One of my team members gave me notice

[arbarnhart]

This is sort of off topic, because the guy in question isn't a boater, but it's another story I thought I would pass on for some in similar situations...

A guy who works for me is single and in his mid 40s. He had a plan to retire in his 50s and was saving toward that goal. Recently his sister married a guy who is well off, and my coworker has spent a fair amount of time with them. His new brother in law challenged his plan, pointing out that for the kind of life my coworker enjoys (he vacations in exotic locales, but likes to live among the people and one benefit of that is low cost of living) he is pretty much set right now. His BIL told him if he really was going to do it, he would do it now, otherwise he was just blowing smoke - having fantasies he would likely never fulfill. My coworker thought long and hard and decided his BIL was right. Yesterday he gave me notice. I sort of saw it coming; the house was sold a couple of months ago along with most of his possessions and he has been in a short term furnished rental.

My guess is a few people reading the cruising group are in similar circumstances to my coworker. Maybe you just need a little kick...





PS - I think my wife lost sleep over it when I told her. She thinks I am ready to bail out, but the kids are too young and rooted right now. It will probably be close to 10 years before I can make that choice without affecting others too much. I am not encouraging people with dependents to abandon them!

[SailorMitch]

Along these same lines, an article in the Wash. Post yesterday about some financial planners overstating how much people need for retirement. People need to educate themselves and do their own analysis of their situation, etc.

[Giulietta]

for a moment I thought you got fired....and the animation helped....

[arbarnhart]

You mean for spending too much time on SailNet? Maybe I better get back to work...

[zz4gta]

lol, you mind me asking what he did to retire in his 40's? I've accepted the fact that working until I die is inevitable.

[Pamlicotraveler]

Originally Posted by zz4gta

lol, you mind me asking what he did to retire in his 40's? I've accepted the fact that working until I die is inevitable.

He answered that email from the Nigerian widow and got rich!
Most of us are just too cynical.

The letter read--->>>DUE TO THIS SITUATION WE DECIDED TO CHANGED MOST OF MY HUSBAND'S BILLIONS OF DOLLARS DEPOSITED IN SWISS BANK AND OTHER COUNTRIES INTO OTHER FORMS OF MONEY CODED FOR SAFE PURPOSE ...I HAVE DEPOSITED THE SUM OF EIHGTEEN MLLION UNITED STATE DOLLARS(US$18,000,000,00.),,,WHAT I WANT YOU TO DO IS TO INDICATE YOUR INTEREST THAT YOU WILL ASSIST US BY RECEIVING THE MONEY ON OUR BEHALF<<<

[arbarnhart]

We are software developers, which pays decent money. But he specifically lived below his means for a while; lived in a starter home in an older neighborhood that needed to some work, which he did. He is single; no dependents - and he saved and invested all that he could. He took vacations, but as I mentioned earlier, he really didn't spend all that much. Then a little over 2 years ago when rates were at rock bottom, he stepped up to a much bigger new place in a new neighborhood right at the fringe of growth. He bought early when they offer the best deals to get some of the houses occupied. He did a good job landscaping and after 2 years (significant for tax reasons) with the neighborhood thriving and desirable he sold for a significant profit (the downturn really hasn't hit here yet). He did it the old fashioned boring way. He has missed out on having a wife and family (he said it just never happened; it wasn't part of the plan but just worked out that way). I am not sure he is truly retiring and neither is he. Part of the thinking is that after a year or two he will know if he needs to worry about creating some income and he will be using real numbers.

I think that last bit is what really changed in his thinking. Many financial planners seem to think the way to gauge success is if you die with money. He decided he wanted to live wth some of it first.

[byrondv]

Originally Posted by arbarnhart

Many financial planners seem to think the way to gauge success is if you die with money. He decided he wanted to live wth some of it first.

Great way to put it.

[kd3pc]

Were it not for the cost of health insurance, this 50+ sailor would follow. It is easy to do, even with a wife and a kid in college, if you model after this young man's plan. Live below your means, save, work hard as a student so you get good scholarships.

I had a good UNIX training gig going several times a year that would more than pay the boat bills, but that $1250 a month for health insurance pushed me back to full time employment.

More power to the young man for being able and to actually do it.

Fire your planner, and save yourself 7-10% on your money yearly...

dave

[FrankLanger]

Part of the challenge for those of us considering early retirement (in our mid-fifties) is the need to plan ahead reasonably for a lifetime that could last to 85 or 90. Making assumptions about inflation, interest rates, potential stock market gains, and the cost of a retirement lifestyle is not easy.

In our case, our four kids have all left home and while not fully established, are doing fairly well. We still see the need to be prepared for periodic financial support to help out in an unforeseen crisis, or for weddings and other events to come.

While I will have a decent pension from my job, my wife has been self-employed and will have no retirement income other than Canada Pension (about $5,000 when she turns 60 in 8 years) and Old Age Security (another $5,000 at age 65). We have been saving/investing for the last ten years, and when we downsize our house, that will add to our retirement fund.

After drafting many budgets and revising the spreadsheets, I'm reasonably confident that we can retire next summer with a modest but comfortable lifestyle--sailing our 30 foot sailboat, living in a condo on Vancouver Island, and periodic international travel.

But I continue to be tempted to work just a few months longer to increase the pension "just in case", and have that nagging concern that my assumptions may not be quite accurate over the many years ahead and we may be left short. My wife reassures me that we can always cut back a bit on the budget or earn some extra money--and I agree on good days when the boat beckons.

But I must say, it's one of the toughest decisions I've faced in a long time. I guess we'll figure it out....or just take the plunge when we decide the timing is right.

Frank.