Author Topic: Early Early Retirement  (Read 1835 times)

granttheduck

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Early Early Retirement
« on: January 30, 2018, 03:49:57 PM »
Has anyone considered retirement before FI? I'm currently 24, spending 24-27k/year (but that includes stupid spending), and have savings in the range of 70k and a home with somewhere in the neighborhood of 30k in equity.

I know the math doesn't add up for ER for another 6 or 7 years, but if I work to the end of this year and sell the house I would realistically have a good 2-4 years of expenses saved before even having to touch what could be a 100k IRA. Assuming that estimate is correct, is it irresponsible to leave my firehose of money as a 25 year old making ~70k/year?

Murse

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Re: Early Early Retirement
« Reply #1 on: January 30, 2018, 04:08:18 PM »
Has anyone considered retirement before FI? I'm currently 24, spending 24-27k/year (but that includes stupid spending), and have savings in the range of 70k and a home with somewhere in the neighborhood of 30k in equity.

I know the math doesn't add up for ER for another 6 or 7 years, but if I work to the end of this year and sell the house I would realistically have a good 2-4 years of expenses saved before even having to touch what could be a 100k IRA. Assuming that estimate is correct, is it irresponsible to leave my firehose of money as a 25 year old making ~70k/year?

Impossible to say. You donít state your end goal.

catccc

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Re: Early Early Retirement
« Reply #2 on: January 30, 2018, 10:30:59 PM »
IDK if I'd call this retirement, this is just a break, aka funemployment.  After 2-4 years, you'll have to find an income source.

terran

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Re: Early Early Retirement
« Reply #3 on: January 30, 2018, 10:39:32 PM »
Google around for the concept of "mini retirements." Not the route I would choose to go, but it's definitely a preferable option for some.

Dicey

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Re: Early Early Retirement
« Reply #4 on: January 30, 2018, 10:43:13 PM »
Nope. You have the advantage of an early start. Sock enough away that your stache can start compounding like a motherfucker, then cut the cord. Maybe when you're really, really old, like 30.

And read this:

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

ixtap

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Re: Early Early Retirement
« Reply #5 on: January 30, 2018, 10:59:13 PM »
Not to play retirement police, but you don't actually have a long term plan. In good markets, it is fairly common for someone to work a good job for a year or two, then sabbatical for a year or two, then find a new job, wash, rinse and repeat. The problem comes when you want to return from a sabbatical when the market is down.

You also haven't addressed the fact that if you sell your house, you will have a different situation, which will impact your spending.

Could you rent out the house for enough to cover it's expenses so that equity continues to grow? How would that impact your plan?

What do you want to do when you leave your job? Travel? Play video games? Start a new career?