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Retirement Discussions / Retire Early Liberal Edition
|Subject: Re: Blue Collar Early Retirement||Date: 2/6/2007 9:42 AM|
|Author: telegraph||Number: 587 of 60063|
I saw lots of engineers cash in stock options occasionally and go out an buy very expensive toys ($50,000 sports cars, etc).....many of them moved up in housing adding 2000-3000 sq feet to their current house size and maybe $300,000 more in house valuation - used the stock options to make up some of the difference, but still had big mortgage because it provided 'tax deductions'....
Then the telecom bust occurred, and many were left holding the bag....big house, fancy car(s), for him and her, and no money coming in....
Oh, they put away 10% in their 401K, but likely half of them cashed them in when they left since it took months to sell the house, and they had horrendous outflow for their lifestyle.
Many lost a fortune in the dot.com bust...and some were playing on margin and got totally wiped out, plus more....
Almost no one ever talked of 'retiring early'...in the 1990s, playing the market was a 'cash machine'. Working for a telecom company was a cahs machine - good salaries, good raises and you could spend a few years (2 or 3) and change jobs without moving, getting a 20% raise....
then the music stopped, there were 50% less chairs, and the carnage started....
NOw for most it is 'survival mode'...keep a low profile...put in lots of extra hours for free...tough it out till 'times get better'...they aren't......
Few were LBYM types back then.....and even now, most are 'living at their means' and cashed all their home equity long ago..
Newbies are racking up the credit card debt....or paying off what they put on during college...
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