FIRE, Financially Independent Retired Early?

[rennigade]

Went home and watched the Masters.

Not sure how long ago but you can now stream the masters from your computer. Not as good as coverage as you would see on tv but the featured groups are always good. The announcers they use for online coverage kinda suck though.

[disneysteve]

Focus on the big items and not pennies. It's simple, if you save 10% on $1m, that's more than 90% savings on $100k

I think your example is what might be throwing people off.

I think what you mean is that the little stuff - the daily coffee - isn't as important as the big stuff - the mortgage, the car, etc. Is that what your point was?

For example, buying a $10,000 car instead of a $40,000 car saves you $30,000. Giving up a $3 daily coffee M-F, it would take you 38 years to save $30,000.

[Fishindude77]

We are FIRE, went part time last October, I'm 57.
Really enjoying the new freedom to come & go and do things.

[bigdaddybus]

With my wife and I both on track to receive sizeable pensions, the saver in us is unwilling to "leave money on the table by retiring early"

So is a 6.3% larger pension worth working to 56 instead of 55?
12.6% larger worth working to 57 instead of 55?
18.9% larger pension worth working to 58 instead of 55?
41.9% larger pension worth working to 62 instead of 55?

right now the plan is work until 62, enjoy our jobs, take 6 weeks of vacation per year, and do something big to celebrate turning 55.

Its nice to know if we are unhappy we can walk out the door at 55 and not look back. Its wonderful to have a fully funded pensions to count on, but it will also keep my wife and I working longer than we could have left if we were solely funding our retirement ourselves.

[Singuy]

I focus more on FI than RE. We are pretty much FI currently. Retirement on the other hand will seem ridiculous at our age.

[rennigade]

With my wife and I both on track to receive sizeable pensions, the saver in us is unwilling to "leave money on the table by retiring early"

So is a 6.3% larger pension worth working to 56 instead of 55?
12.6% larger worth working to 57 instead of 55?
18.9% larger pension worth working to 58 instead of 55?
41.9% larger pension worth working to 62 instead of 55?

right now the plan is work until 62, enjoy our jobs, take 6 weeks of vacation per year, and do something big to celebrate turning 55.

Its nice to know if we are unhappy we can walk out the door at 55 and not look back. Its wonderful to have a fully funded pensions to count on, but it will also keep my wife and I working longer than we could have left if we were solely funding our retirement ourselves.

I dont know what your financial situation looks like. If you're solely relying on your pension then you may have to work till 62.

Just remember time isnt something you can get back. If you can retire and live comfortably and do the things you want to do...is it worth working 7 more years...55 to 62? is that money going to make a huge difference or will that money pad your kids wallet when you die (assuming you have kids?)

[StormRichards]

I hate to point this out, but I'll do so for the benefit of everybody. As in many of your other replies, you seem to miss the main points.

Generally, it is understood that saving 10% of something is easier than saving 90% of something. This is the basis of Amdahl's law.

We may be thinking on different levels, but to explain everything in minute details is just not practical. Engage your mind and think beyond.

As in many of your posts, most people (including a moderator) misses your main points.

[bigdaddybus]

I dont know what your financial situation looks like. If you're solely relying on your pension then you may have to work till 62.

Just remember time isnt something you can get back. If you can retire and live comfortably and do the things you want to do...is it worth working 7 more years...55 to 62? is that money going to make a huge difference or will that money pad your kids wallet when you die (assuming you have kids?)

good points.
Not going to lie, the difference between a $72,600 pension and a $125,000 pension would impact our lifestyle for sure. Leaving piles of money for our 4 kids is not a priority of ours, but paying to take the kids/spouses/grandkids on group vacations is something we want to do. Help with down payments for houses, help with medical needs, etc..

At our current saving rate we are on track to have 1.1M in non pension retirement funds at 55.

[rennigade]

good points.
Not going to lie, the difference between a $72,600 pension and a $125,000 pension would impact our lifestyle for sure. Leaving piles of money for our 4 kids is not a priority of ours, but paying to take the kids/spouses/grandkids on group vacations is something we want to do. Help with down payments for houses, help with medical needs, etc..

At our current saving rate we are on track to have 1.1M in non pension retirement funds at 55.

Ok...this sheds more light on the big picture. Yeah 1.1M isnt a huge number at 55. Not to say it isnt a lot but you know what I mean. If you were going to have 2.5M or 3M at age 55...then you'd probably have to rethink if an extra $50k/year was worth working an extra 7 years.

Its probably not a bad idea to work till 62 then live it up.

[james.hendrickson]

For example, buying a $10,000 car instead of a $40,000 car saves you $30,000. Giving up a $3 daily coffee M-F, it would take you 38 years to save $30,000.

The advantage of the less expensive car is that you pay less in insurance costs as well.

[disneysteve]

The advantage of the less expensive car is that you pay less in insurance costs as well.

True. Maintenance and repairs are lower too. My work partner had a BMW with those super thin sport tires and every time he went over a nail or hit a curb, it cost him hundreds of dollars.

[~bs]

I dont know what your financial situation looks like. If you're solely relying on your pension then you may have to work till 62.

Just remember time isnt something you can get back.

Time isn't something you can get back, 2 sides of the coin to that. If you work, and didn't really have to, that's 7 years of your life when you were in good health that you weren't able to fully take advantage of.

He could probably exit now if he wanted to, but he'd be more reliant on social security and pension in retirement. A fully paid off house, rental properties, or other offsetting factors would help immensely in retiring early.

[greenskeeper]

not yet, probably at the age of 65.

Just have to remember to use the correct two letters when dealing with coworkers. O K and not F U

[Drake3287]

FIRE at age 54. Best thing ever and I've never looked back.

[LivingAlmostLarge]

We're FIRE. We could have FIRE like MMM. But didn't want to. Guess take each day as it comes and when it's time we'll know. FWIW my DH can't stand the thought of being home with the kids right now they drive him nuts. He semi climbed walls being at home a year. So I'm guessing he'll want to work until they are at least teens so make his life easier. I find not being home with them all the time also nice.