financial situation with my wife a few times to try to assure her that we were easily financially able to get by, I chose to retire. Financially, we had been capable of retiring for a long time. Finally, I was ready emotionally.

It worked out quite well.

After trying out a bunch of different activities, I was surprised how many fulfilling activities I found to do in retirement. I do some volunteer work. I am on the board for our HOA. We have a bunch of activities with our neighbors. I play pickleball almost every day. We babysit our grandkids. We travel some. I play my guitar. I do some photography. I get outside and walk a lot. Life is good. I tell my friends that I don't know how I ever had time for work.

I was surprised by how nervous my wife was initially. Despite the clear numbers, despite the talks with our financial advisor, despite my reassurances, she was still nervous. We both came from families where people essentially worked until they either couldn't or died, and nobody ever retired early. It was hard for her to wrap her head around retirement. She eventually calmed down.

She continued to work for a few more years until we moved into our retirement house. Then she still went to work part-time, two days per week. I think it's mostly for the social aspects. But I suspect there's still a tiny bit of fear remaining. She's working on that.

Finally, I was surprised (and pleased) with how well our investments have done. We were fine financially when I retired almost 8 years ago. We are even finer now. We'll almost certainly be able to leave a larger legacy than we had planned.
That is great!

Thanks so much for sharing your story!

I think I am a little like your wife: had to think of all the people I know who either never worked or retired early to even permit myself to consider it. My idea is still, in the back of my head: how old are you? Not 72 yet? Then what are you doing out on the street on a Tuesday during the day, shouldn't you be working? LOL

But seriously, I a guess I am worried about no more money coming in. And inflation and losses in the market and maybe having some bigger expenses and how to recover from those when income is limited.

I do have a dream of re-staring my own business, but I really don't want all the pressure of depening on it for income. Kinda hoping I will love it so much that it will grow and produce income as a side benefit. But that is not guaranteed.
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

lvswts wrote: Tue Oct 04, 2022 5:35 pm Retired 2 years ago at 55. Make sure you keep/get your letter of separation. My wife is a bit older and she went on Medicare recently. I got the IRMAA notice but retiring is one of the reasons you can get it waived. Very simple form to fill out and one of the pieces of documentation you can use to justify removing the IRMA charge is the letter of separation. Very easy to get rid of that. If Medicare isnt' in the cards in the next 3 years it isn't something I would have needed to worry about as I am managing my income a lot more now than I could while I was working.

I was super worried about healthcare costs before I retired. Found a good high deductible private plan that works for me and I was surprised that it isn't as expensive as I had feared. This allows meet to keep putting the max into a HSA.

I found that I have a wonderful opportunity now to manage my income from a tax perspective. I am using this time until I start taking social security to convert a little of my 401k to a ROTH IRA every year. I can estimate how much I am living off of with dividends and capital gains and then convert a bit to stay in a lower tax bracket. I never had that much control when I was working.

I had to adjust my asset allocation in retirement a bit. I lost a fair amount in 2020 but luckily everything came back and allowed me to adjust to something a bit more comfortable. I knew I needed more bonds before I retired but in my stupidity I had put a lot of my bond allocation in high yield bonds thinking I needed the income. in 2020 I realized how much risk I was taking but got lucky and was given a chance to move things around when things recovered.

One of the things that I struggle with a bit is how to have my money flow into my checking account so that I "simulate" a paycheck every month. How much to keep in cash, where to keep that cash, how much to keep in the checking account, etc. is a struggle that I am still working out. I like things to be automatic but how the spending money "flows" from my investments to my regular checking to pay the bills is a work in progress.

Overall, I would highly recommend it. I should have done it a few years earlier. Good luck.
Thanks so much for sharing, lvswts!

I amnot sure I understand: at 55 you have 12 years to Medicare, right? So no need to get the letter of seperation? Also, what is that letter? Is it from your employer?

Great, that you found a good healthcare plan for yourself and the assets recovered. Managing them is something I am learning now, too. I am looking forward to that but am still fairly ignorant at the moment.

The cash flow point is a good one: I, too, like automatic payments into accounts that pay bills. Maybe someone already retired can chime in and giev advice.
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FreddieFIRE
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Re: Any early retirement stories you can share?

Post by FreddieFIRE »

ModifiedDuration wrote: Tue Oct 04, 2022 5:13 pm If you pass away with a balance in your HSA, income tax would be due on the balance.
Can't a surviving spouse combine it with his/her own HSA if designated beneficiary?
A house and a job. Once the American dream. Two things I'll never again have. Life is simple (and good).
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JoeRetire
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Re: Any early retirement stories you can share?

Post by JoeRetire »

Bennie wrote: Tue Oct 04, 2022 7:24 pm But seriously, I a guess I am worried about no more money coming in. And inflation and losses in the market and maybe having some bigger expenses and how to recover from those when income is limited.
Have you done a deep dive on your expected expenses in retirement? Including healthcare?
Do you have a good handle on your assets and retirement income (pensions, social security)?
Do you have Long Term Care insurance?
Are all your estate documents in order?
I do have a dream of re-staring my own business, but I really don't want all the pressure of depening on it for income. Kinda hoping I will love it so much that it will grow and produce income as a side benefit. But that is not guaranteed.
I assume this is more for fun and that you are not depending on any income from this?
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FreddieFIRE
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Re: Any early retirement stories you can share?

