do you wish you retired earlier?
One thing to consider also is long term care insurance. I have seen it from both sides. My parents had it and when mom could no longer be cared for at home, she was able to live out her days at a "pay facility" and much of the cost was absorbed by the insurance. On the other hand, my girlfriend's mother required the same care, which quickly went through her assets, and then went on Medicaid for the duration of her life.
While it isn't cheap, I pay for the insurance since the last thing I would want to do is burden my siblings to care for my carcass.
I began my policy when I saw the benefit my parents experienced. There is no death benefit, though with this type of policy.
Agree with jr8368 about not being 100% in equities as you near or are in retirement. Probably a 60/40 or 50/50 ratio is recommended.
However.....if you are a young investor (<50) ......put the "Pedal to the Metal". In order to have financial independence by the time you reach retirement age, you want to be 90/10 or even 100% in equities.......... And as Jack Bogle says........don't peak at your statement...especially when the market is experiencing a bit of volatility.
Planning for an early retirement? Think again!
If you are paying a Financial Adviser / Wealth Adviser to manage your portfolio, beware.....early retirement is more of a fantasy than a reality.
Most advisers charge 2-3% (yeah.....they tell you only 1% but they don't tell you about all those hidden fees). So you have a $1MM portfolio..... you are paying them upwards of 3% = $30,000.00 / yr.
Go to Vanguard and invest in their 3-fund portfolio. The Total Stock Market Index fee is .05%.....so you pay only $500.00/yr on that same $1MM.
Do you really want early retirement? It might be time to re-evaluate your plan!
I have been following this topic for some time & have been hesitant to comment but after reading the post below, I think its time.
In 2015 my pension was equal to what I was making so I was confident that we could maintain the life we currently had. My wife provides our insurance, thank God, so that issue was covered, so in October 2015, I submitted my letter of resignation.
On 01-31-2016, I retired at 55 yoa after 34 years in a very stressful, yet at times a very rewarding profession. I followed in my fathers footsteps actually, even taking his position for 29 years of those 34 years, after he moved on.
I currently have 2 part time jobs, one of which I work at my own pace, as to not interfere with my fishing & hunting, the other is 4 hours a day, 4 days a week, & if I want to take a week off, no problem.
To date, this has been the best decision I have ever made. Life can be short, very short. I knew I could get by, & that's all I needed. So, my advice, go as early as u can.
My toys r paid for, I have a very nice piece of property with a nice cabin on it, which is just 45 minutes away which is my get away, & hunting spot, so ya life is good.
Why wait, go as soon as u can.
I have a friend who had a cough for about a month, he just found out he has stage 4 lung cancer. He was given 4 weeks to live.
Do the things you want to do as soon as you can do them ! You just don't know about your future.
One major factor to consider with the 3 or 4% concept is inflation. If retirement is in the near future, not so much of a problem. But for those of us with a ways to go, it's something to factor in when arriving at that magic number.
Dude, I'm going off of the 3% rule too. I've seen 4% discussed as well, but I figure why not play it safe and shoot for a higher amount. Better to be safe than sorry.
Really not looking forward to "retiring" at all in the sense of no longer working. To me the goal is to become financially independent as early in life as possible. Knowing that I have enough money where I work because I WANT to rather than HAVE to will be an amazing feeling. Some day...