Early Retirement (2006) • Hacker News Board

Re: Early Retirement (2006)

#101

Post by ike77 » Wed, Aug 04, 2021, 3:47 PM UTC

2sk21 wrote: post #75

I retired early recently - I am in my mid 50s. It's not anywhere as hard as people seem to think. With a disciplined approach to investing, I think that it's very much possible to reach financial independence with a typical tech salary in the US. I achieved FI without an extraordinarily high salary, stock grants or participating in an IPO. There is a treasure trove of information in the Bogleheads wiki: https://www.b…

What if a stagflation of 15 years starts now?

Will you have to work again?

Re: Early Retirement (2006)

#102

Post by brianwawok » Wed, Aug 04, 2021, 3:48 PM UTC

rubicon33 wrote: post #78

cfeduke wrote: post #29

The greatest expense for me in retirement is now health insurance so it makes sense for me to instead work for insurance coverage and put my wealth towards an inheritance for my children. I used to naively believe once I paid off my mortgage, had a substantial retirement account and savings - a couple million dollars - I'd no longer work. It's also very difficult to get off of the treadmill of spending a lot of money…

As a mid-30s software developer who is trying to save as much as possible, with the hopes of retiring before I'm old and deprecate, this really sucks to read. $2 million in investments AND a payed off mortgage and still, it doesn't pencil out to retire? Seems like over the past decade+ the 'value' of even $1 million has become more and more diluted. To support even just a middle class, to upper middle class lifestyle…

The "Safe withdraw rate" is something like 4%.

1 million saved = 40k per year, adjusting with inflation. 2 million saved = 80k per year, adjusting for inflation.

If you can live a life you want for 80k a year, then sure - 2 million can do it.

And yes, there will always be a "what if the economy collapses etc. etc", but retiring doesn't mean you can never ever for any reason hold a job again or make money.

Re: Early Retirement (2006)

#103

Post by 300bps » Wed, Aug 04, 2021, 3:48 PM UTC

2sk21 wrote: post #75

I retired early recently - I am in my mid 50s. It's not anywhere as hard as people seem to think. With a disciplined approach to investing, I think that it's very much possible to reach financial independence with a typical tech salary in the US. I achieved FI without an extraordinarily high salary, stock grants or participating in an IPO. There is a treasure trove of information in the Bogleheads wiki: https://www.b…

Lots of people are able to say, “it’s very much possible to reach financial independence” when the DOW has more than tripled in the last ten years. The Boglehead philosophy is perfect for these conditions (and many others).

If the stock market reverts to the mean over the next ten years, it won’t seem quite as possible though.

Re: Early Retirement (2006)

#104

Post by xyzzy_plugh » Wed, Aug 04, 2021, 3:48 PM UTC

kache_ wrote: post #65

cfeduke wrote: post #29

The greatest expense for me in retirement is now health insurance so it makes sense for me to instead work for insurance coverage and put my wealth towards an inheritance for my children. I used to naively believe once I paid off my mortgage, had a substantial retirement account and savings - a couple million dollars - I'd no longer work. It's also very difficult to get off of the treadmill of spending a lot of money…

My plan is: - Move to America, become rich - Move back to Canada, retire - Win :P

Just an FYI that if you avoid permanent US residency via green card or US citizenship you can potentially take advantage of a step-up of the cost basis of ALL your taxable assets when you move back to Canada, thus erasing any tax on the capital gains -- both short and long term. (In Canada, there is no distinction of short or long term gains).

Assuming that you have little-to-no Canadian assets now, dispose of everything at no-to-low cost when you leave, move to the US for a decade or so and rack up a lot of RSUs/exercised options, maybe surviving an IPO or two, while enjoying a strong USD, you can move back comically wealthy compared to your peers.

You may or may not have to toy with your employer's immigration lawyers as they scramble to get you a green card while you avoid filing any paperwork.

(This is not financial advice, contact a licensed professional, tell your friends, etc.)

Re: Early Retirement (2006)

#105

Post by justinram11 » Wed, Aug 04, 2021, 3:48 PM UTC

Perhaps I'm a bit naive in my mid-20's, but I actually don't think that I'd hate working 15-20 hours a week (at a low-stress company) for the rest of my life. Or at least until I was physically unable.

I've recently been wondering if I should instead be trying to view life as a "sustainable marathon" rather than trying to cash out quickly (FIRE).