Post by FreddieFIRE »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Financial mostly.

Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?
Prior to FIRE, we were in accumulation mode. Accumulate financial resources. Accumulate stuff. Accumulate responsibilities.

After FIRE, I gained a strong appreciation for downsizing and simplifying EVERYTHING. You're in that window where you (hopefully) still have the time, physical abilities and mental acuity to accomplish those safely and effectively. Before retiring, many (myself included) are just on autopilot. See my signature. 8-)

(downsizing from a large home to a simple rental was one of the most difficult jobs I ever took on - don't try to do it when you're 75 and definitely don't leave it for your kids to do for you)
A house and a job. Once the American dream. Two things I'll never again have. Life is simple (and good).
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FreddieFIRE
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Re: Any early retirement stories you can share?

Post by FreddieFIRE »

JoeRetire wrote: Tue Oct 04, 2022 7:47 pm Are all your estate documents in order?
This one has nothing to do with when a person retires, although it's a good "top priority" if/when somebody retires and has extra time and mental energy. An estate planning lawyer once told me that the time for a person to establish portions of an estate plan (mainly medical power of attorney, but also DPOA and other elements) was when they turned 18. It was probably the only useful thing she told me. :P
A house and a job. Once the American dream. Two things I'll never again have. Life is simple (and good).
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

JoeRetire wrote: Tue Oct 04, 2022 7:47 pm
Bennie wrote: Tue Oct 04, 2022 7:24 pm But seriously, I a guess I am worried about no more money coming in. And inflation and losses in the market and maybe having some bigger expenses and how to recover from those when income is limited.
Have you done a deep dive on your expected expenses in retirement? Including healthcare?
Do you have a good handle on your assets and retirement income (pensions, social security)?
Do you have Long Term Care insurance?
Are all your estate documents in order?
I do have a dream of re-staring my own business, but I really don't want all the pressure of depening on it for income. Kinda hoping I will love it so much that it will grow and produce income as a side benefit. But that is not guaranteed.
I assume this is more for fun and that you are not depending on any income from this?
"Have you done a deep dive on your expected expenses in retirement? Including healthcare?" Yes and no. I have a running monthly budget since 30 years ago, complete with spreadsheet, but for health care I can only estimate 1K/month premium as an upper limit, I hope. Is that a "deep dive"?
"Do you have a good handle on your assets and retirement income (pensions, social security)?" No. I am trying to get an appointment with SS and have found a way to estimate it online on their website now, but the annnuity and other options are still a mystery to me. :?
"Do you have Long Term Care insurance?" = my house
"Are all your estate documents in order?" You mean a will? I am alone, so SOL (Simply Out of Luck!) if I get seriously ill. That will have to count as death in my life. It's over then. I'd like to live a little while I still can.

"I assume this is more for fun and that you are not depending on any income from this?" Yup, I guess. It could generate income, if I am lucky, but I want to option to quit that, too, if it gets to be too much, so financially 0 budget asset. Pocket money, maybe.
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

FreddieFIRE wrote: Tue Oct 04, 2022 7:50 pm
Bennie wrote: Tue Oct 04, 2022 4:08 pm Financial mostly.

Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?
Prior to FIRE, we were in accumulation mode. Accumulate financial resources. Accumulate stuff. Accumulate responsibilities.

After FIRE, I gained a strong appreciation for downsizing and simplifying EVERYTHING. You're in that window where you (hopefully) still have the time, physical abilities and mental acuity to accomplish those safely and effectively. Before retiring, many (myself included) are just on autopilot. See my signature. 8-)

(downsizing from a large home to a simple rental was one of the most difficult jobs I ever took on - don't try to do it when you're 75 and definitely don't leave it for your kids to do for you)
Wow - I get it. Thanks for the post, FreddieFIRE!

Not sure I can give up my house. I like it here. And I like that nobody can push me out (at least not easily). It's my home and the home of my animals.

But point well taken about the "accumulation mode. Accumulate financial resources. Accumulate stuff. Accumulate responsibilities." I am sick of that, too. Just started my month of October without buying anything. I got dog food for the month and my pantry is full. Will have to pay a notary on the 12th but that is it. Just passed on a photo I wanted to get printed. Feels good to stop.

Unlike you, I don't really care about the downsizing being left to my kids. Ain't got any.

I like FIRE. Thanks for introduing me to the acronym. ("FIRE - Financial Independence / Retire Early. Colloquial acronym." from our acronym list https://www.bogleheads.org/wiki/Abbrevi ... d_acronyms)

There is a lot to think about: financially, emotionally, psychologically. It is another big step in life. Hopefully a really good one!

Thanks for adding this point of view.
heyyou
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Re: Any early retirement stories you can share?

Post by heyyou »

Broken record response on the RMD portfolio spending method:
https://crr.bc.edu/wp-content/uploads/2 ... 19-508.pdf
The annual withdrawal percentages are buried in the appendix on page 7.

