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Early-Retirement Update

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Re: Early-Retirement Update

#161

Post by the_only_law »

schnevets wrote: post #156
AlwaysRock wrote: post #108

Earlier quoted context omitted.

I don't know. I'd love to have a basic level of income and then be able to dither around with random jobs. I'd love to be a bartender for 6 months, work in a bookstore for 6 months, become a carpenter for a year or two. I'd probably feel differently if I actually had a trust fund since my upbringing would be different but it does feel stifling that in order to have a financially rewarding career one has to stay on a…

I frequently have similar fantasies and have to consciously remind myself that I can get the same happiness in my current role. When I think of opening a bar/restaurant, I'm actually just hoping for more quality time with friends. When I think of opening a bookstore, I'm actually just hoping for more time to focus on reading. When I think of becoming a cook, I'm actually just hoping for more passion and drive in the…

I have the similar fantasies but then remember I would already be doing things like this if half the jobs I wanted to “try” weren’t credentialized.

Re: Early-Retirement Update

#162

Post by xwdv »

cashewchoo wrote: post #45
xwdv wrote: post #37

Earlier quoted context omitted.

950k isn’t a bad stash but he’s a fool limiting himself to 4% withdrawals and a paltry $30k a year. He should build an aggressive stock portfolio of growth companies with about 60% IV each while he’s still young and going back to work is a good emergency fallback, but for primary income he could just sell OTM options against his stocks and be making about $2k to $3k a week fairly conservatively with little risk of as…

OTM options is one of those things where it works great until it doesn't and then when it doesn't it REALLY doesn't. This is almost literally how we ended up with the inverse volatility trade collapse in 2018. Look up "XIV blow up". Betting against volatility will * never* not be "picking up pennies in front of a steamroller". Retail investors should not touch options under any circumstances, anyway. They're hedging…

You are wrong and need to educate yourself.

Covered calls don't add risk of ruin, you just have potential to miss any potential further gains if you pick a bad strike. This could happen anyway if you were to sell a stock at the wrong time for example.

Re: Early-Retirement Update

#163

Post by joeldg »

He did this all wrong, he didn't have a solid 'plan' for his retirement to keep him busy besides basically be being boring.

As a writer he could have given himself writing assignments after a three month "chill" phase. Could have built up a back catalog of self-published works.

Lots of things -- and even in 2015 'this' was a thing the FIRE websites would write about a LOT, keeping yourself occupied and engaged after FIRE is extremely important.

Re: Early-Retirement Update

#164

Post by wdr1 »

PragmaticPulp wrote: post #68

I had to quit reading any FIRE (financial independence, early retirement) blogs because they were full of people headed down this same path: Extreme frugality, bare minimum savings, assuming their lifestyle would never change and nothing would ever go wrong. Retiring at 30 sounds great, but no one's life goes exactly to plan for next the 30-40 years until traditional retirement age. People change, expectations evolve…

> I had to quit reading any FIRE (financial independence, early retirement) blogs because they were full of people headed down this same path: Extreme frugality, bare minimum savings, assuming their lifestyle would never change and nothing would ever go wrong.

You should checkout /r/fatFire

Re: Early-Retirement Update

#165

Post by guidoism »

pinkybanana wrote: post #84
lutorm wrote: post #54

Earlier quoted context omitted.

Except "retirement" simply means "not having to work to survive". It doesn't mean doing nothing, it means having the freedom to choose to do things that are meaningful to you.

In common language it doesn't. Many people who choose to work don't need the job to survive. I know ridiculously wealthy people who just keep working the usual way. No one says those people are retired. While retirement is cool, I think life goes better without thinking too much about it. Try to work at a job that doesn't suck ass, try to have hobbies and free time, focus on family etc, invest your savings, don't buy…

Yeah we really don’t have a good word for this in English. I have trouble describing what I do. Being a parent and educating your children at home is exhausting so it doesn’t fit with the common understanding of retirement.

Re: Early-Retirement Update

#166

Post by californical »

kelnos wrote: post #123
californical wrote: post #31

Earlier quoted context omitted.

