Pirate 4x4 banner

21 - 40 of 81 Posts

·
Premium Member
Joined
·
1,324 Posts
I had a friend who did that... at 40 he took a year off just like what you said.

Man, his life unraveled like a sumbitch and when he went back to work, he had a hard time explaining the time off and went back two rungs down and then very discouraged.

The reverberations from that year ended up really changing his arc in life and at 57 he is a long way from retirement much less a sabbatical... he has become a very negative, dark person and hates work more than ever.

If you hate what you do, then get out. Find something that makes you get up and with a reasonably light heart. If every day sucks, you are doing it wrong... I like working and will probably work another 8 years... I am good at it, and I get paid well, I still have kids in school (college) and some still launching... so, I could use the extra money...

I worry that retirement will be like not exercising or doing physical work and I'll waste away...
 

·
Premium Member
Joined
·
16,327 Posts
Discussion Starter #22
I had a friend who did that... at 40 he took a year off just like what you said.

Man, his life unraveled like a sumbitch and when he went back to work, he had a hard time explaining the time off and went back two rungs down and then very discouraged.

The reverberations from that year ended up really changing his arc in life and at 57 he is a long way from retirement much less a sabbatical... he has become a very negative, dark person and hates work more than ever.

If you hate what you do, then get out. Find something that makes you get up and with a reasonably light heart. If every day sucks, you are doing it wrong... I like working and will probably work another 8 years... I am good at it, and I get paid well, I still have kids in school (college) and some still launching... so, I could use the extra money...

I worry that retirement will be like not exercising or doing physical work and I'll waste away...
i dont hate what i do, i have had jobs where i disliked every minute i was there. i will do everything i can not to go back to that. when i dont want to get it up, its because im just feeling lazy that day and nothing to do with what is waiting for me when i get to work. the crappy jobs give me perspective for where i am at now.

what did he do? outside looking in was there something he could have done differently to keep it from going the way it did?
 

·
Registered
Joined
·
12,186 Posts
Im trying to retire by 55, 52 now.
Starting to sell everything off , fixing up the house to sell.
Kinda hard to quit a good paying job , but im not gonna be that guy that works til 65 and drops dead 2 weeks later.
Saving everything I can, eating rice & beans for lunches.

Sent from my SM-G920V using Tapatalk
I've been thinking about it too, I'm 52 and could downsize my house and buy enough muli-family rentals to say fugg it pretty soon (really any time). But on the other side sometimes my job doesn't suck and I have to have something to do. I think I'll hang if a few more years. Medical is a big pisser. I'm also not sure if want to snow bird in the winter or just move to a more moderate climate. Once I have enough rentals to pay me (~8 doors) I'm done if I want.

Choices.
 

·
Registered
1989 Jeep Cherokee
Joined
·
1,934 Posts
so random thought from the weekend. instead of killing yourself until 62 then retiring, why not save 10% a year and take a year off every 10. obviously some professions would lend themselves to this lifestyles, better then others.

anyone done anything like this? i know screwzer was all about the sabbatical.
Simple. People don't want to make more so they can save more. People want to get paid more so they can spend more. You'd have to plan that retirement at 52 years old pretty early to have enough to make it on retirement too. I don't think saving 10% a year for 10 years will be enough to live on while you're retired (like...not working part time somewhere else while you're retired from working) so that could be another reason.

I'm currently required to save about 15% each paycheck to retire in my 50s as a State employee with a pension that currently pays 75% (no benefits or any of the stuff most people think you get with a pension) so 10% seems extremely low to retire on in your 50s.
 

·
Premium Member
Joined
·
1,324 Posts
i dont hate what i do, i have had jobs where i disliked every minute i was there. i will do everything i can not to go back to that. when i dont want to get it up, its because im just feeling lazy that day and nothing to do with what is waiting for me when i get to work. the crappy jobs give me perspective for where i am at now.

what did he do? outside looking in was there something he could have done differently to keep it from going the way it did?
white collar 150K a year gig in some business development shit. The gist is he just didn't see the value in working... and he had a wife, 2 kids, mortgage and his life was more expensive than he thought.... and he didn't realize that when you aren't gone all day, people ask you to do shit, just life things that most people don't think twice about... but, he realized he couldnt just go down to MX and surf, his kid had basketball...

existing money is not usually the fear, it is the unknown money in the future...

