How to master your early retirement lifestyle: Part 2

11 thoughts on “How to master your early retirement lifestyle: Part 2”

  1. I think being conservative and living off a 3.5% SWR for at least a few years is a great idea. Flexibility is key, and you’ll be able to adjust as time progresses. How is the RV search going?

    1. Thanks Fervent! The RV search is going well, although there is only so much we can do this far out. We’ve narrowed down what we want – around 30′, probably no more than 10 years old. We have upped our budget a bit so we can buy a newer unit without having to do a lot of reno.

      Now, just gotta wait for about this time next year, then we’ll be hopefully preparing to make a purchase. 🙂

  2. I like the 3% to 4% approach as well to be conservative with the nest egg. Dianne and I now thinking about those two numbers; the first for the normal/ideal lifestyle and the second thought of a downsized life.

    Your option two statement struck a nerve with us: “If you absolutely hate your job and will do almost anything to retire early, this is the train of thought that will probably work better for you.” We have been in a funk the last couple of weeks with our jobs and wondering if we should exit now.

    Your article will be a hotly discussed item tonight!

    1. Hey Bryan! Yeah, we think the 3 to 4% range is a pretty good conservative estimate going forward, but we are always willing to adjust if and when that time ever comes to do so.

      And I definitely feel your pain regarding the job and toying with the idea of just pulling the plug. That’s definitely a tough decision, but I feel like almost anyone can make it work if they feel strong enough about it.

      Glad to hear that the article will spark some conversation. 🙂

  3. We’re definitely in the 3.5% camp, too. Have you guys thought about the Obamacare limits as a guide for your income targets? We are definitely looking at those, and figuring out how much we can “earn” in capital gains after accounting for our rental income, and still stay under the limits. It’s definitely reverse engineering our retirement budgets, but it’s for good reason, since we don’t want to overspend on health care? (Noticing a trend on the comments? Clearly we have this on the brain!)

    1. Ha! Yup, we have definitely looked at those, and the more that I read about this stuff, the more critical it seems to reduce income as much as possible to stay under the limit. We won’t have rental income, so that’ll help a bit in that regard, and we will probably utilize the roth conversion ladder strategy to bring over just enough of our saved 401k pre-tax nest egg so it can be used up without pushing ourselves over the taxation limit.

      I swear this is an art as much as it is a science. 🙂

  4. Which one you will going to choose? How much do I want to spend post-retirement? or
    How much can I spend post-retirement? Early retirement lifestyle should plan as early as possible. Thanks for your insight.

  5. Love this way of thinking about it. I live in Australia and am very jealous we don’t have a Roth Conversion Ladder (but we do have other good stuff like essentially free healthcare). I’ve thought that I would stick with a minimum % and then depending on the return I get each year, I’d then feel comfortable bumping it up it up to spend on non-essentials (mainly travel). So essentially I’d be trying to match spending in retirement to returns in the same time period as a way of reducing risk. Any flaws you can point out for me with this approach? Thanks, love your blogs.

    1. You mean a traditional 401k into an IRA? Umm…that sounds too good to be true, but I’d definitely ask that question to a qualified financial planner. I don’t feel qualified to answer that question! 🙂

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