Yes, this! Having enough money that you don’t need to worry too much about work seems like 95% of the benefit. Spoken as someone fairly early working towards FI. Having a paid off house, no debt, and enough money to survive tragedy unscathed is really the goal. I want to be able to work whatever job makes me happy without feeling the need to be competing for the highest salary. Take a few months off work here and the…

Ok, but just imagine for a moment that working a job doesn't make you happy. Consider that most employment arrangements aren't all that flexible. You can't just suddenly decide to disappear for two months because you feel like it, whenever you want, and expect there to be a job waiting for you when you get back. This extends all the way down into little things. Maybe I'd like to go for a walk right now, but I can't b…

I get where you’re coming from, but getting to a place of being truly retired with enough money to live indefinitely, and account for most disasters like the one in this post, is much more difficult. Especially with healthcare in the US.

I’m not saying having enough money to retire forever isn’t better. I get that you have even more options. But why not also be semi-FI all along the way and afford yourself those things that make you happy, even if it means you save more slowly and retire a bit less early. It’s about the right balance.

I’d rather take 3-months of unpaid leave to backpack Europe at age 30 than skip the trip in a saving-frenzy to retire. That same backpacking trip would be way less enjoyable at age 40, or even impossible with kids.

Plus, my job does make me happy — I know it may not forever, which is why I save so much money. But assuming I keep enjoying work, it doesn’t hurt to keep making money even after RE. I really just see FI as giving yourself options.

I don’t foresee it being a huge event when I hit my “FIRE number” since I’ll already be living the life that I want.

Re: Early-Retirement Update

#167

Post by cableshaft »

dimmke wrote: post #102
PragmaticPulp wrote: post #68

I had to quit reading any FIRE (financial independence, early retirement) blogs because they were full of people headed down this same path: Extreme frugality, bare minimum savings, assuming their lifestyle would never change and nothing would ever go wrong. Retiring at 30 sounds great, but no one's life goes exactly to plan for next the 30-40 years until traditional retirement age. People change, expectations evolve…

I've had friends with trust funds, who just seem to dither around in life. "Making music" they never release. Picking up little "pass the time" jobs. And these are people that aren't living "leanFIRE" It seems like such a nihilistic way to live. You're just floating along the stream of life. Things worked out for you, but you have no further passion or inclination to improve the world? No problems you could set yours…

I didn't know you could post fiction on Substack, also never heard of Royal Road. Could you recommend anything to get started with those? Specifically with writing serialized fiction. Or some example authors that have used it with success that I can check out?

Re: Early-Retirement Update

#168

Post by xwdv »

jsdalton wrote: post #38
xwdv wrote: post #25

Earlier quoted context omitted.

No, financial independence is what matters in a world where returns on capital will greatly outperform returns on labor.

Out of curiosity where are you finding high returns on capital today? I just don’t see them. (As an engineer, conversely, I see very high returns on my labor.)

Last year I made 80% across my entire tech portfolio. That's a good start.

Re: Early-Retirement Update

#169

Post by cheradenine_uk »

sidlls wrote: post #9

I always get a kick out of people who think they’re financially independent with such a small stash. Outside some regions with relatively extreme living conditions (e.g. undeveloped and underdeveloped countries), the amount he retired with was never going to be enough to sustain even minor shocks and last the rest of his life. He had a minor shock (breakup) and a major shock (health condition) and realized this error…

We live in the UK, in an "expensive" region (south-east). Our average expenditure, excluding mortgage payments, over the last 10 years has been, roughly, £25K p/a.

We're hardly living a bread and water lifestyle.

When we hit 67, the state pension alone will give us > £18k. You just need enough to bridge the gap.

The truth is - most probably don't need anything like what they think they need to retire early.

The system just wants them continually on the hamster wheel.

Re: Early-Retirement Update

#170

Post by UncleOxidant »

jacquesm wrote: post #12
sidlls wrote: post #9

I always get a kick out of people who think they’re financially independent with such a small stash. Outside some regions with relatively extreme living conditions (e.g. undeveloped and underdeveloped countries), the amount he retired with was never going to be enough to sustain even minor shocks and last the rest of his life. He had a minor shock (breakup) and a major shock (health condition) and realized this error…

Especially not in the USA when the least of a health issue can eat up your savings in a couple of short months unless you have extremely good health coverage, which only the rich (who don't actually need it ...) have.

Yes, healthcare in the US is a major concern. Hopefully we'll see the ACA get shored up here with a much more favorable administration - it certainly won't get any worse for the next ~4 years anyway. A couple that's withdrawing $40K/year from their retirement accounts is still going to get a pretty good subsidy on their premiums through the ACA which makes FIRE possible if you keep your income (and thus your expenses) down.
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