Who's ready to retire at 40?

[John_AZ]

"Retirement kills more people than hard work ever did". Malcolm Forbes

John_AZ
Todays weather forecast: Sunshine and 58 degrees

[Hugh R]

I'm 53 and while I could sell my Cali house, even in this market for at least double what I bought it for, and move somewhere cheap I don't want to. My kids are grown, and my job takes me around the world, literally. Last year, my employer paid for me to go to New Zealand, Prague (twice), Budapest, London, the Bahamas, Montreal, Toronto, Vancouver, BC, and a number of US locations. I have time on the trips to do a little sightseeing, and I take my wife on a few of those trips using frequent flier miles. Next year, I may be going to China, Morocco, Iceland, Spain, and Australia to name a few.

[legion]

Warning! Broad generalizations follow...

IMO, there are two types of people when it comes to work: People who live to work and people who work to live. (Of course there are varying degrees on that scale--and it is possible to switch between the two.)

Right now, I find myself in the work to live camp. I'm looking into some other opportunities with my company, but I need to see my current project through to the end to make them happen. Jumping ship is not seen in a positive light where I work. (And I know people at other places that have made a career of jumping from failure to failure and claiming success just before the $h!t hits the fan.) Either of the opportunities I'm looking in to could put me in the live to work camp.

[911Rob]

Hugh........ I want your job man! That sounds very SWEET!!!

I'm just starting to scratch my travel bug Not quite there yet; just a few trips each year, spent about $75,000 on travel last year, its fun, but expensive!

For years people called me a "Work-aholic"; until one day this very smart lady informed me that I wasn't a work-aholic......... however, a High Achiever! There's a big difference, fyi. High Achievers work very hard to achieve goals; however once they've achieved the goal, they know how to enjoy it. A work-aholic never enjoys, just works. (my third step-father was like that until he died)

Oh no Legion......... oh no!!!

As for work; I enjoy work....... working on my boat, car, truck, cabin, home, toys; ha,ha.
As for the JOB (journey of the broke) thing; I've always seen it as a means to cash $$$
I just kept streamlining my time/dollars over the years. I can't stand it when I see people who 'just put in time'? What a friggin waste of a life. Bossy Pooh says stay until 5PM even if you're not doing anything or feeling productive? Not in. Lifes too short.

My main office has been right at home for the past 15 years, right next to my wifes office. No alarm clocks, I'm often found meeting with people in my home wearing my housecoat (ha, ha); just yesterday I had a one hour meeting in my home with one of my superintendents; he just showed up at my door after we were texting each other a few times. Oh well, no dignity.

I'm excited about the future............

Another thing I've learned in my years: "Success is in the eyes of the beholder!"
Every person has their own definition of Success. Mine will never be yours; go with yours!
Just make sure that you have a definition? Success to me is:
Now go make it happen!

[tabs]

Originally Posted by 911Rob

Every person has their own definition of Success. Mine will never be yours; go with yours!

For me that is a 2 part definition. On the personal level I have succeeded beyond what I thought was possible. When I was 20 I saw that if you didn't have piece of mind all the money and fame in the world wouldn't mean a thing. If you have piece of mind and wanted money you could go out and make it. The words "with clarity of purpose" comes to mind.

In the material world of recognition and money I would say I am a total failure. On one hand I have not lived up to the promise or talent that I have and 2nd have not put the $$$ I have to their highest and best use. I have an obsession with spoons, particularily with the parting of them.

This little quote who I can't attribute it to said, "Gods gift to you is giving you a talent, your gift to God is using that talent." The simplicity of that statement awes me.

[911Rob]

Well put Tabs.

"To whom much is given, much is required"

Much like most of us have agreed recently, being a parent by example is a good path.
Living your life as an example is another good path.
I call it, "Lifestyle evangulism"; there's even a book on it..... somewhere in my library.

Cheers and a toast to YOUR success!

[WI wide body]

[QUOTE=John_AZ;3648840]"Retirement kills more people than hard work ever did". Malcolm Forbes

Obviously, Malcolm never worked in a coal mine or the meat processing industry.

[WI wide body]

Originally Posted by Hugh R

I'm 53 and while I could sell my Cali house, even in this market for at least double what I bought it for, and move somewhere cheap I don't want to. My kids are grown, and my job takes me around the world, literally. Last year, my employer paid for me to go to New Zealand, Prague (twice), Budapest, London, the Bahamas, Montreal, Toronto, Vancouver, BC, and a number of US locations. I have time on the trips to do a little sightseeing, and I take my wife on a few of those trips using frequent flier miles. Next year, I may be going to China, Morocco, Iceland, Spain, and Australia to name a few.

Hugh, I also had a couple of assignments in Colombia. Never went to Cali but I spent time in Zipaquira outside Bogota and beautiful Medellin. Also flew into Budapest quite a few times on the way to a factory in Oroshaza. Did you ever get to any of those cities?

[911Rob]

I think Malcolm was referring to retiring broke?

[WI wide body]

About that "money" thing: did you know the one thing that money cannot buy?
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Yep, it's poverty!

[Dixie]

I call bull$hit.

Here’s what it would take to retire at 40 unless you’re a trust-fund baby.

