[earlyretirement]

[quote=ice9]I appreciate the comments/feedback earlyretirement.

It’s very useful to hear the thoughts from someone who has spent a lot of time thinking about this, and even done it.

Maybe it’s splitting hairs, but I don’t think of myself as having debt. I have a mortgage, yes, but there is 100K equity in the house. No student loans, credit card debt, etc.

Given the tax deduction on mortgage interest, I feel more comfortable having money earning dividends (that are taxed at 10% currently) than sitting in home equity.[/quote]

No problem. You are totally welcome. I totally understand your thoughts and worries and fears and dreams, etc. I went through the SAME things as you last year planning my “early retirement”.

I’m not saying to abandon your dream but I still think you should work several years, pay off your house and not have that worry. I understand you don’t think of it as “debt” but it is debt. You don’t own it. The bank does. Don’t get too into that whole “mortgage tax deduction is great thingy”. Also, I know people that say they will make more money investing it instead of paying off the house and they’ve lost it all. You just have to be realistic and careful there.

I don’t think of having $100k equity in a house as too much to write home about these days. I’m not sure how expensive it is or how much you have left but from what I’ve seen in San Diego…nice homes here are fairly expensive there so you still have a lot more to pay off.

Also, it’s still relative having a house paid off if the ongoing monthly expenses are high. Case in point, my house is totally paid off and it was fairly expensive but I have $16,000 in annual property taxes and Mello Roos as well as $450 a month in HOA fees not to mention we joined a country club that has $250/month in monthly expenses so even having a paid off house our bills are higher than many.

Definitely I think it’s a good goal to work towards as long as you always stay realistic and don’t fool yourself or talk yourself into something that you’re really not ready for.

It sounds like with your work at least you could do freelance work if you wanted to and earn money from time to time.

Also, you have to factor in the whole segment of the population (even friends/family) that will absolutely HATE you for being able to retire early. You’d think people would feel happy for you but in reality that doesn’t really seem to be the case in the majority of the cases.

I guess to be fair I’m not really retired as I still work about 5 or 6 hours a day but it feels retired compared to the 14 to 16 +hour days I worked before I “retired”. I worked INSANE hours before and much of it was stressful in the financial/investment realm.

I don’t really care what people think though. I give my kids a bath every morning, give them a bath every night. My daughter recently started pre-school last week and I pick her up every afternoon in the middle of the day at 1 PM. You should see the looks I get from all the other housewives picking up their kids. A few of them have asked what I do as I’m one of the only dads picking up their kids everyday and I’m doing it in shorts and casual clothes. (I think the other guy is an unemployed guy that lost his job and looking).

It’s a great feeling of being able to do what you want with your kids when you want, going to the pool, taking them to the beach, to the Zoo, etc during the week in the middle of the day. It’s great!

I do NOT dare tell people I’m retired but when they hear we’ve been traveling around for months on end around the world to exotic places…..the reaction I usually get is “did you win the lottery or something”??

There are wonderful things about “early retirement” once you get to that point. So don’t give up on the idea and try to ignore the haters….. I’d just advise to be realistic and factor in the great unknowns like inflation and future health care costs. Contrary to popular belief…..being a millionaire these days is NOTHING to write home about.

Fortunately I never HAVE to go back to work full time if I didn’t want to. I make enough in passive income to cover my monthly nut. But I definitely think after another year or so I will. Even to me it seems a bit ridiculous to be “retired” still in my 30’s….

And also to be honest I still have worries/fears almost each and every day and wonder if I truly have enough to retire. You can plan and think you know if it’s enough but in the end it’s still just a guess.

Best of luck with your goals and plans.

[earlyretirement]

[quote=ice9]I appreciate the comments/feedback earlyretirement.

It’s very useful to hear the thoughts from someone who has spent a lot of time thinking about this, and even done it.

Maybe it’s splitting hairs, but I don’t think of myself as having debt. I have a mortgage, yes, but there is 100K equity in the house. No student loans, credit card debt, etc.

Given the tax deduction on mortgage interest, I feel more comfortable having money earning dividends (that are taxed at 10% currently) than sitting in home equity.[/quote]

No problem. You are totally welcome. I totally understand your thoughts and worries and fears and dreams, etc. I went through the SAME things as you last year planning my “early retirement”.

I’m not saying to abandon your dream but I still think you should work several years, pay off your house and not have that worry. I understand you don’t think of it as “debt” but it is debt. You don’t own it. The bank does. Don’t get too into that whole “mortgage tax deduction is great thingy”. Also, I know people that say they will make more money investing it instead of paying off the house and they’ve lost it all. You just have to be realistic and careful there.

I don’t think of having $100k equity in a house as too much to write home about these days. I’m not sure how expensive it is or how much you have left but from what I’ve seen in San Diego…nice homes here are fairly expensive there so you still have a lot more to pay off.

Also, it’s still relative having a house paid off if the ongoing monthly expenses are high. Case in point, my house is totally paid off and it was fairly expensive but I have $16,000 in annual property taxes and Mello Roos as well as $450 a month in HOA fees not to mention we joined a country club that has $250/month in monthly expenses so even having a paid off house our bills are higher than many.

Definitely I think it’s a good goal to work towards as long as you always stay realistic and don’t fool yourself or talk yourself into something that you’re really not ready for.

It sounds like with your work at least you could do freelance work if you wanted to and earn money from time to time.

Also, you have to factor in the whole segment of the population (even friends/family) that will absolutely HATE you for being able to retire early. You’d think people would feel happy for you but in reality that doesn’t really seem to be the case in the majority of the cases.