I use that age-based retirement spending method because it adjusts your spending each year, to your age and your most recent annual portfolio value. Many here do not like the potential of having slightly variable yearly income, but that is an attractive feature to me because it is making smaller, annual spending adjustments to avoid any future large adjustment to my yearly income.

The 4% SWR method, based on 30 years of retirement, is sometimes too conservative because it is common for there to be a stock crash in the years just after many workers do have significant portfolio growth, just enough for them to retire, so 4% SWR has a built-in cushion for that early-in-retirement stock crash. That is also why the 4% SWR method can leave too much unspent, if that bad event does not occur early in your specific 30 year retirement period.
Wannaretireearly
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Re: Any early retirement stories you can share?

Post by Wannaretireearly »

heyyou wrote: Tue Oct 04, 2022 11:05 pm Broken record response on the RMD portfolio spending method:
https://crr.bc.edu/wp-content/uploads/2 ... 19-508.pdf
The annual withdrawal percentages are buried in the appendix on page 7.

I use that age-based retirement spending method because it adjusts your spending each year, to your age and your most recent annual portfolio value. Many here do not like the potential of having slightly variable yearly income, but that is an attractive feature to me because it is making smaller, annual spending adjustments to avoid any future large adjustment to my yearly income.

The 4% SWR method, based on 30 years of retirement, is sometimes too conservative because it is common for there to be a stock crash in the years just after many workers do have significant portfolio growth, just enough for them to retire, so 4% SWR has a built-in cushion for that early-in-retirement stock crash. That is also why the 4% SWR method can leave too much unspent, if that bad event does not occur early in your specific 30 year retirement period.
Perhaps 4% is ok as you say, especially if not factoring SS? 🤔
“At some point you are trading time you will never get back for money you will never spend.“ | “How do you want to spend the best remaining year of your life?“
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Re: Any early retirement stories you can share?

Post by VanGar+Goyle »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Looking to hear from people who have retired early and have some wisdom to impart and some stories. I am all ears!
Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?
I thought that I would retire in 5 years for about 20 years. Then suddenly I retired early late.

I thought that I could get both Medicare and ACA discounts at age 63 and 64 by artificially lowering my taxable income,
but that did not work out for several reasons.

Instead did some other tax-saving techniques, which should work, unless they change the tax system again in my lifetime.
As expected, virtually every year, the tax system is changed in unexpected ways ;)
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JoeRetire
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Re: Any early retirement stories you can share?

Post by JoeRetire »

FreddieFIRE wrote: Tue Oct 04, 2022 7:53 pm
JoeRetire wrote: Tue Oct 04, 2022 7:47 pm Are all your estate documents in order?
This one has nothing to do with when a person retires, although it's a good "top priority" if/when somebody retires and has extra time and mental energy. An estate planning lawyer once told me that the time for a person to establish portions of an estate plan (mainly medical power of attorney, but also DPOA and other elements) was when they turned 18. It was probably the only useful thing she told me. :P
Many folks get discounted access to legal advice while working. Some take advantage of that shortly before retiring.

For some, this can help reduce their worry.
Last edited by JoeRetire on Wed Oct 05, 2022 6:16 am, edited 1 time in total.
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JoeRetire
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Re: Any early retirement stories you can share?

Post by JoeRetire »

Bennie wrote: Tue Oct 04, 2022 8:03 pm "Have you done a deep dive on your expected expenses in retirement? Including healthcare?" Yes and no. I have a running monthly budget since 30 years ago, complete with spreadsheet, but for health care I can only estimate 1K/month premium as an upper limit, I hope. Is that a "deep dive"?
How did you come up with the $1k/month estimate? Have you looked into health insurance plans?
"Do you have a good handle on your assets and retirement income (pensions, social security)?" No. I am trying to get an appointment with SS and have found a way to estimate it online on their website now, but the annnuity and other options are still a mystery to me. :?
Perhaps an hour or two with a fee-only fiduciary financial advisor would help.
"Do you have Long Term Care insurance?" = my house
"Are all your estate documents in order?" You mean a will? I am alone, so SOL (Simply Out of Luck!) if I get seriously ill. That will have to count as death in my life. It's over then. I'd like to live a little while I still can.
I don't understand. Being ill doesn't count as death.
"I assume this is more for fun and that you are not depending on any income from this?" Yup, I guess. It could generate income, if I am lucky, but I want to option to quit that, too, if it gets to be too much, so financially 0 budget asset. Pocket money, maybe.
Okay.

I ask these questions, since you indicate you are still worried. Sometimes, having a great handle on your finances entering retirement can reduce the worry.

Good luck.
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Re: Any early retirement stories you can share?

Post by 4nursebee »

On Medicare
- the difficulties are not sufficient to avoid starting
-there are people that can help https://www.commonwealthfund.org/blog/2 ... ary-choice
and https://www.retireguide.com/medicare/cu ... eneficiary.

IRMAA advice here often seems pennywise and pound foolish.
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lvswts
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Re: Any early retirement stories you can share?