Re: Early Retirement (2006)

#106

Post by [deleted] » Wed, Aug 04, 2021, 3:48 PM UTC

ok2938 wrote: post #81

2sk21 wrote: post #75

I retired early recently - I am in my mid 50s. It's not anywhere as hard as people seem to think. With a disciplined approach to investing, I think that it's very much possible to reach financial independence with a typical tech salary in the US. I achieved FI without an extraordinarily high salary, stock grants or participating in an IPO. There is a treasure trove of information in the Bogleheads wiki: https://www.b…

My problem is, I'm kind of anti-capitalist, to make it short. Labor and capital and not just production factors, but they constitute a power relationship (and often a quite asymmetric one). I cannot bring myself to "invest" in something or believe that "my money works for me" - that's delusional. Money does not "work". People get all upset about the stance, but all I am saying is that everyone wants to profit off som…

[deleted]

Re: Early Retirement (2006)

#107

Post by PenguinCoder » Wed, Aug 04, 2021, 3:48 PM UTC

ryandrake wrote: post #68

marktangotango wrote: post #36

Earlier quoted context omitted.

This is the reality of the situation; until you're eligible for (edit) medicare, health is a significant expense. When paired with the "hedonistic treadmill" of spending, early retirement takes a lot more investment than many suspect. Even at a safe withdrawal rate of 4%, $2M is "only" $80k a year. You're not driving around in Ferrari's and eating caviar on that (parodying a rich lifestyle here). Of course there are…

Will $80k a year be enough for any lifestyle? That's the question I struggle with. It's more than enough in today's dollars. But I have no idea what will happen with inflation and costs between now and retirement day. Maybe by the time I retire, $80k/yr will be poverty level. Maybe health insurance premiums alone will cost $80k/yr. Who knows! What will the value of the dollar be and to what extent will healthcare cos…

I'm about at that salary level, and live fine in a LCOL Midwestern area. I'd love to make more money but then I'd just buy more crap. 80k is definitely a decent lifestyle. Though as you say by the time one retires, it might not be.

Re: Early Retirement (2006)

#108

Post by robertlagrant » Wed, Aug 04, 2021, 3:49 PM UTC

ok2938 wrote: post #81

2sk21 wrote: post #75

I retired early recently - I am in my mid 50s. It's not anywhere as hard as people seem to think. With a disciplined approach to investing, I think that it's very much possible to reach financial independence with a typical tech salary in the US. I achieved FI without an extraordinarily high salary, stock grants or participating in an IPO. There is a treasure trove of information in the Bogleheads wiki: https://www.b…

My problem is, I'm kind of anti-capitalist, to make it short. Labor and capital and not just production factors, but they constitute a power relationship (and often a quite asymmetric one). I cannot bring myself to "invest" in something or believe that "my money works for me" - that's delusional. Money does not "work". People get all upset about the stance, but all I am saying is that everyone wants to profit off som…

> Money does not "work".

This seems an overly literal diversion from the point of that phrase.

Re: Early Retirement (2006)

#109

Post by Scalestein » Wed, Aug 04, 2021, 3:49 PM UTC

ok2938 wrote: post #81

2sk21 wrote: post #75

I retired early recently - I am in my mid 50s. It's not anywhere as hard as people seem to think. With a disciplined approach to investing, I think that it's very much possible to reach financial independence with a typical tech salary in the US. I achieved FI without an extraordinarily high salary, stock grants or participating in an IPO. There is a treasure trove of information in the Bogleheads wiki: https://www.b…

My problem is, I'm kind of anti-capitalist, to make it short. Labor and capital and not just production factors, but they constitute a power relationship (and often a quite asymmetric one). I cannot bring myself to "invest" in something or believe that "my money works for me" - that's delusional. Money does not "work". People get all upset about the stance, but all I am saying is that everyone wants to profit off som…

As a fellow anti-capitalist I struggle with how to live in a clearly capitalist world. I'm currently on track to retire at an average age or earlier and cynically view it as buying freedom from the system. In reality it reminds me of the old company store at coal mines. Paying workers in currency which can only be spent at their own store.

Breaking out of the capitalist cycle seems quite difficult to do while still maintaining a decent quality of life.

Re: Early Retirement (2006)

#110

Post by toomuchtodo » Wed, Aug 04, 2021, 3:49 PM UTC

germinalphrase wrote: post #87

toomuchtodo wrote: post #58

Earlier quoted context omitted.

It's a lesser problem, but there are also less opportunities to accumulate wealth rapidly. Lots of folks I know get FatFIRE (>=$5MM assets, $200k/year in income at 4% SWR) in the US and then retire to Portugal [1] (which has universal healthcare, and gets you access to the EU). [1] https://en.wikipedia.org/wiki/Portugal_Golden_Visa

Are these people you know Americans? I admire the spirit of such a move, but losing immediate contact with friends/family would make it challenging (for me).

Yes. Most end up either in Lisbon or Porto.