1. Win a Broadcaster or one of 3 Teles! The annual Supporting Member Giveaway is on. To enter Click Here. To see all the prizes and full details Click Here. To view the thread about the giveaway Click Here.

How did you retire early?

Discussion in 'Bad Dog Cafe' started by 1955, Jan 13, 2021 at 10:24 AM.

  1. 1955

    1955 Doctor of Teleocity

    Posts:
    10,092
    Joined:
    Apr 10, 2010
    Location:
    .
    For those who successfully retired early, how did you do it, and what would you have done differently if given the option?
     
  2. rcole_sooner

    rcole_sooner Poster Extraordinaire

    Posts:
    6,441
    Joined:
    Feb 12, 2010
    Location:
    Norman, OK
    I'm probably not gonna make "early" retirement, because my $$$ wants way outweigh what I've currently saved towards retirement. Truthfully I'll never reach that comfortable I now have all I need point (cuz lawd I love to waste $$$), but eventually I'll just say here it is and hang it up ... hopefully while I have enough fuel left in the tank to enjoy it.

    But my thoughts on it are .... besides a steady source of income that is enough to meet needs, there is the whole health situation and medical care needs.
     
    SRHmusic, KirbyBarba and 1955 like this.
  3. Mike Simpson

    Mike Simpson Doctor of Teleocity

    Posts:
    12,876
    Joined:
    Mar 19, 2006
    Location:
    Gilbert, AZ (PHX)
    I paid off all credit cards, car loans or personal loans. Put as much as I could into a 401k. Cancel cable and everything you don’t need. Find out what your social security income will be at 62 and figure out how to live on that. Remember by age 78 you receive the same total dollar amount whether you retire at 62 or 65.

    In hindsight wish I had started this approach 5 or 10 years earlier. Many things I thought would be easy to sell now are not. I wish I had refinanced to a 15 year loan about 10 years earlier.

    Retiring early the biggest issue for me was medical insurance. Before 62 when you can collect social security if you don’t have an income the ACA marketplace (Obamacare) won’t issue a subsidy and denied me any healthcare coverage twice. Once you are drawing SSyou can get coverage through the ACA for reasonable cost.
     
    Last edited: Jan 13, 2021 at 10:41 AM
  4. BigDaddyLH

    BigDaddyLH Tele Axpert Ad Free Member

    Posts:
    55,477
    Joined:
    Sep 1, 2009
    Location:
    Kelowna, BC, Canuckistan
    I wish I knew. Luckily, in Canuckistan, some of the previously noted issues are not so pressing.

    Make enough, save enough? Easy to say, harder to do?
     
    Jared Purdy, telestratosonic and 1955 like this.
  5. beagle

    beagle Friend of Leo's

    Age:
    61
    Posts:
    4,460
    Joined:
    Jul 20, 2010
    Location:
    Yorkshire
    I had no choice, but you just have to live within your income.
     
    Doctorx33, Ron C, KirbyBarba and 6 others like this.
  6. tery

    tery Doctor of Teleocity

    Posts:
    11,440
    Joined:
    Sep 21, 2012
    Location:
    Tennessee
    I followed Dave Ramsey's advice ... "I'M DEBT FREE" !!!
     
    vgallagher, P Bill, dan1952 and 10 others like this.
  7. 1955

    1955 Doctor of Teleocity

    Posts:
    10,092
    Joined:
    Apr 10, 2010
    Location:
    .
    I asked Toto’s Dad the question in another unrelated thread, and his answer was very interesting.
     
    tah1962 likes this.
  8. Brad Pittiful

    Brad Pittiful Doctor of Teleocity Ad Free Member

    Posts:
    18,449
    Joined:
    Dec 22, 2008
    Location:
    Philly Burbs
    i had a few layoffs i took advantage of...i think of it like...i had a few years of early retirement...now ill prolly be working until i cant
     
    KirbyBarba and 1955 like this.
  9. lathoto

    lathoto TDPRI Member

    Age:
    64
    Posts:
    33
    Joined:
    Dec 18, 2020
    Location:
    Ohio
    There are two important facets to successful retirement:

    1) Get your mind right.
    2) Get your money right.