Post by lvswts »

Bennie wrote: Tue Oct 04, 2022 7:36 pm
lvswts wrote: Tue Oct 04, 2022 5:35 pm I amnot sure I understand: at 55 you have 12 years to Medicare, right? So no need to get the letter of seperation? Also, what is that letter? Is it from your employer?
My wife is 9 years older than I am so she went on Medicare shortly after I retired. I just needed some documentation that I had retired and that my income will not be as high as it had been in the past couple years. In my case I had a letter from HR that said I retired. Probably not an issue for you.
scrabbler1
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Re: Any early retirement stories you can share?

Post by scrabbler1 »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Looking to hear from people who have retired early and have some wisdom to impart and some stories. I am all ears!

Good or bad. Significant or small.

Financial mostly.

Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?

I am on the jumping off point (55) and very nervous! :|

Thank you! Thank you! Thank you! :sharebeer
I retired 14 years ago at age 45. I had been working part-time for the 7 years leading up to my retirement, so I had built up a good set of activities I kept doing. Sadly, those activities have ended (1 due to the death of its leader, another due mostly to Covid) after 17-19 years.

Financially, things have gone well. Most of my income comes from a bond fund's monthly dividends. The dividends per share every month have dropped since late 2008, but I have added a lot of shares along the way which have offset most but not all that decrease. Health insurance has been my most volatile expense. There was no ACA plans through the exchange from 2008-2013, so I either paid a lot of money or was underinsured. Managing my income to get the premium subsidies has been a challenge, but I finally have that under control.

The big part of my overall financial plan was splitting it into 2 parts - the first part was getting from age 45 to age ~60 using only my taxable accounts. That's the tougher part, but I have made it there just fine. The second part starts around now and include the beginning of access to my "reinforcements" which include unfettered access to my rollover IRA, my frozen company pension, and Social Security. Those 3 pools of money only improve my overall financial picture.
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Bennie
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Re: Any early retirement stories you can share?

Post by Bennie »

scrabbler1 wrote: Wed Oct 05, 2022 7:29 am
I retired 14 years ago at age 45. I had been working part-time for the 7 years leading up to my retirement, so I had built up a good set of activities I kept doing. Sadly, those activities have ended (1 due to the death of its leader, another due mostly to Covid) after 17-19 years.

Financially, things have gone well. Most of my income comes from a bond fund's monthly dividends. The dividends per share every month have dropped since late 2008, but I have added a lot of shares along the way which have offset most but not all that decrease. Health insurance has been my most volatile expense. There was no ACA plans through the exchange from 2008-2013, so I either paid a lot of money or was underinsured. Managing my income to get the premium subsidies has been a challenge, but I finally have that under control.

The big part of my overall financial plan was splitting it into 2 parts - the first part was getting from age 45 to age ~60 using only my taxable accounts. That's the tougher part, but I have made it there just fine. The second part starts around now and include the beginning of access to my "reinforcements" which include unfettered access to my rollover IRA, my frozen company pension, and Social Security. Those 3 pools of money only improve my overall financial picture.
Cool. Thanks for sharing, scrabbler1. Inspiring!

Sorry you had to go through that with the health care. Big no-no on going uninsured but I am glad you made it, without big personal or financial loss.

Good point about using taxable accounts first.
ModifiedDuration
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Re: Any early retirement stories you can share?

Post by ModifiedDuration »

Even though it’s a few years off, consider taking a look at opensocialsecurity.com to see what it suggests for a social security claiming strategy.

Play around with the different life expectancy assumptions and put in your own life expectancy scenarios. Take a look at the chart at the bottom that shows you how much it costs you to do differing claiming strategies.

Another point is that we found that we were doing Roth Conversions, but the stock market was going up faster than we were converting. Our retirement accounts kept increasing and we were looking at big Required Minimum Distributions and big tax bills in the future (especially if one of us passed and the other was facing the higher single tax rates that you will also face).

So, consider taking a run at the Retiree Portfolio Model. It might help you come up with a Roth Conversion strategy prior to age 63 (as Roth Conversions from that point on would impact Medicare’s IRMAA).

The Retiree Portfolio Model helped us a lot in developing a better Roth Conversion strategy.

https://www.bogleheads.org/wiki/Retiree_Portfolio_Model

By the way, I’m impressed with your strategy of obtaining information from others just as you are getting ready to retire and it is apparent that you are really listening and learning from everyone. Very impressive indeed.
bob2019
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Re: Any early retirement stories you can share?

Post by bob2019 »

I'm part way into year four of retirement after retiring at age 58. It took me a good two years to adjust to spending down what I had saved over the years. It still causes me angst from time-to-time, but even in this down market the countless calculators tell me that I'll be fine for 30+ years.

In the meantime; delaying SS, Roth conversions, volunteering, vacationing, keeping a closer eye on elderly mom.
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quantAndHold
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Re: Any early retirement stories you can share?

Post by quantAndHold »

bob2019 wrote: Wed Oct 05, 2022 11:43 am I'm part way into year four of retirement after retiring at age 58. It took me a good two years to adjust to spending down what I had saved over the years. It still causes me angst from time-to-time, but even in this down market the countless calculators tell me that I'll be fine for 30+ years.

