What was/is your bug out number?

[Junk Viking]

Originally Posted by Mike OReilly

To the OP, our numbers were when we had a sufficient (but pretty small) income, combined with a modest nest egg. But perhaps MORE importantly, we were debt-free and planned a lifestyle where we could live on this small income.

In other words (and I've said this before), we worked on the expense side of the ledger, not just the income/asset side. People always focus on the revenue side, but a dollar not spent is the same as a dollar earned as far as the bottom line is concerned.

So, by all means, make sure you have sufficient income and/or savings. But if you spend as much effort on the expense side of your balance sheet you'll find you can reach your "bug out number" a lot sooner.

More ease-out than bug-out for me.
Left corporate @ 45 with a burn out
Found my savings was actually sufficient to sustain a €2k / month lifestyle
Went with it and only occasionally work / give a hand to worthy projects

Proud owner of a 34' blue water cruiser bought cash and on my own upkeep.
2nd wife (to be) pays her own way and divorce + uni for the son cost nothing in Denmark

#TimeIsWealth!

[picklesandjesse]

Originally Posted by StuM

42 and 69 are my favourites

Elon Musk is 100% a 42 man. He quotes it. So am I. Note licence plate. How come it's inverted?? In Australia, that's why.

[Simi 60]

Originally Posted by picklesandjesse

. How come it's inverted?? In Australia, that's why.

Apple

[denverd0n]

Originally Posted by dannc

59.5 applies to IRAs but not to 401Ks. If one is in a 401K, and retires, is laid off, fired, or just quits, and if one is 55 the year one leaves a company, one can take money out of the plan without penalty.

WRONG!!! COMPLETELY WRONG!!!


Except for a couple of very specific circumstances, if you take money out of a 401k before you are 59-1/2 you must pay a penalty.


Perfect example of why you should not take tax advice from strangers on a forum like this one.



Here is the official IRS page. Read it. Learn from it.
https://www.irs.gov/retirement-plans...-distributions

[Clivevon]

Originally Posted by MJH

From reading a number of these posts few take into consideration the possible changes in their life after retirement that may occur. For example, I retired at 50, back to sailing again (28') at 53, divorced at 64 after 42 years of marriage, bigger boat (42') at 65, remarried at 68, now 78 and still sailing.

What is missing from most younger thinking is that LIFE happens when you are making other plans...those things you don't want to think about that are life altering. Things like spousal cancer operations, CPOD, and your own depressions...I'm sure there are many others including drug addiction, bankruptcy, etc. I know a fellow retiree (a doctor) wanting to buy a boat but choosing to float his son's business adventure and daughter trying to find herself jumping from one university to another.

So, plan as best you can using whatever lets you sleep at night but don't be surprised when LIFE kicks you in the groin. Get a good night sleep and just go sailing the next morning...you will be better for it.

~ ~ _/) ~ ~ MJH

Love it. Words of wisdom from one who knows. I haven't read all these entries but a lot of the ones I have read are full of it. Do you know how ENTITLED you sound? The best time to go sailing is NOW. OK, maybe you can onLY do it on weekends - or maybe only a week or two in the holidays plus weekends. Maybe you still have to earn a living; support your families; help your children; etc etc etc. If sailing floats your boat - there are lots of ways to do it - quite a few for little or no money. I have friends who crew for me- its a privilege to have them on board, for their company, their knowledge, or maybe just their enthusiasm.
Grow up, FFS.

[Clivevon]

Sory - its past dinnertime here & I always have wine with dinner. In vino, veritas....

[Narfi]

Originally Posted by DockDoc

The wife was worth about 1.7

I am sure my wife is worth more than that, however if I ever tried to place a value like that on her, I don't think I would have her long enough to try selling.........

[dannc]

Originally Posted by denverd0n

WRONG!!! COMPLETELY WRONG!!!

Except for a couple of very specific circumstances, if you take money out of a 401k before you are 59-1/2 you must pay a penalty.

Perfect example of why you should not take tax advice from strangers on a forum like this one.

Here is the official IRS page. Read it. Learn from it.
https://www.irs.gov/retirement-plans...-distributions

It is called the "Rule of 55" for 401k plans.

From you own link but a different page, https://www.irs.gov/retirement-plans...n-participants

55 An employee who receives a distribution from a qualified plan after separation from service is not subject to the 10% additional tax on early distributions if the distribution occurs in the year of turning 55 or older.

Then there is this page, https://www.irs.gov/retirement-plans...ribution-rules

Exceptions. The 10% tax will not apply if distributions before age 59 ½ are made in any of the following circumstances:

• Made to a beneficiary (or to the estate of the participant) on or after the death of the participant,
• Made because the participant has a qualifying disability,
• Made as part of a series of substantially equal periodic payments beginning after separation from service and made at least annually for the life or life expectancy of the participant or the joint lives or life expectancies of the participant and his or her designated beneficiary. (The payments under this exception, except in the case of death or disability, must continue for at least 5 years or until the employee reaches age 59½, whichever is the longer period.),
• Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55,
• Made to an alternate payee under a qualified domestic relations order (QDRO),
• Made to a participant for medical care up to the amount allowable as a medical expense deduction (determined without regard to whether the participant itemizes deductions),
• Timely made to reduce excess contributions,
• Timely made to reduce excess employee or matching employer contributions,
• Timely made to reduce excess elective deferrals, or
• Made because of an IRS levy on the plan.
• Made on account of certain disasters for which IRS relief has been granted.