    You will never be able to get your mind right if you don't have your money right first. To get your money right you have to know when you are bound to run out of it. Entitlements (Social Security, Medicare, Pension) are only a portion. Save money. Get and stay out of debt.

    A part time transition job will help you get your mind right too. See a financial advisor and determine your investment risk profile. Develop a plan, review the plan, revise the plan, work the plan.

    The only thing I would have done differently would have been to drive my vehicles longer and hold on to all of my guitars. My only wants are guitar strings, boat paint, and old whiskey (in that order).
     
  10. nojazzhere

    nojazzhere Doctor of Teleocity

    Age:
    69
    Posts:
    13,374
    Joined:
    Feb 3, 2017
    Location:
    Foat Wuth, Texas
    I would say I retired a little earlier than I had planned. My "full" Social Security retirement age was 67, and I was about 65. I could have retired at 62, but at reduced benefits. So, at 65, I intended to work a couple more years. Two things changed all that. My mother (now 95 years old) was needing a LOT more care and attention, and I was having to use up my personal days with the school district. I had several administrators at my school who didn't like that, and gave me a lot of flack over it. (even though it was time that I had earned and had coming to me)
    But the clincher was that I was "attacked" by a 350+lb. Special Needs student, who damaged one of my rotator cuffs. I don't blame him.....he didn't realize what he was doing or his own strength, but that didn't make my shoulder any better. Therefore, I decided to go ahead and retire. Since I had far more retirement coming from S.S. than the teachers' retirement, (and you can't draw both) I filed on S.S......plus I had a small Electrical Union pension fund, as well as another small 401K plan from years back. Fortunately, my house is paid for, and I don't live extravagantly, so I've left the 401K money alone (I'll HAVE to start drawing it at age 70) and just live on the S.S. and union pension. I have a Medicare Supplement plan that doesn't charge me, and (knock wood) I'm healthy and "low maintenance", and still able to help out my daughter and grown grandson when they need it. I've known a few people with whom retirement didn't agree, but I'M NOT ONE OF THEM.......Sometimes I have to pinch myself (really) to see if this is a dream. Retiring is one of the five or six best decisions I ever made.
    The only thing I "might" have done differently would have been to do it a year or two earlier. ;););)
    PS, I also agree strongly with @lathoto above about going into retirement debt free. I never carried much if any debt throughout life.....and it paid off for retirement.
     
    Last edited: Jan 13, 2021 at 10:52 AM
  11. stormsedge

    stormsedge Friend of Leo's

    Posts:
    3,472
    Joined:
    Jun 5, 2012
    Location:
    E. Tennessee, USA
    Follow Ramsey's advice...I cannot do it better---that is what we did. ***If you are in your 20s-30s and follow Dave's plan, you can easily retire in your 40s or 50s. We started late and I fully retired ~55yo.

    Being out of debt has been key...that means everything is paid for---house, cars and never never assume any more debt.

    Take control of your own retirement accounts...do not allow your company to take care of you.

    Scrutinize your SS payouts closely...unless you are very used to living a very austere lifestyle, it will not be enough (it is purely supplemental for us).

    Set the age/date you intend to retire and work back from there to plan what you have to do to reach your goal.
     
    KirbyBarba, tah1962, tery and 2 others like this.
  12. Togman

    Togman Tele-Afflicted Silver Supporter

    Age:
    61
    Posts:
    1,551
    Joined:
    Apr 28, 2004
    Location:
    Cambridgeshire, UK
    I'm in the UK - so the situation could be different than some other countries.

    I retired in November 2019 (2 months short of my 60th Birthday).

    During my working life I was fortunate to work at the same factory for just over 41 years. Although the factory had many different owners over the years, the 'company' pension scheme was always carried over from one owner to the next. I joined the company scheme as soon as I was able at the age of 21 in 1981. My first boss at the factory was very knowledgeable on pensions and instilled in me the advantages in joining the scheme as soon as I was able. There were also many tax advantages over the years for paying into such schemes.

    During our married life (37 years thus far) with the exception of a mortgage, we have never borrowed any money. If we decide we want something - we save up for it and pay cash. We only use credit cards for loyalty points or cash benefits - the balances are always paid off every month. In my early 50's we had managed to pay off the mortgage. At this point I was able to increase the amount that I paid into the pension fund to about 20% of my salary.

