3 Reasons to Retire as Early as You Can

Motley Fool ^ | 03/28./2018 | Maurie Backman

[DC Packfan]

“I’ve retired early and for me the most important thing, something that these guys never seem to say is buy a house and get it paid for. Do not go into retirement with a mortgage or rent. It is almost always a persons biggest monthly expense. It’s amazing how much less income I need now that I’m not workiing“

I retired from fed civil service at 56. Best thing I ever did. Fed taxes are almost twice as mortgage for me.

[Redleg Duke]

Just make damned sure that you have a meaningful work in the form of a hobby or hobbies. If you come home, sit on your ass and watch TV, you probably won’t last more than 18 months!

I am busier now, three years into retirement, woodworking, restoring “Old Arn”, gardening and just plain having fun!

Plan for retirement. You are a worker and your body needs a fun job!

[Tolerance Sucks Rocks]

I seriously don’t care. Due to my earlier, lackluster job record, I doubt that I can retire earlier than age 70.5, when my 401(k) disbursements kick in and my SS benefits can be maximized (if that’s still around).

[bigbob]

At the risk of stating the obvious - the best reason is so you can do what you want to do in the last portion of your life. The first portion is spent learning how to do things. The middle portion is spent doing them and saving money so you don’t have to do them forever. Then comes the payoff - the freedom to spent the 24 hours in each day however you feel like spending them. The ultimate freedom!

I aim to meet or exceed my dad’s accomplishment of spending more years retired than I did working. You can always adjust your lifestyle to require less money but you can never adjust the amount of time you have left on the planet. Simple facts.

[MayflowerMadam]

In May, I’ll have been retired for 10 years, and Hubby for 5 years. Never one single regret. Never a Sunday evening when you don’t thank God that you don’t have to go to work in the morning!!

[Eric in the Ozarks]

Wife and I saved from our paychecks, bonuses and investments since the mid 70s.
We’re both retired but I still have a small tank car biz and she gets a stipend from serving on a public board.
We thought we would start drawing down on savings three or four years ago but have instead allowed our savings to compound in bonds and the like.

[dfwgator]

Imagine you're looking at a $2 million nest egg.

David: Oh, God. I guess this was my fault. That’s what I’m thinking. Maybe I just didn’t explain the nest egg well enough. If you had understood… you know, it’s a very sacred thing the nest egg, and if you’d understood the Nest Egg Principle, as we will now call it in the first of many lectures that you will have to get, because if we are to ever acquire another nest egg, we both have to understand what it means. The egg is a protector, like a god, and we sit under the nest egg… and we are protected by it. Without it? No protection! Want me to go on? It pours rain. Hey, the rain drops on the egg and falls off the side. Without the egg? Wet! It’s over. But you didn’t understand it and that’s why we’re where we are.

Linda: I understood the nest egg.

David: Oh, please. Do me a favor. Don’t use the word. You may not use that word. It’s off limits to you! Only those in this house who understand nest egg may use it! And don’t use any part of it, either. Don’t use “nest.” Don’t use “egg.” You’re out in the forest you can point, “The bird lives in a round stick.” And and and you have “things” over easy with toast!

[SoCal Pubbie]

My father worked at Douglas Aircraft for 38 years, retired at 64, and had a massive stroke nine months later. He was dead four years after that. I am 60 now. I never want to retire. Of course I can’t financially anyway, but at my funeral I’ll be banging on the casket lid yelling “Let me out, I’ve got work to do.”

[MayflowerMadam]

THANK YOU for that post. I’ve been wracking my brain for a couple weeks trying to think of the movie where “nest egg” was one of the themes. There it is!

[dfwgator]

Great movie, “Lost in America”.

[Inspectorette]

Mr. Inspectorette and I retired 13 years ago. My beloved Mr. Inspectorette suffered a hemorrhagic stroke five years ago, and remained in poor health until he passed away this past June.

I had been volunteering at our local hospital since we retired, and my fellow volunteers, as well as the staff, have been a tremendous source of support for me in my loss. I love the work, and the hospital staff love us volunteers as well. I also have my church family, and my swimming pool buddies at the local rec center. I am truly blessed.

[proxy_user]

If you are really worried, you can live in retirement only only part of your income and save cash.

I am retired, and I am only spending about 60% of my income. This gives you a huge cash cushion.

[SPI-Man]

I always said that I was going to retire at 55 and go teach. So I did. I spent the years between 55 and 62 substitute teaching middle school and high school. It was very rewarding (though not financially) and I got to “work” when I wanted too.
Now at 72 I do exactly what I want to do and really enjoy life. I worked hard, saved and invested. Now I enjoy the fruits of that labor. Life is good.

[musicman]

[goodnesswins]

My husband retired on Halloween 2017...I’ve never retired...just quit an official job in about 1991...instead, as I told a co-worker I got politically involved and am just a busy type person...plus I moved wherever the Hub was transferred, or where he went on projects. NOW, with his retirement it seems we are BUSIER than ever. BUT, it means we get to spend today, WEDNESDAY on a “Snow Day” with the grand and great grandchildren.

[Lurkinanloomin]

#2 was the reason I retired early.
If I had tried to work until official retirement, I’d have been dead.

[DugwayDuke]

“Why assume a “withdrawal rate?” What about investing the $2 million in a diversified portfolio that earns, say, 4% annually? Won’t that give you $80,000 without withdrawing any principle at all?”

Lots of articles on the 4% strategy. This strategy does assume a historical rate of return. The idea is to maximize the amount of revenue to spend in retirement and that requires spending down the portfolio. Lot’s of assumptions built into the 4%. It’s probably the most common strategy advanced by retirement planners.

The 4% strategy is based upon simulations of the expected return and upon a 90% probability of not outliving your portfolio. It’s a very conservative strategy.

[Polyxene]

My husband retired at 62, and I am SO glad he did! He died suddenly 2 years later.

[1Old Pro]

It’s a good strategy, but where do you find the 2 million lying around? No wonder Defined Benefit union plans are collapsing, multiply 2 million by the thousands on retirement in any given plan and one can easily illustrate the underfunding.

[Political Junkie Too]

Yes, the article made no mention of when the $2 million would run out, it only assumed a "conservative 2%" withdrawal rate" might not be enough. Without knowing the depletion date, one cannot tell what the expected rate of return was in addition to the 2% withdrawal.

-PJ