Playing with FIRE

I have been enjoying learning a lot more about FIRE, but I can't help but think some people are getting lost on the journey. I save very hard, but also enjoy my work. I would think some people might get more fulfillment from retraining/further education in something that is fulfilling. I think part time work options are great too as a good compromise.

I also question the risk mitigation of a terrible market event and whether you would want to be low on recent skills and experience in that situation.

FIRE will never be for me, but I am certainly gunning for FI, but I plan to R lavishly.

 

Same here. The cognitive dissonance is off the charts! The closest I get is 'don't you get bored?'.

If I had come across someone early-retired before I discovered how to do it myself, my first question to them would have been 'how did you do that?'

 

I thought your first question would be:

“Are you dodgey OR were you lucky?”​

 

My feeling is that more people are not taking advantage of spending more time in South East Asia because they don't fully appreciate how cheap the cost of living is. Plenty of Australians have travelled there for holidays and found things quite cheap, but don't realise how cheaper things get if one wants to spend months at a time in the region rather than a couple of weeks holiday.

When on holiday one may typically gravitate to popular tourist spots with expensive daily rates on hotels, surrounded by relatively expensive (in terms of the country) restaurants.

When you explore some areas only a little further out to the tourist hot spots, and look for accommodation deals over months rather than days, many would be surprised how much the living costs come down. If one enjoys the local food and has western food only occasionally again the overall costs can be a lot lower than many imagine. Not everyone can so easily generate a location independent income of course, but if one can then it can potentially go about 5 times further spending it offshore versus Australia.

 

Exactly, how much money you will require depends on your retirement location and your chosen lifestyle.

In 2016, the Australian Centre for Financial Studies said a typical Australian retired couple spent about $26,000 a year.

Last year, the Australian Centre for Financial Studies research found that retirees aged 75-84 were spending 30 per cent more than a decade ago. A lot of this went toward expensive overseas cruises, Healthcare costs also rise dramatically after the age of 70

According to Superguide "An Austrlian couple can expect to enjoy a 'comfortable' life in retirement if they can generate an annual income of $60,457 by retiring with a superannuation lump sum of at least $620,000 (assuming investment returns in retirement of 5% a year) in conjunction with a PART Age Pension"

 

Do you have a link t that Superguide report Redwing?

I remember scanning through one report that gave a number around the $60k mark as being "comfortable" but when I looked deeper it included things like $100 a week on alcohol, $200 a month on clothes and a whole bunch of other things I thought were kind of over the top. I'd be interested in what Superguide includes in their figures.

 

superguide com au.

I think it has rather extensive information

 

@PKFFW Here's a recent update

Note: This article is updated every 6 months with the latest lifestyle/income data. The most recent data was released in August 2018 (for lifestyle costs up to June 2018) and includes Age Pension rates (applicable from 20 September 2018). The tables in this article list lump sums needed to finance a retirement of 25 years, or 35 years, which remain applicable whether you retire at Age Pension age (now at least 65.5 years) if relying on a PART Age Pension, or age 67 or even 70 years of age or older.

How much super do you need to retire comfortably?

 

My parents retired and were so busy. They did more in retirement than they ever did while working. Local stuff as well as international travel. They didn't retire with much but they are making the most of it. They certainly don't have time to get bored!

 

From my reading, much of it is mindset - moving from a structured daily routine to one that you have to manage, as well as moving from a predictable wage coming in, to one that may not be as predictable. If you're able to step into a secure pension (eg a defined pension scheme), or income stream, then I think the transition would be much easier.

Alternatively, you could try a 'mini retirement' (phrase stolen from Terry W ) to dip one's toe in.

 

I retired around 41 and my wife at around 51. Neither of us have ever been short of things to do. Just the thought of going back to work makes us sick in the stomach.

And retirement doesn’t need be about travelling the world. We are wealthy enough to do this 365 day’s a year for the rest of our life if we wanted but could think of nothing worse. Completely over major travel, did enough of that earlier in life. A simple productive lifestyle on a one acre property is like waking up in heaven every day. Always something of interest to do and so very rewarding.

And a simple lifestyle doesn’t mean one ever stops learning stimulating knowledge / skills. My wife is obsessed with all grain craft beer brewing at home. The art and science behind this alone is a never ending learning process.

Anyone who thinks they’ll be bored in retirement needs to change their mindset. Whether one likes it or not for most they’ll be forced to retire one day. Better to do it whilst young enough to take advantage of health / mobility etc.

TIME is the most valuable thing one has, DON’T WASTE THIS PRECIOUS RESOURCE!

 

The FIRE movement is more the FI part than the RE part for me personally. I can’t think of anything more liberating than to be able to show up to work and not worry about being made redundant.

This may sound crazy but another reason I’m aiming for FI is due to my massive case of imposter syndrome. That feeling of at any moment someone’s going to find out that I’m not really as capable as they thought I was is somehow tempered by the fact that one day it’s not going to matter as by then, hopefully our investments will generate enough income that working is simply optional. That kind of freedom is priceless.

 

You’ll have to remind me what the word Monday means?

 

Can relate to this 100%

Going back to a full time job would kill my soul ...

We're not completely over travel but the novelty has definitely worn off as we ran out of fingers & toes to count with long ago.

@Nodrog I'm free for taste testing anytime....

 

Pretty tough lifestyle......Your wife has to brew the beer and presumably you have to do the taste testing! Goodonya!

 

Yep. She usually does small batches (13.5 Ls) so she gets to try new recipes more frequently. So it’s more about quality than quantity. Does require some restraint on my part at times though.

This is what she wants for Xmas and of course I’m keen for her to have it:

 

Tell Santa to bring it for her.Makes up to 30 Ls thus less restraint for you.

 

Yes, less than a couple of years away from (earlyish) retirement and have spent years leading up preparing and have recently built a place in SEA. A quiet spot surrounded by mostly rubber trees (cool) and a place you can walk and pick fruit and veges along the road. Huge rainfall season and with a well, free water. A$90K for a nice 4 bedroom house all steel and concrete construction (termites).

A bit isolated with some annoying ants, the odd snake and seen fireflies at night but 5 min to beach, 20 to international airport, 30 to a mall, 40 to a hospital.

Cheap power, food, fast 100MB internet, free water and biggest expense is car fuel but still cheaper than Sydney

 

I stole it from the 4 hour week and Tim Ferris.

I think the mini retirement is the greatest invention since the trust.