    I should also add that neither my wife or I have ever smoked and we very seldom drink.

    Anyway, all in all it worked out for me and I'm very happy with the situation.
     
  13. Rocky058

    Rocky058 Tele-Holic

    Age:
    62
    Posts:
    740
    Joined:
    Aug 31, 2009
    Location:
    Clearwater Florida
    Let's put it this way: "I'd rather be lucky than smart".
     
    hemingway and 1955 like this.
  14. BigDaddyLH

    BigDaddyLH Tele Axpert Ad Free Member

    Posts:
    55,477
    Joined:
    Sep 1, 2009
    Location:
    Kelowna, BC, Canuckistan
    I'd settle for either :cry:
     
    imwjl, Rclax, Tommy Biggs and 4 others like this.
  15. SapoAmpRepair

    SapoAmpRepair TDPRI Member

    Age:
    42
    Posts:
    10
    Joined:
    Sunday
    Location:
    New York State
  16. schmee

    schmee Doctor of Teleocity

    Posts:
    13,312
    Joined:
    Jun 2, 2003
    Location:
    northwest
    I made some money in a booming real estate market by moving up a couple of times in 15 years.
    I retired early, but then did an occasional consulting job every couple of years etc.

    I compromised on house size and quality, figuring being retired was more pleasing than tile counter tops.

    What would I do different? Hmmm... I tell my self I should have worked 5 more years, I was in my prime earning years when I retired. But would I really...? Maybe.. I don't know. You can't get time back at any cost.
     
  17. JL_LI

    JL_LI Friend of Leo's

    Age:
    70
    Posts:
    4,095
    Joined:
    May 20, 2017
    Location:
    Long Island, NY
    I just retired. I'm 70. My employer didn't want me to leave but it was time. To me, early is before you die. I always thought I'd be out at 65 but with a good job and a good income and the freedom to do pretty much anything I wanted, there was just no reason. The key to staying on the job is job satisfaction, something much more likely in a profession. The key to a fruitful retirement is to have the discipline while working to put enough aside that retirement won't change your lifestyle. Between 401K, annuities, social security, a defined benefit pension, and a decent severance check, and my wife still able to maintain a small business that takes up 15 to 20 hours of her time each week, we're set for life. We plan to do an HGTV upgrade to our living quarters in March. Next month I'll be at the MB dealer looking for what may or may not be the last car I buy. We plan to resume alternating Hawaii and European vacations again when we can fly. We'll resume seeing the grandkids on the left coast regularly. I plan to live long enough to enjoy this and my wife plans to outlive me. There are no guarantees in life. A colleague dropped dead in his driveway shortly after retiring at 62.

    So what's early retirement? Really? It's not being forced out. It's not having to keep working to pay your bills. It's not having to work at Walmart after you retire to pay your bills. It's being able to retire without freezing or starving. I'm not sure that early retirement is anything more than being able to retire on your own terms.
     
    Last edited: Jan 13, 2021 at 11:12 AM
    rcole_sooner, nojazzhere and 1955 like this.
  18. 1955

    1955 Doctor of Teleocity

    Posts:
    10,092
    Joined:
    Apr 10, 2010
    Location:
    .
    Another question I don’t want to ask myself after a life of hard work is “Was it worth it?”
     
  19. boris bubbanov

    boris bubbanov Tele Axpert Ad Free Member

    Posts:
    54,206
    Joined:
    Feb 24, 2007
    Location:
    New Orleans, LA + in the
    I retired early, all right. Maybe not successfully - depending on how you define that.

    Money in the bank, material possessions, only take you so far. I think you should consider backing away, not based on resources, but based on whether you are palpably shortening your life or endangering your health.

    Look. This isn't about planning. This is really about waking up one day and deciding that a change is in order.
     
  20. Chandlerman

    Chandlerman Tele-Meister

    Posts:
    151
    Joined:
    Mar 26, 2011
    Location:
    Central Coast Cal
    I put money into a 401k for many years and I earned a gov pension. The day that I calculated that I could retire comfortably was the day I gave notice.
     
    sjwieczorkow, P Bill, Flaneur and 2 others like this.
IMPORTANT: Treat everyone here with respect, no matter how difficult!
No sex, drug, political, religion or hate discussion permitted here.