Author Topic: 2 Poor 2 Retire  (Read 5640 times)

2poor2retire

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2 Poor 2 Retire
« on: August 25, 2014, 03:54:20 PM »

Anyone ever retire before they had enough savings to comfortably do so? I'm at the point that where I'd be happy to severely downsize and change my lifestyle to be able to retire. I'm not to the point of "living in a van down by the river" but sharing a trailer with my wife and a roommate that could pay some rent? Maybe. Unfortunately my wife and I are not on the same page. She would like to retire but sees working as a lesser of 2 evils.

We are both in our early 50's and do have some savings and a pension but to be able to make ends meet for our early retirement it would require withdrawing principle down to zero until SS kicks in. Scary thought but not as depressing as working until 65 or 70 (for me anyway).  SS combined with a 11-12K pension per year doesn't pay much but it looks like many of you are living on less (despite having substantial savings) and living happy and comfortable lives.

Alternatively, I'd like to separate our finances, live super frugally and save my ass off for a year or 2 and use that for my retirement (with some part time income) while paying my half of the bills. However, separating finances would be complicated and my wife has an emotional response to finances that would probably make it awkward.

I may do a detailed case study in the future but not at this time.

Cheddar Stacker

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Re: 2 Poor 2 Retire
« Reply #1 on: August 25, 2014, 07:22:17 PM »
You likely haven't received any responses because:

1) we like details
2) your name is too complainypants
3) you didn't really ask a question except the opening sentence but it was just too vague
4) none of us can advise you whether you should separate finances with your wife. However, it sounds like you two need to find some common goals.

I'll answer your question with no, I'm still a working stiff and I wouldn't retire until I was either financially ready or had a business that had a chance at supporting my needs.

RichMoose

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Re: 2 Poor 2 Retire
« Reply #2 on: August 25, 2014, 08:23:31 PM »
You likely haven't received any responses because:

1) we like details
2) your name is too complainypants
3) you didn't really ask a question except the opening sentence but it was just too vague
4) none of us can advise you whether you should separate finances with your wife. However, it sounds like you two need to find some common goals.

I'll answer your question with no, I'm still a working stiff and I wouldn't retire until I was either financially ready or had a business that had a chance at supporting my needs.

Amen!

bogart

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Re: 2 Poor 2 Retire
« Reply #3 on: August 25, 2014, 08:32:00 PM »

Anyone ever retire before they had enough savings to comfortably do so?


I haven't.


it looks like many of you are living on less (despite having substantial savings) and living happy and comfortable lives.


An important consideration omitted from many of the conversations about how little one can live well on is that it is easier and safer to live cheaply with substantial savings than without.  For example, a high deductible insurance plan is a sane (and cost effective) option if one has the deductible amount in savings, and not otherwise. 

No way would I, personally, do what you are considering. 

Sdsailing

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Re: 2 Poor 2 Retire
« Reply #4 on: August 25, 2014, 08:47:45 PM »

Why not focus on finding a job that you enjoy?

James

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Re: 2 Poor 2 Retire
« Reply #5 on: August 25, 2014, 08:56:51 PM »

Anyone ever retire before they had enough savings to comfortably do so? I'm at the point that where I'd be happy to severely downsize and change my lifestyle to be able to retire. I'm not to the point of "living in a van down by the river" but sharing a trailer with my wife and a roommate that could pay some rent? Maybe. Unfortunately my wife and I are not on the same page. She would like to retire but sees working as a lesser of 2 evils.

We are both in our early 50's and do have some savings and a pension but to be able to make ends meet for our early retirement it would require withdrawing principle down to zero until SS kicks in. Scary thought but not as depressing as working until 65 or 70 (for me anyway).  SS combined with a 11-12K pension per year doesn't pay much but it looks like many of you are living on less (despite having substantial savings) and living happy and comfortable lives.

Alternatively, I'd like to separate our finances, live super frugally and save my ass off for a year or 2 and use that for my retirement (with some part time income) while paying my half of the bills. However, separating finances would be complicated and my wife has an emotional response to finances that would probably make it awkward.

I may do a detailed case study in the future but not at this time.

Sorry, but sharing a trailer with a wife and a roommate is pretty dang cheap. Can't blame your wife for not thinking that's a great idea...

You have some savings, great! You have some fat to trim from your budget, great! Start trimming fat from your own spending and see where that gets you. Like others have said, start looking for a job that can cover the expenses (at the lower rate as you spend less, but spend less first), and work someplace you can tolerate but still pay the bills.

But getting on the same page, or at least getting your wife to think positively about your page, is key to your marriage. I would talk about how awesome it would be to spend less and enjoy life more, rather than about how much you hate work and want to retire.

Good luck!

sheepstache

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Re: 2 Poor 2 Retire
« Reply #6 on: August 25, 2014, 08:59:46 PM »
Sounds like you should "severely downsize and change [your] lifestyle" anyway.  If money is tight and you'd be happy--which it sounds like you would be if you'd consider retiring at that level--why not?

You'd be stashing extra for however long it took you to sort out the other issues.  Plus getting a trial run of whether you could actually stand it. 

sdp

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Re: 2 Poor 2 Retire
« Reply #7 on: August 25, 2014, 10:31:34 PM »
I have 'retired' even though we are not financially independent yet.  I quit my 70K/yr job and now make about 18 to 20K per year working about a 1000 hours per year in a job closely tied to my hobbies.  we have reduced our income at the expense of delaying FI by a decade or so, but we have also minimized our expenses and have way more free time.  I am way happier than I used to be even though Fi has been delayed, I feel that our 'retirement' has already started.  I still sock away savings and our net worth is still going up even with the reduced income, even though I need the income for my job to cover expenses, I can work less and less every year, and even now I work more than I have to- I do it because it is fun and I like it.  What does retirement really mean to you?

Dicey

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Re: 2 Poor 2 Retire
« Reply #8 on: August 26, 2014, 12:23:58 AM »
First, everything that CheddarStacker said, esp. #2, and then this:

An important consideration omitted from many of the conversations about how little one can live well on is that it is easier and safer to live cheaply with substantial savings than without.  For example, a high deductible insurance plan is a sane (and cost effective) option if one has the deductible amount in savings, and not otherwise. 

No way would I, personally, do what you are considering.

Yes, I was tempted to quit, a thousand times, or more. I kept slogging until I finally had enough. Now I'm retired with no money worries (and no weird roommate situation). It was absolutely worth the wait.

C. K.

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Re: 2 Poor 2 Retire
« Reply #9 on: August 26, 2014, 05:18:49 AM »

Why not focus on finding a job that you enjoy?
I agree.