"What I choose to do with my time is not driven by financial considerations." (Frantically scribbling this on an index card and taping it on the mirror)
New job came with a big jump in comp. After increasing my savings rate to 40%, I started allowing myself to let go of worrying about lifestyle creep. No new house or car, but the 7 year old computer was definitely replaced. Also planning for family vacations rather than staycations.
Most importantly, it sounds like you "paid yourself first" when you got that big bump! You've earned the ability to spend more on things that matter, including experiences that build memories with your family. Best wishes to you
We agree, Jonathan! Yes, we've both read the book. If you check out the full length episode this highlight is taken from, you'll see we talk about it a bit. ua-cam.com/video/H0WVYePTheI/v-deo.html
Wow, thanks Mike! So glad you like the clips. We're trying to put out 2-3 of them in between the full-length episodes. Some will be cut-downs, others outtakes, and then we're experimenting with things like Q&A and other short content. And very true about 2022. Not sure what it will mean for the plans of many on a FIRE path.
Thanks for confirming that board of directors don't really work as hard as the employees they underpay... But yeah I only save 30% atm. I've thought about increasing that number but I want to strive for balance and have a great life with my partner.
Great point about balance. We agree! And Boards are very different than executive teams. For established companies, the former is only occasionally engaged and is a very part time thing. Big difference from executive teams who are typically very much full time and in a good company, work plenty hard. Not saying that their pay structure is always anything like appropriate, particularly for the very largest US. corps. Different question entirely…
Great Definition of Retired. Thank you for this show. I have had to job offers one to do consulting. Great point why would i do that 20-30 hours a week. My other job offer is a Mortgage loan Originator. I had to work hard to passed the test. I am doing the MLO to see if i can prove to my nieces and nephews they don’t need college to be successful.
Great highlight from this interview. Man... I'm 36 thinking "I've gotta get out of here" 😂 But... recently hit my savings rate goal (25% vis-a-vis TMGS), so, looking forward to intentional lifestyle creep the next 10 years vs. inching-up savings percentage over the previous 10.
LOL, I guess I was unintentional FIre. I was laid off in a massive wave after 32 yrs in early 2019 @ 55.5 yrs old. Initially, I was gung-ho to get another job but was dismayed that anything that was similar would either require relocating or commuting a long distance (which I had done for 16 yrs) and the pay offered for similar positions was about what I'd made 30 yrs earlier. Thinking about the stresses, the on-call, the shift changes, and that I had no major bills, and had saved well, I decided not to pursue, especially in the same field.
@@TwoSidesOfFI It's been kind of tough for me. I've been a loner my whole life, and I just have hunkered down kind of like solitary confinement trying not to spend any money to stretch my savings. Basically, I watch UA-cam all day on a variety of subjects. I wonder how much things will change next April, I don't think I will be all "Weeeee!" and spend-spend-spend.
@@ph5915 Jason here - Very sorry to learn that, Pete. That sounds like a difficult situation to be in. Sending you my best wishes to find a new passion or interest to pursue from which you gain fulfillment. Take care
@@TwoSidesOfFI Thank you, Jason. I'm not destitute, I'm just really trying not to spend. One thing I love is that I became a private pilot 11 yrs ago and own an old Cessna 172 that I've kept. I don't fly very often these past couple of years because of the situation, and, that I'm based out of Wilmington, DE airport and Pres. Biden visits home quite often and, then, it's locked down for me. LOL. What luck. hehe.
How much in liquid assets should one accumulate before working with a financial advisor and, from your experience, how much should I expect to pay to manage said assets with a fee only advisor?
Jason here - Some advisors - particularly those working in an assets under management (AUM) model have minimum portfolio size requirements. Those who work in an hourly/project-based or otherwise advice-only model often do not have these. As to what you need, I'd suggest it's more about one's individual preference, timeline to retirement, and complexity of needs that determines timing where an advisor can be of greatest assistance. Interviewing potential advisors is an important part of the process, so you'll have an opportunity to gauge the utility of working with someone based on how those conversations go. If you're unsure of the value in working with someone. Fees vary tremendously and you'll find surveys out there that describes current trends. AUM advisors commonly charge an aggregate 1% of assets fee annually. Then there are those who work on a retainer model, and may charge a fixed fee quarterly or annually. Lastly, some charge hourly or by the project. Fees for the latter two vary substantially based on geography, complexity of service provided, etc. As an example, we have an episode coming soon where we each pay an advice-only advisor ~$1,000 as part of a fixed fee offering to review our portfolios.
While it’s true some are, many aren’t. There’s actually quite a few people retiring early on average to even more modest incomes. Managing expenses and saving is the way they get there. Stay tuned for an upcoming episode about this.
The thought is great, unfortunately my wife is the higher earner and she has no interest in retirement let alone saving! I’ll know I’m retired when I drop dead at the keyboard. 😢
Are you on a FIRE path (or used to be and have since retired)? How do you find balance in life? We'd love to hear from you in the comments.
Amen. 32 months to go and I can't wait. I love the moment but the next stage of life is calling.
Best wishes to you, Ray! You got this
"What I choose to do with my time is not driven by financial considerations." (Frantically scribbling this on an index card and taping it on the mirror)
Isn't that quote amazing? As you can tell, we loved it.
New job came with a big jump in comp. After increasing my savings rate to 40%, I started allowing myself to let go of worrying about lifestyle creep. No new house or car, but the 7 year old computer was definitely replaced. Also planning for family vacations rather than staycations.
Most importantly, it sounds like you "paid yourself first" when you got that big bump! You've earned the ability to spend more on things that matter, including experiences that build memories with your family. Best wishes to you
Fritz has a great blog. Loved his book as well. Gave it to a few friends that I know are struggling in retirement.
