UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next
Author: orangeblood Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Figuring retirement sum Date: 2/27/1998 10:45 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
While still in the process of digesting the two excellent past threads by Pixy and Rayvt, I've realized a couple of things.

1) I had mentioned not worrying about leaving any money to my heirs after I die. Of course my thinking there was that I would be able to draw down on the original amount... therefore being able to withdraw more than usual and therefore retire earlier. But... now I can't see that working in that manner. First and foremost, if one plans to draw down on one's nest egg and leave as little as possible behind, one would have to know when one was going to die!

2) It appears if one is willing to settle for a spartan lifestyle for the first few years of retirement, then one could retire a few years earlier.

Example: Mr. and Mrs. Fool decide $50,000 would be a very comfortable yearly sum for retirement. However, their nest egg needs another 5-6 years of growth before they feel comfortable taking that yearly sum. But rather than work for that much longer, they decide to retire early and try to live three years on $50,000 (instead of one) and then re-evaluate the situation. If they need to go another three years or so just reading on the porch and playing cards, they will be prepared to do so.

I know, I know.... statement #2 seems painfully obvious. And yet some may overlook it as they continue to work whilst waiting for their nest egg to reach critical mass.

Have any of you retirees out there attempted an early retirement along the lines of #2? If so, I would love to hear how it worked out.

Regards,

orangeblood
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement