but it might be worth doing that for the first year or 2. Thoughts?Why quit after a year or two with the "fun" option? You can keep doing that indefinitely if you're willing to work indefinitely. Can't say it's a crazy idea though because isn't that what the non-eustachian people do??
Why quit after a year or two with the "fun" option? You can keep doing that indefinitely if you're willing to work indefinitely. Can't say it's a crazy idea though because isn't that what the non-eustachian people do??
but it might be worth doing that for the first year or 2. Thoughts?Why quit after a year or two with the "fun" option? You can keep doing that indefinitely if you're willing to work indefinitely. Can't say it's a crazy idea though because isn't that what the non-eustachian people do??
The problem with doing it is that your frugality muscles get flabby.
It might be harder to wean yourself off the expensive lifestyle.
So basically you're saying that once you get close to or hit FI, you have the freedom to ER or not. Maybe OMY for a while. Maybe SWAMI (a term I really don't like, but don't have a ready replacement). But basically, many FI folks are already at this 'not quite ready to fully retire' point and don't fully realize (as in, take advantage of) the fact. They'll just have more money and options later in life, not really a reason to suddenly have a midlife crisis / go on a bender though, although that's an option too.
So, congrats if you're there and are thinking through these 'tough questions' :)
I'm kind of at the crossroad you describe. My original plan was to retire when I'm eligible in 2021, but more recently I've been considering sticking it out until 2024 because it would be much easier to get to my 401K because I'd be 55. So instead of having to setup ROTH ladders and 72t SEPP, I'd simply be able to start withdrawing from my 401K directly. In order to make those years more bearable I've been thinking about vacationing more now. I may also do some renovations on my house too instead of really cranking on the investments/saving.
I'm pretty sure if I was able to save $3000 a week, I would stay there quite a while. As long as I'm not like murdering puppies, it couldn't be so bad. I would spend on the weekend on hobbies like working on cars or competitive shooting. I think I could stick out terrible a while if I had weekend distractors.Well, the thing is, if you managed to land yourself a job that allowed you to save $3000/week, you would not have all your weekends free to spend on hobbies. Assuming you're an American citizen, and even assuming Mustachian spending levels, I can tell you from personal experience that this savings rate would require you to earn on the order of $200,000-$300,000/year gross, depending somewhat on factors like your location, local tax rates, pre-tax savings options, employer retirement account match, marital status, number of dependents, and other "fun surprise" caveats like possibly being hit with AMT. Companies can also do things like require you to work for a certain number of years before certain benefits (such as stock options) will vest; if you leave sooner, you lose them. But regardless of those other factors, the fact remains that no one is going to pay you a quarter million dollars per year to be an uninvested, 9-5 clock punching employee. You don't reach that kind of income level without sinking quite a bit of your soul into your job. Not to mention a lot of extra time for which you do not necessarily receive additional hourly compensation.
But for me, having now done that for a couple of years already, I've decided that I'm just not willing to defer my life any more. I don't value the money more than I value my quality of life.
But consider this alternative idea: Say you can usually save $3000 a week comfortably at your high-paying job. The deal is you keep your high paying job, but you're allowed to -- guilt free -- spend everything as long as you don't touch your stash.
At the bottom of the pyramid, you have people who seek stuff at all costs. ... Slightly higher on the consumer thrills ladder is the new slogan of, “Don’t buy things, buy experiences! [...]” ... In the mainstream media, the analysis ends there. Spending on experiences is better than spending on stuff, so just spend all your money on experiences and you’re set. But there’s an even more satisfying thing you can do with money, which is rarely mentioned: not spending it. |
Yes, I do max out my 401K and HSA family. I also participate in an ESPP. I'm on a 15 year mortgage and considered refinancing back to a 30 year in order to be able to invest more in my taxable accounts, but still wondering if I should just stick it out the extra 3 years.I'm kind of at the crossroad you describe. My original plan was to retire when I'm eligible in 2021, but more recently I've been considering sticking it out until 2024 because it would be much easier to get to my 401K because I'd be 55. So instead of having to setup ROTH ladders and 72t SEPP, I'd simply be able to start withdrawing from my 401K directly. In order to make those years more bearable I've been thinking about vacationing more now. I may also do some renovations on my house too instead of really cranking on the investments/saving.
Are you currently making/saving enough to max out your 401k? If so another option is that you could try to save additional in a taxable account to cover the 3 years from 2021-2024. Or...those renovations...
... it doesn't seem to me to be even "semi" retirement--- .... I don't think it makes me a member of the Internet Retirement Police ...