Summary What has worked/not worked for you guys who have been Fire for 10 yrs +? forum.mrmoneymustache.com
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The forum post seeks advice on asset allocation, market downturn adjustments, and income changes from long-term FIRE individuals, with one author sharing their experiences with selling tech stocks, investing in municipal bonds and TIPs bonds, and updating their income spreadsheet.
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Slide Presentation (13 slides)
Key Points
- Many people who are financially independent and retired early (FIRE) rely on investments rather than pensions for income.
- Retirement can be fulfilling and different for everyone, with some preferring a frugal lifestyle and others wanting to travel and do expensive activities.
- It's important to consider how you want to spend your retirement and what expenses you anticipate.
- When retiring, it's important to consider financial success probability and the potential need for a bridge career.
- Diversified income streams are common among FIRE retirees, rather than solely relying on index funds with a 4% withdrawal rate.
- The author discusses their asset allocation and investment strategy for early retirement, including the use of pensions, rental properties, and investment portfolios.
- It's important to have a margin for adjusting expenses and to consider inflation when not touching the principal.
- Retiring on a 4% safe withdrawal rate (SWR) can lead to a success ratio of 80%-100%, and having annuitized income for basic expenses guarantees a success ratio of 100%.
Summaries
27 word summary
The forum post seeks advice from long-term FIRE individuals on asset allocation, market adjustments, and income changes. One author shares their experience with tech stocks and bonds.
81 word summary
The forum post is seeking advice from individuals who have been financially independent and retired early (FIRE) for 10 years or more. They are interested in learning about asset allocation, adjustments made during market downturns, and changes in income. Many long
The author shares their investing experience, mentioning their concentration in tech stocks in 1999 and their decision to sell them in 2000. They discuss investing in Muni and TIPs bonds and updating their income spreadsheet to set their base spending.
1023 word summary
The original document is a forum post asking for advice from people who have been financially independent and retired early (FIRE) for 10 years or more. The post asks questions about asset allocation, adjustments made during market downturns, and changes in income
There are several individuals who have been FIRE (Financially Independent, Retired Early) for over 10 years, including Spartana, Old Pro, RetiredAt63, and Nords. The MMM forum itself has only been around for about
Many long-term FIRE-ees rely on investments rather than pensions for income. They are curious about how others weathered the last recession both psychologically and strategically. Some people end up spending less than they thought they would in retirement, possibly due to being over
Retirement can be fulfilling and different for everyone. Some people want to travel and do expensive activities, while others prefer a more frugal lifestyle. It's important to consider how you want to spend your retirement and what expenses you anticipate. Saving early and
One user on the forum asked why another user budgets from June to June. Another user shared their experience of retiring 11 years ago at the age of 33 and how they traveled for a few years before taking a break due to the market downturn and
Many people who are financially independent and retired early (FIRE) do not solely rely on index funds with a 4% withdrawal rate. Instead, they have diversified income streams. The 4% safe withdrawal rate (SWR) theory is appealing
When retiring, it's important to consider financial success probability and the potential need for a bridge career. Military retirees often start a bridge career out of a commitment to service or a need to take care of others. In terms of asset allocation, it's
The author discusses their living expenses and how they may be considered excessive by others. They mention that it is important to have a margin for adjusting expenses. They also discuss the idea of starting with a 5% withdrawal rate in retirement and potentially cutting back
In this forum post, the author discusses their asset allocation and investment strategy for early retirement. They mention that their pension covers most of their expenses, and they have some cash flow from rental properties. The rest of their expenses are covered by their investment portfolio
The author of the excerpt is seeking advice on options trading and wonders if it is a viable strategy for ETFs in Canada. Another user shares their experience of retiring at 39 in 1999/2000 and emphasizes the importance of having a good
The author does not track spending in detail but updates their income spreadsheet a few times a year to set their base spending for the year. They rely on their income to cover day-to-day expenses and use accumulated capital gains for splurges or investments.
The Australian financial year runs from June to June, which makes more sense considering that January is a long holiday. Bills and payments come in at different dates than expected. Rebalancing bands can be managed by selling covered calls or selling naked puts. Options
The author discusses their experience with investing and offers financial advice. They mention being heavily concentrated in tech stocks in 1999 but sold them in January 2000. They invested the proceeds in Muni and TIPs bonds, with a maximum bond
To ensure financial stability, the author updates their income spreadsheet a few times a year to set their base spending. They rely on their income to cover day-to-day expenses and use accumulated capital gains for splurges or big purchases. They do not follow
The key to financial independence is having multiple budgets: one for basic necessities, one for desired activities, and one for extra treats. One user asks about how others handled financial difficulties in the past and if they were able to recover. They also inquire about
To ensure a smooth transition into early retirement, it is important to reduce income volatility and replicate a regular paycheck. This is particularly crucial for individuals who are used to having a steady income. Various methods can be used to replicate a paycheck, such as owning
The poster is discussing the concept of the 4% withdrawal rate (SWR) for early retirees. They argue that very few people are able to solely rely on index funds and a 4% withdrawal rate to achieve financial independence. They believe that
The author is asking about how someone's portfolio has grown since 2000 and what adjustments they have made. They are curious if any major changes were made to match spending with returns, and if any stocks or bonds were sold to fund expenses. The
The author is curious about the consistency and range of dividend yields achieved since 2000, as well as the appreciation of their dividend portfolio compared to the rest of their stock portfolio. They also inquire about any changes made to the dividend portfolio over the years
The original text excerpt discusses various aspects of financial independence and retirement planning. The author asks about the structure and use of a portfolio, specifically in relation to dividend income and living expenses. They inquire about the number of individual dividend stocks held and mention the possibility
The author challenges assumptions made by another user, stating that adding enough to cover inflation is not a problem and that prices dropping significantly and for a significant amount of time is not always the case. They mention their experience with buying and selling condos in Toronto and
Some individuals have found it beneficial to have a couple of years' worth of expenses in CDs as part of their bond portfolio. CD rates between 3-5% can be competitive with bond yields, but it can be difficult to renew at a low
Diane C recommends the blog "Retirement: A Full Time Job" for helpful information on retirement. Nords also enjoys Syd's blog. Dawg Fan asks questions about portfolio rebalancing and asset allocation, to which Nords responds that
By addressing simplifying assumptions, the success ratio of a 4% SWR can be increased to 80%-100%. An annuitized income will guarantee avoiding failure rates, resulting in a 100% success ratio. Cutting spending to 3