I think he fundamentally does not think working is something 'smart' people should do... we drifted as friends because, well, I do. I think we are here to work and to get things done...
 

·
Registered
Joined
·
34,274 Posts
10% a year would not be enough for the idea presented. Between inflation, taxes and “new services,” etc... would probably take at least 15%
 

·
Premium Member
Joined
·
19,797 Posts
I know a lot of people who don't take any time off work for 3 years, save up some cash, then take 3-4 month long vacations.
If your employer allows it, take advantage.
 

·
Premium Member
Joined
·
16,327 Posts
Discussion Starter #29
white collar 150K a year gig in some business development shit. The gist is he just didn't see the value in working... and he had a wife, 2 kids, mortgage and his life was more expensive than he thought.... and he didn't realize that when you aren't gone all day, people ask you to do shit, just life things that most people don't think twice about... but, he realized he couldnt just go down to MX and surf, his kid had basketball...

existing money is not usually the fear, it is the unknown money in the future...

I think he fundamentally does not think working is something 'smart' people should do... we drifted as friends because, well, I do. I think we are here to work and to get things done...
ahh, he was just selfish. the idea would be a year of fun with the family until theyre out of the house, then some really cool trips with the wife. even as welndmn mentioned take a few multiple month off trips. heck doing 2-4 months every 4-5 years would be a rad.

10% a year would not be enough for the idea presented. Between inflation, taxes and “new services,” etc... would probably take at least 15%
how so?

assuming i make 50k a year, i save for 10 invested getting 6% (which id argue is low) i have 150% of a years income. if youre not an idiot, you income goes up, you save more, keep the lifestyle down, you have even more to have fun with. this sabbatical fund would be in addition to a normal 15% of retirement.


i am not talking about retiring early, as mentioned healthcare is a big unknown and will probably push the retirement age for a lot people past the current target age. the premise of the post is pushing retirement farther then the normal age, in exchange for extend periods of time off through a career.
 

Attachments

·
Registered
Joined
·
6,417 Posts
hell i remember thinking, if i had a 500,000 bucks i would just walk. what a joke that has become. now i would not walk with 1,000,000.
 

·
Premium Member
Joined
·
2,449 Posts
Inflation, Taxes and Fees are the killer of saving. Invest in things that appreciate if you are lucky enough. $100, 30 years ago was BIG money. Now chump change and a nice dinner out. Real estate has generally been good to people. Spend your extra there when you are young as it also prevents rent. As you grow the monthlies will be easier to pay because money is cheaper..due to inflation. You are also watching your investment every day...paying attention.
 

·
Premium Member
Joined
·
16,327 Posts
Discussion Starter #33 (Edited)
Historically, one should be able to pull the 6%.... but it’s not a guarantee.
nothing is a guarantee, but to do nothing in fear of things you have no control over is fundementally retarded. i think welndrmn has the right idea with shorter time intervals. 3-5 years and 2-6 months.

Inflation, Taxes and Fees are the killer of saving. Invest in things that appreciate if you are lucky enough. $100, 30 years ago was BIG money. Now chump change and a nice dinner out. Real estate has generally been good to people. Spend your extra there when you are young as it also prevents rent. As you grow the monthlies will be easier to pay because money is cheaper..due to inflation. You are also watching your investment every day...paying attention.
that is why i would argue percentages play a larger roll in building wealth than a dollar value. what % of you income was $100 30 years ago for you? still saving $100/month starting when you are under 20 will put you damn close to being a millionaire when you are 60.
 

·
Premium Member
Joined
·
2,449 Posts
nothing is a guarantee, but to do nothing in fear of things you have no control over is fundementally retarded. i think welndrmn has the right idea with shorter time intervals. 3-5 years and 2-6 months.

that is why i would argue percentages play a larger roll in building wealth than a dollar value. what % of you income was $100 30 years ago for you? still saving $100/month starting when you are under 20 will put you damn close to being a millionaire when you are 60.
Whoever said $1mm was not much anymore is correct. It also throws you into a 50% combined tax bracket for any withdrawals. Yeh... Taxes weren't that high 40 years ago either. And know that those taxes are to pay pack the banks and other money houses that the Gov would not let fail (Read lobbyists) If you think Trump will be able to fix this part of the gov. Think again. He talked about reeling in the Feds, IRS, lobbyists and where the real power flows, but only defined it. Not until the "save the earth" group gets re-educated will the tide change...hopefully.

