4 ms·

I've seen it too, and some of them are doing it on the leaner side (<$500k) on the assumption that if things get bad they can just work a little to make up any

by sct202 7y ago

I've seen it too, and some of them are doing it on the leaner side (<$500k) on the assumption that if things get bad they can just work a little to make up any shortfalls.

JKCalhoun 7y ago
I confess that is my outlook — that I could go back to work to make up for unforeseen shortfalls. (Not retired yet, BTW, but I think about it.) To be sure, jobs could become scarce, unemployment skyrocket — always in motion the future is.... But for myself there is another factor that has been weighing more heavily on me which is, what do I want to do with the time I have left on this planet? I'm not sure if that is orthogonal to the market rally of the past decade and if it has more to do with my age though.
- perfunctory 7y ago
  > But for myself there is another factor that has been weighing more heavily on me which is, what do I want to do with the time I have left on this planet? Please work on solving climate crisis.
- hogFeast 7y ago
  Yes, it is related to the rally (we saw this in 06/07). And the time at which jobs become scarce is the time your portfolio is down 50-60% in six months, and you are taking income from a rapidly shrinking pile. Don't risk everything you have for something you don't need.
- cortesoft 7y ago
  > To be sure, jobs could become scarce, unemployment skyrocket — always in motion the future is.... The problem with that plan (go back to work if investments tank) is that the risks are correlated; if the market crashes, jobs become scarce. Your primary and backup plan are likely to fail at the same time.
ac29 7y ago
I wonder where they are retiring. 4% of $500k (considered a "safe" withdrawal for retirees of traditional retirement age) is $20k/year. Even if you own your home outright, thats pretty light anywhere in the US.
- Digory 7y ago
  Likely planning on heavy withdrawals for a few years until social security kicks in. Would be interesting to imagine a world where US retirees are subject to the same safety nets as younger Americans.
- sct202 7y ago
  From what I've seen some end up in very non-traditional housing situations abroad or in the states like one woman lives in a train car. The ones who blog about it also pick up side jobs (blogs, gig jobs, light freelancing) to make up a few thousand at least a year. And then none of them have kids or plan on having kids.

by sct202 7y ago

I've seen it too, and some of them are doing it on the leaner side (<$500k) on the assumption that if things get bad they can just work a little to make up any shortfalls.

JKCalhoun 7y ago

I confess that is my outlook — that I could go back to work to make up for unforeseen shortfalls. (Not retired yet, BTW, but I think about it.) To be sure, jobs could become scarce, unemployment skyrocket — always in motion the future is.... But for myself there is another factor that has been weighing more heavily on me which is, what do I want to do with the time I have left on this planet? I'm not sure if that is orthogonal to the market rally of the past decade and if it has more to do with my age though.

perfunctory 7y ago
> But for myself there is another factor that has been weighing more heavily on me which is, what do I want to do with the time I have left on this planet? Please work on solving climate crisis.
hogFeast 7y ago
Yes, it is related to the rally (we saw this in 06/07). And the time at which jobs become scarce is the time your portfolio is down 50-60% in six months, and you are taking income from a rapidly shrinking pile. Don't risk everything you have for something you don't need.
cortesoft 7y ago
> To be sure, jobs could become scarce, unemployment skyrocket — always in motion the future is.... The problem with that plan (go back to work if investments tank) is that the risks are correlated; if the market crashes, jobs become scarce. Your primary and backup plan are likely to fail at the same time.

ac29 7y ago

I wonder where they are retiring. 4% of $500k (considered a "safe" withdrawal for retirees of traditional retirement age) is $20k/year. Even if you own your home outright, thats pretty light anywhere in the US.

Digory 7y ago
Likely planning on heavy withdrawals for a few years until social security kicks in. Would be interesting to imagine a world where US retirees are subject to the same safety nets as younger Americans.
sct202 7y ago
From what I've seen some end up in very non-traditional housing situations abroad or in the states like one woman lives in a train car. The ones who blog about it also pick up side jobs (blogs, gig jobs, light freelancing) to make up a few thousand at least a year. And then none of them have kids or plan on having kids.