How I’ll Fund My Retirement

Many of the financial bloggers I follow are pursuing financial independence.  Not many of them are already there.  So there isn’t much information about how to fund your life once you are retired.

My fellow blogger, Fritz, at RetirementManifesto decided to correct that by creating a chain of articles discussing drawdown strategies.

I decided to join in the fun and lay out my draw down strategy.

I don’t have a pension.  I am counting on Social Security though I’ve reduced my expected payments by 30% because something has to change with Social Security, right?  At 52, with a husband in his 60’s (sorry Mr. Ms. Liz!) I feel secure in counting on this.

Curious about how I got here?  Here’s my savings rate and net worth growth.

First, a couple snapshots on where I am now.  I’m following Fritz’s lead on format. Continue reading “How I’ll Fund My Retirement”

How Much Is Enough?

When you get to your 50’s and 60’s, thoughts turn to retirement.

Since we’re among the first of our friends to take the leap, we’re having a bunch of fun conversations.  Friends are trying to figure out when they can join us.

Mr. Ms. Liz tells them to do it sooner than later.

My friends think I’m crazy but one of the big reasons I retired early is that Mr. Ms. Liz’s Mom died at 64.  Mr. Ms. Liz just turned 61.

If he were to follow in his Mom’s footsteps, we have three more years.  There are a slew of reasons why this won’t happen (smoker, non-exerciser, poor eater etc.) but it was on my mind.  If we have three more years, I want them to be three years focused on FUN, not three years focused on work.  And we were ready–financially and emotionally.

You don’t know how many good years you have left.  We know few people who have a great quality of life after 75.  So we say make it happen sooner if you can. Continue reading “How Much Is Enough?”

Let’s Make A Deal

I went to a (early!) retirement party for a friend and former colleague of mine this week.  Yay Phil!  It was so fun to catch up with my old work buddies who were there.

Knowing that Mr. Ms. Liz and I are fairly knowledgeable about things financial, one former colleague confessed that he spends about $4,000 a year going out to lunch.

If you read last week’s post, you know that if you LOVE going out to lunch and it completely enhances your world,  you should go out to lunch and enjoy every minute and every morsel.  (So long as you don’t have consumer debt like credit cards and you are saving at least 15% of your income for your retirement).

But he was making this confession because going out to lunch doesn’t completely enhance his world, it just makes life a bit more convenient.

He thinks $4,000 a year is too much money.  Yep, it would be too much money for me too. Continue reading “Let’s Make A Deal”

Pick Your Path and Don’t Stray

I read an amazing post by Kitty at BitchesGetRiches last night.  She walked through her reasoning behind buying $25 wedding rings.  She compared them to the $1,900 rings she and her partner really wanted and explained why they decided on the $25 rings.

They decided on the $25 rings because she and her partner had, years earlier, talked about their dreams.  She wanted the pony her parents never got her and she wanted to live in a house with secret passages.

Buying $1,900 rings didn’t help her get the pony. . . or the house. Continue reading “Pick Your Path and Don’t Stray”

Save To Retire Early Even If You Won’t

I listened to a good bit of the James Comey hearing last week.  I don’t follow politics closely but Mr. Ms. Liz does so it was on the TV while I was working.

I kept wondering–does he have F U money?

We haven’t talked about F U money before because I find it to be a bit vulgar and I know some of my readers are sensitive to such things.  But I haven’t found a better way to express this concept.

Jim Collins, one of my personal finance heroes, coined the term.  If you haven’t read his stock series yet, do it right after you finish this insightful post :).

Does James Comey have enough money to move on to something else without worrying about how he will keep his family afloat during the interim?  He’s 56, could he retire? Continue reading “Save To Retire Early Even If You Won’t”

Reflections On My First Year of Retirement

I’ve been retired a year–it’s crazy how fast it has gone!  It makes me better understand a line Gretchen Rubin often quotes “The days are long but the years are short”.

I hope you’re not disappointed but I’m not issuing a report card like I did for my first four months of retirement.

Mainly because my grade would go down and I’m a gold star junkie.

Not because I’m not loving this retirement thing but because retirement has turned into more of a vacation than something I can grade myself on.

I feel like this first year has been a detox.

I’ve allowed myself to be far less productive than I expected I would. Continue reading “Reflections On My First Year of Retirement”

The Easy Way To Fund Your Dreams

What do you dream of?

Traveling? Buying a home? Staying home with your kids? Taking time off? Sending your kid to college? Retiring someday or even early? Buying a camper and heading for the open road?

Don’t know what your dream is?  Read this and figure it out!

Unfortunately, few dreams are free.  If you want to pursue your dream, you’ll probably need to save some money.

It may seem really hard to eek out savings from each paycheck.

But I promise it will only get easier!

As long as you’re not spending more than you make, you don’t even have to reduce your spending.  IF you’re spending more than you make, sorry, but you have to get yourself on track.  Cut, cut, cut and earn, earn, earn until you’re not living beyond your means.

You just need to commit to keep your spending where it is. Continue reading “The Easy Way To Fund Your Dreams”

Social Security Is My Bond Portfolio

My Dad is an Investor.  I say Investor with a capital I because I remember him studying investments in his home office (aka my brother’s former bedroom) for hours when I was a teenager.

He’s the first early retiree I knew.  So when he shared a bit of his investment philosophy with me, I listened.

In spite of being in his late 60’s at the time and retired with no significant pension, he continued to be invested very aggressively and held very little of his investments in bonds.

He said Social Security was his bond portfolio.

This approach worked well for him.  He’s now in his late 70’s and running out of money is not even possible (he was also the first frugal person I knew!).  Though he recognizes he would have been better off investing in index funds and saving the hours he pored over investment reports.

I’ve followed in his footsteps on many things and I’m following him on this one too. Continue reading “Social Security Is My Bond Portfolio”

The Power Of One Word

I just got back from a mountain bike ride.  It’s one I do regularly because it is a good lung buster that helps me get in shape.  But I haven’t ridden this trail in six months.  Our desert trails are much flatter and I’ve only been back at altitude for a week.  So it felt really hard.  I got to the top without taking any breaks–though I felt like I might puke.

I know exercise is good for my body and my brain.  But getting out and exercising regularly doesn’t come easy for me.  And I’m especially bad at making myself do the hard stuff like I did today.

I was tempted to put my foot down, take a break and get my breathing under control. Continue reading “The Power Of One Word”

My Visit With Warren Buffett

The typical investor has no business investing in individual stocks.  Most of my investments are in Vanguard index funds–VTSAX is my favorite.  Until recently, I owned only two individual stocks.  I also own some managed funds (which carry higher fees) but I would move all of my investments to VTSAX if I could do it without paying taxes on my gains.  You can learn more about my investment philosophy here.

A few months ago I broke one of my cardinal rules. I bought another individual stock–BRK–Berkshire Hathaway.  I bought it only because I wanted to go to the annual meeting and see Warren Buffett (world’s 2nd richest person) and his partner, Charlie Munger talk about investing and life.  A trip to Omaha doesn’t sound all that exciting but this annual meeting is a real spectacle–more about that later. Continue reading “My Visit With Warren Buffett”