Topic: Early Retirement....anyone done it?

[simon#42]

yes that is exactly how i see it .

[Remcod]

But do and try to work 4 days if not self employed. Best decision i made. Next one earlier retirement like at 65 instead of 68. Just a matter of savings im agraid. Unless the cb price skyrockets in which case i will let half the stable go, since the bitcoin collapsed

[CBJoe]

I'm way early in the game but reading this thread has helped me double up on future thoughts and plans. 

I'm 38 and have been working since age 15 (currently have 18 years with my current company...started with them before I was old enough to drink!).  I love my job and I'm very good at it, but as I work for a medical device service company I'm pretty much ON all the time. It's become my recent goal to be ready to walk away between age 50 and 55.  Gonna be harder as my wife has never carried a steady job or benefits...so all is planned on my income.  I'll have no issues working a part time job somewhere for entertainment as needed...

I've got maybe 2 more years and I'll have all the credit debt incurred over the years paid and gone...then it's all gonna be directed at the retirement goal.  With 401k maxed out I'm considering investing with my buddy to buy/fix and rent houses.  Working well for him at the moment to supplement his income and build a ton of equity.

Joe

[Fezzler]

Multiple streams of income is a great idea if you can do it.

[Alan F.]

Multiple streams of income is a great idea if you can do it.

I agree, diversified income streams is a good way to go. Buy low/sell high, grow a garden or greenhouse to offset grocery costs, go solar, keep chickens... Use a digital TV antenna and ditch the cable company, ditch the landline for cheap prepaid mobile, quit smoking, make your own wine or brew your own beer. Buy one piglet every spring and have it butchered in the fall to fill your freezer. Offsetting expenses can be very productive.

Oh, and barter whenever possible.

[MauiK3]

So I've "retired" twice. I spent 34 years with the Feds. I looked for and got hired by the Hawaii Dept. of Transportation prior to my Fed retirement. This was all a part of a long term plan. We moved from the Sacramento area to Maui. We knew it would be an expensive move so we needed to have some income to get settled. I spent 9 years with HDOT and retired again two years ago. Now I work a few days a week self employed here in south Maui, very casual. I spend a lot of time doing woodwork, currently making a Lego table for my grandson. I still work because life isn't cheap here. We did a lot of things to get control of expenses such as solar panels for power, we have no electric bill. We took out the lawn, the house is pretty small (1200 sq ft), the garage is 1100 sq ft, half of it is my work space.
I think not working at all is a bad idea, the mind and body need to be in motion. My first project after retirement from HDOT was restoring the K3 750. That was a great way to kick it off.
It's working out fine, sometimes we are a bit too busy but it balances out. No, we don't spend days drunk on the beaches here, which are great. We go to the beach, ride the K3, do gardening, take care of the chickens, keep the family rolling.
Don't stop working, stay busy.

[MauiK3]

When I was considering the second retirement I was worried we would take a big setback. It didn't happen. We have adjusted a lot of things and our casual side work picked up. At any rate, it's good to have a side gig. Once people realize you are available, work comes to you.
It works out better than you can see before you make the change.

[RAFster122s]

It is a good ideal to have the side business created and established before you retire as trying to start one using your 401k to do your own thing what you think may be a good gig turns out to be a vacuum for the retirement account if you continue to inject cash into the business to stay afloat.
I know someone who bought a vinyl sign business but he as the boss didn't like sales and marketing and he eventually closed the business because he could not continue to lose money. He even moved the business out of the suburb into his garage to try to make it work from E of Columbus, OH and that didn't work either. Bad business proposition and he didn't have a head for business.

MauiK3 has a hobby which his woodworking has yielded word of mouth advertising when others see his work. Being involved in local woodworking show competitions is a great way to generate interest and business. Have business cards and give your clients multiple cards when you present them with your work. That way if friends of their or other see the work they can appreciate it.  I have seen some woodworkers sign or brand their work underneath a table top or inside a cabinet in a out of sight area or they put a business card under polyurethane or brass plaque on the back identifying the craftsman whom made the work.  Others I know whom have custom woodworking get steady clients when they know you can make a piece for them in 3 months instead of 6 months to a year.  Good honest craftsmen develop a good reputation, but always have a written contract with clauses to handle cancellation or other risks in most businesses. Days of the word and a handshake are often gone in most areas of the country anymore...

FWIW,
David

[MarkVMod0]

After 15 years as a flight nurse I could no longer endure the flights, while our program was extremely safe and nationally certified we still flew in some weather that would raise the hair on the back of your neck. Thanks  to IV Fentanyl and Versed our patients rarely if ever remembered the flight. Eventually one to many close calls convinced me to retire at age 62. I live on social security and my 401K. It's been tough since I can't make any earned income over $17,000. Over that mark the government takes back one dollar for every two dollars earned.

Was it worth it to retire before full retirement age? Yes, it has been difficult but I never regret my decision. I haven't been on an airplane, not even commercial,  since I retired. It was the best decision I have made. I sleep better, eat better, the little crap in life no longer riles me and my blood pressure is normal again. 

I thought I would have free time but I am busier now than when I worked.