Later,
Dan

[Chancesail]

Now! Except in my case... I married the wrong woman... twice. Not the same one. It was all a beautiful romantic idea... until I bought the boat. Then it became real and some mind-changing was involved on her part. Women don’t do that! Right? So... after patching some holes and other hurricane damage, and lots of other projects this summer to make her seaworthy & beautiful again, I’ll be singlehanding next year. But, Now! is still my best answer if u are financially able. We only have so many tomorrows to enjoy, don’t wait!

[sailingchiro]

We are taking off at 53 and 51 January 14th, 2022 but have 20 rental houses and a clinic that I will manage from the boat and periodically travel "home". They bring in much more than we will need. We have no debt. We were going to sell everything but carrying cash isn't a good idea for me due to future inflation. We rather have income.

[Hudson Force]

Originally Posted by Simi 60

And at 63?

I don't know what would add to make 63. I guess we "Bugged out" twice, -both of us at 23, but as I said, still working for income; however, both of us fully retired and full time cruising at 55.

[Barra]

The wisest reply to this question in here I reckon!

But looking at the other responses Im pretty sure its a minority view...

Originally Posted by Wayne hoath

This still holds true

To be truly challenging, a voyage, like a life, must rest on a firm foundation of financial unrest. Otherwise, you are doomed to a routine traverse, the kind known to yachtsmen who play with their boats at sea... "cruising" it is called. Voyaging belongs to seamen, and to the wanderers of the world who cannot, or will not, fit in. If you are contemplating a voyage and you have the means, abandon the venture until your fortunes change. Only then will you know what the sea is all about.

"I've always wanted to sail to the south seas, but I can't afford it."

What these men can't afford is not to go. They are enmeshed in the cancerous discipline of "security." And in the worship of security we fling our lives beneath the wheels of routine - and before we know it our lives are gone. What does a man need - really need? A few pounds of food each day, heat and shelter, six feet to lie down in - and some form of working activity that will yield a sense of accomplishment. That's all - in the material sense, and we know it.

But we are brainwashed by our economic system until we end up in a tomb beneath a pyramid of time payments, mortgages, preposterous gadgetry, playthings that divert our attention for the sheer idiocy of the charade. The years thunder by, The dreams of youth grow dim where they lie caked in dust on the shelves of patience. Before we know it, the tomb is sealed.

Where, then, lies the answer? In choice. Which shall it be: bankruptcy of purse or bankruptcy of life?

Sterling Hayden, 1962

[Scott Berg]

mid 20's for 2 years (taking a break) and 45 and done... go small, go now!

[denverd0n]

Originally Posted by dannc

It is called the "Rule of 55" for 401k plans.

My apologies. It appears that you are correct. So I am wondering why I have NEVER heard of this rule before. Anyway, thank you.

[valhalla360]

Originally Posted by dannc

Our retirement plan has been to forget about Social Security as an income source and save accordingly. This has worked out very well. However, as we get closer to retirement, it looks like Social Security will provide most the income we plan on needing in retirement.

I do think a hair cut on the horizon to keep SS afloat, but I suspect most of it will again fall on the current, younger workers to pay for people already getting SS checks or about too. I already took one hair cut paying into SS years ago and I suspect I will have to take another one as a the national debt problems explodes. But this time I will be getting a SS check or close to it. TINSTAAFL.

59.5 applies to IRAs but not to 401Ks. If one is in a 401K, and retires, is laid off, fired, or just quits, and if one is 55 the year one leaves a company, one can take money out of the plan without penalty. I think this is true for 403B plans as well, but I don't follow rules for 403B, since I am not in that type of plan.

Later,
Dan

If your retirement plan has $10mil in investments and you plan to live on $500k/yr...no issues ignoring SS, it doesn't move the needle one way or the other enough to matter.

For a more typical couple retiring with $1-2mil, ignoring what is likely 30-50% of your retirement resources, is silly. Worst case, even if the trust fund goes dry, they are projecting 75% payments, so at a minimum plan for that but realistically, it would be death to any politician that approves a 25% SS cut to senior citizens, so they will find the money to keep the funds flowing (you never hear about welfare programs running out of money).

Yes, there are ways around 59.5 but as I said, they come with hassles (and limitations):
- If you are in a traditional job and you retire after 55, you have an exemption. If you retire before 55 or you are self employed, it doesn't work.
- Alternatively, you can use rule 72T. This allows you to start withdrawals at any age but there are significant limits on how much you can take out and you have to commit to the amount you take out for 5 yrs or until 59.5 whichever is longer.