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Old 09-03-2019, 08:59 PM   #76 (permalink)
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My problem with the OP’s original idea is that in 40 years of working, you would get 4 years off. What happens when you’re actually at retirement age? You’ll have enough for one year before you need to go back to work. The point of saving as you go is to get the power of compounding interest. 40 years of saving is worth way more than 40x 10% of your salary.
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Old 09-04-2019, 09:44 AM   #77 (permalink)
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Originally Posted by pdangerp View Post
My problem with the OP’s original idea is that in 40 years of working, you would get 4 years off. What happens when you’re actually at retirement age? You’ll have enough for one year before you need to go back to work. The point of saving as you go is to get the power of compounding interest. 40 years of saving is worth way more than 40x 10% of your salary.
i am in no way indicating that you shouldnt save for the end game of traditional retirement. the mini retirement savings would be in addition to that long term savings, in a liquid account with no tax advantage. i would also strategically take the time off so i have enough taxable income in a single year to contribute to IRA accounts.

i have also come to realize most people who plan on retiring early pump all their money into 401ks or IRAs for the tax advantage, but forget it has age restrictions, so they put themselves in a tough spot if there is an opportunity to retire early. so i will be doing some non retirement savings allowing me to have some operational capital in the event i want to retire 'early'
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Old 09-04-2019, 12:26 PM   #78 (permalink)
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i am in no way indicating that you shouldnt save for the end game of traditional retirement. the mini retirement savings would be in addition to that long term savings, in a liquid account with no tax advantage. i would also strategically take the time off so i have enough taxable income in a single year to contribute to IRA accounts.

i have also come to realize most people who plan on retiring early pump all their money into 401ks or IRAs for the tax advantage, but forget it has age restrictions, so they put themselves in a tough spot if there is an opportunity to retire early. so i will be doing some non retirement savings allowing me to have some operational capital in the event i want to retire 'early'
You should definitely try to have a mix of pre and post tax accounts for retirement. If you’re saving enough for your regular retirement, and can save an additional 10% for 10 years, then go for it. I think others have brought up valid points regarding re-entering the workforce after a year. Some jobs are always in demand. Some jobs start to demonstrate age discrimination as early as late 40’s. Reddit has r/FIRE as others have mentioned. Financial Independence Retire Early. They may have more precise planning tools.

Last edited by pdangerp; 09-04-2019 at 12:27 PM.
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Old 09-04-2019, 12:56 PM   #79 (permalink)
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I don't know what my end game is just yet. I do know that unless I start to really enjoy what I am doing down the road, there is no way I make it into my 60s working. I have been saving pretty heavily since I started working knowing that I want to retire early.

All that being said, I am going for a major job change within the next year so maybe things will change for me. Enjoy what you do and you never work another day in your life right?
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Old 09-04-2019, 02:47 PM   #80 (permalink)
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Why not just do something you enjoy so there's no need to "retire"?
Hard to make a living sitting around a campfire drinking beer.
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Old 09-05-2019, 07:45 AM   #81 (permalink)
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Hard to make a living sitting around a campfire drinking beer.
I guess that depends on whether you're willing/able to think creatively about it or not.
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