Why early retirement IS all it’s cracked up to be: Debunking the 5 Myths of early retirement

Market Watch ^ | 07/20/2020 | Steve Adcock

[cuban leaf]

Way back in 1971 (high school) my friends were arguing that the government may not honor our savings bonds when they mature. I told them that if the FedGov is not honoring savings bonds, we will be living in a world where that is the least of your problems. ;)

[jeffc]

I retired at 62 because an injury at 61 left me unable to work. My wife still works and we have almost everything paid off and money banked. We don't worry if a major appliance breaks - we can handle it.

Our kids are grown (one one her own, son still here) and we have what we want: Two wooded acres among rolling hills in a very rural area of Florida. We don't have a mansion - standard 3-2-2 - but we love it here.

[pepsi_junkie]

I'm in my early 50s and began putting money into a 401K in earnest in my mid/late 20s, enough to get all the company match and later a bit more. That was good timing, it's been a great 25 year period to be in the market, doing quite well at this point. Also began funding a college plan shortly after my kid was born. Financially we are great but our assets are mostly tied up in plans that we cannot access without significant penalties.

I have almost no confidence that politicians will not raid people's private 401K plans though. I am willing to bet that by the time I hit 65 they will have taken half of it at least. It's just too big a pool of money for them to keep their hands off of. 30+ years of consistent saving will be stolen to pay for people that didn't plan. You watch.

[sauropod]

bkmk

[Obadiah]

I actually read this exact article about 6 months ago on Yahoo. The guy is retired, I guess, but he still works at creating income streams through YouTube, writing, etc.

[sauropod]

Wish I could do that.

[MuttTheHoople]

I have one State retirement going into effect in a couple of years when I turn 60. My other retirement could go into effect as soon as I turn 64. However, I enjoy the work I'm doing and hope to work there 20 years.

I'll have two State retirements as well as Social Security. Both will be spouse-friendly so if I kick it, my wife will be taken care of.

[pepsi_junkie]

The article is kind of a joke. Not putting it down but "early" retirement to these guys is a whole lot different than early retirement to most people.

They are people in their 30s that have a nest egg and income coming in and few expenses and live a gypsy lifestyle in an RV so no property tax or mortgage or expenses for child care / college. Great. Weird anecdotal case but good for them.

[NewHampshireDuo]

I retired at 60. Been busy doing consulting and other fun stuff ever since. One of the best decisions I ever made.

[alexander_busek]

“her years in Australian social security now counts for ours! Crazy.”

Please explain.

Perhaps similar to the situation here in Western Europe.

Due to mutual treaties, years of employment accrued here (in, e.g., Germany) are "counted" with respect to reaching the "40 consecutive quarters of paying into the system" necessary to obtain S.S. payments.

Thus, as a college student, I worked a summer job in the U.S. - then emigrated to Germany. I get a print-out from the U.S. govt. every year, saying that I have accrued "1 point" (worth a couple of bucks per month) towards my S.S. upon retirement. Ordinary, I would never see that money, because I haven't accrued the necessary 40 consecutive quarters.

But since I have worked (and paid into the system) for more than 40 consecutive quarters here in Germany, and Germany has a bilateral treaty with the U.S., those quarters are "counted."

Regards,

[MGunny]

Retired and loving it. More busy now than I was when working. Not quite at Soc Sec age, but everyday is n adventure. I have no regrets hitting the silk!

[BBQToadRibs]

LOL, like me. I’m mid-50s but have an 11 year old daughter. No doubt I’ll be working though my late 60s paying for college. Again.

[OrangeHoof]

I realized Social Security and pensions wouldn’t keep me afloat in the U.S. - so I moved to Panama. Same U.S. dollar but at 60-70% of the costs.

In reality, what kills most retirees financially is health care. You can exist pretty well until you need that “procedure” to treat xyz and that costs a ton, including medications and follow-ups. Figure a way to limit that cost and you’re all good.

Also, pre-plan and pre-pay your funeral expenses as much as possible. That’s another good investment.

[TokarevM57]

...I fully understand...!! as our long-term financial advisor would say again and again, everybody’s situation is different. We were able to pay off our house here in Texas almost four years to the day after we signed the closing papers. Thank the Good Lord, we are debt free and have not had to touch our 401(k), etc. accounts...but everybody’s situation is not like anyone else’s... and a serious illness or injury can change one’s financial life virtually overnight. My most sincere “best of luck” to you!!

[Starboard]

My job has been nothing but golden handcuffs for the last ten years. I can’t wait to retire and do stuff that I think is worthwhile.

***********

I can relate to that but I walked and have not regretted it for a moment. Being in total control of your own time is priceless.

[umgud]

I’m 68 and still working. Early retirement at 62 was too big a cut vs 65 or older. I don’t have to work and I’m amazed someone would pay me so much for so little. I did start my SS at 65 and use it to supplement my work salary.
Never had it so good.

[ronniesgal]

it’s a pretty good gig!

[Tailback]

I’ll have 30 years in my govt pension at age 60 1/2. (9 years from now) At age 60 my military reserve retirement starts paying. I’ll probably only get 7-800 dollars a month, but the wife and I will both get tricare medical coverage. Our house will be paid off in 6 years. We have zero debt. Both my pickup and her 4runner are in excellent shape with low miles.

I’m gone as soon as I’m eligible. I’ll buy a motorhome with cash and start traveling.

[angcat]

Join the club I’m 55 with a almost 17 year old :0)

[lowbuck]

The best thing is if he starts to dislike this job, he quits!

This hits the mark!! I took early retirement and have been busier than ever as a volunteer in my community (church, school, Boy Scouts, baseball and so). Everything I do is because I said I would not because I have to! Give me grief and there is another group begging me to come and help them. . . Big mental mindset difference.