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Subject:  Re: A Key To Early Retirement Date:  7/18/2002  10:55 AM
Author:  jtmitch Number:  70712 of 876370

I have one good friend who bought a house a couple of years ago on a thirty year mortgage that he could only afford by working.

I run into this all the time with my retired Navy friends. They have generally made adequate but not spectacular money during their Navy careers. Although most of them are not big into investing, by necessity they have learned to live somewhat modestly. Typical scenario:
- Guy retires as a commander or captain (depending on rank and length of service, pension from $40K - $65K per year; age between 42 and 54);
- Guy gets job with Beltway Bandit (starting pay probably in the vicinity of $100K per year).
- Guy sells perfectly fine house he bought as a lieutenant commander (which has manageable mortgage)and buys BIG in Northern Virginia (maybe $400K - $500K). Maybe buys a Lexus or a Bimmer.
- Two years later, guy decides this Beltway Bandit stuff isn't fun; he wants to teach school, make pottery, whatever. He can't because he's got the big mortgage (and maybe kids in college).
- His input to retirement conversation around the water cooler: "I could never afford to retire at this point. AND HE STARTED THIS WHOLE SCENARIO WITH A GUARANTEED, LIFETIME, INFLATION-ADJUSTED PENSION THAT MANY FOLKS WOULD KILL FOR!! PLUS GUARANTEED LIFETIME HEALTH CARE (albeit a plan that's not all it's cracked up to be.)


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