Author Topic: Stop worrying about the 4% rule  (Read 483293 times)

ixtap

  • Handlebar Stache
  • *****
  • Posts: 1329
Re: Stop worrying about the 4% rule
« Reply #1650 on: February 04, 2019, 11:58:20 AM »
Quote
It's decidedly *not* nice, though certainly better than winding up destitute, to be sure.  Each has their own story of how they got there, but now they share the same regret - that their retirement will be substantially shorter and their bodies have suffered (age of course was a factor but compounded by working).  Since they all retired closer to traditional retirment age the result, proportionally, their retirements will be substantially shorter.  IME I think regret about OMY tends to strike only after pulling the plug and getting past the mental hurdle of relying one's stashe instead of working a job.  BUt they lament it precisely because of the time lost spent working literally over a thousand days - that they now wish they had spent doing other things while they were still able.

Thanks for the answer, it was a sincere question.  I can see how a person's perspective changes once they retire.  There's a poll on the ER.org forum about this, with most folks thinking they retired at the right time (of course biased by the fact returns have been pretty good for the last 10 years, might have a different outcome after the 2008-9 45% drop).

Also biased by the fact that people who are attracted to the ERE approach aren't likely to be the kind of people who deeply enjoy their work and get paid really well to do it.

That group is "extremely" motivated to FIRE as soon as humanly possible, so they are the least likely to be sucked into unnecessary OMY.

Risk is highly individual and depends entirely on personal circumstances. OMY might be wise for one person and tragic for another.

It's hard to know yourself well enough to know which side of the OMY risk you are on.

I think a small miscommunication. ER (early-retirement.org) is "early retirement" not "early retirement extreme." The average ER folk is probably closer to the mainstream than the average MMMer, while the average ERE forum member is probably farther from the mainstream than the average forum member here.

I think of it as a continuum:
ERE
MMM
ER
Bogleheads

Malkynn

  • Stubble
  • **
  • Posts: 175
Re: Stop worrying about the 4% rule
« Reply #1651 on: February 04, 2019, 12:04:15 PM »
Quote
It's decidedly *not* nice, though certainly better than winding up destitute, to be sure.  Each has their own story of how they got there, but now they share the same regret - that their retirement will be substantially shorter and their bodies have suffered (age of course was a factor but compounded by working).  Since they all retired closer to traditional retirment age the result, proportionally, their retirements will be substantially shorter.  IME I think regret about OMY tends to strike only after pulling the plug and getting past the mental hurdle of relying one's stashe instead of working a job.  BUt they lament it precisely because of the time lost spent working literally over a thousand days - that they now wish they had spent doing other things while they were still able.

Thanks for the answer, it was a sincere question.  I can see how a person's perspective changes once they retire.  There's a poll on the ER.org forum about this, with most folks thinking they retired at the right time (of course biased by the fact returns have been pretty good for the last 10 years, might have a different outcome after the 2008-9 45% drop).

Also biased by the fact that people who are attracted to the ERE approach aren't likely to be the kind of people who deeply enjoy their work and get paid really well to do it.

That group is "extremely" motivated to FIRE as soon as humanly possible, so they are the least likely to be sucked into unnecessary OMY.

Risk is highly individual and depends entirely on personal circumstances. OMY might be wise for one person and tragic for another.

It's hard to know yourself well enough to know which side of the OMY risk you are on.

I think a small miscommunication. ER (early-retirement.org) is "early retirement" not "early retirement extreme." The average ER folk is probably closer to the mainstream than the average MMMer, while the average ERE forum member is probably farther from the mainstream than the average forum member here.

Lol, oops

nereo

  • Walrus Stache
  • *******
  • Posts: 9452
  • Location: la belle province
    • Here's how you can support science today:
Re: Stop worrying about the 4% rule
« Reply #1652 on: February 04, 2019, 01:47:57 PM »
reposting because it's relevant:


Only 5% of Americans 'retire' before age 55.
Following that logic, in the eyes of most Americans anyone who retires before than are outliers... extreme.  Even pulling the plug at 59 beats out most Americans.

Compared to the folks at ere.org someone retiring in their mid 40s would be fairly late - so it all comes down to the perspective of the person.

MrThatsDifferent

  • Handlebar Stache
  • *****
  • Posts: 1175
Re: Stop worrying about the 4% rule
« Reply #1653 on: February 11, 2019, 08:26:35 PM »
Why are there two 50-54?

2Birds1Stone

  • Walrus Stache
  • *******
  • Posts: 5080
  • Age: 31
  • Location: Earth
  • K Thnx Bye
Re: Stop worrying about the 4% rule
« Reply #1654 on: February 11, 2019, 09:37:17 PM »
I bet it's supposed to be 45-49 and 40-44

spartana

  • Bristles
  • ***
  • Posts: 276
  • Retired at 42
Re: Stop worrying about the 4% rule
« Reply #1655 on: February 12, 2019, 09:57:15 AM »
I bet it's supposed to be 45-49 and 40-44
Snort! No one can retire at 49 or earlier so that can't be it ;-).  I saw that here before and no one knew why there were two 50-54 brackets. I'm guessing a typo. At least I'm a one-percenter of something!

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 5805
  • Age: 57
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: Stop worrying about the 4% rule
« Reply #1656 on: February 12, 2019, 11:25:19 AM »
I bet it's supposed to be 45-49 and 40-44
Snort! No one can retire at 49 or earlier so that can't be it ;-).  I saw that here before and no one knew why there were two 50-54 brackets. I'm guessing a typo. At least I'm a one-percenter of something!

Yes but you OBVIOUSLY were born with a silver spoon in your mouth and got a YUGE inheritance.. Simply can't be done otherwise..:)