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Early Retirement (2006)

philip.greenspun.com

111–120 of 308 posts

Re: Early Retirement (2006)

#111
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…

> 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

Bear in mind that you have been the beneficiary of an exceptional bull market

Re: Early Retirement (2006)

#112

Earlier quoted context omitted.

> The greatest expense for me in retirement is now health insurance Obamacare changes that. If you don't have much income you get ACA federal tax credits.

ACA plans in my state expose you to over $20,000 in annual risk, for a family plan. That's assuming you don't end up with a huge "out of network" bill by accident (and their networks are terrible, so that's very possible). I think the "gold" plan is a little better (though a much worse deal if you're having to pay the full premium, overall) but I'm not sure how much income-based help you get for the top-tier (and sti…

Not sure what you mean by "annual risk". Do you mean out-of-pocket costs?

> That's assuming you don't end up with a huge "out of network" bill by accident

New laws mostly take care of that. No more out-of-network doctors walking by your hospital bed while you're sleeping and sending you a $5000 bill. Also if you have an emergency while out of state your insurance takes care of it.

The "metal" plans all have the same network. The only difference is how much you pay vs. insurance.

Re: Early Retirement (2006)

#113

Earlier quoted context omitted.

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…

Inflation is very real, and it’s most apparent in home values right now. Even if you pay off your mortgage, your property taxes keep going up as values increase.

If your property taxes are indexed to assessed value (which mine are), it also means your property value is going up. So double taxes would mean double value of home. It just means that at some point you may need to sell your home and downsize, pocketing a nice profit on the way out.

Re: Early Retirement (2006)

#114
post #85

Why isn't healthcare insurance more like car insurance? Almost everyone can afford to pay car insurance and are not worried about going broke and filing for bankruptcy if they have an accident or get a speeding ticket. A friend got covid, almost died and then got a large five figure medical bill. They had insurance via the employer, but the hospital ER/ICU they were transported to was out of network. How is a very si…

Because (most) cars are not worth much?

Re: Early Retirement (2006)

#115

Earlier quoted context omitted.

Depends on what is covered under universal health care. In Canada, doctors and hospitals are covered. But if you need a lot of drugs, you might need to keep working. You also need to budget for dental and vision, as those are also tied to employment agreements.

I'm curious about Canada. My plan is to make a lot of money in the states and retire early, then apply for Canadian citizenship and move to Canada to cover health expenses. Even if the citizenship process takes 2-4 years, would this be worth it?

Canada’s immigration process is based on a points system. If you are not working, don’t speak French or are over a certain age, then I wouldn’t rate your chances too highly. The reason is the “move to Canada to cover health expenses” part. If you have never paid into the system via taxes by working and living here, then why would we want you?

Re: Early Retirement (2006)

#116
post #88

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

That's a crazy good deal. As long as the 500k doesn't get completely wiped out someone with a family likely comes out ahead on health-care costs alone (though I understand the tax implications of US citizens abroad are complicated).

There is an investment version where the cost is only 250000 EUR, but there's more due diligence and paperwork required. You're essentially buying citizenship for the opportunity cost of those funds not making returns in more aggressive investment vehicles for several years.

Re: Early Retirement (2006)

#117
post #81
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…

You have an explicit choice to either not invest or invest. If you spend all your money instead of investing it, you're still making somebody work for you- they're immediately being made (although I'd disagree with this portrayal that it's involuntary, you may not) to serve you a plate of lunch or manufacture a new car for you.

Your attitude seems to be financially masochistic to me and possibly a way to justify your own actions.

Re: Early Retirement (2006)

#118
post #90

And people say studying humanities is useless... Before you can even begin to approach questions like this, you have to get a lay of the land at least... read an article on philosophy and religion in the encyclopedia. These aren't new questions. They've been dissected and applied to the furthest reaches of our understanding. It's all written down and at our fingertips 24/7. They underlie the primary question in the a…

You can read all the philosophy in the world. It doesn't automatically turn into actionable realities. Also, any philosophy is subjective, you are a human, you said something, I am a human, I beg to differ and so on and on....

Absolutely you can read it to death and still glean nothing from it. I don't know how many times I've had to reread, and I usually continue to do so. And to that end it takes more than just reading it, but if one wants to ask some profound questions about the world around oneself now that one doesn't have someone breathing down one's neck then one should probably start where others left off. It'll save a little time.

The point where you took a wrong turn was assuming that philosophy is all based on hearsay. There's been a lot of effort to ground pretty fundamental ideas to what we understand about reality, to the extent that we understand it. It's worth working to grasp some of that. It helps. If you like quantizations and mathematical/logical formality that exists as well, but mind that you'll probably want to do a lot of comparative reading.

To put this in programmer's terms: why would you re-implement libc when you haven't even looked at the existing source code or surrounding arguments? That would look like a fool's errand: not because the effort isn't worthwhile, but because you could save yourself a lot of time and use the lessons of the past to inform your next efforts rather than blindly making all of the same mistakes or rediscovering what was already known (to our best efforts). Worse, you might end up wandering around ranting about how someone should implement a core supportive library for a common systems language without ever looking to find out if there is one in the first place.

Re: Early Retirement (2006)

#119
post #8

How much money can a Silicon Valley software engineer expect to have at retirement? This article says $7 million: https://www.wealthmeta.com/blog/being-a-doctor-vs-being-a-so... Here's the back-of-the-envelope calculation: Annual salary: $250K (it is much higher at FAANG). Assume 25% tax (effective, not marginal), which leaves us with $187.5K, which is about $15K per month. Assume $5000 in monthly expenses, which lea…

Those numbers are pretty optimistic for expenses if you live somewhere expensive, ever plan to get into a long term relationship and/or have kids, or ever plan to make a down payment on a house. I think your tax calculation is way low too, but haven't done the math.

The salary numbers are very optimistic, too. A small number of tech workers at a small number of FAANG companies in a small number of locations, will be making $250K from the start or even average that much throughout their careers. I know, I know, everyone on HN makes $400K and drives a Ferarri, but that's very optimistic number for most people.

EDIT: Also: house should not be included in your net worth for the purposes of calculating retirement draw-down, unless you plan to liquidate your home equity to live on.

Re: Early Retirement (2006)

#120
post #81
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…

Given that if you don't invest, someone else will (and get marginally higher returns on average), consider investing and donating all of the returns to a labor organization?

I'm not an expert on ethics, but it seems that the captured excess productivity is liberated from the worker regardless of whether you invest or not and if you donate 100% of your profits to labor organizations, you are merely redistributing the money back.

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