I guess to be fair I’m not really retired as I still work about 5 or 6 hours a day but it feels retired compared to the 14 to 16 +hour days I worked before I “retired”. I worked INSANE hours before and much of it was stressful in the financial/investment realm.

I don’t really care what people think though. I give my kids a bath every morning, give them a bath every night. My daughter recently started pre-school last week and I pick her up every afternoon in the middle of the day at 1 PM. You should see the looks I get from all the other housewives picking up their kids. A few of them have asked what I do as I’m one of the only dads picking up their kids everyday and I’m doing it in shorts and casual clothes. (I think the other guy is an unemployed guy that lost his job and looking).

It’s a great feeling of being able to do what you want with your kids when you want, going to the pool, taking them to the beach, to the Zoo, etc during the week in the middle of the day. It’s great!

I do NOT dare tell people I’m retired but when they hear we’ve been traveling around for months on end around the world to exotic places…..the reaction I usually get is “did you win the lottery or something”??

There are wonderful things about “early retirement” once you get to that point. So don’t give up on the idea and try to ignore the haters….. I’d just advise to be realistic and factor in the great unknowns like inflation and future health care costs. Contrary to popular belief…..being a millionaire these days is NOTHING to write home about.

Fortunately I never HAVE to go back to work full time if I didn’t want to. I make enough in passive income to cover my monthly nut. But I definitely think after another year or so I will. Even to me it seems a bit ridiculous to be “retired” still in my 30’s….

And also to be honest I still have worries/fears almost each and every day and wonder if I truly have enough to retire. You can plan and think you know if it’s enough but in the end it’s still just a guess.

Best of luck with your goals and plans.

[earlyretirement]

[quote=ice9]I appreciate the comments/feedback earlyretirement.

It’s very useful to hear the thoughts from someone who has spent a lot of time thinking about this, and even done it.

Maybe it’s splitting hairs, but I don’t think of myself as having debt. I have a mortgage, yes, but there is 100K equity in the house. No student loans, credit card debt, etc.

Given the tax deduction on mortgage interest, I feel more comfortable having money earning dividends (that are taxed at 10% currently) than sitting in home equity.[/quote]

No problem. You are totally welcome. I totally understand your thoughts and worries and fears and dreams, etc. I went through the SAME things as you last year planning my “early retirement”.

I’m not saying to abandon your dream but I still think you should work several years, pay off your house and not have that worry. I understand you don’t think of it as “debt” but it is debt. You don’t own it. The bank does. Don’t get too into that whole “mortgage tax deduction is great thingy”. Also, I know people that say they will make more money investing it instead of paying off the house and they’ve lost it all. You just have to be realistic and careful there.

I don’t think of having $100k equity in a house as too much to write home about these days. I’m not sure how expensive it is or how much you have left but from what I’ve seen in San Diego…nice homes here are fairly expensive there so you still have a lot more to pay off.

Also, it’s still relative having a house paid off if the ongoing monthly expenses are high. Case in point, my house is totally paid off and it was fairly expensive but I have $16,000 in annual property taxes and Mello Roos as well as $450 a month in HOA fees not to mention we joined a country club that has $250/month in monthly expenses so even having a paid off house our bills are higher than many.

Definitely I think it’s a good goal to work towards as long as you always stay realistic and don’t fool yourself or talk yourself into something that you’re really not ready for.

It sounds like with your work at least you could do freelance work if you wanted to and earn money from time to time.

Also, you have to factor in the whole segment of the population (even friends/family) that will absolutely HATE you for being able to retire early. You’d think people would feel happy for you but in reality that doesn’t really seem to be the case in the majority of the cases.

I guess to be fair I’m not really retired as I still work about 5 or 6 hours a day but it feels retired compared to the 14 to 16 +hour days I worked before I “retired”. I worked INSANE hours before and much of it was stressful in the financial/investment realm.

I don’t really care what people think though. I give my kids a bath every morning, give them a bath every night. My daughter recently started pre-school last week and I pick her up every afternoon in the middle of the day at 1 PM. You should see the looks I get from all the other housewives picking up their kids. A few of them have asked what I do as I’m one of the only dads picking up their kids everyday and I’m doing it in shorts and casual clothes. (I think the other guy is an unemployed guy that lost his job and looking).

It’s a great feeling of being able to do what you want with your kids when you want, going to the pool, taking them to the beach, to the Zoo, etc during the week in the middle of the day. It’s great!

I do NOT dare tell people I’m retired but when they hear we’ve been traveling around for months on end around the world to exotic places…..the reaction I usually get is “did you win the lottery or something”??

There are wonderful things about “early retirement” once you get to that point. So don’t give up on the idea and try to ignore the haters….. I’d just advise to be realistic and factor in the great unknowns like inflation and future health care costs. Contrary to popular belief…..being a millionaire these days is NOTHING to write home about.

Fortunately I never HAVE to go back to work full time if I didn’t want to. I make enough in passive income to cover my monthly nut. But I definitely think after another year or so I will. Even to me it seems a bit ridiculous to be “retired” still in my 30’s….

And also to be honest I still have worries/fears almost each and every day and wonder if I truly have enough to retire. You can plan and think you know if it’s enough but in the end it’s still just a guess.

Best of luck with your goals and plans.

[earlyretirement]

[quote=ice9]I appreciate the comments/feedback earlyretirement.

It’s very useful to hear the thoughts from someone who has spent a lot of time thinking about this, and even done it.

Maybe it’s splitting hairs, but I don’t think of myself as having debt. I have a mortgage, yes, but there is 100K equity in the house. No student loans, credit card debt, etc.

Given the tax deduction on mortgage interest, I feel more comfortable having money earning dividends (that are taxed at 10% currently) than sitting in home equity.[/quote]

No problem. You are totally welcome. I totally understand your thoughts and worries and fears and dreams, etc. I went through the SAME things as you last year planning my “early retirement”.

I’m not saying to abandon your dream but I still think you should work several years, pay off your house and not have that worry. I understand you don’t think of it as “debt” but it is debt. You don’t own it. The bank does. Don’t get too into that whole “mortgage tax deduction is great thingy”. Also, I know people that say they will make more money investing it instead of paying off the house and they’ve lost it all. You just have to be realistic and careful there.

I don’t think of having $100k equity in a house as too much to write home about these days. I’m not sure how expensive it is or how much you have left but from what I’ve seen in San Diego…nice homes here are fairly expensive there so you still have a lot more to pay off.

Also, it’s still relative having a house paid off if the ongoing monthly expenses are high. Case in point, my house is totally paid off and it was fairly expensive but I have $16,000 in annual property taxes and Mello Roos as well as $450 a month in HOA fees not to mention we joined a country club that has $250/month in monthly expenses so even having a paid off house our bills are higher than many.

Definitely I think it’s a good goal to work towards as long as you always stay realistic and don’t fool yourself or talk yourself into something that you’re really not ready for.

It sounds like with your work at least you could do freelance work if you wanted to and earn money from time to time.

Also, you have to factor in the whole segment of the population (even friends/family) that will absolutely HATE you for being able to retire early. You’d think people would feel happy for you but in reality that doesn’t really seem to be the case in the majority of the cases.

I guess to be fair I’m not really retired as I still work about 5 or 6 hours a day but it feels retired compared to the 14 to 16 +hour days I worked before I “retired”. I worked INSANE hours before and much of it was stressful in the financial/investment realm.

I don’t really care what people think though. I give my kids a bath every morning, give them a bath every night. My daughter recently started pre-school last week and I pick her up every afternoon in the middle of the day at 1 PM. You should see the looks I get from all the other housewives picking up their kids. A few of them have asked what I do as I’m one of the only dads picking up their kids everyday and I’m doing it in shorts and casual clothes. (I think the other guy is an unemployed guy that lost his job and looking).

It’s a great feeling of being able to do what you want with your kids when you want, going to the pool, taking them to the beach, to the Zoo, etc during the week in the middle of the day. It’s great!

I do NOT dare tell people I’m retired but when they hear we’ve been traveling around for months on end around the world to exotic places…..the reaction I usually get is “did you win the lottery or something”??

There are wonderful things about “early retirement” once you get to that point. So don’t give up on the idea and try to ignore the haters….. I’d just advise to be realistic and factor in the great unknowns like inflation and future health care costs. Contrary to popular belief…..being a millionaire these days is NOTHING to write home about.

Fortunately I never HAVE to go back to work full time if I didn’t want to. I make enough in passive income to cover my monthly nut. But I definitely think after another year or so I will. Even to me it seems a bit ridiculous to be “retired” still in my 30’s….

And also to be honest I still have worries/fears almost each and every day and wonder if I truly have enough to retire. You can plan and think you know if it’s enough but in the end it’s still just a guess.

Best of luck with your goals and plans.

[earlyretirement]

[quote=ice9]I appreciate the comments/feedback earlyretirement.

It’s very useful to hear the thoughts from someone who has spent a lot of time thinking about this, and even done it.

Maybe it’s splitting hairs, but I don’t think of myself as having debt. I have a mortgage, yes, but there is 100K equity in the house. No student loans, credit card debt, etc.

Given the tax deduction on mortgage interest, I feel more comfortable having money earning dividends (that are taxed at 10% currently) than sitting in home equity.[/quote]

No problem. You are totally welcome. I totally understand your thoughts and worries and fears and dreams, etc. I went through the SAME things as you last year planning my “early retirement”.

I’m not saying to abandon your dream but I still think you should work several years, pay off your house and not have that worry. I understand you don’t think of it as “debt” but it is debt. You don’t own it. The bank does. Don’t get too into that whole “mortgage tax deduction is great thingy”. Also, I know people that say they will make more money investing it instead of paying off the house and they’ve lost it all. You just have to be realistic and careful there.

I don’t think of having $100k equity in a house as too much to write home about these days. I’m not sure how expensive it is or how much you have left but from what I’ve seen in San Diego…nice homes here are fairly expensive there so you still have a lot more to pay off.

Also, it’s still relative having a house paid off if the ongoing monthly expenses are high. Case in point, my house is totally paid off and it was fairly expensive but I have $16,000 in annual property taxes and Mello Roos as well as $450 a month in HOA fees not to mention we joined a country club that has $250/month in monthly expenses so even having a paid off house our bills are higher than many.

Definitely I think it’s a good goal to work towards as long as you always stay realistic and don’t fool yourself or talk yourself into something that you’re really not ready for.

It sounds like with your work at least you could do freelance work if you wanted to and earn money from time to time.

Also, you have to factor in the whole segment of the population (even friends/family) that will absolutely HATE you for being able to retire early. You’d think people would feel happy for you but in reality that doesn’t really seem to be the case in the majority of the cases.

I guess to be fair I’m not really retired as I still work about 5 or 6 hours a day but it feels retired compared to the 14 to 16 +hour days I worked before I “retired”. I worked INSANE hours before and much of it was stressful in the financial/investment realm.

I don’t really care what people think though. I give my kids a bath every morning, give them a bath every night. My daughter recently started pre-school last week and I pick her up every afternoon in the middle of the day at 1 PM. You should see the looks I get from all the other housewives picking up their kids. A few of them have asked what I do as I’m one of the only dads picking up their kids everyday and I’m doing it in shorts and casual clothes. (I think the other guy is an unemployed guy that lost his job and looking).

It’s a great feeling of being able to do what you want with your kids when you want, going to the pool, taking them to the beach, to the Zoo, etc during the week in the middle of the day. It’s great!

I do NOT dare tell people I’m retired but when they hear we’ve been traveling around for months on end around the world to exotic places…..the reaction I usually get is “did you win the lottery or something”??

There are wonderful things about “early retirement” once you get to that point. So don’t give up on the idea and try to ignore the haters….. I’d just advise to be realistic and factor in the great unknowns like inflation and future health care costs. Contrary to popular belief…..being a millionaire these days is NOTHING to write home about.

Fortunately I never HAVE to go back to work full time if I didn’t want to. I make enough in passive income to cover my monthly nut. But I definitely think after another year or so I will. Even to me it seems a bit ridiculous to be “retired” still in my 30’s….

And also to be honest I still have worries/fears almost each and every day and wonder if I truly have enough to retire. You can plan and think you know if it’s enough but in the end it’s still just a guess.

Best of luck with your goals and plans.

[earlyretirement]

[quote=ice9]Investments are currently worth about 1.2M. I carry a mortgage, with about 100K in equity.

I think my target is 1.5M.

Obviously I won’t be living in a McMansion and driving a BMW. But I don’t want that. I want to take up ultrarunning, and spend more time with my kids/wife/dog. Live somewhere with low property tax, and no HOA.

Might need to return to Canada, as health insurance will be expensive.[/quote]

NO, in my humble opinion that is no where near enough to retire at 40 years old. The thing is chart on paper a best case AND worst case scenario. What happens if you live to be 90 years old or older?

Not even living a high roller lifestyle, you have to account for emergencies. I think you also mentioned you have kids and have to account for what if something happens to them?

I’m NOT saying to be a worry wart, but still you have to plan for these types of things.

I assumed you had your primary residence paid for with no mortgage and absolutely NO debt at all.

Also, I’m not sure where in Canada you are planning to go to but real estate prices there are really expensive in many cities. I’d think if you were going to retire at 40 you’d plan to have a home fully paid for with no debt on it.

The health care system in Canada is much better than the USA but still, you should investigate it further as I know several people that are living in Canada and have private insurance.

I know in my experience, health care was a big worry for me. Once I left my company, it was the first time in a while that I had to go out and buy private medical insurance for my family. I pay about $1,500 a month in medical and dental insurance for my 2 kids, my wife and I. I ended up going with Kaiser Permanente and so far I’m happy with them.

Still, healthcare is so screwed up in this country I still worry sometimes if there is some big health problem or getting dropped, etc.

My two kids I want to have college fully paid for them so they don’t have to struggle with college loans like I did. so that is another big expense socking money each month away for them assuming college will be super expensive by the time they enter in 15 years. I also am budgeting as if they make it to an Ivy League (hey a parent can dream!)… So really trying to take advantage of the power of compound interest.

Also, I think you have to also consider what kind of lifestyle your wife and kids might want. For some people they plan these drastic changes and it’s really tough for wife/kids to adjust to having tons of disposable income to not much at all. Or going from a normal life to a “Survivorman” type of lifestyle. So be fair to what they might want as well.

I went through some of the same thoughts you are going through last year but I can tell you NO way I’d even dream about it if I was in your shoes having debt. I haven’t had any debt for many many years.

If you’re only 40 then I’d have to think your kids are still fairly young? Maybe I’m wrong there and you started when you were younger.

Personally I’d shed ALL your debt before you start thinking about something like this and also have enough to have your primary residence totally paid off before you entertain thoughts like this. JMHO.

[earlyretirement]

[quote=ice9]Investments are currently worth about 1.2M. I carry a mortgage, with about 100K in equity.

I think my target is 1.5M.

Obviously I won’t be living in a McMansion and driving a BMW. But I don’t want that. I want to take up ultrarunning, and spend more time with my kids/wife/dog. Live somewhere with low property tax, and no HOA.

Might need to return to Canada, as health insurance will be expensive.[/quote]

NO, in my humble opinion that is no where near enough to retire at 40 years old. The thing is chart on paper a best case AND worst case scenario. What happens if you live to be 90 years old or older?

Not even living a high roller lifestyle, you have to account for emergencies. I think you also mentioned you have kids and have to account for what if something happens to them?

I’m NOT saying to be a worry wart, but still you have to plan for these types of things.

I assumed you had your primary residence paid for with no mortgage and absolutely NO debt at all.

Also, I’m not sure where in Canada you are planning to go to but real estate prices there are really expensive in many cities. I’d think if you were going to retire at 40 you’d plan to have a home fully paid for with no debt on it.

The health care system in Canada is much better than the USA but still, you should investigate it further as I know several people that are living in Canada and have private insurance.

I know in my experience, health care was a big worry for me. Once I left my company, it was the first time in a while that I had to go out and buy private medical insurance for my family. I pay about $1,500 a month in medical and dental insurance for my 2 kids, my wife and I. I ended up going with Kaiser Permanente and so far I’m happy with them.

Still, healthcare is so screwed up in this country I still worry sometimes if there is some big health problem or getting dropped, etc.

My two kids I want to have college fully paid for them so they don’t have to struggle with college loans like I did. so that is another big expense socking money each month away for them assuming college will be super expensive by the time they enter in 15 years. I also am budgeting as if they make it to an Ivy League (hey a parent can dream!)… So really trying to take advantage of the power of compound interest.

Also, I think you have to also consider what kind of lifestyle your wife and kids might want. For some people they plan these drastic changes and it’s really tough for wife/kids to adjust to having tons of disposable income to not much at all. Or going from a normal life to a “Survivorman” type of lifestyle. So be fair to what they might want as well.

I went through some of the same thoughts you are going through last year but I can tell you NO way I’d even dream about it if I was in your shoes having debt. I haven’t had any debt for many many years.

If you’re only 40 then I’d have to think your kids are still fairly young? Maybe I’m wrong there and you started when you were younger.

Personally I’d shed ALL your debt before you start thinking about something like this and also have enough to have your primary residence totally paid off before you entertain thoughts like this. JMHO.

[earlyretirement]

[quote=ice9]Investments are currently worth about 1.2M. I carry a mortgage, with about 100K in equity.

I think my target is 1.5M.

Obviously I won’t be living in a McMansion and driving a BMW. But I don’t want that. I want to take up ultrarunning, and spend more time with my kids/wife/dog. Live somewhere with low property tax, and no HOA.

Might need to return to Canada, as health insurance will be expensive.[/quote]

NO, in my humble opinion that is no where near enough to retire at 40 years old. The thing is chart on paper a best case AND worst case scenario. What happens if you live to be 90 years old or older?

Not even living a high roller lifestyle, you have to account for emergencies. I think you also mentioned you have kids and have to account for what if something happens to them?

I’m NOT saying to be a worry wart, but still you have to plan for these types of things.

I assumed you had your primary residence paid for with no mortgage and absolutely NO debt at all.

Also, I’m not sure where in Canada you are planning to go to but real estate prices there are really expensive in many cities. I’d think if you were going to retire at 40 you’d plan to have a home fully paid for with no debt on it.

The health care system in Canada is much better than the USA but still, you should investigate it further as I know several people that are living in Canada and have private insurance.

I know in my experience, health care was a big worry for me. Once I left my company, it was the first time in a while that I had to go out and buy private medical insurance for my family. I pay about $1,500 a month in medical and dental insurance for my 2 kids, my wife and I. I ended up going with Kaiser Permanente and so far I’m happy with them.

Still, healthcare is so screwed up in this country I still worry sometimes if there is some big health problem or getting dropped, etc.

My two kids I want to have college fully paid for them so they don’t have to struggle with college loans like I did. so that is another big expense socking money each month away for them assuming college will be super expensive by the time they enter in 15 years. I also am budgeting as if they make it to an Ivy League (hey a parent can dream!)… So really trying to take advantage of the power of compound interest.

Also, I think you have to also consider what kind of lifestyle your wife and kids might want. For some people they plan these drastic changes and it’s really tough for wife/kids to adjust to having tons of disposable income to not much at all. Or going from a normal life to a “Survivorman” type of lifestyle. So be fair to what they might want as well.

I went through some of the same thoughts you are going through last year but I can tell you NO way I’d even dream about it if I was in your shoes having debt. I haven’t had any debt for many many years.

If you’re only 40 then I’d have to think your kids are still fairly young? Maybe I’m wrong there and you started when you were younger.

Personally I’d shed ALL your debt before you start thinking about something like this and also have enough to have your primary residence totally paid off before you entertain thoughts like this. JMHO.

[earlyretirement]

[quote=ice9]Investments are currently worth about 1.2M. I carry a mortgage, with about 100K in equity.

I think my target is 1.5M.

Obviously I won’t be living in a McMansion and driving a BMW. But I don’t want that. I want to take up ultrarunning, and spend more time with my kids/wife/dog. Live somewhere with low property tax, and no HOA.

Might need to return to Canada, as health insurance will be expensive.[/quote]

NO, in my humble opinion that is no where near enough to retire at 40 years old. The thing is chart on paper a best case AND worst case scenario. What happens if you live to be 90 years old or older?

Not even living a high roller lifestyle, you have to account for emergencies. I think you also mentioned you have kids and have to account for what if something happens to them?

I’m NOT saying to be a worry wart, but still you have to plan for these types of things.

I assumed you had your primary residence paid for with no mortgage and absolutely NO debt at all.

Also, I’m not sure where in Canada you are planning to go to but real estate prices there are really expensive in many cities. I’d think if you were going to retire at 40 you’d plan to have a home fully paid for with no debt on it.

The health care system in Canada is much better than the USA but still, you should investigate it further as I know several people that are living in Canada and have private insurance.

I know in my experience, health care was a big worry for me. Once I left my company, it was the first time in a while that I had to go out and buy private medical insurance for my family. I pay about $1,500 a month in medical and dental insurance for my 2 kids, my wife and I. I ended up going with Kaiser Permanente and so far I’m happy with them.

Still, healthcare is so screwed up in this country I still worry sometimes if there is some big health problem or getting dropped, etc.

My two kids I want to have college fully paid for them so they don’t have to struggle with college loans like I did. so that is another big expense socking money each month away for them assuming college will be super expensive by the time they enter in 15 years. I also am budgeting as if they make it to an Ivy League (hey a parent can dream!)… So really trying to take advantage of the power of compound interest.

Also, I think you have to also consider what kind of lifestyle your wife and kids might want. For some people they plan these drastic changes and it’s really tough for wife/kids to adjust to having tons of disposable income to not much at all. Or going from a normal life to a “Survivorman” type of lifestyle. So be fair to what they might want as well.

