We (my wife and I) started saving and investing ever since we got married eight years ago. I have started to seriously think about FIRE about 5 years ago and made the decision to become FIRE at around 40 with a million dollars. That comes to annual withdraw of $40k, based upon intercst's excellent work in this area. So the original plan called for moving back to Canada at the million dollar mark, enjoy the free health care system, and let the kids spend more time with the extended family.So here I am at age 38, been working at an assemblyline software house for a year and fully disgusted with myself for wasting my brain away in such meaningless work. One day, perhaps triggered by the drudgery of work, or perhaps by the beginning of my mid-life crisis, I started to think of variations of the original FIRE plan to make for a quick escape. Suddenly, I realized that given our extreme LBYM lifestyle, we can live comfortably with about $2k a month (excluding mortgage). We have also been lucky to participate in the real estate boom in our area early on in the game (and never traded up to a bigger house). So with the equity gain in our house, we can swap for another one of equal size in Canada. Our savings should already be able to generate the $20k per year to live on. That flash of insight has completely changed my plan to hold on to a high paying boring job and grind through it for a few more years!The current plan calls for hanging on to the current job until my first year's option has vested, or until the inevtiable layoff comes. I am planning to continue working on part-time/short-term gigs to generate enough money for the living expenses.. until I see the nest egg grow to a sizable portion and learn to be comfortable with just living off of the savings. Since we are still very young, we didn't plan on retiring right away anyway. So why not just transition to the semi-retirement life right away? For the other part of my time, I am going to explore and reconnect with more meaningful activities. I have now come to realize that I was too focused on getting to a previously set goal, and failed to re-examine it in the interim. The million dollar mark became an all-or-nothing goal that I strived to achieve no matter the price. What should have been the right point of view (for us at least) was to save up enough for a FI lifestyle and I think I'm there.Thanks for reading. I hope that might be a interesting story to some of you.
Congratulations :) It's good to know that you've hit your goals for FI and have the door open for other options in your life.Couple things:1. You probably don't want exactly 4% since that's the maximum SWR that's allowed. If you could hit 3% withdrawl rate, it would give you a lot more safety with your portfolio.2. Have you looked into what's required to move to Canada and get the free health care? I was under the impression that there were multiple clauses / conditions? Otherwise they'd end up with a huge influx of baby boomers I'd be thinking.3. Semi-retirement sounds like a great idea. If you can generate a bit of cash and enjoy your life that much more, go for it. Good luck.
Hi Ceberon:Thanks! I took me a while to realize that the point of FI for me is to start living life on my own terms, and not to some constraints imposed by others (e.g. size of my house, amount in my brokerage account)1. Yes. That's part of the reasoning why I want to continue doing part-time/short-term work and just let the nest egg grow. I will be a lot more comfortable living on my savings the lower the withdrawal rate is. Right now, it should already be lower than 4%, but I haven't had time to watch my port too closely in the last year2. We are both Canadian citizens and work in the US with our green cards. Our kids are born here in the states, and both have Canadian citizenships through us. So we can get free health care just by moving back.3. I had this mind-numbing boring job for a year and decided I am a closet workaholic and need to work on something that pays next-to-nothing :-) Right now I am an adjunct professor teaching at a local university. There might be a chance for me to become a non-tenure-track professor next year. We'll see. Thanks for the well wishes
Thanks for reading. I hope that might be a interesting story to some of you.Congrats!! It's a pretty cool place to be.
BTW, you might be interested in thisboard:http://boards.fool.com/Messages.asp?mid=21507047&bid=115974
I have been reading the MOOTFL board for a while... but considering that I plan on working harder and getting less pay, I decided that this would be the better board to post :-)
Hey this is awesome, congradulations!I hope in 4 years when I'm 38 I can say the same thing but I'm afraid I didn't start saving soon enough so most likely unless things change with my job I will be a little on the far side of 40 unless I can get a happier job in which case it might be a little further than that. Also I don't have the Canadian advantage so it would be a little tougher. Does anyone know how hard it is for an American to get Canadian citizenship? Maybe I can add that into my plan :)-- Dennis
Thanks Dennis!I vaguely remember some discussions over at the FIRE board on becoming a Canadian citizen. Obviously I didn't pay too much attention to it.
The Canadian gummint has a point-based system whereby you can qualify if you meet certain criteria. Basically, if you are under 50, have a college degree or better, and several years of work experience, it shouldn't be hard to get set up. However, I think that they generally want you to have a job when you go up there.
The Canadian gummint has a point-based system whereby you can qualify if you meet certain criteria. Basically, if you are under 50, have a college degree or better, and several years of work experience, it shouldn't be hard to get set up. However, I think that they generally want you to have a job when you go up there.That whole job thing again. Don't they know that's what I'm trying to get away from. Maybe if I just worked for a couple of years at a nice low stress job, perhaps as a people greeter at Walmart. I don't suppose thay would let me be self employed?-- Dennis
I don't suppose thay would let me be self employed?They would LOVE to let you come in, set up a business, and hire people - assuming you bring in the necessary capital to do it.They have a system where a rich guy coming in to hire people in Canada not only gets in more easily himself, but also increases the allowed number of immigrants from his country for the year.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra