Author Topic: Early Retirement vs Serial Mini Retirements  (Read 13433 times)

tigerfoot

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: Early Retirement vs Serial Mini Retirements
« Reply #100 on: February 26, 2017, 01:25:46 AM »
Sounds good


 
« Last Edit: March 08, 2017, 07:28:24 AM by tigerfoot »

amyable

  • Bristles
  • ***
  • Posts: 294
Re: Early Retirement vs Serial Mini Retirements
« Reply #101 on: February 26, 2017, 05:53:59 AM »
I never did this, but if I had to do it over again, I would do it that way.

I think I remember  you saying you/wife worked most summers via. Summer School,tutoring, furthering your education, etc. Plus of course you had real  estate stuff going on.

My question is - Had you done nothing (work related) in the Summers would you have considered those "mini-retirements" or would that be too short?

Just curious, for those on thread who don't know me my wife is a teacher and I'm sort of self employed and hope to join her in Summers off in 3-5 years after clearing up some debt.

Two months is nothing.  That's barely enough time to decompress.  We did a backpacking through Europe trip one summer, and that was great, but not like a retirement (even a mini-one).

I think I'd take 1-2 year sabbaticals, personally.

The wife and I just hit a year, approximately, and we discussed how we weren't quite ready to go back, though we could if we had to (e.g. if we had only saved up enough to take a year off, instead of being FI), but that in another year, we'd totally be energized and ready to work again, if we were planning on it.

I mean, sure, two months is better than the lousy two weeks most people get.  But we can spend a month or two just in a single town.  Having two months off to relax and vacation and decompress is quite a bit different than a retirement where you aren't just temporarily doing it, but you're living it.

IDK, it's hard to explain.  You'll see what I mean though, when you do fully FIRE and spend all your time with the wife/kids/stuff you want to do.  :)

My husband teaches, and I'm a school counselor but would like to get back to teaching after we save more, and I think this is what we're planning on doing.  We're both certified in high shortage teaching areas, and we live in a area where we can get a teaching job anytime we want, no problem.  I'd love to teach for 2-3 years and then take a year off.  I love working in education, and I really don't think I could RE full time, but having a year off every few years would be a good balance for me.

Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 528
  • Age: 40
Re: Early Retirement vs Serial Mini Retirements
« Reply #102 on: February 26, 2017, 06:21:02 AM »
http://earlyretirementextreme.com/what-should-my-savings-rate-b.html

Quote
If you save 5% if your income, you can take 1 year off every time you work 19 years.
If you save 10% of your income, you can take 1 year off every time you work 9 years.
If you save 20% of your income, you can take 1 year off every time you work 4 years.
If you save 30% of your income, you can take 1 year off every time you work 2 years and 4 months.
If you save 40% of your income, you can take 1 year off every time you work 1 years and 6 months.
If you save 50% of your income, you can take 1 year off every time you work 1 year.
If you save 60% of your income, you can take 1 year and 6 months off every time you work 1 year.
If you save 70% of your income, you can take 2 years and 4 months off every time you work 1 year.
If you save 80% of your income, you can take 4 years off every time you work 1 year.
If you save 90% of your income, you can take 9 years off every time you work 1 year.

I like easy math.

monarda

  • Bristles
  • ***
  • Posts: 278
Re: Early Retirement vs Serial Mini Retirements
« Reply #103 on: February 26, 2017, 10:34:44 AM »
I just found this thread! I love the idea. I've been doing this not by choice. But it's worked out just fine.

Like some others, I work on soft money, and when a research grant runs out I sometimes have breaks of several months or more. The months off have allowed me to get a lot of projects on my "list" done.

For example, the most recent grant has been funded for 1.5 years- the future is uncertain. But I've been saving 90% of my income, living off of rental income- because during the 6 month gap (in 2015) before this position began we were (barely) able to live off of only that rental income.  I called it a "practice retirement" at the time.  It was great to know how well it worked.

I'm in a position now where folks at work are appreciating my skills (and age- 56) and I hope that some of the pool of them will be able to become short-term employers until full retirement.  I could go on like this for a while.  It feels good.




TheAnonOne

  • Pencil Stache
  • ****
  • Posts: 976
Re: Early Retirement vs Serial Mini Retirements
« Reply #104 on: February 27, 2017, 06:40:32 AM »
To me, being 26 and 3 to 4 years from barebones FI it seems best to just "power through"

Heck, I write software and im looking for a client to fill my nights and weekends. I could shave that down to 2 years.

Realistically, it depends more on your income I think. We are decently high at a HHI of 200k (more if I work OT) and jumping away from that is daunting if you're not FI.

Long story short- at 24 and 26 making 200k and looking at realistically hitting FI at about 30 and RE a year or two after... makes more sense to just "finish the job"

Sent from my SM-G935T using Tapatalk


LAGuy

  • Stubble
  • **
  • Posts: 207
  • Age: 42
  • Location: Los Angeles
Re: Early Retirement vs Serial Mini Retirements
« Reply #105 on: February 27, 2017, 07:29:31 AM »
To me, being 26 and 3 to 4 years from barebones FI it seems best to just "power through"

Heck, I write software and im looking for a client to fill my nights and weekends. I could shave that down to 2 years.

Realistically, it depends more on your income I think. We are decently high at a HHI of 200k (more if I work OT) and jumping away from that is daunting if you're not FI.

Long story short- at 24 and 26 making 200k and looking at realistically hitting FI at about 30 and RE a year or two after... makes more sense to just "finish the job"

Sent from my SM-G935T using Tapatalk

Well, one of the things about "powering through" is you start to realize that you're getting murdered on taxes. It starts to feel especially acute when your portfolio starts to take on a life of its own and goes up or down by far more than you could manage to contribute in a years worth of work anyways. A partial earlier retirement allows you to work less actual time even though it may take longer in actual linear years. Now that I only work half the year, I basically pay zero in federal taxes (thanks foreign tax credit!) and a few hundred in state. No escaping payroll taxes, however. But in all, I get to keep a lot more of the money I make and I can ease into full FIRE that way and still have my full time career available to me in the background should something not go according to plan.

TheAnonOne

  • Pencil Stache
  • ****
  • Posts: 976
Re: Early Retirement vs Serial Mini Retirements
« Reply #106 on: February 27, 2017, 07:41:06 AM »
To me, being 26 and 3 to 4 years from barebones FI it seems best to just "power through"

Heck, I write software and im looking for a client to fill my nights and weekends. I could shave that down to 2 years.

Realistically, it depends more on your income I think. We are decently high at a HHI of 200k (more if I work OT) and jumping away from that is daunting if you're not FI.

Long story short- at 24 and 26 making 200k and looking at realistically hitting FI at about 30 and RE a year or two after... makes more sense to just "finish the job"

Sent from my SM-G935T using Tapatalk

Well, one of the things about "powering through" is you start to realize that you're getting murdered on taxes. It starts to feel especially acute when your portfolio starts to take on a life of its own and goes up or down by far more than you could manage to contribute in a years worth of work anyways. A partial earlier retirement allows you to work less actual time even though it may take longer in actual linear years. Now that I only work half the year, I basically pay zero in federal taxes (thanks foreign tax credit!) and a few hundred in state. No escaping payroll taxes, however. But in all, I get to keep a lot more of the money I make and I can ease into full FIRE that way and still have my full time career available to me in the background should something not go according to plan.
Very true!

At this point we 'only' have about 280k in the stash itself, so work is very strong.

Saving around 100k a year that number will be over half a million in about 2 years and around 750k before 4 years is up.

It seems to me that by the time the investment swings overpower MY work situation ill be a millionaire or more and decently into the FI zone. (Barebones at 750k)

Sent from my SM-G935T using Tapatalk


LAGuy

  • Stubble
  • **
  • Posts: 207
  • Age: 42
  • Location: Los Angeles
Re: Early Retirement vs Serial Mini Retirements
« Reply #107 on: February 27, 2017, 06:19:10 PM »
To me, being 26 and 3 to 4 years from barebones FI it seems best to just "power through"

Heck, I write software and im looking for a client to fill my nights and weekends. I could shave that down to 2 years.

Realistically, it depends more on your income I think. We are decently high at a HHI of 200k (more if I work OT) and jumping away from that is daunting if you're not FI.

Long story short- at 24 and 26 making 200k and looking at realistically hitting FI at about 30 and RE a year or two after... makes more sense to just "finish the job"

Sent from my SM-G935T using Tapatalk

Well, one of the things about "powering through" is you start to realize that you're getting murdered on taxes. It starts to feel especially acute when your portfolio starts to take on a life of its own and goes up or down by far more than you could manage to contribute in a years worth of work anyways. A partial earlier retirement allows you to work less actual time even though it may take longer in actual linear years. Now that I only work half the year, I basically pay zero in federal taxes (thanks foreign tax credit!) and a few hundred in state. No escaping payroll taxes, however. But in all, I get to keep a lot more of the money I make and I can ease into full FIRE that way and still have my full time career available to me in the background should something not go according to plan.
Very true!

At this point we 'only' have about 280k in the stash itself, so work is very strong.

Saving around 100k a year that number will be over half a million in about 2 years and around 750k before 4 years is up.

It seems to me that by the time the investment swings overpower MY work situation ill be a millionaire or more and decently into the FI zone. (Barebones at 750k)

Sent from my SM-G935T using Tapatalk

Yeah, pretty much no way around putting in your dues and grinding out some earned income for a few years (though selling an appreciated primary residence for a huge profit is one way to cut the line!). Whenever I talk to people about what I'm doing I kind of feel myself starting with some variation of, "Well, the first thing you do is start with half a million dollars." lol

gerardc

  • Stubble
  • **
  • Posts: 206
  • Age: 33
  • Location: SF bay area
Re: Early Retirement vs Serial Mini Retirements
« Reply #108 on: February 27, 2017, 07:27:17 PM »
Yes with high income you definitely want to sprint to barebones FI first.

Then, things get a little blurry. You don't necessarily want to lose out on the income stream and career momentum (with no way of coming back) so you might be tempted to blast through baseline FI until.... when?

If you're young, there's more uncertainty (in your goals, what you want in your future, and your final FI number) so I think it best to ease into FIRE via sabbaticals, PT work or, even better IMO, freelancing. So you keep a foot in the door and keep things flexible for the future. I think that's what I'll do.

Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 528
  • Age: 40
Re: Early Retirement vs Serial Mini Retirements
« Reply #109 on: February 28, 2017, 07:02:51 PM »
To me, being 26 and 3 to 4 years from barebones FI it seems best to just "power through"

Heck, I write software and im looking for a client to fill my nights and weekends. I could shave that down to 2 years.

Realistically, it depends more on your income I think. We are decently high at a HHI of 200k (more if I work OT) and jumping away from that is daunting if you're not FI.

Long story short- at 24 and 26 making 200k and looking at realistically hitting FI at about 30 and RE a year or two after... makes more sense to just "finish the job"

Sent from my SM-G935T using Tapatalk

Well, one of the things about "powering through" is you start to realize that you're getting murdered on taxes. It starts to feel especially acute when your portfolio starts to take on a life of its own and goes up or down by far more than you could manage to contribute in a years worth of work anyways. A partial earlier retirement allows you to work less actual time even though it may take longer in actual linear years. Now that I only work half the year, I basically pay zero in federal taxes (thanks foreign tax credit!) and a few hundred in state. No escaping payroll taxes, however. But in all, I get to keep a lot more of the money I make and I can ease into full FIRE that way and still have my full time career available to me in the background should something not go according to plan.

Beyond taxes the other, oft forgotten, advantage of taking the slow path is inflation.  Recency bias has us forgetting that high inflation happens and is one of the two killers of early retirement. Earn all of your stash up front and there's a risk returns can't keep up with a period of rapid inflation, this is the primary reason we see failures of 4% rule in the 60's.   Theoretically, income will keep pace with inflation hedging this risk. People accept very low reutrns from investments like TIP's, annuties, and gold for hedges which are not nearly as powerful.

TheAnonOne

  • Pencil Stache
  • ****
  • Posts: 976
Re: Early Retirement vs Serial Mini Retirements
« Reply #110 on: February 28, 2017, 07:27:11 PM »
Yes with high income you definitely want to sprint to barebones FI first.

Then, things get a little blurry. You don't necessarily want to lose out on the income stream and career momentum (with no way of coming back) so you might be tempted to blast through baseline FI until.... when?

If you're young, there's more uncertainty (in your goals, what you want in your future, and your final FI number) so I think it best to ease into FIRE via sabbaticals, PT work or, even better IMO, freelancing. So you keep a foot in the door and keep things flexible for the future. I think that's what I'll do.

Actually, being in software myself, I was contemplating finding a 100% work-remote position. Have my wife fully retire when we hit the big MM mark. We want to travel long-term after that, starting as soon as it makes financial sense.

Seeing as how we are 24/26, presumably we could hit bare-bones (750) in the next 3.5 years or so and maybe set out traveling while I work remotely. I am not sure how it will all fall into place, but that seems like a plan to accelerate that stage of life.

gerardc

  • Stubble
  • **
  • Posts: 206
  • Age: 33
  • Location: SF bay area
Re: Early Retirement vs Serial Mini Retirements
« Reply #111 on: February 28, 2017, 08:30:36 PM »
Yes with high income you definitely want to sprint to barebones FI first.

Then, things get a little blurry. You don't necessarily want to lose out on the income stream and career momentum (with no way of coming back) so you might be tempted to blast through baseline FI until.... when?

If you're young, there's more uncertainty (in your goals, what you want in your future, and your final FI number) so I think it best to ease into FIRE via sabbaticals, PT work or, even better IMO, freelancing. So you keep a foot in the door and keep things flexible for the future. I think that's what I'll do.

Actually, being in software myself, I was contemplating finding a 100% work-remote position. Have my wife fully retire when we hit the big MM mark. We want to travel long-term after that, starting as soon as it makes financial sense.

Seeing as how we are 24/26, presumably we could hit bare-bones (750) in the next 3.5 years or so and maybe set out traveling while I work remotely. I am not sure how it will all fall into place, but that seems like a plan to accelerate that stage of life.

Yeah, FIREing a little early if you're younger makes sense because "trying to make money" (this time without sacrificing your lifestyle) is still a worthwhile enjoyable occupation. Chances are that will work out somehow.

100% remote in software doesn't seem that easy to find. You take a pay cut. You want to avoid low-balling offers on upwork and the like. Apparently a good way is to spend some time non-remote with a regular employer, then ask when they trust you, but you don't know for sure in advance. I think I'll try to find 1 or 2 good clients that trust me with regular work. No foolproof way though, you have to go along with the adventure, with your barebones stash as a back up...

See this recent thread:
http://forum.mrmoneymustache.com/welcome-to-the-forum/wtf-do-we-still-commute-to-work-to-sit-and-use-a-computer/
and
https://news.ycombinator.com/item?id=13230508

I feel so good WFH and being in control of my time and my mind VS an open floor plan. Actually with a remote job I'm not even sure I want to FIRE in the first place, the difference is that big.

TheAnonOne

  • Pencil Stache
  • ****
  • Posts: 976
Re: Early Retirement vs Serial Mini Retirements
« Reply #112 on: March 01, 2017, 06:45:43 AM »




100% remote in software doesn't seem that easy to find. You take a pay cut. You want to avoid low-balling offers on upwork and the like. Apparently a good way is to spend some time non-remote with a regular employer, then ask when they trust you, but you don't know for sure in advance. I think I'll try to find 1 or 2 good clients that trust me with regular work. No foolproof way though, you have to go along with the adventure, with your barebones stash as a back up...



In this case though, you're at or very close to the 4% rule, maybe your at a 5 or 6 % SWR

So the pay cut isn't a big deal, it's just some income to hold you over for a few years while the growth and lesser savings push you over OR bump you into the 3% SWR and beyond.

We might drop from a 200k HHI to 80K but with 750k to 1M in the bank and yearly spending around 40k (maybe 50 with travel) 80k still generates yearly savings!

Just a thought! Might not work out, but I have 3 to 4 years before I need to really care/think about it.

Sent from my SM-G935T using Tapatalk


Libertea

  • Bristles
  • ***
  • Posts: 358
  • Age: 41
  • Location: USA
Re: Early Retirement vs Serial Mini Retirements
« Reply #113 on: March 09, 2017, 11:56:14 AM »
Well, one of the things about "powering through" is you start to realize that you're getting murdered on taxes. It starts to feel especially acute when your portfolio starts to take on a life of its own and goes up or down by far more than you could manage to contribute in a years worth of work anyways. A partial earlier retirement allows you to work less actual time even though it may take longer in actual linear years. Now that I only work half the year, I basically pay zero in federal taxes (thanks foreign tax credit!) and a few hundred in state. No escaping payroll taxes, however. But in all, I get to keep a lot more of the money I make and I can ease into full FIRE that way and still have my full time career available to me in the background should something not go according to plan.
This.  I paid about as much in taxes last year (2016) as I'll earn in salary this year (2017).  That's hard to wrap my mind around sometimes, because we're still talking about a pretty substantial amount of income here.  And since I'm a single person with no deductions, suffice it to say that I feel like I single-handedly funded Obamacare, Afghanistan, resettling refugees, and whatever other pet program you can think of for the past few years.  At this point, I'm perfectly content to take my half million (now closer to $600k) and throttle back a bit.  Let someone else pay for the next government boondoggle du jour.  ;-)

Metric Mouse

  • Walrus Stache
  • *******
  • Posts: 5313
  • FU @ 22. F.I.R.E before 23
Re: Early Retirement vs Serial Mini Retirements
« Reply #114 on: March 10, 2017, 06:16:20 AM »
Well, one of the things about "powering through" is you start to realize that you're getting murdered on taxes. It starts to feel especially acute when your portfolio starts to take on a life of its own and goes up or down by far more than you could manage to contribute in a years worth of work anyways. A partial earlier retirement allows you to work less actual time even though it may take longer in actual linear years. Now that I only work half the year, I basically pay zero in federal taxes (thanks foreign tax credit!) and a few hundred in state. No escaping payroll taxes, however. But in all, I get to keep a lot more of the money I make and I can ease into full FIRE that way and still have my full time career available to me in the background should something not go according to plan.
This.  I paid about as much in taxes last year (2016) as I'll earn in salary this year (2017).  That's hard to wrap my mind around sometimes, because we're still talking about a pretty substantial amount of income here.  And since I'm a single person with no deductions, suffice it to say that I feel like I single-handedly funded Obamacare, Afghanistan, resettling refugees, and whatever other pet program you can think of for the past few years.  At this point, I'm perfectly content to take my half million (now closer to $600k) and throttle back a bit.  Let someone else pay for the next government boondoggle du jour.  ;-)
If you had just worked one more year, we could have had our space program back! :)
Give me one fine day of plain sailing weather and I can mess up anything.

MustacheMathTM

2Birds1Stone

  • Magnum Stache
  • ******
  • Posts: 2638
  • Age: 29
  • Location: New York
  • CFO
Re: Early Retirement vs Serial Mini Retirements
« Reply #115 on: March 11, 2017, 04:33:12 AM »
Thanks to this thread I am planning for my first sabbatical March 31st 2020 :)

From that point on, it very well could be a bunch of mini retirements till full blown FI is reached. This is sounding more and more appealing the older I get and the more I run the #'s.
"A small house can hold as much happiness as a big one." - Fortune Cookie

58 Months Till FIRE Journal - Stop by, or stay a while.....
http://forum.mrmoneymustache.com/journals/fit-finance-when-two-seemingly-unrelated-worlds-colide/

Metric Mouse

  • Walrus Stache
  • *******
  • Posts: 5313
  • FU @ 22. F.I.R.E before 23
Re: Early Retirement vs Serial Mini Retirements
« Reply #116 on: March 11, 2017, 04:54:39 AM »
Thanks to this thread I am planning for my first sabbatical March 31st 2020 :)

From that point on, it very well could be a bunch of mini retirements till full blown FI is reached. This is sounding more and more appealing the older I get and the more I run the #'s.

Awesome! Good luck, and keep us updated!
Give me one fine day of plain sailing weather and I can mess up anything.

MustacheMathTM

limeandpepper

  • Magnum Stache
  • ******
  • Posts: 3347
  • Location: Anywhere/Perth.
Re: Early Retirement vs Serial Mini Retirements
« Reply #117 on: March 11, 2017, 09:02:58 AM »
Sounds great, 2Birds1Stone!

Also:

My partner and I took several months off to travel a couple of years ago. It was awesome. Hoping to do that again, maybe in another couple of years from now. :)

Apparently this is happening, we're planning our 2017 sabbatical right now. I basically just decided today I'd like it to happen 6 months from now, haha. Hasn't even been that long since the one we did in 2014, this feels so luxurious!

Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 528
  • Age: 40
Re: Early Retirement vs Serial Mini Retirements
« Reply #118 on: March 11, 2017, 09:42:58 AM »
Thanks to this thread I am planning for my first sabbatical March 31st 2020 :)

From that point on, it very well could be a bunch of mini retirements till full blown FI is reached. This is sounding more and more appealing the older I get and the more I run the #'s.

Congrats! 1114 days and counting!

I'm glad to see you are making these plans, you've been hanging around the SemiRE posts long enough to know it was coming sooner or later. 

I'm taking a month off mid-April to mid-May this year, that's the most I can bring myself to do at this point. I ain't got the guts of 2B1S, probably not as much $ either :( 

2Birds1Stone

  • Magnum Stache
  • ******
  • Posts: 2638
  • Age: 29
  • Location: New York
  • CFO
Re: Early Retirement vs Serial Mini Retirements
« Reply #119 on: March 11, 2017, 10:59:57 AM »
Awesome! Good luck, and keep us updated!

Thank you, most certainly will!

Sounds great, 2Birds1Stone!

Also:

My partner and I took several months off to travel a couple of years ago. It was awesome. Hoping to do that again, maybe in another couple of years from now. :)

Apparently this is happening, we're planning our 2017 sabbatical right now. I basically just decided today I'd like it to happen 6 months from now, haha. Hasn't even been that long since the one we did in 2014, this feels so luxurious!

That's fantastic!! The power of high savings rate is amazing eh?


Congrats! 1114 days and counting!

I'm glad to see you are making these plans, you've been hanging around the SemiRE posts long enough to know it was coming sooner or later. 

I'm taking a month off mid-April to mid-May this year, that's the most I can bring myself to do at this point. I ain't got the guts of 2B1S, probably not as much $ either :( 

Yes sir! As the 'stache grows and the tolerance for cubicle life dwindles these things just seem to follow a natural progression.

Eh, my NW is only ~$275k right now all in. I'm hoping to be in the $400-500k range when I take that 6 months off.

That would put me at barebones FI, where I could easily cover my needs, but not my wants. From there it's a matter of, is work worth whatever I "want"?

The biggest question I have is how it will effect my relationship with SO. She is 4 years my junior and has only been working full time for ~2 years now. I have a feeling she will want to take off with me, but will have a lot less accumulated by that point. Time will tell.
"A small house can hold as much happiness as a big one." - Fortune Cookie

58 Months Till FIRE Journal - Stop by, or stay a while.....
http://forum.mrmoneymustache.com/journals/fit-finance-when-two-seemingly-unrelated-worlds-colide/

limeandpepper

  • Magnum Stache
  • ******
  • Posts: 3347
  • Location: Anywhere/Perth.
Re: Early Retirement vs Serial Mini Retirements
« Reply #120 on: March 11, 2017, 11:17:11 AM »
The biggest question I have is how it will effect my relationship with SO. She is 4 years my junior and has only been working full time for ~2 years now. I have a feeling she will want to take off with me, but will have a lot less accumulated by that point. Time will tell.

What does she think about it now?

My boyfriend was probably interested in going for our first sabbatical about a year or two before we actually did, but he waited for me to feel more comfortable about the amount of money I had. Also just several months ago, he mentioned wanting to go on another one and I wasn't ready then, but I sure am now and probably more enthusiastic than he is. :D  Hope it works out for you!

Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 528
  • Age: 40
Re: Early Retirement vs Serial Mini Retirements
« Reply #121 on: March 11, 2017, 11:42:55 AM »
I ran across this older post from ERE recently.  It's very pertinent to the whole SemiRE/Serial Retirement idea.  A very simple spreadsheet he did that reinforces the point; if we are willing to earn some money, we have already won the game. Maybe I'm just positing it to get some selective exposure to strengthen my resolve and set a date like the man 2B1S.

Metric Mouse

  • Walrus Stache
  • *******
  • Posts: 5313
  • FU @ 22. F.I.R.E before 23
Re: Early Retirement vs Serial Mini Retirements
« Reply #122 on: March 11, 2017, 11:50:47 AM »
Awesome! Good luck, and keep us updated!

Thank you, most certainly will!

Sounds great, 2Birds1Stone!

Also:

My partner and I took several months off to travel a couple of years ago. It was awesome. Hoping to do that again, maybe in another couple of years from now. :)

Apparently this is happening, we're planning our 2017 sabbatical right now. I basically just decided today I'd like it to happen 6 months from now, haha. Hasn't even been that long since the one we did in 2014, this feels so luxurious!

That's fantastic!! The power of high savings rate is amazing eh?


Congrats! 1114 days and counting!

I'm glad to see you are making these plans, you've been hanging around the SemiRE posts long enough to know it was coming sooner or later. 

I'm taking a month off mid-April to mid-May this year, that's the most I can bring myself to do at this point. I ain't got the guts of 2B1S, probably not as much $ either :( 

Yes sir! As the 'stache grows and the tolerance for cubicle life dwindles these things just seem to follow a natural progression.

Eh, my NW is only ~$275k right now all in. I'm hoping to be in the $400-500k range when I take that 6 months off.

That would put me at barebones FI, where I could easily cover my needs, but not my wants. From there it's a matter of, is work worth whatever I "want"?

The biggest question I have is how it will effect my relationship with SO. She is 4 years my junior and has only been working full time for ~2 years now. I have a feeling she will want to take off with me, but will have a lot less accumulated by that point. Time will tell.
Why would they not be able to take off? Surely in 6 months with some tight saving they could save enough money for a year long sabbatical.  Wouldn't be FI, but shouldn't be hard for them to do a mini retirement for awhile.
Give me one fine day of plain sailing weather and I can mess up anything.

MustacheMathTM

life_travel

  • 5 O'Clock Shadow
  • *
  • Posts: 18
  • Location: Australia
Re: Early Retirement vs Serial Mini Retirements
« Reply #123 on: March 11, 2017, 10:14:32 PM »
Sounds great, 2Birds1Stone!

Also:

My partner and I took several months off to travel a couple of years ago. It was awesome. Hoping to do that again, maybe in another couple of years from now. :)

Apparently this is happening, we're planning our 2017 sabbatical right now. I basically just decided today I'd like it to happen 6 months from now, haha. Hasn't even been that long since the one we did in 2014, this feels so luxurious!
We did a first one - 3.5 months in 2015 and are going to do a second one in 2020. Husband is happy to work until 2020 until he gets his long service leave, I am ready to quit yesterday ( and he is well aware of that) :)
so hopefully I can get a new job, flexible work, entrepreneur idea, or a combination of all until then. Or will suck it up and continue the grind for another 3 years.
To be honest, while I would love to RE , if financially it's not possible in 2020 I'll be happy to work 6 months of each year and then slow travel another 6. 

2Birds1Stone

  • Magnum Stache
  • ******
  • Posts: 2638
  • Age: 29
  • Location: New York
  • CFO
Re: Early Retirement vs Serial Mini Retirements
« Reply #124 on: March 12, 2017, 09:41:27 AM »
Why would they not be able to take off? Surely in 6 months with some tight saving they could save enough money for a year long sabbatical.  Wouldn't be FI, but shouldn't be hard for them to do a mini retirement for awhile.

True, I guess the biggest concern is leaving right at the height of a budding career before being barebone FI.

A lot of time between now and then though. Currently I believe she is at roughly 3X annual spending in NW.
"A small house can hold as much happiness as a big one." - Fortune Cookie

58 Months Till FIRE Journal - Stop by, or stay a while.....
http://forum.mrmoneymustache.com/journals/fit-finance-when-two-seemingly-unrelated-worlds-colide/

Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 528
  • Age: 40
Re: Early Retirement vs Serial Mini Retirements
« Reply #125 on: March 12, 2017, 01:08:46 PM »
Pulling info from the health insurance threads, it seems the republican plan that now has Trumps support is not a great thing for the country...but... Could be a good thing for Semi-retirees who work part time or via contracts.  If this passes it will be yet another compelling reason for me to go this route.

http://healthaffairs.org/blog/2017/03/07/examining-the-house-republican-aca-repeal-and-replace-legislation/

Quote
The annual tax credit amount is established at $2,000 for an individual under 30, $2500 for those age 30 to 39, $3,000 for those age 40 to 49; $3,500 for those age 50 to 59, and $4,000 for those age 60 and over. The tax credit begins to phase out when a taxpayer’s modified adjusted gross income reaches $75,000 ($150,000 for joint filers) adjusted annually by the consumer price index plus one percentage point for inflation after 2020. It phases out by 10 percent of the excess of the modified adjusted gross income above this amount, so the tax credit would disappear for a 29 year old when income reached $95,000 and for a 60 year old when income reached $115,000.

Those are some pretty substantial tax credits with pretty high incomes.  Under the ACA a semi-retiree would pretty quickly fall off the subsidy cliff with income over 250% poverty level and are required to hold a relatively "good" policy.  Under this new plan, a semi-retiree can self-insure with a more catastrophic policy and get some pretty decent tax credits that'd probably cover most of the premiums (if you are healthy), even up to a 75K income level. IOW if you plan to make 25-75K a year and would prefer to fund a HSA over having "better" insurance this is very good news.  If you end up getting very sick before medicare, this is probably bad news, but a fully funded HSA in the years you didn't need it could compensate for that eventuality. 

I'm curious what others in this thread think regarding their specific semi-re plans/situations.
Edit: I'm also curious, those of you who have Semi-Re'ed, are you using/getting ACA coverage and/or subsidies?

Note: Lets confine the comments to how this applies to semi-re as there are plenty of other threads debating the morality/workability of this plan in general. Thx
« Last Edit: March 12, 2017, 01:32:31 PM by Classical_Liberal »

sam

  • 5 O'Clock Shadow
  • *
  • Posts: 56
    • Money Nest
Re: Early Retirement vs Serial Mini Retirements
« Reply #126 on: March 13, 2017, 06:48:17 AM »
Got my third mini retirement coming up this September! At least 3 months in South America - Can't wait :D
Based in the UK? www.moneynest.co.uk provides financial advice for 20-30yr olds.

Have a great day :)

IFiRun

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: Early Retirement vs Serial Mini Retirements
« Reply #127 on: March 13, 2017, 10:08:55 AM »
Serial Mini Retirements are a great way to explore other talents/interests while not fully letting go of the career that 'pays the big bucks'.  I have left my field of Finance many times to do a myriad of things: develop a software program, buy and revamp a small business, have 3 kids (longer term maternity leaves: with or without employment), earn a Masters degree in Exercise Science so I can better understand my athletic performances; worked as a strength coach, flipped houses, and just be a bum (not really).  During each of these career transgressions, I voluntarily left my employment and felt totally financially secure knowing I had sufficient cash holdings and the ability to get back into the workforce at a decent salary.  At the age of 46, I resigned my full-time and incredibly boring position to retire.  However, my employer offered me flexible half time work so I am able to volunteer at my kid's school, train for races, and open more opportunities to make a positive impact.  My boss, who clearly doesn't understand FIRE, cringed during my resignation discussion and stated "I don't want you to be in the position of not having a job".  ha ha

Many people don't understand the concept of leaving the workforce for self-imposed sabbaticals and thus it is sometimes difficult to get the rationale across to employment recruiters.  Getting back into the workforce at a similar level position and/or wage may be a challenge.  Having employment gaps on the resume and job application is sketchy to the more traditional hiring managers.  I have always had business ownership, whether it be the LLC that covers my rental property, or the S-Corp that holds my part-time business, that I put on my resume to fill in some of the time gaps. 

Another issue I had during a longer sabbatical from the technological side of the Finance industry is that skills do erode over time.  Technology moves fast and new releases of software can be challenging.  Thus, it is important to stay current with the industry and understand current events. 

If you are unsure of early retirement, pursue your desires, give yourself sufficient time and then decide whether or not to get back into the workforce. Jobs are always out there waiting.

bacchi

  • Handlebar Stache
  • *****
  • Posts: 1775
Re: Early Retirement vs Serial Mini Retirements
« Reply #128 on: March 13, 2017, 10:45:00 AM »
Actually, being in software myself, I was contemplating finding a 100% work-remote position. Have my wife fully retire when we hit the big MM mark. We want to travel long-term after that, starting as soon as it makes financial sense.

Remote work+travel is a good waypoint but it's no fun to see the SO take off for a bike ride on a beautiful day and you're stuck in front of the laptop trying to fix a critical bug. Or, you're about to hike up a mountain and a server goes down and the client is losing money and, please, it needs fixing right now, STAT!

It definitely beats cubicle life, of course.

TheAnonOne

  • Pencil Stache
  • ****
  • Posts: 976
Re: Early Retirement vs Serial Mini Retirements
« Reply #129 on: March 13, 2017, 10:50:34 AM »
Actually, being in software myself, I was contemplating finding a 100% work-remote position. Have my wife fully retire when we hit the big MM mark. We want to travel long-term after that, starting as soon as it makes financial sense.

Remote work+travel is a good waypoint but it's no fun to see the SO take off for a bike ride on a beautiful day and you're stuck in front of the laptop trying to fix a critical bug. Or, you're about to hike up a mountain and a server goes down and the client is losing money and, please, it needs fixing right now, STAT!

It definitely beats cubicle life, of course.
Right, but it's only temporary. If you had 5 years to FIRE like myself, would you rather stick it out in one go? . . . OR

Extend the time to TRUE FIRE by 1 year, and go 3 years at home and 3 years in a mobile career?

Neither is a bad option but in the travel case you still got to go see the world, venturing out on nights and weekends. Maybe taking some time off for bigger items (aka, hiking up a mountain or whatever floats your boat)

Sent from my SM-G935T using Tapatalk


Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 528
  • Age: 40
Re: Early Retirement vs Serial Mini Retirements
« Reply #130 on: March 13, 2017, 07:02:39 PM »
I have left my field of Finance many times to do a myriad of things...

This is good Stuff IfiRun!  Long term experience with this is great for my learn'en organ.

A big concern with the idea of serial retirements is I may never wanna get back into the game.  In which case, I would have kind'a boned myself by not just sucking it up a few more years in the current cash maximizing position.  OTOH, I could see it going the complete opposite way.  Sticking it out to the bitter end, then after a year doing something else having the craving to get back into one of my old fields. 

Curious about what made you come back after pursuing other interests in those cases?  Was money an issue, or did you want to get back in the old game?  Or maybe for different reasons each time?  Were there any hints you noticed in yourself, pointing to a future in which you'd eventually want to go back?  Thx!

FIREby35

  • Bristles
  • ***
  • Posts: 253
Re: Early Retirement vs Serial Mini Retirements
« Reply #131 on: March 14, 2017, 06:40:53 PM »
I ran across this older post from ERE recently.  It's very pertinent to the whole SemiRE/Serial Retirement idea.  A very simple spreadsheet he did that reinforces the point; if we are willing to earn some money, we have already won the game. Maybe I'm just positing it to get some selective exposure to strengthen my resolve and set a date like the man 2B1S.

I'll respond! I read the link and this is exactly what motivated me to "pull of the gas" despite not being fulle FI. I/We can take a month or two off of work because I/we have already "won the race." The staches of 500k generally discussed on this thread are enough to snowball themselves into being huge. If we add anything to our current staches, even less than normal because we are off traveling, it doesn't really matter. Adding just a little starts getting crazy. Maths don't lie.

It has taken me a while to adjust to this new reality - mostly because it is even more awesome than I anticipated :)

yyc-phil

  • Pencil Stache
  • ****
  • Posts: 932
  • Location: Yellowknife NWT
Re: Early Retirement vs Serial Mini Retirements
« Reply #132 on: March 14, 2017, 08:31:42 PM »
I just booked my living arrangements for a 12 week sabbatical in Mexico December to March 2016-2017. I'll tell you all if it was too short in March. :)

DW and I and our cat took off to Mexico last fall in our SUV with a rooftop tent, and just came back to Canada a few weeks ago. It took us two months of slow travel to explore the national parks, forests, and other natural wonders of the US Southwest where we mostly camped on public lands, before crossing to Mexico where we spent almost four months. It was awesome. Technically I was still working and getting paid part time so financially there was no impact whatsoever on our stash so I will continue this arrangement for as long as I can. We are leaving again for Mexico at the end of the summer, this time for a bit longer, coming back in May 2018. Our original plan was to drive the Americas from northern Canada to Patagonia but after crisscrossing the western and central part of Mexico, we want to spend at least another year or longer to check out the rest of Mexico on the western side including Yucatan.

Hopefully we'll meet on the road! Cheers, Phil
No matter where you go, there you are...