I went through some of the same thoughts you are going through last year but I can tell you NO way I’d even dream about it if I was in your shoes having debt. I haven’t had any debt for many many years.

If you’re only 40 then I’d have to think your kids are still fairly young? Maybe I’m wrong there and you started when you were younger.

Personally I’d shed ALL your debt before you start thinking about something like this and also have enough to have your primary residence totally paid off before you entertain thoughts like this. JMHO.

[earlyretirement]

[quote=ice9]Investments are currently worth about 1.2M. I carry a mortgage, with about 100K in equity.

I think my target is 1.5M.

Obviously I won’t be living in a McMansion and driving a BMW. But I don’t want that. I want to take up ultrarunning, and spend more time with my kids/wife/dog. Live somewhere with low property tax, and no HOA.

Might need to return to Canada, as health insurance will be expensive.[/quote]

NO, in my humble opinion that is no where near enough to retire at 40 years old. The thing is chart on paper a best case AND worst case scenario. What happens if you live to be 90 years old or older?

Not even living a high roller lifestyle, you have to account for emergencies. I think you also mentioned you have kids and have to account for what if something happens to them?

I’m NOT saying to be a worry wart, but still you have to plan for these types of things.

I assumed you had your primary residence paid for with no mortgage and absolutely NO debt at all.

Also, I’m not sure where in Canada you are planning to go to but real estate prices there are really expensive in many cities. I’d think if you were going to retire at 40 you’d plan to have a home fully paid for with no debt on it.

The health care system in Canada is much better than the USA but still, you should investigate it further as I know several people that are living in Canada and have private insurance.

I know in my experience, health care was a big worry for me. Once I left my company, it was the first time in a while that I had to go out and buy private medical insurance for my family. I pay about $1,500 a month in medical and dental insurance for my 2 kids, my wife and I. I ended up going with Kaiser Permanente and so far I’m happy with them.

Still, healthcare is so screwed up in this country I still worry sometimes if there is some big health problem or getting dropped, etc.

My two kids I want to have college fully paid for them so they don’t have to struggle with college loans like I did. so that is another big expense socking money each month away for them assuming college will be super expensive by the time they enter in 15 years. I also am budgeting as if they make it to an Ivy League (hey a parent can dream!)… So really trying to take advantage of the power of compound interest.

Also, I think you have to also consider what kind of lifestyle your wife and kids might want. For some people they plan these drastic changes and it’s really tough for wife/kids to adjust to having tons of disposable income to not much at all. Or going from a normal life to a “Survivorman” type of lifestyle. So be fair to what they might want as well.

I went through some of the same thoughts you are going through last year but I can tell you NO way I’d even dream about it if I was in your shoes having debt. I haven’t had any debt for many many years.

If you’re only 40 then I’d have to think your kids are still fairly young? Maybe I’m wrong there and you started when you were younger.

Personally I’d shed ALL your debt before you start thinking about something like this and also have enough to have your primary residence totally paid off before you entertain thoughts like this. JMHO.

[earlyretirement]

Just out of curiosity, how much are you talking about here? I assume at least a few millions?

I think most people would prefer not having to work vs. having to work and spending more time with their family. So that part is a no brainer.

As to the point about working another 15-20 years to have more possessions. I don’t think you need to work to have more possessions… I think you work to make sure you have enough savings/assets to make it through retirement. And also to comfortably live into old age.

I do agree in theory with part of what you wrote with the idea of, “how much is enough?”. I’m sure with most people, you have a goal in mind for how much you want to get to. The problem is with human nature, once most people get there……they reevaluate and set a new goal and so on and so on.

I know MANY people like this. They say they want to become a millionaire. So they hit that goal, then they say they want to be a multi-millionaire. Then hit it. Then say they want a net worth of $3 million or $5 million or whatever. And no amount is enough. So in that regard, I do agree with you that once you have enough to comfortably retire then you can do it. I guess the key is knowing how much is enough.

If there is one thing I’ve learned is it’s MUCH easier to make money while you are healthy and young. Even if you wanted to work later when you’re older, the opportunities just might not be there.

Like the others I don’t think this is a good idea unless you are talking multiple millions you have and probably even then you’d have to really take a good look at your situation. (i.e. how much debt you have, how many kids you have, if you plan on paying for their college education, health care costs as you probably will have to buy private medical insurance if you stop working and it’s not cheap, medical emergencies or other type of emergencies that you should be factoring.

I thought about retiring early or semi-retirement (I’m younger than you are) but I just really enjoy working and don’t think I could not work anymore.

I also believe that the time to make money is when you’re younger. It’s much harder later when you’re older.

Still, if you’re talking about a multi-million dollar portfolio and if you can swing it and have absolutely not debt at all, your house is paid off, your kids college education is all paid for, you have a rainy day/emergency fund saved up then only you know how happy you will be.

Me personally… rather than putting it all in the stock market you might want to think about income producing real estate. Granted being a landlord isn’t for everyone but I sure as heck much prefer owning properties and collecting rents each month vs. having it all in the stock market.

Certainly money isn’t the most important thing in life and I do admire your desire to spend more time with your family. Definitely IF you can comfortably swing it then I’d say go for it. But the key is to really see if you can swing it.

If it’s possible to take a ‘trial run’ at it and temporarily leave your job (I’m not sure what you do for a living) and see how it is.

I took a year sabbatical and kind of did what you planned. I still own a company and still working several hours per day but nothing like before the sabbatical. I’ve been traveling around the world the past 5 months with my family and it’s been a wonderful experience.

I’ve had some GREAT job offers that I’ve turned down for very good salaries to do this sabbatical. I probably will take at least another year off but I think by the end of it, I’ll be itching to get back to work.