Mule

 

[Scott S]

 Here's some information I found on the age 55 rule:

https://www.wealthenhancement.com/blog/ins-outs-401k-withdrawals-at-age-55/

 If my company is being bought out on January 1, it looks like I need to transfer my balance from the old fund (Fidelity) to the new companies fund (John Hancock).
 That way, I I retire any time during the year I turn 55 or later, I can draw from that balance without penalty.
 It also appears that I can still work somewhere else.  I just need to sever myself completely from the company that maintains the fund.

[Scott S]

 These two are important to me.

 One says that I CAN work after retirement.

 The other seems to say that if I left my balance with the old company,  I would have to wait until age 59 1/2. But if I transfer to the new fund/company and then quit/retire at 55 or later, that fund is available to me without early withdrawal penalty.

You don’t have to be retired to avoid paying the penalty.
If you have a 401k with Company ABC and retire at age 58, you’ll be able to access those savings without penalty, even if you immediately take a job with Company XYZ.

The age 55 rule applies to the date employment was terminated, not when you begin taking distributions.
For example, if you retired from Company ABC at age 50, you would still be subject to the penalty tax if you take distributions at age 55; you’d have to wait until age 59½ for penalty-free withdrawals.

[Jerry Rxman Griffin aka MuthaF'er]

Well I've been FULLY retired now for 2 days. 3/4 retired since 11/2002.  It's the best 2 days, going on 3, of my life. I leave for St Thomas for the winter at 0:43 on 1/1. New Years eve in the Colorado Springs airport. What a great way to celebrate.

Pull the trigger once you get all your ducks in a row.

[vfourfreak]

Apparently according to the French government I am now retired. Thrown on the scrap heap, unwanted by the captains of industry, my vast experience under appreciated, my true potential un-tapped . . .




YAY

Kev

[Gurp]

I just wanted to say that 25 percent is incredible let alone your 27.5% into your 401k. I understand stand some of it is match made from the company but that is still pretty kick ass dude I'm much younger I am only 28 and I get a total of 7.5% put in 5% from myself and 2.5 from company match.

[Scott S]

 I have to do it. My pension was frozen years ago. If I ever want to retire, I need to fund it myself.
 It means austerity in other parts of my life sometimes,  but the alternative is working until I'm nearly 70.

[Gene]

I've just been reading along here. For anyone currently working, and you want to retire, max out your 401K contribution every year if you can afford it. It's also helpful on your taxes.

Scott, my wife retired early at 55. I'm that age now and figure I've got another 5 years before we can fully afford to both be off the clock, at least full time. She did it because of the stress. We crunched the numbers (she has always made more money than me) and with her pension and my continued income we figured it out. We're also lucky enough to have some set aside, no debt, and stuffing away as much as we can.

I'd say do the hard math, be ultra-conservative in your calculations, and scoot on out. Sounds to me like you're ready.

[754]

 I say money is not everything, takes yourself some time... before you cant..
 And ride your bike..
 Attend a reunion, or an event tor three......before you cant..

[Stev-o]

I say money is not everything...

No it's not, but if you short on it with no income, it could be a very unpleasant situation.

I'm nowhere near retirement but the wife and I discuss it once in a while. We both have 401K's, a nice nest egg, and I have a profit sharing plan at the company that I work for. Plus I have many bikes that will have to go at some point.

We do plan to downsize at some point and will miss the nice sized home near the lake with the 3 car garage but the equity we've built in it was always part of our retirement plan.

[754]

 It is unpleasant.. yeah but I have way less stress than many people and no real income, but a place to live..
 The problem with having a  decent income, is you spend like you have  a decent income.. but the reality is..  lot of people can live with a lot less.  And some of them are happy. .
 You have to think about  if you want to be happy the way things are, or happy spending less, and having more fun..

 IF the game  ends, and you didnt get to enjoy life and play around a bit.. do you think you are better off. ..?

[Can550]

It is unpleasant.. yeah but I have way less stress than many people and no real income, but a place to live..
 The pro elm with having a  decent income, is you spend like you have  a decent income.. but the reality is..  lot of people can live with a lot less.  And some of them are happy. .
 You have to think about  if you want to be happy the way things are, or happy spending less, and having more fun..

 IF the game  ends, and you didnt get to enjpy and play around a bit.. do you think you are better off.l

+1
Perfect
Every word here is like “I wrote it”
Great Frank


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[70CB750]

 

[754]

 That guy probably came there from his work..
 He could have retired earlier, but he wanted  to make sure he had enough money..
 In case he lives to be 98..

[754]

 One ofvthe dumbest things I heard this year...
 My BIL.. I might go a few years, I got my kids to think about..
 HUH .? All 3 of the girls are in relationships, some  have started families, have one or both partners working... I think they can survive..

[Gurp]

Frank i feel you. Gotta live and by that i mean enjoy your life. Not just exist. We were all meant to do more than pay taxes and die but without proper plans set in motion thats all we will acomplish.
Scott like was previously mentioned crunch your numbers be ultra conservative with your income numbers and add to your expenses. Of it works like that and your not acraping the barrel at the wnd of the month you should live comfortably.

[Can550]

One ofvthe dumbest things I heard this year...
 My BIL.. I might go a few years, I got my kids to think about..
 HUH .? All 3 of the girls are in relationships, some  have started families, have one or both partners working... I think they can survive..

If he hasn’t thought of kids so far, how is he going to think in few years


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