Quoted from Friengineer:

Sound like you're well on your way!

To his point, I would also exercise, give up booze and smoking. Watch your weight. If you are overweight then you're fucked. Cancer, corona, flu, stroke, heart explosion, stairs. One will get you! Edit: also your penis will work better!

Quoted from phil-lee:

"A wise man leaves an inheritance for his childrens children".

Quoted from rotordave:

I think this is a common misconception...
I don’t think you need a certain amount of cash in the bank, you need a constant stream of income.
If you say “right, I got $300 grand in the bank, I’m good to go!”, you’ll soon burn though that cash in no time, if it’s not being constantly replenished.
Property provides a constant stream. Even if the stock market crashes and gold is trading at an all time low, people always need somewhere to live.
rd

Quoted from rai:

Especially *now* when stocks are at very high PE ratio and bonds are at very low interest rates. Combined these two factors and we can be expecting to gain less than historical averages. I mean the stocks have run up for 12 years now and so the 'high returns' are already backed into the pie. It's far likely that the next 12 years will net less than people have grown used to. Just think when interest rated rise the current bonds will lose value and companies won't have access to 'free money' the road is ahead you can't drive by looking in the rear view mirror.

Quoted from DBLM:

Because a lot of the FIRE methodology advocates that. It is great for teaching you frugality and to really understand the intrinsic value of things. I have bigger aspirations and dreams than what FIRE will allow me to do. I refuse to compromise my dreams and my reality to just retire early. I think a lot of people equate retirement with happiness but I have not seen that to be the case. I am fortunate to have good friends and mentors that have 8 figures of wealth and they are still pushing everyday. It keeps them excited, it gives them purpose, and it allows them to live out their dreams. Its not for everybody, but it does suit me, and serves as a guide map for behaviors that I want to model.

Quoted from rai:

bear in mind that these types of threads tend to have more people who are saving money so we might have more saved than average but here is the US savings data
According to this survey by the Transamerica Center for Retirement Studies, the median retirement savings by age in the U.S. is:
Americans in their 20s: $16,000
Americans in their 30s: $45,000
Americans in their 40s: $63,000
Americans in their 50s: $117,000
Americans in their 60s: $172,000
What’s the Average Retirement Savings by Age?
2019-2020 Federal Reserve SCF data also shows us the average retirement savings by age in the U.S.:
• Ages 18-24: $4,745.25
• Ages 25-29: $9,408.51
• Ages 30-34: $21,731.92
• Ages 35-39: $48,710.27
• Ages 40-44: $101,899.22
• Ages 45-49: $148,950.14
• Ages 50-54: $146,068.38
• Ages 55-59: $223,493.56
• Ages 60-64: $221,451.67
• Ages 65-69: $206,819.35
So someone who has just $200K (at 65) would be looking at $10K withdrawal rate @5%
Bump that up to $1M and you are talking about $50K so IMO there should be no thought of early retirement until you have 7-figures (plus) in savings.
Obviously as you get older you might bump into retirement not by choice and might have to retire with what you have but the question of EARLY RETIREMENT is not a question of having to retire but the desire to quit working early. I read a lot of retirement forums and a lot of people say they are retired but really mean retired from a high stress job and might work part-time (like at a golf range etc.) that is not the same thing as full time retired where you have no income at all except for what you have saved (plus SS and real estate and pensions etc.)

Quoted from IdahoRealtor:

Good thread!
Big decision coming up. What would you do?
A. Pay cash for next house Dave Ramsey style for less stress and debt-free lifestyle. May lead to good things like accelerated savings, more vacations, etc. Sounds nice, but not sure it's best to have most of our dough tied up in an illiquid, slowly appreciating asset. Can always tap the equity later for investing via cash out refi, but rates will be higher than present.
or
B. Put 20% down, lock in very low interest rate, and have a lot more liquid $ in the bank for investments and cushion. A bit unclear where to invest at the moment. Real Estate values inflated. Stock market frothy. Risk of impending recession. Could potentially buy multiple rentals when market cools, or something. Creating another income stream would be nice.
Age 40-ish. Family man.

Quoted from rai:

Another strategy is if you are married have one take it early (usually the lower earner) and the higher earner take it later and get locked in for the highest check and the highest survivor benefit.

Quoted from Jarbyjibbo:

Really? That's very cool. We have many second home owners out here. It's a great Phoenix adjacent place to purchase. Great value per sq. ft. for sure and it's got a nice small town vibe. We've been out here since 2003 right after the city incorporated. Our second place is up in Pine so we have someplace to get away from the heat when we need to.

Quoted from fuseholder:

Go in between hit up Prescott.

Quoted from PanzerFreak:

If you bought a house in 2006 - 2007 during the peak of that era it's likely worth more today then the original purchase price. A big issue then and now is millions of Americans buy more then what they can afford. As an example if a couple qualifies for a maximum of a $600,000 30 year mortgage many go through with it versus getting a $300,000 15 year mortgage.

Quoted from rai:

One fear is the government will lower benefits some time down the road but hopefully not if they can raise taxes a bit and/or raise the minimum retirement ages (both have been done already and can easily be done some more).

Quoted from MrBally:

For those that are retired, a 100% increase in the FICA tax is welcome as it will help benefit payments grow. If you're still working, the welcome mat to increased taxes won't be out.

Quoted from Slugmeister:

P.S. I should point out that if you have been with your employer(and in their 401k) long term the"rule of 55" allows penalty free distributions before 59 1/2.I'm 58.

Quoted from orangestorm87:

So with the all the recent stimulus, talk of inflation is picking up. Any suggestions for those concerned about the increased inflation likely to come our way soon?

Quoted from rai:

Someone said you should make sure you have hobbies to keep your time occupied. Like they said you should have 2 or 3 hobbies on steroids.
I’ve seen my parents and others who have retired who’s day consists of getting up eating 2-3 meals and sitting on the couch for 10 hours. It’s a little depressing, my parents never had any hobbies or occupations outside of work and the kids. Once both were no longer around they never did much. My dad doesn’t even watch any sports. They’re not on the internet or reading books.

Quoted from Friengineer:

Rai if there is one thing to summarize all of your posts here, it is that you'll never retire, you don't want people to ever retire early, and retirement means eating canned beans and wearing dirty undies.

Quoted from rkahr:

What wasn't in the talk and I didn't see mentioned yet in the thread was a discussion of a tax plan. Understanding your tax payouts and considering how to reduce them are a valid part of a strategy. Income taxes, sales taxes, property taxes, utility taxes, rain tax (yes, we have it here), VAT and/or whatever other hands reach into your pockets. Where you live, where you shop, what you choose to buy/own and what you do all can be looked at through a lens of tax optimization.
-Rob
-visit https://www.kahr.us to get my daughterboard that helps fix WPC pinball resets or my replacement LED display boards for model H & model S Skee Ball

Quoted from Hench4Life:

$100 a month at 5% return over 25yrs is $57k.. greater return
I understand the urge to be debt free, and the flood tax is new info for me which is awesome to know. However, calculations of how much you'd save will never beat a compounded return, at least not in this low rate environment. If you're looking at an adjustable mortgage, or investing in CDs, I get it. Otherwise it doesn't make sense

Quoted from phil-lee:

Some people have a natural affinity toward land. Owning it outright is a special feeling that only someone who experiences it can understand.

Quoted from wtatumjr:

It's like someone entered our thread, farted, then left.

Quoted from xsvtoys:

All that stuff by necessity has to be based on mass statistics. In the end we are all individuals and everyone is different. The closest best guess is probably your own. You know your health, your habits, and also the health and longevity of close relatives, your parents and grandparents being key indicators.
Heart attacks, cancer, and all that sort of bad shit, well, sometimes that’s just the luck of the draw. Probably impossible to predict in any meaningful way.

Quoted from rai:

Not Smoking probably as important as diet.
I’m a physician and see many people who don’t do regular medical checkups and screening tests or physical activity, don’t wear seat belts etc.

Quoted from Rdoyle1978:

It’s a gradual process - the proverbial frog in boiling water. It could, no question - but maybe not in our lifetimes. Another generation and “socialism” becomes “the common good” and everybody is fine with it.

Quoted from rai:

The US has never defaulted on a payment so likely there will be more money printed or higher taxes to fund SS.

Quoted from Lermods:

Yeah, but they pay in other ways, like very high VATs. Or rationed healthcare.

Quoted from arcyallen:

If the IRS ever did that, it would be an accounting train wreck and a logistical nightmare for taxpayers. I would be very shocked if that happened.

Quoted from arcyallen:

A general rule of thumb is you could retire when you have 25x expenses (the money you'll be spending from those savings) saved up. If you need to spend $40k a year from your investments, you're taking $1m.
I think this is a bit aggressive, and there are many considerations, but I think you're generally safe at 33x. Given how money grows it's not that much more time to wait for the 33x, with a lot more safety.