Very true! We're big fans of both ourselves.
I have given many books away, everyone really enjoys reading @retirementmanifesto
Great stuff from Fritz about balance and not jumping the gun. He's got a terrific book too, if you haven't read it.
We agree, Jonathan! Yes, we've both read the book. If you check out the full length episode this highlight is taken from, you'll see we talk about it a bit. ua-cam.com/video/H0WVYePTheI/v-deo.html
2022 might be the year of misFIRE? Love the clips. I have rewatched this full interview 3 times already. This is a great highlight from it
Wow, thanks Mike! So glad you like the clips. We're trying to put out 2-3 of them in between the full-length episodes. Some will be cut-downs, others outtakes, and then we're experimenting with things like Q&A and other short content.
And very true about 2022. Not sure what it will mean for the plans of many on a FIRE path.
Please keep doing clips, I’ll watch your content more if you do
Thanks! Will do
There is great book called “Victory Lap”, this is how I think about the after work life versus “retirement”
Thanks for sharing, Gerry. We haven't read this one.
Thanks for confirming that board of directors don't really work as hard as the employees they underpay...
But yeah I only save 30% atm. I've thought about increasing that number but I want to strive for balance and have a great life with my partner.
Great point about balance. We agree!
And Boards are very different than executive teams. For established companies, the former is only occasionally engaged and is a very part time thing. Big difference from executive teams who are typically very much full time and in a good company, work plenty hard. Not saying that their pay structure is always anything like appropriate, particularly for the very largest US. corps. Different question entirely…
Great Definition of Retired. Thank you for this show. I have had to job offers one to do consulting. Great point why would i do that 20-30 hours a week. My other job offer is a Mortgage loan Originator. I had to work hard to passed the test. I am doing the MLO to see if i can prove to my nieces and nephews they don’t need college to be successful.
You’re welcome! So glad you enjoyed it.
Great highlight from this interview. Man... I'm 36 thinking "I've gotta get out of here" 😂
But... recently hit my savings rate goal (25% vis-a-vis TMGS), so, looking forward to intentional lifestyle creep the next 10 years vs. inching-up savings percentage over the previous 10.
Thanks! Congrats on hitting your savings goals and best wishes to you on your journey.
LOL, I guess I was unintentional FIre. I was laid off in a massive wave after 32 yrs in early 2019 @ 55.5 yrs old. Initially, I was gung-ho to get another job but was dismayed that anything that was similar would either require relocating or commuting a long distance (which I had done for 16 yrs) and the pay offered for similar positions was about what I'd made 30 yrs earlier. Thinking about the stresses, the on-call, the shift changes, and that I had no major bills, and had saved well, I decided not to pursue, especially in the same field.
A tough decision, assuredly. How have things been going since your unexpected retirement more than three years ago?
@@TwoSidesOfFI It's been kind of tough for me. I've been a loner my whole life, and I just have hunkered down kind of like solitary confinement trying not to spend any money to stretch my savings. Basically, I watch UA-cam all day on a variety of subjects. I wonder how much things will change next April, I don't think I will be all "Weeeee!" and spend-spend-spend.
@@ph5915 Jason here - Very sorry to learn that, Pete. That sounds like a difficult situation to be in. Sending you my best wishes to find a new passion or interest to pursue from which you gain fulfillment. Take care
@@TwoSidesOfFI Thank you, Jason. I'm not destitute, I'm just really trying not to spend. One thing I love is that I became a private pilot 11 yrs ago and own an old Cessna 172 that I've kept. I don't fly very often these past couple of years because of the situation, and, that I'm based out of Wilmington, DE airport and Pres. Biden visits home quite often and, then, it's locked down for me. LOL. What luck. hehe.
@@ph5915 Thanks for clarifying. The only flight lesson I ever took (was too busy to continue at that time) was in a 172. Super fun.
How much in liquid assets should one accumulate before working with a financial advisor and, from your experience, how much should I expect to pay to manage said assets with a fee only advisor?
Jason here - Some advisors - particularly those working in an assets under management (AUM) model have minimum portfolio size requirements. Those who work in an hourly/project-based or otherwise advice-only model often do not have these. As to what you need, I'd suggest it's more about one's individual preference, timeline to retirement, and complexity of needs that determines timing where an advisor can be of greatest assistance. Interviewing potential advisors is an important part of the process, so you'll have an opportunity to gauge the utility of working with someone based on how those conversations go. If you're unsure of the value in working with someone.
Fees vary tremendously and you'll find surveys out there that describes current trends. AUM advisors commonly charge an aggregate 1% of assets fee annually. Then there are those who work on a retainer model, and may charge a fixed fee quarterly or annually. Lastly, some charge hourly or by the project. Fees for the latter two vary substantially based on geography, complexity of service provided, etc. As an example, we have an episode coming soon where we each pay an advice-only advisor ~$1,000 as part of a fixed fee offering to review our portfolios.
These people are very high income. Most people in USA cannot afford to retire. And rents going up 20 percent a year
While it’s true some are, many aren’t. There’s actually quite a few people retiring early on average to even more modest incomes. Managing expenses and saving is the way they get there. Stay tuned for an upcoming episode about this.
@@TwoSidesOfFIhow can you manage expenses when you mortgage/rent and bills is your income
@@StellaM22 ua-cam.com/video/KhEdRJkWEq8/v-deo.html
I find as you get closer leaving it is harder to keep “enjoying” the corporate blah blah
Very true!
The thought is great, unfortunately my wife is the higher earner and she has no interest in retirement let alone saving! I’ll know I’m retired when I drop dead at the keyboard. 😢
Rob, we wish you both the best in all things