Back when my H was a doc, we banked most of our income and lived really, really modestly. Our only indulgence was college for the kids. Shortly after they were done (or we thought they would be, long story doesn’t matter) he quit medicine because of stress and hours. Retrained as a HS teacher. We bought the second home we will retire to. None of that would have been possible if we’d lived up to a doctor’s income (and his was moderate as docs go, being a pediatrician in a city clinic).
I think from what I have heard, FIRE is somewhat influenced by the book “Your Money or Your Life” which we found by accident about twenty years ago and became our Bible. It didn’t get us to early retirement, but it got us to debt free and able to continually make life decisions that did not depend on keeping a certain level of income. (The saving strategies also helped us put the kids through college with little stress. We lived on a third of our take home income through that time).
The medical coverage is the sticking point here. DH also loves what he does and I think would die on the vine if he wasn’t doing it (or something else that intense and intellectually consuming), so I don’t see him retiring any time soon. He has no hobbies, other friends or interest in volunteering. He will have a pension, 401k and retiree medical coverage, so the foundation is there.
I think we both will really struggle with spending down vs. saving. Neither of us has wrapped our head around paying more for downsizing to something low maintenance. We’re spoiled by our low mortgage payment, but the maintenance is creeping up and I can’t DIY as much as I used to.
OTOH, our “early retirement” is travel. We’re doing it while we can. I’m involuntarily retired, but stay pretty busy.
My thinking is more along the lines of “career change”…
Right now I am working two careers and look forward to the day that I can afford to drop one of them (i.e. the one that is paying most of the bills, and providing the health care…).
I wish I could retire, I’m in my early 50’s am a nurse and my arthritis makes 12 hour shifts very difficult. When I can draw on my 401k I plan on moving to England and their health benefits.
My husband is the type of person who always has to have a new project. My husband retired from his corporate job at age 48, but has had a lot of new projects since then. All of them involve working for pay in one capacity or another.
We need to make health care insurance arrangements soon. Our coverage from dh’s former employer ends shortly, but I’ve been focused on other concerns. Dh just found out he needs surgery and is trying to get it scheduled before we lose our current coverage. Fingers crossed!
@doschicos
Yes I do (I’m dual) and I have also paid into the UK retirement system, as well as US Social security and my 401k.
I believe I just have to be a resident of the UK for 3 months in order to be eligible for the National Health Service again.
The biggest deal is health insurance. Who knows what will happen with the current system. It isn’t enough to be able to pay insurance premiums, it is if insurance companies can deny coverage because of any preexisting conditions. Without health insurance pricing is sky high.
Some may retire from a job/profession/company but then get other work. I can’t imagine being retired for thirty years without a purpose in life. I count on those as the healthy years when travel et al are done. It would be interesting to be able to track those people for that many decades, but I won’t live that long.
Well I “thought” we were going to be retiring in 3 years(DH58, me 55), but then the government entity my DH works for changed the retiree benefits used to be 30 and out and family and retiree covered on healthcare. It was changed that only the employee would get retiree coverage but the family could “purchase” coverage. Now in July the rumor is only the retiree will get medical but not until age 60 and the family can’t buy coverage at all :-(. Now I’m not sure when we will retire, we’ll have to wait for the kids to all launch and then see how much it would be for me to find my own private coverage.
My most expensive health insurance costs were the two months when my COBRA from H’s retirement insurance ran out and my Medicare kicked in. I bought the cheapest insurance, an HMO I never used (and did not want to use) with a high deductible for 50% more than prior plans. Moral- marry someone close enough to your own age so when they hit Medicare you are still able to be insured until you get your Medicare.
We are doing well financially because we spent many, many hours becoming educated and lived below our means- then and now. Frugal.
"I can’t imagine being retired for thirty years without a purpose in life. "
See, that’s the judgmental thing that bothers me. Why is purpose in life defined as a job? Why is one’s worth connected to a career?
Also, many adults ( I won’t say females because not all of them are) chose to stay home and raise a family and never go back to work. It’s very common in my area yet it’s funny that people don’t look askance at that as much as they do folks who chose to retire early.
It does seem an unfair judgment. Perhaps when people hear that someone retired very early, they envision it’s because they had a huge trust fund, and are spending their days lazing around, eating bon bons.
However, I would like a huge trust fund, and I still don’t know exactly what a bon bon tastes like, but suspect I’d enjoy it. So, maybe people are jealous of the ability to retire early?
5 years seemed like a nice age difference when we married. Now, as he gets closer to 65 and I’m not close enough…not so much I’m convinced we lived frugally enough we could retire, except for that pesky health insurance.
Worrisome enough it’s the only reason he went back to work after the cardiac arrests. Seemed like a choice between worse and worser, and we wonder daily if we made the correct choice.
I don’t know. If universal healthcare means that you must get X healthcare plan, and only X healthcare plan…and you can’t purchase anything else, plus your employer is not allowed to offer anything, no way. It’s not like people’s employers are going to magically decide to offer everyone a massive raise, since they can’t pay for healthcare.
Now offering people an option, based upon income/assets, where they don’t have to buy some ridiculously expensive policy-I’m all for it. More choice is better. No choice is worse.
As far as universal plans go, Medicare is a good example. Basic plan plus add ons. Many employer-based plans are very bare bones and do not offer much choice…
@wis75 I think the better advice is to marry someone younger than you so you can retire and stay on their healthcare while they continue to work.ha That’s the advice I have started to impart on my girls
used to be 30 and out and family and retiree covered on healthcare. It was changed that only the employee would get retiree coverage but the family could “purchase” coverage. Now in July the rumor is only the retiree will get medical but not until age 60 and the family can’t buy coverage at all :-(. Now I’m not sure when we will retire, we’ll have to wait for the kids to all launch and then see how much it would be for me to find my own private coverage.
I’m convinced we lived frugally enough we could retire, except for that pesky health insurance.