In the meantime; delaying SS, Roth conversions, volunteering, vacationing, keeping a closer eye on elderly mom.
It’s hard to overstate this. I retired at 53. The first 2 years were fine, but then I went through a couple of years where I was afraid to spend any money, because I didn’t have any new money coming in. Then one day I did math and realized our spending rate was below 2%. So I decided to work on making myself get comfortable with spending more money. I’m not sure how that’s going so far…We’ve certainly spent more money this year, but only because I’ve had three trips to the ER and a bunch of follow ups, so nearly all of our increased spending is medical. But at least I’m not freaking out about the spending anymore.

PS: if you have been eating sushi, don’t rub your eye. Wasabi in my eye was one of the ER visits.
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Re: Any early retirement stories you can share?

Post by stoptothink »

quantAndHold wrote: Wed Oct 05, 2022 2:18 pmPS: if you have been eating sushi, don’t rub your eye. Wasabi in my eye was one of the ER visits.
That's hilarious. I work a lot with menthol and methyl salicylate, terpene compounds that provide a pretty intense cooling sensation when applied topically. I've accidentally rubbed my eye and - ummm - other parts before I thoroughly washed my hands on a few occasions. Not fun, but no ER visits.
southernlucky
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Re: Any early retirement stories you can share?

Post by southernlucky »

No story to share but I like this FAQ post on another forum website dedicated to early retirement with some good questions to ask oneself before retiring:

https://www.early-retirement.org/forums ... 69999.html
"Rely heavily on index funds, and begin with the idea of a 50/50 bond/stock ratio, adjusting the ratio in accordance with your own financial profile"--J Bogle commentary on Pillar 2 of 12
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Re: Any early retirement stories you can share?

Post by tennisplyr »

Yeah, I retired @ 61 and my wife said...THAT'S TOO EARLY 🤣🤣🤣. I did it anyway!
“Those who move forward with a happy spirit will find that things always work out.” -Retired 13 years 😀
Wanderingwheelz
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Re: Any early retirement stories you can share?

Post by Wanderingwheelz »

I retired a bit less than two years ago (age 49) and I’m happy to report that my accounts are almost back to where they were when I gave my self permission to retire.
Being wrong compounds forever.
fastrak99
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Re: Any early retirement stories you can share?

Post by fastrak99 »

My wife retired at 29 (4 years ago), and I retired at 38 (1.5 years ago).

Post retirement - I have worked on a few personal projects part time (15-20 hours a week) on business / hobbies that MIGHT or MIGHT NOT generate income anywhere from 1 to 10 years from now (blogging, vlogging, e-commerce, etc).

I really don't care, and that has not been the focus (money/cashflow) - enjoyment has . At first it was scary, with 'cashflow' income not coming in, but getting easier and easier with each passing day.

I recently turned 40, and see and more accurately 'feel' the shortness of life and the importance of time more and more with each passing day. Something about that number that really makes it all feel for me like it's half-over and it's now really time to dig in and figure out what I want to do with my life :) :)

Currently, I have not made any money post retirement (outside of investments / dividends). I have always been an entrepreneur at heart, and to me figuring out ways to cash-flow is one of the best hobbies in life, and what keeps my brain sharp day in day out.

Additionally, I have spent a considerable time around this forum learning how to manage and invest my assets, and wrap my mindset around 'staying the course'. This forum as well well as certain other finance blogs have been an immeasurable tool to help me think more 'long-term' and be almost completely unemotional to the ups and downs of daily (and yearly) market fluctuations. Hopefully this attitude lasts me into very old age.

I have actually now starting to worry that I will die with 'too much' money, and thinking daily on what are some additional meaningful ways to spend EXTRA money to have a long lasting impact on my families memories, comfort and life experiences. The book 'die with zero' has had a meaningful impact to some of my thinking.

We also currently have 1 child (1 year old), and plan to have another.

I think this is the best time to be retired as well, as nothing can replace these initial days, years and moments with your kids, especially when BOTH parents are around and 'present'.

Maybe my stance on work, retirement, etc will flip once kids are in school - but I have ZERO problems filling up my days and staying very active and busy.

I have 3 awesome home-cooked meals a day, see friends weekly, get to go out on a walk 1-2 times a day, do weekly date-nights with my wife (with a babysitter), once-twice a week family meals out, catch-up on our favorite netflix show(s) daily, and be consistent on my workouts 5-7 times a week. (The same can be said for my wife as well, as we will flip the child-watching duties to accommodate some of these activities). I typically run out of 'time' daily before I run out of things to do.

We travel on a whim whenever and to wherever we feel like (mostly road trips as that's more manageable with a toddler) - as both of us are retired and in great health.

I read and listen to podcasts on the daily as well. That is all on top of being extremely present and available for everything family related from play-dates to kid-gyms and doctors appointments, etc.

-------------------------------------------

**CLIFF NOTES VERSION** of my financial snap-shop -

*7 MIL in 3 fund portfolio (+/- 0.5 MIL).
*2 MIL paid off house.
*200K cars / miscellaneous crap.
*1.8 MIL CASH (earning anywhere from ~ 2.7 - 6% interest) .

ANNUAL CURRENT SPEND 150-175K.

