Author Topic: A different coast perspective?  (Read 1411 times)

mistymoney

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A different coast perspective?
« on: December 07, 2019, 08:45:35 AM »
I was chatting about company 401k and retirement savings in general/vague way with a coworker this week. You know - when you want to talk about it without mentioning any numbers?

She mentioned that when she hits 55 next year (and can withdraw from company's 401k without penalty) that she is going to "stop saving and start living". She has been with company over 10 years, so I assume the 401k is relatively stocked but of course didn't ask for specifics! She felt that with this safety net now accessible, she didn't need to worry about unemployment. She mentioned that she will keep saving "minimally to get the company match" so there's that! She will be using non-retirement savings for a big trip in 2020, and then direct savings each paycheck to her travel savings throughout 2020 for a 2021 trip.

Her plans include splurging on lots of travel, particularly international, and "getting that latte whenever the hell I want one" etc. Then if let go or forced to retire due to health or just decides to pull the plug herself, she will cut back and won't feel deprived because she splurged for a few years. She is hoping to do this for a minimum of 5 years and is planning a series of 5 , international trips, each for 3 weeks, to see the world.

Wondered what you all might think about this as a strategy?

MoneyQuirk

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Re: A different coast perspective?
« Reply #1 on: December 07, 2019, 01:53:37 PM »
I think the whole point of financial independence is to maximize your quality of life.

As you get older, it starts to become more appropriate to "splurge" because
1) You probably already have a large nest egg
2) There's fewer years you should be saving for

I think the important thing to remember is that you shouldn't be depriving yourself.

marty998

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Re: A different coast perspective?
« Reply #2 on: December 07, 2019, 02:17:26 PM »
Does your co-worker have children? They may be "all grown up" now and so your colleague has a bit more disposable income too.

Personally I don't see the point in waiting until retirement and when you are old and decrepit to go travelling and "live-life". You are much more healthy and mobile at 55 than at 85.

honeybbq

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Re: A different coast perspective?
« Reply #3 on: December 09, 2019, 11:55:21 AM »
I was chatting about company 401k and retirement savings in general/vague way with a coworker this week. You know - when you want to talk about it without mentioning any numbers?

She mentioned that when she hits 55 next year (and can withdraw from company's 401k without penalty) that she is going to "stop saving and start living". She has been with company over 10 years, so I assume the 401k is relatively stocked but of course didn't ask for specifics! She felt that with this safety net now accessible, she didn't need to worry about unemployment. She mentioned that she will keep saving "minimally to get the company match" so there's that! She will be using non-retirement savings for a big trip in 2020, and then direct savings each paycheck to her travel savings throughout 2020 for a 2021 trip.

Her plans include splurging on lots of travel, particularly international, and "getting that latte whenever the hell I want one" etc. Then if let go or forced to retire due to health or just decides to pull the plug herself, she will cut back and won't feel deprived because she splurged for a few years. She is hoping to do this for a minimum of 5 years and is planning a series of 5 , international trips, each for 3 weeks, to see the world.

Wondered what you all might think about this as a strategy?

I mean, isn't that the point of Financial Independence? The FIRE movement can be 2 parts- having the money, and retiring early. Maybe she enjoys her work, or wants to keep her current health insurance. I consider myself FI'd but not RE. I will RE but not for some time due to a) enjoying my work b) being extremely conservative with retirement numbers and c) wanting to be a role model while my child is younger.

So it's complex in my mind. If she has the money and she's choosing lattes and international travel, so what?

DadJokes

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Re: A different coast perspective?
« Reply #4 on: December 09, 2019, 12:15:40 PM »
That sounds pretty awesome for her. It's nice that she's saved enough that she can actually enjoy life after working, whereas most people will be working until 65 or later.

If I were FI and planned to continue making a steady income, I'd definitely boost my spending a bit.

August26th

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Re: A different coast perspective?
« Reply #5 on: December 09, 2019, 01:03:00 PM »
I might be in the minority, but I think itís fantastic.

She sounds like she has calculated everything, and is in a great financial position overall. Of course we have no way of knowing that for sure, but from everything Iíve read, she should post in the Badassity forum and go enjoy her life.

Buffaloski Boris

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Re: A different coast perspective?
« Reply #6 on: December 10, 2019, 01:34:37 PM »
We donít know the specifics of course, but itís apparent that the co-worker understands financevon some level and wants to use savings to enjoy life.

Sounds like a good plan to me. Saving for the sake of saving is kinda odd in my view. Whatís the point?

TVRodriguez

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Re: A different coast perspective?
« Reply #7 on: December 10, 2019, 01:44:48 PM »
I might be in the minority, but I think itís fantastic.

She sounds like she has calculated everything, and is in a great financial position overall. Of course we have no way of knowing that for sure, but from everything Iíve read, she should post in the Badassity forum and go enjoy her life.

+1.  Sounds awesome.

dodojojo

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Re: A different coast perspective?
« Reply #8 on: December 10, 2019, 02:15:43 PM »
I'm considering variations of coast FI.  Largely because I won't be able to retire until my mid-late 50's anyway so substantial RE isn't that shiny object anymore.

So there's investing and saving as much as possible and getting out at 56.  There's investing until I'm lean FI and then letting time do its thing while I work at a job I like/work less and/or spend more and retire at 59-60.  Or stop investing another dollar and let the stache grow until I FI at 63/64 and ditch current job for one that takes care of my spending--whether at a belt-tightening level or have fun, fun, fun.

use2betrix

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Re: A different coast perspective?
« Reply #9 on: December 10, 2019, 05:42:57 PM »
Sounds like sheís really thought about this for a long time and is really happy with her decision and the future. That is really great for her.

People have different goals in life. I have countless coworkers who I would assume have every intention on working until theyíre 65. Some people also enjoy their work much more than others.