Author Topic: WSJ {paywall}: Could You Retire at 40?  (Read 1363 times)

jengod

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WSJ {paywall}: Could You Retire at 40?
« on: November 03, 2018, 09:36:00 AM »
The New Retirement Plan: Save Almost Everything, Spend Virtually Nothing
A group of younger workers, devotees of the FIRE movement, are seeking ways to duck mistakes made by prior generations
https://www.wsj.com/articles/the-new-retirement-plan-save-almost-everything-spend-virtually-nothing-1541217688

Cover of the weekend "Exchange" section, story about FIRE by Anne Tergesen and Veronica Dagher

I believe WSJ is paywalled but it's there, FYI.

nick663

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #1 on: November 03, 2018, 10:13:19 AM »
Link to get around paywall:  http://outline.com/HyGdqf

If you ignore the first 4 paragraphs that was a lot better article than most about FIRE.

nereo

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #2 on: November 03, 2018, 03:52:32 PM »
It's clear many people still view this as 'extreme frugality'.  Seems that perception will never die.

solon

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #3 on: November 04, 2018, 03:44:59 AM »
I was pretty excited about this article. I showed it off to everyone. Nobody really seems as excited about it as I am.

fattest_foot

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #4 on: November 05, 2018, 08:23:13 AM »
Didn't read the article (can't at work), but yes, I could retire at 40. And in fact, I plan to do so.

The only x factor is health insurance which may keep us part time past 40.

legalstache

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #5 on: November 06, 2018, 04:16:40 PM »
Gotta love the WSJ comment section ("how could anyone possibly retire on less than $3 million?!" and "the economy will collapse if everyone thinks like her!").

Interestingly, the article says she spends $30k/year but is planning to save $2 million (she's already at $1.5 million). She seems truly Mustachian but is saving enough to support living off of $80k/year in retirement. Sounds like she might be bumping up her expenses in retirement, or extra cautious about SWR.

badasswizard

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #6 on: November 22, 2018, 06:17:55 AM »
I'm in a masters of accounting program now and my tax class covered retirement planning this week. The professor mentioned this article and the sharing of netflix passwords and 70% savings rate and people...laughed and called it extreme. People gasped at the absurdity $75/month grocery bill. Sounds about right to me! That was depressing for my classmates' futures. The entry-level jobs with this degree pay ~$50K so if you live on $30K as your pay increases, you'd be set. (Also I had a visceral reaction because I've never made more than $30K in my previous career and still have managed to save a significant portion of my income)

The other day I overheard someone discussing their salary job offer and that they were worried "it wouldn't be enough". WHAT?

nereo

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #7 on: November 22, 2018, 06:48:12 AM »
I'm in a masters of accounting program now and my tax class covered retirement planning this week. The professor mentioned this article and the sharing of netflix passwords and 70% savings rate and people...laughed and called it extreme. People gasped at the absurdity $75/month grocery bill. Sounds about right to me! That was depressing for my classmates' futures. The entry-level jobs with this degree pay ~$50K so if you live on $30K as your pay increases, you'd be set. (Also I had a visceral reaction because I've never made more than $30K in my previous career and still have managed to save a significant portion of my income)

The other day I overheard someone discussing their salary job offer and that they were worried "it wouldn't be enough". WHAT?

One constant I've noticed is how people in a given group all view their spending and salaries as 'normal' regardless of where htey lie on the income and spending spectrums.  My father, a physician, once had to restructure his private practice which required every physician to ~8% pay 'cut' (actually a multi-year deferment) to ensure the practice would remain solvent.  Despite earning over $100k a half-dozen or so of the physicians told him such a reduction would force them into bankruptcy.

There's always another article coming out about how a family can't live a 'comfortable' lifestyle on $60k, 75k, even 90k/year.  Well, how do similar families get by on half of that?

The most extreme that I've witnessed has been in the financial industry, where my college roommate and best-man wound up.  I've been witness to one person buying a brand-new luxury SUV on a whim en route to a ski weekend, and then listened as he complained how his compensation barely afforded him the very nice 3 bedroom apartment in downtown SF that he shared with his wife.  Then I sat silently as most in the group (all in the financial sector) joined the chorus.  We were literally drinking $15 cocktails at the luxury hotel at the foot of a luxury ski resort where most of them were staying at $300/night and the subject was how financially hard their lives were.

Lack of perspective... I think it would be good for most Americans to see that most of the world can live happy lives on what we'd consider impovershed levels.  IThat's not to say I'm advocating earning sub-$20k, just that one should feel blessed to be earning many times this amount.

tralfamadorian

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #8 on: November 22, 2018, 05:37:49 PM »
One constant I've noticed is how people in a given group all view their spending and salaries as 'normal' regardless of where htey lie on the income and spending spectrums.

+1

I was a silent participant in a conversation recently where a couple women where discussing how disappointed they were that their husbands did not make partner at the top tier big law DC firms that their SOs were associates at when they married but instead ended up at smaller less prestigious ones. Their husbands' had bait and switched their prospects from $1m+/yr to a measly $300k. No, I'm not joking.

Maenad

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #9 on: November 23, 2018, 09:24:27 AM »
Wow, tralfamadorian, that's so many layers of messed up I'd be struck speechless myself.

Cassie

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Re: WSJ {paywall}: Could You Retire at 40?
« Reply #10 on: November 23, 2018, 01:25:25 PM »
Most previous generations had to live frugally. People have gotten very spoiled.