Post FIRE Backup plans

[PhilB]

I too seem to have ended up with oodles of layers of security, all of which go to reinforce each other. 

Firstly, we tried living on our 'what would we have if we retired now' budget well before we actually FIREd and then worked a couple of unnecessary extra years to be extra safe.  I probably should have gone earlier, but the extra helped me sleep.

Secondly we have very low fixed expenses thanks to a paid off house.  We have plenty of cheap hobbies and can be very happy living on much less than our planned budget (which included lots for travel.)  The pandemic reinforced this.

I always planned a fixed percentage withdrawal strategy to eliminate SORR.  We were happy we could survive if markets / our drawings dropped by 50% and had cash buffers to ensure that our actual spending would only have to drop by half of that for quite a few years.  One year of cash can turn 4 years of 50% slump into just a 25% drop in spending.

I agreed to keep working one day a week post FiRE, 100% wfh, for a higher rate and with paid overtime if I needed to do more than my 7 hours.  Surprisingly I'm still doing and enjoying this after 4 years of FIRE.  These earnings covered 100% of spending for the first 3 years thanks to overtime in year one and low spending due to covid in years two and three.  I plan to keep doing this as long as I enjoy it / they want me.

We have pension due between 11 and 15 years after our 2018 FIRE date that would cover our core expenses.  After not spending any of our bridging funds, we now have cash to cover the remaining gap to the pensions.  That means we'd actually survive now if our investments went to zero!

Crazy safe.

[Ladychips]

As usual, @PhilB  sparked a thought for me that is, at least tangentially, related to potential backup plans.  I think  @maizefolk was the first one to get me thinking this way.  Our fixed expenses are very low. The things I HAVE to pay (electric, water, etc) are few in number. The things we spend real money on are generally one-offs that 1) are truly wants not needs and 2) do not require on-going funding. For example building a fancy carport/party spot rather than buying a boat. So it's a winner both because we don't have to do the one-off if things don't look great and if we do the one-off, it's truly one and done. Realizing the difference among fixed, one-off and on-going really helped me get a handle on what we can/can't do and to feel confident in my stash.

[flyingaway]

Several people here listed childless situation as one benefit for FIRE. Well, one of my contingencies is to ask my children for money if we do run out of it unfortunately.

[Omy]

Several people here listed childless situation as one benefit for FIRE. Well, one of my contingencies is to ask my children for money if we do run out of it unfortunately.

Seems fair since kids are expensive. Are you your parents' contingency plan?

[Metalcat]

Several people here listed childless situation as one benefit for FIRE. Well, one of my contingencies is to ask my children for money if we do run out of it unfortunately.

That's assuming they end up with money and don't come to you for help instead.

[Villanelle]

Several people here listed childless situation as one benefit for FIRE. Well, one of my contingencies is to ask my children for money if we do run out of it unfortunately.

That's assuming they end up with money and don't come to you for help instead.

Right.  Among my parents' peers, I'd say there are far more who are still offering some financial support to their kids than there are those who are receiving support.  And dollar amounts going to kids seem to be larger than the amounts coming from kids.  So in that entirely non-scientific or representative sample, it seems that not only do kids cost a great deal to raise, they seem at least as likely to cost money in retirement years as to supply it.  And that doesn't address the money many people spend on grandkids. 

Since all plans are individual's plans, it doesn't mean that "ask the kids" isn't a viable contingency for some people.  But as a vague abstraction before you know what your adult children's financial situations (and your future relationships with them) are likely to be, it maybe isn't the best thing to have on the list. 

[bluecollarmusician]

1) Ultimately aim for a <1% withdrawal rate
2) Keep working at least 1-2 part time jobs
3) Buy enough non-perishables to last until EOL, including adult diapers and denture cleaning tablets
4) Replace spouse with younger spouse, every 10 years or so
5) Grow 100% of my own food
6) Keep a FIRE blanket and extinguisher handy, just in case I can't take the heat

@2Birds1Stone  just saw this... you got be snorting in my coffee.