Let us know how it turns out and good luck.

[earlyretirement]

Just out of curiosity, how much are you talking about here? I assume at least a few millions?

I think most people would prefer not having to work vs. having to work and spending more time with their family. So that part is a no brainer.

As to the point about working another 15-20 years to have more possessions. I don’t think you need to work to have more possessions… I think you work to make sure you have enough savings/assets to make it through retirement. And also to comfortably live into old age.

I do agree in theory with part of what you wrote with the idea of, “how much is enough?”. I’m sure with most people, you have a goal in mind for how much you want to get to. The problem is with human nature, once most people get there……they reevaluate and set a new goal and so on and so on.

I know MANY people like this. They say they want to become a millionaire. So they hit that goal, then they say they want to be a multi-millionaire. Then hit it. Then say they want a net worth of $3 million or $5 million or whatever. And no amount is enough. So in that regard, I do agree with you that once you have enough to comfortably retire then you can do it. I guess the key is knowing how much is enough.

If there is one thing I’ve learned is it’s MUCH easier to make money while you are healthy and young. Even if you wanted to work later when you’re older, the opportunities just might not be there.

Like the others I don’t think this is a good idea unless you are talking multiple millions you have and probably even then you’d have to really take a good look at your situation. (i.e. how much debt you have, how many kids you have, if you plan on paying for their college education, health care costs as you probably will have to buy private medical insurance if you stop working and it’s not cheap, medical emergencies or other type of emergencies that you should be factoring.

I thought about retiring early or semi-retirement (I’m younger than you are) but I just really enjoy working and don’t think I could not work anymore.

I also believe that the time to make money is when you’re younger. It’s much harder later when you’re older.

Still, if you’re talking about a multi-million dollar portfolio and if you can swing it and have absolutely not debt at all, your house is paid off, your kids college education is all paid for, you have a rainy day/emergency fund saved up then only you know how happy you will be.

Me personally… rather than putting it all in the stock market you might want to think about income producing real estate. Granted being a landlord isn’t for everyone but I sure as heck much prefer owning properties and collecting rents each month vs. having it all in the stock market.

Certainly money isn’t the most important thing in life and I do admire your desire to spend more time with your family. Definitely IF you can comfortably swing it then I’d say go for it. But the key is to really see if you can swing it.

If it’s possible to take a ‘trial run’ at it and temporarily leave your job (I’m not sure what you do for a living) and see how it is.

I took a year sabbatical and kind of did what you planned. I still own a company and still working several hours per day but nothing like before the sabbatical. I’ve been traveling around the world the past 5 months with my family and it’s been a wonderful experience.

I’ve had some GREAT job offers that I’ve turned down for very good salaries to do this sabbatical. I probably will take at least another year off but I think by the end of it, I’ll be itching to get back to work.

Let us know how it turns out and good luck.

[earlyretirement]

Just out of curiosity, how much are you talking about here? I assume at least a few millions?

I think most people would prefer not having to work vs. having to work and spending more time with their family. So that part is a no brainer.

As to the point about working another 15-20 years to have more possessions. I don’t think you need to work to have more possessions… I think you work to make sure you have enough savings/assets to make it through retirement. And also to comfortably live into old age.

I do agree in theory with part of what you wrote with the idea of, “how much is enough?”. I’m sure with most people, you have a goal in mind for how much you want to get to. The problem is with human nature, once most people get there……they reevaluate and set a new goal and so on and so on.

I know MANY people like this. They say they want to become a millionaire. So they hit that goal, then they say they want to be a multi-millionaire. Then hit it. Then say they want a net worth of $3 million or $5 million or whatever. And no amount is enough. So in that regard, I do agree with you that once you have enough to comfortably retire then you can do it. I guess the key is knowing how much is enough.

If there is one thing I’ve learned is it’s MUCH easier to make money while you are healthy and young. Even if you wanted to work later when you’re older, the opportunities just might not be there.

Like the others I don’t think this is a good idea unless you are talking multiple millions you have and probably even then you’d have to really take a good look at your situation. (i.e. how much debt you have, how many kids you have, if you plan on paying for their college education, health care costs as you probably will have to buy private medical insurance if you stop working and it’s not cheap, medical emergencies or other type of emergencies that you should be factoring.

I thought about retiring early or semi-retirement (I’m younger than you are) but I just really enjoy working and don’t think I could not work anymore.

I also believe that the time to make money is when you’re younger. It’s much harder later when you’re older.

Still, if you’re talking about a multi-million dollar portfolio and if you can swing it and have absolutely not debt at all, your house is paid off, your kids college education is all paid for, you have a rainy day/emergency fund saved up then only you know how happy you will be.

Me personally… rather than putting it all in the stock market you might want to think about income producing real estate. Granted being a landlord isn’t for everyone but I sure as heck much prefer owning properties and collecting rents each month vs. having it all in the stock market.

Certainly money isn’t the most important thing in life and I do admire your desire to spend more time with your family. Definitely IF you can comfortably swing it then I’d say go for it. But the key is to really see if you can swing it.

If it’s possible to take a ‘trial run’ at it and temporarily leave your job (I’m not sure what you do for a living) and see how it is.

I took a year sabbatical and kind of did what you planned. I still own a company and still working several hours per day but nothing like before the sabbatical. I’ve been traveling around the world the past 5 months with my family and it’s been a wonderful experience.

I’ve had some GREAT job offers that I’ve turned down for very good salaries to do this sabbatical. I probably will take at least another year off but I think by the end of it, I’ll be itching to get back to work.

