Retiring Young- one man's plan

**James48843** · 10-26-2007, 03:20 PM

Interesting article today about a guy who is planning on retiring early. Worth reading.

http://finance.yahoo.com/focus-retir...nt-preparation

You can quit the rat race, but prepare to ramp up your savings.

Faced with frozen pensions, disappearing retiree health benefits and lengthy retirements, many Americans are choosing to work longer to provide for a comfortable future. Nearly one in four people between the ages of 65 and 74 were working or looking for work last year, according to the Census Bureau, up from 20% in 2000.

Still, the dream of dropping out of the workforce a few years -- or even decades -- ahead of schedule lives on. One such dreamer is Brian Fouch. Fouch lives in Lexington, Ky., where he is a human resources specialist with Toyota. His goal is to call it quits in 15 years, when he'll be 51. To make that happen, he's socking away 21% of his gross salary, including both his personal contributions to his 401(k) plan and his employer's match, and he hopes to boost the total to 24% soon.

(More at the link above...)

**Sonic** · 10-29-2007, 03:38 PM

I plan to retire age 50 which is early for me, that will give me 23 years of service. But if I don't plan correctly then I'll be the normal statistic. Thanks for the article, plan on reading more.

**Frixxxx** · 10-29-2007, 03:42 PM

Originally Posted by Sonic

I plan to retire age 50 which is early for me, that will give me 23 years of service. But if I don't plan correctly then I'll be the normal statistic. Thanks for the article, plan on reading more.

Sonic,

What will you use as an income generator? I hear of people wanting to retire early but IRA's and TSP funds are pretty locked up. If I'm understanding most of the rules, those funds are available at 59 1/2.

Is there a "magic" way to keep money coming in that won't stop my current lifestyle? I am concerned with retiring earlier than most because my wife is 6 years older than me.

**ChemEng** · 10-29-2007, 05:21 PM

Google Rule 72t for your answer Frixxxx.

Using life expectancy method, you can tap your retirement accounts much earlier than 59.5.

**Bullitt** · 10-29-2007, 05:59 PM

I'm shooting for 52.

**Frixxxx** · 10-29-2007, 06:14 PM

Originally Posted by ChemEng

Google Rule 72t for your answer Frixxxx.

Using life expectancy method, you can tap your retirement accounts much earlier than 59.5.

Hey chem, I'm familiar with the rule, just trying to figure out how to have income for the years that I could be penalized for withdrawing money from those accounts early. And what is this life expectancy method you are tauting?

**Sonic** · 10-29-2007, 06:58 PM

Special Retirement Provision allows me to retire age 50 with at least 20 years service or 25 years of service regardless of age. Normally you cannot withdraw your tsp account until you separate from Federal service. Three basic ways to withdraw from account. 1.Have the TSP purchase a life annuity for you. 2.Receive your account in a single payment. 3.Receive your account in a series of monthly payments. After age 50, I plan to live half the year in the Phillippines aka (retirement), preferrably during the winter and work during the summer in the states. Retirement is difficult because you still want to maintain a good life style without putting all savings to retirement. Never know when you go, so enjoy your time.

**ChemEng** · 10-29-2007, 07:14 PM

Also consider that the amount to achieve the same standard of living will be less because you wouldnt have to save for retirement anymore.

**Frixxxx** · 10-29-2007, 07:23 PM

I can see that by spending half the year in the Phillipines can keep costs down annually. But I see that you plan to work part time while the other 6 months are spent in the states.

My position is this:

I retire at 56 and my wife is 62. She will recieve full Social Security and have her investments. But, that is four years before I start receiving any of my benefits. I will not have access to funds unless I work. Then 4 years later, I'm 60, and BAM, I have access to my FERS annuity, TSP, and Reserve retirement. so for four years, I need to figure out the gap. I post this simply for the fact that people can see what I'm trying to do to spend time with my wife before we get too old.

Insights anyone?

P.S. Sonic, what is the Special Retirement Provision you speak of....link?

**Minnow** · 10-29-2007, 07:58 PM

Frixxxx... are you on a mandatory "early" retirement at age 56? If so, then you are entitled to a Social Security Supplement -- in some cases, its a decent amount of supplemental income and in other cases, it's not.

If not, then I gotta do some digging for more "insight."

**Pill** · 10-29-2007, 08:49 PM

http://www.dodfire.com/cpms_retire_guidance.pdf

ATC, FF, LE

**Frixxxx** · 10-29-2007, 08:49 PM

Originally Posted by Minnow

Frixxxx... are you on a mandatory "early" retirement at age 56? If so, then you are entitled to a Social Security Supplement -- in some cases, its a decent amount of supplemental income and in other cases, it's not.

If not, then I gotta do some digging for more "insight."

Thanks minnow, I'm looking for the best alternatives for planning. I am not on an "early" retirement. My scenario is approximately 15 years away. But setting these types of goals seems to be difficult when even talking to my financial advisor. With all the tax-shelters, tax-free, tax-deferred, etc. options, there is always a gap. I am looking for a good route to go for those four years to spend quality time with my wife (she's disabled) before I become too stagnant. Thanks for the response.