--------------------------------------------

Any questions or feedback / comments are much appreciated!!
Last edited by fastrak99 on Sun Oct 09, 2022 12:30 pm, edited 17 times in total.
ModifiedDuration
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Re: Any early retirement stories you can share?

Post by ModifiedDuration »

fastrak99 wrote: Wed Oct 05, 2022 5:47 pm My wife retired at 29 (4 years ago), and I retired at 39 (1.5 years ago).

Post retirement - I have worked on a few personal projects part time (15-20 hours a week) on business / hobbies that MIGHT or MIGHT NOT generate income anywhere from 1 to 10 years from now (blogging, e-commerce, etc).

I really don't care, and that has not been the focus (money/cashflow) - enjoyment has . At first it was scary, with 'cashflow' income not coming in, but getting easier and easier with each passing day. Currently, I have not made any money post retirement (outside of investments / dividends). I have always been an entrepreneur at heart, and to me figuring out ways to cash-flow is one of the best hobbies in life, and what keeps my brain sharp day in day out.

Additionally, I have spent a considerable time around this forum learning how to manage and invest my assets.

I have actually now starting to worry that I will die with 'too much' money, and thinking daily on what are some additional meaningful ways to spend EXTRA money to have a long lasting impact on my families memories, comfort and life experiences. The book 'die with zero' has had a meaningful impact to some of my thinking.

We also currently have 1 child (1 year old), and plan to have another.

I think this is the best time to be retired as well, as nothing can replace these initial days, years and moments with your kids, especially when BOTH parents are around.

Maybe my stance on work, retirement, etc will flip once kids are in school - but I have ZERO problems filling up my days and staying very active and busy. I have 3 awesome home-cooked meals a day, see friends weekly, get to go out on a walk 1-2 times a day, and do daily workouts 5-7 times a week. I read and listen to podcasts on the daily as well. That is all on top of being extremely present and available for everything family related from play-dates to kid-gyms and doctors appointments, etc.

-------------------------------------------

**CLIFF NOTES VERSION** of my financial snap-shop - 7 MIL in 3 fund portfolio. 2 MIL paid off house. 200K cars / miscellaneous crap. 1.8 MIL CASH.

ANNUAL CURRENT SPEND 150-175K.

--------------------------------------------

Any questions or feedback / comments are much appreciated!!
One of these days (perhaps after the second child is born), you might want to consider Superfunding a 529 Plan - $80k from you and $80k from your wife - if that is something the two of you would value.
fastrak99
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Re: Any early retirement stories you can share?

Post by fastrak99 »

ModifiedDuration wrote: Wed Oct 05, 2022 5:57 pm
fastrak99 wrote: Wed Oct 05, 2022 5:47 pm My wife retired at 29 (4 years ago), and I retired at 39 (1.5 years ago).

Post retirement - I have worked on a few personal projects part time (15-20 hours a week) on business / hobbies that MIGHT or MIGHT NOT generate income anywhere from 1 to 10 years from now (blogging, e-commerce, etc).

I really don't care, and that has not been the focus (money/cashflow) - enjoyment has . At first it was scary, with 'cashflow' income not coming in, but getting easier and easier with each passing day. Currently, I have not made any money post retirement (outside of investments / dividends). I have always been an entrepreneur at heart, and to me figuring out ways to cash-flow is one of the best hobbies in life, and what keeps my brain sharp day in day out.

Additionally, I have spent a considerable time around this forum learning how to manage and invest my assets.

I have actually now starting to worry that I will die with 'too much' money, and thinking daily on what are some additional meaningful ways to spend EXTRA money to have a long lasting impact on my families memories, comfort and life experiences. The book 'die with zero' has had a meaningful impact to some of my thinking.

We also currently have 1 child (1 year old), and plan to have another.

I think this is the best time to be retired as well, as nothing can replace these initial days, years and moments with your kids, especially when BOTH parents are around.

Maybe my stance on work, retirement, etc will flip once kids are in school - but I have ZERO problems filling up my days and staying very active and busy. I have 3 awesome home-cooked meals a day, see friends weekly, get to go out on a walk 1-2 times a day, and do daily workouts 5-7 times a week. I read and listen to podcasts on the daily as well. That is all on top of being extremely present and available for everything family related from play-dates to kid-gyms and doctors appointments, etc.

-------------------------------------------

**CLIFF NOTES VERSION** of my financial snap-shop - 7 MIL in 3 fund portfolio. 2 MIL paid off house. 200K cars / miscellaneous crap. 1.8 MIL CASH.

ANNUAL CURRENT SPEND 150-175K.

--------------------------------------------

Any questions or feedback / comments are much appreciated!!
One of these days (perhaps after the second child is born), you might want to consider Superfunding a 529 Plan - $80k from you and $80k from your wife - if that is something the two of you would value.
Thanks for the suggestion that is not something we looked into yet.
ramram22
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Re: Any early retirement stories you can share?

Post by ramram22 »

fastrak99 wrote: Wed Oct 05, 2022 5:47 pm My wife retired at 29 (4 years ago), and I retired at 39 (1.5 years ago).

Post retirement - I have worked on a few personal projects part time (15-20 hours a week) on business / hobbies that MIGHT or MIGHT NOT generate income anywhere from 1 to 10 years from now (blogging, e-commerce, etc).