Let us know how it turns out and good luck.

[earlyretirement]

Just out of curiosity, how much are you talking about here? I assume at least a few millions?

I think most people would prefer not having to work vs. having to work and spending more time with their family. So that part is a no brainer.

As to the point about working another 15-20 years to have more possessions. I don’t think you need to work to have more possessions… I think you work to make sure you have enough savings/assets to make it through retirement. And also to comfortably live into old age.

I do agree in theory with part of what you wrote with the idea of, “how much is enough?”. I’m sure with most people, you have a goal in mind for how much you want to get to. The problem is with human nature, once most people get there……they reevaluate and set a new goal and so on and so on.

I know MANY people like this. They say they want to become a millionaire. So they hit that goal, then they say they want to be a multi-millionaire. Then hit it. Then say they want a net worth of $3 million or $5 million or whatever. And no amount is enough. So in that regard, I do agree with you that once you have enough to comfortably retire then you can do it. I guess the key is knowing how much is enough.

If there is one thing I’ve learned is it’s MUCH easier to make money while you are healthy and young. Even if you wanted to work later when you’re older, the opportunities just might not be there.

Like the others I don’t think this is a good idea unless you are talking multiple millions you have and probably even then you’d have to really take a good look at your situation. (i.e. how much debt you have, how many kids you have, if you plan on paying for their college education, health care costs as you probably will have to buy private medical insurance if you stop working and it’s not cheap, medical emergencies or other type of emergencies that you should be factoring.

I thought about retiring early or semi-retirement (I’m younger than you are) but I just really enjoy working and don’t think I could not work anymore.

I also believe that the time to make money is when you’re younger. It’s much harder later when you’re older.

Still, if you’re talking about a multi-million dollar portfolio and if you can swing it and have absolutely not debt at all, your house is paid off, your kids college education is all paid for, you have a rainy day/emergency fund saved up then only you know how happy you will be.

Me personally… rather than putting it all in the stock market you might want to think about income producing real estate. Granted being a landlord isn’t for everyone but I sure as heck much prefer owning properties and collecting rents each month vs. having it all in the stock market.

Certainly money isn’t the most important thing in life and I do admire your desire to spend more time with your family. Definitely IF you can comfortably swing it then I’d say go for it. But the key is to really see if you can swing it.

If it’s possible to take a ‘trial run’ at it and temporarily leave your job (I’m not sure what you do for a living) and see how it is.

I took a year sabbatical and kind of did what you planned. I still own a company and still working several hours per day but nothing like before the sabbatical. I’ve been traveling around the world the past 5 months with my family and it’s been a wonderful experience.

I’ve had some GREAT job offers that I’ve turned down for very good salaries to do this sabbatical. I probably will take at least another year off but I think by the end of it, I’ll be itching to get back to work.

Let us know how it turns out and good luck.

[earlyretirement]

Just out of curiosity, how much are you talking about here? I assume at least a few millions?

I think most people would prefer not having to work vs. having to work and spending more time with their family. So that part is a no brainer.

As to the point about working another 15-20 years to have more possessions. I don’t think you need to work to have more possessions… I think you work to make sure you have enough savings/assets to make it through retirement. And also to comfortably live into old age.

I do agree in theory with part of what you wrote with the idea of, “how much is enough?”. I’m sure with most people, you have a goal in mind for how much you want to get to. The problem is with human nature, once most people get there……they reevaluate and set a new goal and so on and so on.

I know MANY people like this. They say they want to become a millionaire. So they hit that goal, then they say they want to be a multi-millionaire. Then hit it. Then say they want a net worth of $3 million or $5 million or whatever. And no amount is enough. So in that regard, I do agree with you that once you have enough to comfortably retire then you can do it. I guess the key is knowing how much is enough.

If there is one thing I’ve learned is it’s MUCH easier to make money while you are healthy and young. Even if you wanted to work later when you’re older, the opportunities just might not be there.

Like the others I don’t think this is a good idea unless you are talking multiple millions you have and probably even then you’d have to really take a good look at your situation. (i.e. how much debt you have, how many kids you have, if you plan on paying for their college education, health care costs as you probably will have to buy private medical insurance if you stop working and it’s not cheap, medical emergencies or other type of emergencies that you should be factoring.

I thought about retiring early or semi-retirement (I’m younger than you are) but I just really enjoy working and don’t think I could not work anymore.

I also believe that the time to make money is when you’re younger. It’s much harder later when you’re older.

Still, if you’re talking about a multi-million dollar portfolio and if you can swing it and have absolutely not debt at all, your house is paid off, your kids college education is all paid for, you have a rainy day/emergency fund saved up then only you know how happy you will be.

Me personally… rather than putting it all in the stock market you might want to think about income producing real estate. Granted being a landlord isn’t for everyone but I sure as heck much prefer owning properties and collecting rents each month vs. having it all in the stock market.

Certainly money isn’t the most important thing in life and I do admire your desire to spend more time with your family. Definitely IF you can comfortably swing it then I’d say go for it. But the key is to really see if you can swing it.

If it’s possible to take a ‘trial run’ at it and temporarily leave your job (I’m not sure what you do for a living) and see how it is.

I took a year sabbatical and kind of did what you planned. I still own a company and still working several hours per day but nothing like before the sabbatical. I’ve been traveling around the world the past 5 months with my family and it’s been a wonderful experience.

I’ve had some GREAT job offers that I’ve turned down for very good salaries to do this sabbatical. I probably will take at least another year off but I think by the end of it, I’ll be itching to get back to work.

Let us know how it turns out and good luck.

[Author]

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