Comments on: Saving With a Purpose: Early Retirement

By: Saving With Purpose: Retirement Phase II | Frugal Dad

Saving With Purpose: Retirement Phase II | Frugal Dad — Mon, 01 Feb 2010 09:03:02 +0000

[...] could save a large amount in our Roth IRAs, assuming we don’t tap contributions early to fund early retirement (something I mentioned as possibility in the last series post). Assuming a 6% average return on our [...]

By: Forest

Forest — Sun, 31 Jan 2010 13:26:14 +0000

I’m just starting to feel myself getting a hold on things and if I can just increase my income a little this year then early retirement will definitely be something I start aiming towards. Thanks for the, as always, informative article.

By: valet

valet — Sun, 31 Jan 2010 10:21:41 +0000

I retired a three years ago and my husband retired three years ago at the grand age of 47 and 50 respectively.
We are amazed at the number the retired with us that have went back to work at lower paying jobs because they are “bored.” I do believe we make it because our house is paid off and we have no big payments. Although we don’t go on cruises (we never did)-we live more of a simple life and always have. Oh we love babysitting our grandchild and fishing, and gardening. Things we might not have time for otherwise.

By: Mal

Mal — Thu, 28 Jan 2010 19:25:44 +0000

A few years back I came across the idea of working once and then getting paid for the rest of my life.

Now I enjoy the lifelong income that keeps growing.

By: Don

Don — Tue, 26 Jan 2010 16:20:01 +0000

My view of early retirement has changed for two reasons. I have gotten older / wiser and the financial crisis. My savings is not what it used to be. However, we need to make the best of what we have and seize the opportunities. I feel that Roth IRA conversion may work even for those closer to retirement. It may make sense. Keep our heads high and stick to a plan.

By: Sandy L

Sandy L — Mon, 25 Jan 2010 19:15:10 +0000

Jackie’s comment made me think of my uncle. He was a blend of her and frugal dad’s retirement vision.

He did fish ALOT for pleasure, but also ate them. Being an immigrant, most of his leisure activities also involved some practical purpose as well. (Wild Berry picking, mushrooming, canning, gardening, hunting, fishing, driving around looking for dead wood, etc..)

I think everyone should think about what hobby they can start now that they can kick into high gear when they retire.

You know what they say about old dogs and new tricks. I doubt that if one doesn’t carve out some time in their life now, it won’t happen in retirement either. Anything that is a priority can and is scheduled in. If you think you’ll start volunteering when you stop working but have never done it in the 65 years before, then I doubt it will happen.

My friends’ retired lives aren’t that much different than their working lives. A slob still won’t have emough time to clean their house.

I guess after all that writing I realize that retirement isn’t a date or specific bank balance but a journey. It’s the person we are evolving to be.

By: Jackie

Jackie — Mon, 25 Jan 2010 16:28:04 +0000

Hm, I’ve always thought of traditional retirement as t
what you described in the first paragraph — traveling, fishing, relaxing — because those are the kinds of things the people I know who are retired actually do. So I found the first part if this post surprising.

It’s also a good reminder to clearly define retirement goals and what “retirement” means for us as individuals. For me I hope it will mean freedom to travel while working/volunteering/puttering — since those are the things I enjoy.

Funding it is another matter. My biggest concern by far is health insurance.

I think you might be able to reach your goal easier than you think based on the numbers you mentioned. Also, won’t your expenses likely be less in retirement?

By: Tyler @ Dividend Money

Tyler @ Dividend Money — Mon, 25 Jan 2010 15:55:35 +0000

Thanks for the reply FD.
I understand your worst case scenario idea. I agree that early retirement isn’t about actually “retiring” but just about freedom. Given that as your goal… you could still earn money and be “free” provided that your income doesn’t depend on you trading hours for dollars at a specific workplace.

By: freestrongbuys

freestrongbuys — Mon, 25 Jan 2010 15:33:57 +0000

Thanks for sharing. As always a wealth of beneficial information. This is the same stuff that my grandma taught me. Right now she is 85 years old. She is not wealthy, but she still financially supports her grown “children” and some grandchildren. I was one of the few who took her wise advice on saving and investing. I dont think I will retire though. I really enjoy what I do.

By: Crystal

Crystal — Mon, 25 Jan 2010 15:24:27 +0000

My husband and I are 26 and 27 respectively and plan to retire at 52. That’s the earliest my husband can receive his full pension…hence it being our target date.

We cannot afford to max out my 401k, but we do contribute the maximum that will be matched (6%) and have a Roth IRA we max out every year. We are planning to open another Roth IRA this year with the money we’ve been funneling into graduate school. That gives us about 25 more years to build up a pension, a 401k, and two Roth IRA’s for retirement.

Our Scottrade account and savings accounts will need to be large enough to bridge the gap between 52 and “normal” retirement age.

Early retirement is our main reason for saving. We may still work part-time jobs, but we want the financial freedom to be able to choose. Knowing that you have to go to work in order to fund your life is very different than choosing to go to work simply because you enjoy it.

Great post!