I really don't care, and that has not been the focus (money/cashflow) - enjoyment has . At first it was scary, with 'cashflow' income not coming in, but getting easier and easier with each passing day. Currently, I have not made any money post retirement (outside of investments / dividends). I have always been an entrepreneur at heart, and to me figuring out ways to cash-flow is one of the best hobbies in life, and what keeps my brain sharp day in day out.

Additionally, I have spent a considerable time around this forum learning how to manage and invest my assets, and wrap my mindset around 'staying the course'. This forum as well well as certain other finance blogs have been an immeasurable tool to help me think more 'long-term' and be almost completely unemotional to the ups and downs of daily (and yearly) market fluctuations. Hopefully this attitude lasts me into very old age.

I have actually now starting to worry that I will die with 'too much' money, and thinking daily on what are some additional meaningful ways to spend EXTRA money to have a long lasting impact on my families memories, comfort and life experiences. The book 'die with zero' has had a meaningful impact to some of my thinking.

We also currently have 1 child (1 year old), and plan to have another.

I think this is the best time to be retired as well, as nothing can replace these initial days, years and moments with your kids, especially when BOTH parents are around and 'present'.

Maybe my stance on work, retirement, etc will flip once kids are in school - but I have ZERO problems filling up my days and staying very active and busy. I have 3 awesome home-cooked meals a day, see friends weekly, get to go out on a walk 1-2 times a day, and do daily workouts 5-7 times a week. We travel on a whim whenever and to wherever we feel like (mostly road trips as that's more manageable with a toddler) - as both of us are retired and in great health.

I read and listen to podcasts on the daily as well. That is all on top of being extremely present and available for everything family related from play-dates to kid-gyms and doctors appointments, etc.

-------------------------------------------

**CLIFF NOTES VERSION** of my financial snap-shop - 7 MIL in 3 fund portfolio. 2 MIL paid off house. 200K cars / miscellaneous crap. 1.8 MIL CASH.

ANNUAL CURRENT SPEND 150-175K.

--------------------------------------------

Any questions or feedback / comments are much appreciated!!
Wow, what type of business allowed you to generate that type of wealth by your late 30s?
fastrak99
Posts: 117
Joined: Tue Jul 31, 2018 10:02 pm

Re: Any early retirement stories you can share?

Post by fastrak99 »

ramram22 wrote: Wed Oct 05, 2022 6:02 pm
fastrak99 wrote: Wed Oct 05, 2022 5:47 pm My wife retired at 29 (4 years ago), and I retired at 39 (1.5 years ago).

Post retirement - I have worked on a few personal projects part time (15-20 hours a week) on business / hobbies that MIGHT or MIGHT NOT generate income anywhere from 1 to 10 years from now (blogging, e-commerce, etc).

I really don't care, and that has not been the focus (money/cashflow) - enjoyment has . At first it was scary, with 'cashflow' income not coming in, but getting easier and easier with each passing day. Currently, I have not made any money post retirement (outside of investments / dividends). I have always been an entrepreneur at heart, and to me figuring out ways to cash-flow is one of the best hobbies in life, and what keeps my brain sharp day in day out.

Additionally, I have spent a considerable time around this forum learning how to manage and invest my assets, and wrap my mindset around 'staying the course'. This forum as well well as certain other finance blogs have been an immeasurable tool to help me think more 'long-term' and be almost completely unemotional to the ups and downs of daily (and yearly) market fluctuations. Hopefully this attitude lasts me into very old age.

I have actually now starting to worry that I will die with 'too much' money, and thinking daily on what are some additional meaningful ways to spend EXTRA money to have a long lasting impact on my families memories, comfort and life experiences. The book 'die with zero' has had a meaningful impact to some of my thinking.

We also currently have 1 child (1 year old), and plan to have another.

I think this is the best time to be retired as well, as nothing can replace these initial days, years and moments with your kids, especially when BOTH parents are around and 'present'.

Maybe my stance on work, retirement, etc will flip once kids are in school - but I have ZERO problems filling up my days and staying very active and busy. I have 3 awesome home-cooked meals a day, see friends weekly, get to go out on a walk 1-2 times a day, and do daily workouts 5-7 times a week. We travel on a whim whenever and to wherever we feel like (mostly road trips as that's more manageable with a toddler) - as both of us are retired and in great health.

I read and listen to podcasts on the daily as well. That is all on top of being extremely present and available for everything family related from play-dates to kid-gyms and doctors appointments, etc.

-------------------------------------------

**CLIFF NOTES VERSION** of my financial snap-shop - 7 MIL in 3 fund portfolio. 2 MIL paid off house. 200K cars / miscellaneous crap. 1.8 MIL CASH.

ANNUAL CURRENT SPEND 150-175K.