I would agree with weldnman that everything you are doing should be re-evaluated carefully every 5 years. Don't be afraid to fire your boss or money managers.
 

·
Registered
Joined
·
2,873 Posts
Whoever said $1mm was not much anymore is correct. It also throws you into a 50% combined tax bracket for any withdrawals. Yeh... Taxes weren't that high 40 years ago either. And know that those taxes are to pay pack the banks and other money houses that the Gov would not let fail (Read lobbyists) If you think Trump will be able to fix this part of the gov. Think again. He talked about reeling in the Feds, IRS, lobbyists and where the real power flows, but only defined it. Not until the "save the earth" group gets re-educated will the tide change...hopefully.

I would agree with weldnman that everything you are doing should be re-evaluated carefully every 5 years. Don't be afraid to fire your boss or money managers.
Dumb question? Are you saying it's better to retire and start withdrawing before you hit the $1 mil ?
 

·
Premium Member
Joined
·
16,327 Posts
Discussion Starter #37 (Edited)
Dumb question? Are you saying it's better to retire and start withdrawing before you hit the $1 mil ?
im not sure i follow what he is saying. i dont think youre taxed on ‘account value’.

this is why a ROTH IRA makes the most sense for someone who is young. long term most of the money in the account is growth. if you take the tax benifit now you, you pay later. the numbers are staggering. people are taking the tax benifit on 10% of the account value of 90% later. instead pay the taxes now, have a giant pile of cash that is tax free you withdraws become ‘taxable’ income in no roth accounts. im not even close to retirement but this is how understand it.
 

·
Change is good.
Joined
·
35,188 Posts
im not sure i follow what he is saying. i dont think youre taxed on ‘account value’.

this is why a ROTH IRA makes the most sense for someone who is young. long term most of the money in the account is growth. if you take the tax benifit now you, you pay later. the numbers are staggering. people are taking the tax benifit on 10% of the account value of 90% later. instead pay the taxes now, have a giant pile of cash that is tax free you withdraws become ‘taxable’ income in no roth accounts. im not even close to retirement but this is how understand it.
One of the basic stratedgy's of a traditional IRA or 401k is that it presumes you are in a higher tax bracket when you are contributing, and a lower one when you are withdrawing. A Roth has it's place, but if the above example is correct for you, a Roth is not what you should be doing.
 

·
Premium Member
Joined
·
2,449 Posts
Tax, Fees, and living percentages are going up!! That mil in the 401k is really only worth $500,000 in spendable $$. They even tax your SS. Which was not the case when I started retirement savings. Actually, in my case, I invested in the 401K only as much as the company pitched in a bonus. I think that was up to 10%. You were not going to beat that. I didn't do much else except get into a house to prevent renting and get on the real estate inflation bandwagon. I actually didn't save or worry about extra until about 40-45. By that time, the choices can become different from living life to the max...because you might not make it there. Personal and family health gets real and you can make decisions for how long the future might be. I also had a career and job in an industry that was pretty stable or sellable if trouble happened. If you don't have that by 45 the rest is a real crap shoot. Everyone is different.

On that note. About every 10 years I assembled friends that knew money and business. I laid out my situation on the table, and let them go at it. They were not selling, just creating ideas with the current trends in making and holding $$$$. I always slept good that night with "a plan." . Pretty neat.
 

·
Registered
Joined
·
5,550 Posts
Swimming in the swamp isn’t all that bad:flipoff2:

Can retire in 7 years with pension, benefits and nice sized Thrift Savings Plan...or be forced into mandatory retirement in 12 years with a bigger pension and bigger TSP. Either way I work 3 jobs now and will probably keep on working doing something I like.
 
21 - 40 of 81 Posts
Top