I work with a mostly aging population. My clients are around my age up to ninety plus years old, mostly though they are in their seventies and eighties. They laugh at me when I talk about early retirement and quite honestly it kind of frustrates me. I know they mean well and I realize I am outside of the box.
I've been a follower of the FIRE movement for sometime, well actually all the way back in the mid 90's when the book "Your Money or Your Life" came out. I've always had a plan but mostly it was scaling back and living smaller. I've changed some as I've gotten older. Here is what I have done and my plan laid out for you with some numbers.
In 2011 I met my now husband. Together we barely made over $30,000 at the time we met. We were both freshly divorced and we both had started new jobs. I was building my business and he was doing odd jobs & working part time and trying to get a business off the ground. Well we worked and worked and now we have a six figure income, it is low six figures and we just reached that in 2018.
What we are doing now. When we married last January 2018 I quit teaching nights. I was sick about it as this meant giving up about $300 a month. I had paid off all my debt except my mortgage and my car. I made a plan to pay off my car and sell my house and save $60,000. I did all of that (to see how follow me on You Tube, it's from being frugal and working hard) but the $60,000. I ended up helping my kids quite a bit and saved $53000, but eventually I made it to $60,000. I took $20,000 out to build a tiny cabin for my son which will be a rental at some point when he moves out and on.
Our plan for the next two to three years:
We are living on about $50,000 a year with the mortgage payment. We are putting another $50,000 towards the mortgage and will max out our IRA's this year at $13,000. Jim will be 63 or 64 when the house is paid off I will be 51 to 53.
That 4th year:
We will build another cabin and max out a 401k and an IRA with the Extra money. In the meantime if business is busier we will go ahead & try to build two more tiny cabins with cash. It's a matter of how busy we are. If all goes as planned the IRA's will be maxed out while we pay off the mortgage, build two more rentals, and eventually sock a large portion of money in 401K's.
At 65 Cowboy (my nickname for my husband) will retire from police work and do our roofing business part time and only take jobs he wants to take.
I will go to 4 days a week working at 53.
Years 5 to 9:
JR 67 to 70, CR 54 to 57, we will sock away as much as we can in a 401k for both of us and continue to save in IRA's. You can do about $26000 per person and this shelters your money from income tax.
Jim will stop working the roofing business between 67 and 70 ,and we will live on his Social Security, his retirement and my work money. I will continue to try to put money in a 401 K and retirement. At 59.5 for myself I will have the option of taking 4% if I need it. I will stay at 2 or 3 days a week at this point. If I feel I need to retire I should be able to. The only thing that will be a challenge will be my health insurance.
With rent money, Jim's retirement we should be making somewhere around $48,000 a year. If I keep working part time that should put us up towards $70,000.
For all intents and purposes if we are frugal and have no debt we could fully retire in 4 years at 65 and 52 and live on the rent money, part time roofing and Jim's retirement but I want to keep investing at least until I am 59.5 if not longer.
However, all of this aside I would like to say I've been thinking about what I want to do when I retire and here is my list. I'm trying to do more of this now & make more time for it now as much as possible. I realize that part of my problem is disciplining myself to make the time and now waste it. Right now I work five days a week and I am commuting for many hours, however my all in time away from home is about 32 hours a week. Other things can be done if I get more disciplined. For me, I simply need to think about what really matters and make time for it.
3. Dock sit
4. Porch sit
5. Visit loved one's
7. Watch Movies
8. Participate in books and civic events I care about
9. Organize my space
10. Cook more homemade meals
I hope these numbers help. Even when I was making about $30,000 a year I saved and did not take out debt. My frugal habits have not changed at our income has gone up and we continue to live on as little as possible.
I was born into frugality, simple living and I love it. It is fun for me, challenging and gratifying to feel that I can care for myself and my family because of my resourcefulness. For most of my life I've been on the simple living path. Here I share with you tips, ideas and musings from my life in hopes that it will encourage you.