--------------------------------------------

Any questions or feedback / comments are much appreciated!!
Wow, what type of business allowed you to generate that type of wealth by your late 30s?
It was an e-com business built around amazon/shopify that I ran for 10 years (ages 29-39) that generated personal profit of $2/3MIL at the peak years. After being in it for so long, and needing a change (as well as freeing up time for my new member of the family) - my business partner and I decided to sell, for an 8 figure sum. By the end of it, we were both working 'in the business' and not 'on the business' and it was time to call it quits. ZERO regrets so far, and we sold at a great time when valuations / profits were still rock solid for us. The landscape changed quite a bit in the last 2 years.
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Watty
Posts: 28860
Joined: Wed Oct 10, 2007 3:55 pm

Re: Any early retirement stories you can share?

Post by Watty »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Looking to hear from people who have retired early and have some wisdom to impart and some stories. I am all ears!
Retired in my late 50s in 2015 and we did a fair amount of traveling and we planned to do more.

Then the pandemic hit and we are not yet to the point where we feel comfortable doing traveling other than things like road trips to the beach.

I am glad that I retired when I did.

You never know how much time you have left to enjoy your retirement.
flyingaway
Posts: 3908
Joined: Fri Jan 17, 2014 9:19 am

Re: Any early retirement stories you can share?

Post by flyingaway »

I retired last year at 57. I have been doing a few international travels and am currently in SE Asia for a month solo trip (in Nepal now). One of the things that I hate myself is that I always try to buy the cheapest foods from the menu, although all of their foods are inexpensive and good according to U.S. standards. I have to constantly remind myself that I have money and need to spend.

I have said this many times. My early retirement (from a tenured full professor position) is not perfect, or as exciting as I hoped, but it beats working at office by 1,000 times. No plan to make any money actively in the future.
secondcor521
Posts: 1604
Joined: Wed Sep 10, 2014 4:11 pm

Re: Any early retirement stories you can share?

Post by secondcor521 »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Looking to hear from people who have retired early and have some wisdom to impart and some stories. I am all ears!

Good or bad. Significant or small.

Financial mostly.

Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?

I am on the jumping off point (55) and very nervous! :|

Thank you! Thank you! Thank you! :sharebeer
Retired early at 46 about 7 years ago. Working out better than planned financially as I have about twice what I FIREd, 7 fewer years to live, and have gotten all three kids through high school and about half of college so fewer kid-related expenses remaining.

Surprises? Not too many for me, really, as I had been looking at FIRE for over a decade, and I have a personality type of tracking everything financial to a great degree of detail and category etc.

Two surprises though:

First, people spend so much time and effort looking at worst case that it's easy to forget that nearly all of the time the results are better than worst case. Half the time, they're even better than average. So while I was prepared for my portfolio to drop by 20% in my first year of retirement, in fact that didn't happen and it has been doing rather well the last 7 years. Pleasant surprise.

Second, and related to the first, is that while I accounted for portfolio return and SS income, I ignored any other income and assumed those would be zero. As it turns out, I have about four little varied income streams that end up adding up to about half of my annual expenses, so my gross WR% is about 2% but net WR% is under 1%. Pleasant surprise.

Wisdom? Meh, maybe not. I'd point out that taxes can change a lot from working to FIRE. When working, I was trying to earn as much as possible, save as much as possible, and defer taxes as much as possible. Now in FIRE with low expenses I can pretty much have my AGI be whatever I choose with wide limits, I spend rather than save, and I accelerate or defer taxes based to more or less try to level out my top marginal rate.

It's normal to be nervous. I would try to separate nervousness originating in other people's fears or disapproval from fears based on reasonable questions or doubts that you have. Then address those. Not sure what you'll do with your time? Develop a list of activities you would like to try. Worried about inflation or bad returns? Research and understand how your withdrawal method responds to those issues. Worried about budgeting? Track your expenses for longer and carefully figure out how the various line items increase or decrease.

HTH.
JayB
Posts: 673
Joined: Sat May 28, 2022 9:57 am

Re: Any early retirement stories you can share?

Post by JayB »

Bennie wrote: Tue Oct 04, 2022 4:08 pm Looking to hear from people who have retired early and have some wisdom to impart and some stories. I am all ears!

Good or bad. Significant or small.

Financial mostly.

Have you retired early? Did it work for you as planned? What did and what were some surprises (good or bad)?
I retired at 58, and spouse at around the same time at 52. In my elaborate Excel spreadsheet, we had projected spending tens of thousands of $ more per year in retirement than when we were working. We never really envisioned what all that extra money might be used for. Travel was vaguely on the radar, but we got the travel bug out of our systems within a couple of years, and got just plain tired of traveling. So all that extra budgeted discretionary $ has never really been needed. Our lifestyle is simple, very comfortable, and low cost. Just before retiring, I checked with several experts to make sure we indeed had the resources to retire early comfortably. One of those experts suggested that we would never need to tap either of our large Roth IRAs. I did not believe him at the time, but that suggestion seems very much on track now. Happiness does not take a lot of money for us.
sailaway
Posts: 8219
Joined: Fri May 12, 2017 1:11 pm

Re: Any early retirement stories you can share?

Post by sailaway »

JayB wrote: Wed Oct 05, 2022 7:04 pm Happiness does not take a lot of money for us.
This is important: creating a realistic budget that ticks all the boxes for you. FIL thinks our budget is unrealistic just because live in a HCOL. But it is our budget and it has worked for us for years in this same HCOL.
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