To live off your savings, without dipping into the principal too much, you'll need to draw down no more than 3% of your money each year. So, to maintain a $45,000 income you'll need a minimum of $1,500,000 in savings. But wait, faced with 40+ years of inflation, you'll need your $1,500,000 in savings to grow for 30 more years. Also keep in mind that you can not draw from a differed savings plan, such as a 401K, for many years without incurring a penalty That starting figure needs to be adjusted to allow for these factors. $2,750,000 is a low figure that will meet these considerations. (Keep in mind this amount does not factor in future financial obligations, such as college for your children. It also does it include “base” assets such as your house and cars.)

Graduating from college at 21, you have 19 years to amass this amount before retiring. At an 8% annual return, you will need to set aside $66,351 each year. Let’s say this is 25% of your annual gross income. After all, you still need to pay State, Local, and Federal income taxes (including the reprehensible AMT). And you also have to eat and have a place to live today. The net is you’ll need an income of at least $1,500,000 each year. Right out of college. With only an undergraduate degree in English. No divorces. No illnesses. No daycare. No periods of unemployment. No tax increases to pay for the ever growing National debt.

Now factor in you live in California and vote for people who want to raise your taxes....

Good luck.

[Hugh R]

Originally Posted by WI wide body

Hugh, I also had a couple of assignments in Colombia. Never went to Cali but I spent time in Zipaquira outside Bogota and beautiful Medellin. Also flew into Budapest quite a few times on the way to a factory in Oroshaza. Did you ever get to any of those cities?

Sorry, Cali=California, as in Los Angeles, never been to Colombia and that's my story and I'm sticking with it.

[WI wide body]

[QUOTE=Capt. Carrera;3649428]I call bull$hit.

Also keep in mind that you can not draw from a differed savings plan, such as a 401K, for many years without incurring a penalty.

I'm not sure about it at age 40 but I know for a fact that you can draw a monthly amount from lump sums and qualified IRA's without penalty when you are 55.

[tabs]

Originally Posted by 911Rob

I think Malcolm was referring to retiring broke?

NO not broke....inactivity, not having something to do everyday. You go to work for 45 years and then are expected to go off into the golden sunset and be happy. When many guys get there they find they are without purpose, that their work was their purpose for living. So they get sick and soon die.

One guy I worked with never made it up the steps to attend his retirment party..he died of a HA on those steps.

[WI wide body]

Originally Posted by tabs

NO not broke....inactivity, not having something to do everyday. You go to work for 45 years and then are expected to go off into the golden sunset and be happy. When many guys get there they find they are without purpose, that their work was their purpose for living. So they get sick and soon die.

One guy I worked with never made it up the steps to attend his retirment party..he died of a HA on those steps.

I have been around for quite a while and I've found that most of the guys who are defined by their work are......not sure how to say it delicately.....let's just say you would never want to be stranded on a desert island with them!

[126coupe]

I was fortunate enough to retire @ 46, I am 49. The daughter is in college, wife and I are still married (29 years) I am not bored, lots of travel, racing ect.
Timely RE investments paid off. Sometimes I feel kinda guilty...............NOT

[North Coast Cab]

I have always planned for a target of 50. My plan was/is to have zero debt and a solid retirment plan set-up. At 41 I'm on target, and I only hope when the day comes I will have the ability to do what I want. Perhaps a different job doing something that brings a lot of joy. I always think of this when I meet those seniors working at the Country Club or Starbucks etc. who are so happy.

On the flip side, I just bought a plane ticket to Sarasota for my Grandfathers 100th birthday. Damn that's a long way away.

[dmcummins]

It's not all in how much you save, but how your savings start compounding. The main thing is to have a plan and track how your doing. Its easy to blow it off and say you cant do it, but some do. I considered retireing at 47 or 48 but deceided to build up a little more cushion, and I was waiting for the kids to get out of college.

By keeping track, I new how much I spent year to year, and how much I was saving, and how my investments were growing. I paid off my house and have no debt. I only worked part time at the begining of the year because the boss asked if I would stay through and help transision my replacement. I should have done it then and I could say I retired in my 40's.

How many of you would go to work if they didn't pay you? I had never been out of work and have been married for 27 years. I have always been a saver, but it really helped when I set up some goals and started seeing the money start growing.

But it would help if most of the people worked till they drop and maybe I can collect some SS.

[911Rob]

Originally Posted by tabs

NO not broke....inactivity, not having something to do everyday. ....... When many guys get there they find they are without purpose, that their work was their purpose for living. So they get sick and soon die.

That's what I call retiring broke Tabs.

Nothing to do? Heck, there's no time to do everything?

[Chocaholic]

I'm thinking there's a variable definition of "retirement" being used here. Unless you 40-ish retirees amassed $2M+ in your short working life (or inherited it), congratulations. Perhaps you married well? The rest of you aren't really "retired", or your full of *****.

At 48 with a total net worth under $1M, with 3 kids to put through school and a stay-at-home wife, retirement is a long way off. With (hopefully) 35 years more to live, I'm about $3M in net worth away from THINKING about retirement. Again, you 40 year-old retirees...please, share with us HOW you did it (truth), and how you define "retirement".