Retiring early on $500000 Early Retirement Extreme: —by Jacob …
The following story is pipe dream, sounds interesting, but don’t make too much of it! Just goes to show how much people really try to analyze the future, and believe they will come out on top. The entire post doesn’t take into account of real deflation/inflation, market cycles, or the whole mess with political incompetence. The biggest factor to consider in any short term or long term investing decision is politics!
- Image by doctrader via Flickr
The idiots we have in charge today, have one thing on their minds, absolute power! The more people they can make dependent on the government, the better for them to return to political office and retire with more power. You see money equals power, power equals money. Anyone with a little bit of common sense, knows, you cannot print more money without inflation and a decreasing your purchasing power.
The future is not predictable! Enjoy the fantasy story….
Posted by
This is a guest post from Debbie M giving a detailed budget for a retirement plan costing half a million dollars. For most incomes, half a million means a less early retirement. Yet, it is still earlier than the “usual million(s)”.
The best part of my story is figuring out my expenses. Since I plan to quit work forever (or at least be able to) once I achieve financial independence, this is vital. It’s much harder to find a job when you’ve been out of work a while, and frankly it’s hard enough for me to find jobs now.
My investment plan is a little less exciting. I prioritize diversification. I used to not include bond-like things because my pension is bond-like, but really my pension fund is also invested in stocks, so if stocks plummet, my pension could be in trouble. So I’m including large cap and small cap, domestic and foreign (including developed and developing), growth and value, and bond funds and REITs.
If I keep up with current contributions to Roth retirement vehicles for the next five years, I will have $155000 in those alone, which would give me $645/month, which gives me some wiggle room in case the pension rules change or I can’t …
Related articles by Zemanta
- How to Determine Your Asset Allocation (bargaineering.com)
- Daw: A little financial knowledge a dangerous thing (thestar.com)
- More Stocks May Not Make a Portfolio Safer (online.wsj.com)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=99c4baa6-dd24-4723-8270-b80d98dfb4ee)
Loading ...