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Early Retirement, Are You Ready For It?

Last post 12-29-2011 10:57 AM by whitney37354. 4 replies.
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  • 12-28-2011 2:21 PM

    • Brandy
    • Top 10 Contributor
    • Joined on 03-28-2007
    • Saving in South Mississippi
    • Posts 25,145

    Early Retirement, Are You Ready For It?

    We make plans but they don't always work out. Are you prepared for an unexpected retirement due to health or other reasons?

    The Dollar Stretcher Community Manager



  • 12-28-2011 2:46 PM In reply to

    Re: Early Retirement, Are You Ready For It?

    For health/disability: I have long term disability insurance. After six months, I will get 66% of my salary. I pay about $9 a month for this insurance. One drawback is I would have to be disabled or sick for six months with no pay before it starts paying. (But that's why it was only $9 a month). And another drawback is I have to be disabled or medically unable to work. So that wouldn't be a fun reason to retire early.

    I am 35 years old so "retirement" for other reasons would be a voluntary decision to quit my job or if Iost my job. If I determined I would not be entering the workforce again, we would have to make adjustments that are not part of retirement planning per se (like pulling a 2 year old out of daycare and 5 year old out of private kindergarten). In my retirement scenario, I don't have young children! But it is completely doable if I had to!

    Erika
  • 12-28-2011 8:47 PM In reply to

    Re: Early Retirement, Are You Ready For It?

    well if I was disabled, I would get money from the govt but since we are in our 40's with young kids who will be in their early 20's by the time we hit 65.   if I was retired ..well guess we can make it work with no money from me but would have to do something I think.    dh has disablitiy insurance from work at least.

    Officially recognized Stretchpert in Hobbies and Crafts
  • 12-28-2011 9:01 PM In reply to

    Re: Early Retirement, Are You Ready For It?

    Not really... my family would help if needed, but I prefer not to rely on them.  I save a reasonable amount every month (15%, not including retirement accounts), some in a regular savings account, some in a money market and some in an IRA.  I only have 2 debts - mortgage, and a private loan from a family member; everything else is bills - which makes it somewhat easier; if I were disabled I would stop adding to the savings and use what I already have.  Also, the private loan will be paid off in 2 years (yay!) at which point I will further accelerate the mortgage, which is currently recieving 25% extra in principal each month (another thing I could cut back if disabled) - those 2 together, the extra principal and money to savings - are nearly 25% of my total income, which would also reduce my expenses if I stopped those.  So with what I have in savings, I'd be okay until SSI disability kicked in... not comfortable, cut to the bone as far as expenses - but okay.
  • 12-29-2011 10:57 AM In reply to

    Re: Early Retirement, Are You Ready For It?

    Not at all. DH & I both have retirement plans at work & 401K, but we have little savings othewise. We're both 38 now, with a 6 year old child, so there will be no retiring anytime soon around here. Once our debts are paid off (hopefully 2013), we can put more into savings & then we'll see how it goes.

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