Fire

Sea_Shell

Paul_Herring wrote: »

Briefly, it's the risk that the stockmarket takes a plunge early in your retirement then rockets, reducing your pension fund early on, rather than rocketing early on then plunging later on in your retirement.

https://www.thebalance.com/how-sequence-risk-affects-your-retirement-money-2388672

https://www.moneycrashers.com/sequence-returns-risk-investments-retirement/

That's why we're keeping at least a 5 year cash buffer!! So we can leave investments untouched in that scenario.

jim8888

Financial Independence - I'd advocate that as goal for everyone. Retire Early? It didn't work for me, and I think it's a totally individual decision with no right answer.
But I'd agree that the biggest shock to me when I returned to my desk was the physical impact of it. Within 3 weeks I noticed a big change to my fitness, and not for the better. Sitting at your desk eight hours a day is a killer. Possibly literally.

Anonymous101

I'm really interested in it. Been reading lots and listening to podcasts for 2-3 years. I'm 37 years old now and hoping to be FI by mid 40's.


At the moment the RE side of it is certainly something that I'm keen on but I do see the possibilities of working on my terms after a few years off. Generally I think that there's so much to see and do in the world that I could fill several lifetimes so I really don't see a place for work beyond what is nesacary financially.


I understand though that this isn't the case for everyone and there's plenty of people who view work in a different way to me.
As others have said I think the concepts of FI are useful for everyone and I do feel a little like I've had my eyes opened to a whole different approach to life.

cns06

Defo each to their own. I was telling my mother about my plans and she just sat there nodding and then said "but what will you do for money?".... sigh. Explained it 2 times and then she said "but wont you be bored?" gave up in the end.

The mrs and I were discussing how to tell people recently and we are just going to say we are taking a career break for a year... its easier for people to understand and wont put peoples backs up - which IME is the main thing that happens.

fred246

When I retired my wife hadn't worked for the last 22 years. I was amazed at the number of women who said things like "your wife won't be happy". It's as though men are supposed to carry on and on year after year while their wives go shopping and lunch out spending his earnings. Or maybe they just thought "I couldn't cope being with Fred all day".

Thrugelmir

Sea_Shell wrote: »

That's why we're keeping at least a 5 year cash buffer!! So we can leave investments untouched in that scenario.

The scenario will unfold in real time. Not with hindsight. A decade of underperformance isn't that uncommon. Hence why equities should be viewed as longer term investments.

atush

When I retired my wife hadn't worked for the last 22 years. I was amazed at the number of women who said things like "your wife won't be happy". It's as though men are supposed to carry on and on year after year while their wives go shopping and lunch out spending his earnings. Or maybe they just thought "I couldn't cope being with Fred all day".

It all depends on what Fred will do to bother his wife each day.

I dont go out shopping, and I dont 'do lunch' with my friends.

But that doesnt stop my other half, when he has a day off or on the WE trying to micro manage me or give me grief.

He watches 10 different sports, i dont care. but he complains about everything I watch- was watching The Searchers yesterday and he pipes up- what is that? Then makes a face at me. Geez.

Anonymous101

cns06 wrote: »

Defo each to their own. I was telling my mother about my plans and she just sat there nodding and then said "but what will you do for money?".... sigh. Explained it 2 times and then she said "but wont you be bored?" gave up in the end.

The mrs and I were discussing how to tell people recently and we are just going to say we are taking a career break for a year... its easier for people to understand and wont put peoples backs up - which IME is the main thing that happens.

I totally relate to this. I've tried to explain it to a couple of my friends and help them strive for something i see as hugely worthwhile. They just can't grasp it, earning more just equals buying more to them and they can't see any other road than what they are told by mainstream media.


I'm still mulling over what I'll say when the time comes. I think I'll tell certain people but a career break or even a change of career to work from home or working for myself are options. The thing I think FI people need to be careful about it talking numbers with people that are inclined to see your investments as there to be spent. There's an awful lot of people that would hear about a friend or family member having hundreds of thousands or even millions invested and allow that to change their way of thinking towards you.

Audaxer

Thrugelmir wrote: »

A decade of underperformance isn't that uncommon. Hence why equities should be viewed as longer term investments.

Presumably you don't mean a decade where equities have fallen every year of the decade?

Sea_Shell

Anonymous101 wrote: »

I totally relate to this. I've tried to explain it to a couple of my friends and help them strive for something i see as hugely worthwhile. They just can't grasp it, earning more just equals buying more to them and they can't see any other road than what they are told by mainstream media.

I'm still mulling over what I'll say when the time comes. I think I'll tell certain people but a career break or even a change of career to work from home or working for myself are options. The thing I think FI people need to be careful about it talking numbers with people that are inclined to see your investments as there to be spent. There's an awful lot of people that would hear about a friend or family member having hundreds of thousands or even millions invested and allow that to change their way of thinking towards you.

Definitely. My bold. No only might they expect to dib-into or benefit from your funds, but also that you now have "all this time on your hands" to do lots for them. Eh, no, we're retiring for us, not you!!!!

I'm hoping to fly under the radar for as long as possible, but the neighbours are bound to twig first, as the cars here everyday!!!