Author Topic: My main goal for ER is to hedge this worst case scenario..  (Read 5096 times)

blackomen

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My main goal for ER is to hedge this worst case scenario..
« on: October 14, 2014, 09:21:19 AM »
http://www.cnbc.com/id/102082203

I mostly see ER as a hedge against becoming an unemployable old person..  we often hear stories of people in their 50s and 60s who lost their jobs in the recession, have meager retirement savings, and have fought nose to the grindstone to get back into the workforce to no avail.  I don't see myself ending work unless I become unemployable..  I'd work in my 80s if I still enjoyed it even if I were sitting on tens of millions in assets.. but I'd like to have the option to not have to work as early as possible in life.

jka468

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #1 on: October 14, 2014, 10:07:23 AM »
http://www.cnbc.com/id/102082203

I mostly see ER as a hedge against becoming an unemployable old person..  we often hear stories of people in their 50s and 60s who lost their jobs in the recession, have meager retirement savings, and have fought nose to the grindstone to get back into the workforce to no avail.  I don't see myself ending work unless I become unemployable..  I'd work in my 80s if I still enjoyed it even if I were sitting on tens of millions in assets.. but I'd like to have the option to not have to work as early as possible in life.

CNBC is constantly peddling this click-bait propaganda to scare the masses back on the hamster wheel and to make sure they are eternally grateful for their corporate job so that the market can keep going UP UP UP! Seriously though, look at the real numbers from the Bureau of Labor Statistics...even during the worst part of the recession, college educated 45+yos had something like a 3-4% unemployment rate.

They also purposefully seek out the most sad-sack individuals for these pieces who made one terrible decision after another, all in an effort to push the CNBC agenda. Like the first guy...$150,000 in student loans and a masters in entrepreneurship? C'mon, what is THAT?? It's not the job market that ruined this guy, it's his horribly flawed idea that you need to pay $150,000 to get a piece of paper that says you're an entrepreneur, when real entrepreneurs would have actually used that kind of money to start any of a thousand businesses. I'd give 10-1 odds that the author of this article was laughing his butt off while writing about this guy, and then laughing even harder when he thought about all the people who would eat this story up, hook, line and sinker. The author also knew that tons of "technical and smart" people would lay into this entrepreneur guy after reading about his story (like I just did), and feel superior all the while, rather than think about how bad the system in place must be if someone told this guy his $150,000 degree was a good idea. The author and CNBC can't lose!

There were jobs to be had for these people with education and experience, and they certainly were not "unemployable". Yes, maybe they weren't dream jobs, or there was slightly lower pay/benefits, but "unemployable" is a far far stretch from the truth. Don't fall for the CNBC gimmick.
« Last Edit: October 14, 2014, 10:27:28 AM by jka468 »

RyanAtTanagra

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #2 on: October 14, 2014, 10:52:58 AM »
I agree with everything jka468 said, but I understand the concern and it's starting to be a growing driving force behind my desire to become FI as well.  When I started it wasn't a factor at all, but as someone working in IT that is sick of it, I can see myself becoming the old IT guy that doesn't keep up on new technologies and all I can do is run punchcard mainframes in a 40 degree (F) room while the new kids run circles around me.  I want out before that happens.

PloddingInsight

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #3 on: October 14, 2014, 11:03:05 AM »
I worry about the same thing -- the more I save, the less it matters if I have to downgrade to a different career that is less lucrative.  I'm very blessed right now with a great job, and I try my best not to take it for granted.

oinkette

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #4 on: October 14, 2014, 01:06:13 PM »
My job recently had "retirement packages" for people of a certain age (read: certain income and health issues that were costing us literally millions in health insurance). A lot of people weren't ready but read between the lines about being encouraged to take the deal.  The happiest ones were those who had been preparing for a while and gladly jumped at the opportunity. 

That's where I want to be the next time around. I want to be in a position where I don't have to think or worry about free money being shoved down my throat...lol. Just take it and run!

pachnik

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #5 on: October 14, 2014, 09:48:51 PM »
Yes, this is one of the reasons why I am here.  I am middle aged and hope to retire by about 55 or 56 - so not exactly early retirement.  I also plan on working part-time from then until about 60.   I've had a few friends have to retire early due to health problems - quite serious ones.  If this happens to me, I would like to be ready financially.   

 It just doesn't make sense to waste money the way I used to, especially when I know there is a better way. 

arebelspy

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #6 on: October 15, 2014, 06:41:31 PM »
From the article:
Quote
"I've had to seriously downgrade my living situation," said Alex Gomez, a 42-year-old with a master's degree in entrepreneurship. Gomez lost his last full-time job in 2009 and has been looking for work since a short-term contract position ended in 2012.

(Emphasis added.)

Wait, what the fuck?

Shouldn't an entrepreneur be creating a job for himself?

We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Beric01

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #7 on: October 15, 2014, 07:16:39 PM »
Shouldn't an entrepreneur be creating a job for himself?

I fully agree. My business school actually offered a degree in entrepreneurship, and yet most of the people who took it went on to normal (better described as sub-par) jobs working for someone else. I can't understand why you would want to major in a field where the most successful people dropped out of college.

Most of these people who I talked to were hoping to strike it rich. I am going to bet that 1/100, if that, will. Entrepreneurship isn't something you learn in school, it's something you do.

Mr. Frugalwoods

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #8 on: October 15, 2014, 07:49:23 PM »
A variation on this theme is somewhat behind my thinking as well.

I manage a team of software engineers.  We're all ages, but my colleagues at other companies frequently speak about older developers as "over the hill."  Not as much respect for the old grey beards as there used to be.  Darned whippersnappers!

For real though.  I get the impression that the older I get, the more hurdles I would need to overcome to get the same job.  Maybe that will change as the overall population of developers ages... but maybe not.  In any case, I plan on not needing to impress any hiring manager.

steveo

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #9 on: October 15, 2014, 09:24:54 PM »
I worry about the same thing -- the more I save, the less it matters if I have to downgrade to a different career that is less lucrative.  I'm very blessed right now with a great job, and I try my best not to take it for granted.

I feel pretty much the same way. If I keep saving and I lose my job or it suddenly becomes crappy I will be in a good spot. I really want to become FI just to take that weight off.

I will probably work for a while after that point especially if I keep the same job I have now. I enjoy my job.

Grateful Stache

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Re: My main goal for ER is to hedge this worst case scenario..
« Reply #10 on: October 15, 2014, 09:29:55 PM »
I agree with your thread title, but I'm not necessarily shooting for early retirement, just financial independence. It's always best to err on the side of caution, and we are saving like banshees. If banshees saved for retirement.

P.S. I'm listening to some killer old Van Morrison right now. Hope everyone is happy and healthy!

- Grateful