Use my orange key when you open any account with Tangerine.ca and we will both get money: 20950261S1

gerardc

  • Stubble
  • **
  • Posts: 206
  • Age: 33
  • Location: SF bay area
Re: Early Retirement vs Serial Mini Retirements
« Reply #133 on: March 20, 2017, 01:18:32 AM »
A lot of people on this forum are not really FIRing anyway. They are so risk averse. They hide behind a 500k-1m barebones stash that covers their expenses at 4%, but then they just take a few months off and keep earning. Lol.

That's actually a good strategy. Don't touch your baseline stash and let it grow until you're 65, at which point it is more like 2-4m inflation adjusted, and serves as your real retirement nest egg. Until then, sit back, act "irresponsible" like everyone else and earn the bare minimum to survive, with plenty of time off and vacations.


Serial Mini Retirements are a great way to explore other talents/interests while not fully letting go of the career that 'pays the big bucks'.  I have left my field of Finance many times to do a myriad of things: develop a software program, buy and revamp a small business, have 3 kids (longer term maternity leaves: with or without employment), earn a Masters degree in Exercise Science so I can better understand my athletic performances; worked as a strength coach, flipped houses, and just be a bum (not really).  During each of these career transgressions, I voluntarily left my employment and felt totally financially secure knowing I had sufficient cash holdings and the ability to get back into the workforce at a decent salary.  At the age of 46, I resigned my full-time and incredibly boring position to retire.  However, my employer offered me flexible half time work so I am able to volunteer at my kid's school, train for races, and open more opportunities to make a positive impact.  My boss, who clearly doesn't understand FIRE, cringed during my resignation discussion and stated "I don't want you to be in the position of not having a job".  ha ha

Many people don't understand the concept of leaving the workforce for self-imposed sabbaticals and thus it is sometimes difficult to get the rationale across to employment recruiters.  Getting back into the workforce at a similar level position and/or wage may be a challenge.  Having employment gaps on the resume and job application is sketchy to the more traditional hiring managers.  I have always had business ownership, whether it be the LLC that covers my rental property, or the S-Corp that holds my part-time business, that I put on my resume to fill in some of the time gaps. 

Another issue I had during a longer sabbatical from the technological side of the Finance industry is that skills do erode over time.  Technology moves fast and new releases of software can be challenging.  Thus, it is important to stay current with the industry and understand current events. 

If you are unsure of early retirement, pursue your desires, give yourself sufficient time and then decide whether or not to get back into the workforce. Jobs are always out there waiting.

Interesting, but those statements sound somewhat contradicting to me. Are you saying coming back to a job is a slightly bigger challenge than otherwise, but definitely doable and not a deal breaker at all?

limeandpepper

  • Magnum Stache
  • ******
  • Posts: 3347
  • Location: Anywhere/Perth.
Re: Early Retirement vs Serial Mini Retirements
« Reply #134 on: March 20, 2017, 09:12:48 AM »
Got my third mini retirement coming up this September! At least 3 months in South America - Can't wait :D

Sounds exciting! Mine is 4 months in Asia and also starts in September. I'd love to go to South America someday. Which countries are you planning to visit?

Sustainable Happiness

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: Early Retirement vs Serial Mini Retirements
« Reply #135 on: March 20, 2017, 11:18:48 AM »
I already posted my story in a similar thread, however it is even more applicable to this one in the immediate future.

I have the unique (Canadian) opportunity coming up in the Fall to take an unpaid 8-month paternity leave when our first baby is born. I fully plan on taking it and attempting in that 8-months to develop a lifestyle that is self-supporting through either various income streams or 1 that I enjoy or text the mini-retirement concept.

Currently about 30% of our expense will be covered by my part-time teaching job at ~6 hours per week, toss in some other activities and a few bucks through entrepreneurship and I may be able to cover them entirely without help from DW. That being said, she will be going back to some kind of work after her maternity leave so if I can cover it, the rest is gravy.

Luckily I'll have a fall-back to go back to my 9-5 if necessary, but I hope to not use it. Anyways, if you are Canadian and reading this, read into Maternity and Paternity leave laws yourself or call the labour department or get an official labour department pamphlet and read thoroughly. Do not rely on 'common knowledge' of the law, there is much more flexibility for both partners than most people think if 1 partner is willing to forgo an primary income entirely (which is rare, but I assume more common for mustachians). It allows for an essentially risk free sabbatical (not including employer confusion/anger at you leaving).

Classical_Liberal

  • Pencil Stache
  • ****
  • Posts: 528
  • Age: 40
Re: Early Retirement vs Serial Mini Retirements
« Reply #136 on: March 20, 2017, 06:29:05 PM »
A lot of people on this forum are not really FIRing anyway. They are so risk averse. They hide behind a 500k-1m barebones stash that covers their expenses at 4%, but then they just take a few months off and keep earning. Lol.

I do think many on the forum are rather conservative in thinking they will never want to work again once they pull the plug, particularly the younger ones. However, many (including myself) legitimately don't want or need more of an income that 500K-1m can provide for the long haul though.

Although I think there is some truth to what you've written.  My guess is, once people FIRE, take a year or two do do stuff they have been putting off, then they get a bit antsy and decide to start working again.  This time though, they just do whatever they want, on their own terms, without money as a motivator.  This leads to a much more fulfilling experience the second go-round.  This thread is more about having these realizations up front rather than a few years into FIRE.  Understanding and accepting one will likely work and earn again... eventually... means the need to be overly conservative up front is not required.

I already posted my story in a similar thread, however it is even more applicable to this one in the immediate future.

So good to see you over here too!