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Financial Independence / Retire Early Calculator

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Re: Financial Independence / Retire Early Calculator

#21

Post by bryanlarsen »

conwy wrote: post #2

The 4% rule may not be entirely reliable. See: Ben Felix’s YouTube video on the topic. I’d be aiming for a 2% rule and holding some extra cash (call me paranoid).

Agreed. This may be what your video talks about, but the decrease in interest rate over the last 40 years has a lot to do with the increase in stock market valuations. Interest rates are E/P, the correspondence with a stock market P/E is straightforward. Interest rates are now at zero and can only go in the opposite direction. And probably will since everybody is now concerned about inflation.

Re: Financial Independence / Retire Early Calculator

#22

Post by klysm »

gombosg wrote: post #19

Nice! Looks pretty good as long as I stay here in Central-Eastern Europe and live a minimalist lifestyle. (Buy second-hand clothing, used gadgets, no car as long as possible etc.) Actually promoting a materially minimalist life is very healthy, because - as long as it's voluntary - it lets one focus on maximizing happiness not coming from material possessions.

My problem is I like building things for fun, and things cost money

Re: Financial Independence / Retire Early Calculator

#24

Post by holoduke »

I see a lot of people wanting to retire as early as possible. Most of those never are able too. Then I know some people who are able to retire right now. But they don't. I fall in the latter category. And my theory is that once you get enough income you can actually do what you like. In my case still coding, but only projects I like to do. But I will probably never retire. Way too boring.

Re: Financial Independence / Retire Early Calculator

#25

Post by redact207 »

randomopining wrote: post #23

Who wants to “retire” and do nothing for the rest of your life? Just save a ton, buy whatever stuff truly makes you happy, and your savings give you flexibility. Like taking a year off between jobs, etc.

It depends on your retirement goals. Some people prefer the "financial independence" aspect in order to have the freedom to do or work on things they're interested in and brings them happiness rather than for the sake of just money.

Re: Financial Independence / Retire Early Calculator

#26

Post by loeg »

bryanlarsen wrote: post #21
conwy wrote: post #2

The 4% rule may not be entirely reliable. See: Ben Felix’s YouTube video on the topic. I’d be aiming for a 2% rule and holding some extra cash (call me paranoid).

Agreed. This may be what your video talks about, but the decrease in interest rate over the last 40 years has a lot to do with the increase in stock market valuations. Interest rates are E/P, the correspondence with a stock market P/E is straightforward. Interest rates are now at zero and can only go in the opposite direction. And probably will since everybody is now concerned about inflation.

> Interest rates are now at zero and can only go in the opposite direction.

Are you asserting interest rates can only go up from zero? Or only down? And for either direction, why?

Re: Financial Independence / Retire Early Calculator

#27

Post by jackson1442 »

holoduke wrote: post #24

I see a lot of people wanting to retire as early as possible. Most of those never are able too. Then I know some people who are able to retire right now. But they don't. I fall in the latter category. And my theory is that once you get enough income you can actually do what you like. In my case still coding, but only projects I like to do. But I will probably never retire. Way too boring.

Same here. My "retirement" will likely just be me teaching or doing some other kind of work that has a much lower earning potential, but still would be considered a traditional job. My retirement savings are meant to make up for that.

Re: Financial Independence / Retire Early Calculator

#28

Post by xivzgrev »

holoduke wrote: post #24

I see a lot of people wanting to retire as early as possible. Most of those never are able too. Then I know some people who are able to retire right now. But they don't. I fall in the latter category. And my theory is that once you get enough income you can actually do what you like. In my case still coding, but only projects I like to do. But I will probably never retire. Way too boring.

Maybe! But I’m getting tired of working even if it’s interesting. I’d rather now spend time with family or travel.

Re: Financial Independence / Retire Early Calculator

#29

Post by gombosg »

klysm wrote: post #22
gombosg wrote: post #19

Nice! Looks pretty good as long as I stay here in Central-Eastern Europe and live a minimalist lifestyle. (Buy second-hand clothing, used gadgets, no car as long as possible etc.) Actually promoting a materially minimalist life is very healthy, because - as long as it's voluntary - it lets one focus on maximizing happiness not coming from material possessions.

My problem is I like building things for fun, and things cost money

Yes, it's a real issue, unluckily having expensive hobbies instead of cheaper ones. :)

For example, I love motorcycling and really enjoy skiing - but have to find a balance in order to save some money. I guess this is up to everyone's own to find out.

Personally, I keep on motorcycling with a simpler, older bike that's cheap to maintain. And I don't ski, because nobody else in my family does, so we choose other activities that we could enjoy together like traveling a bit or hiking.

Re: Financial Independence / Retire Early Calculator

#30

Post by loeg »

randomopining wrote: post #23

Who wants to “retire” and do nothing for the rest of your life? Just save a ton, buy whatever stuff truly makes you happy, and your savings give you flexibility. Like taking a year off between jobs, etc.

> Who wants to “retire” and do nothing for the rest of your life?

This is an extremely reductive characterization of retirement. There's no rule you have to do nothing.

> buy whatever stuff truly makes you happy, and your savings give you flexibility. Like taking a year off between jobs, etc.

You could definitely do this in "retirement."

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