This is an update of a post written in February, 2006.
Target date changed, it is now the Spring/Summer of 2013
So, with some hesitation, I’ll launch into how we think we may be able to afford to indulge our desire to retire early.
We will still have pensions – one for me and two small ones for Kathy. Mine will be small also.
We will have two defined contribution plans, started by the state of Oregon in 2004. I’ll take mine over a 5 year pay-out. We have a 457 plan account – public employee equivalent of a 401k, and we each have an IRA.
I will get an early retirement stipend of a few hundred dollars a month until I turn 65 (I am 60 now). We will get most of our US based health insurance paid for until I turn 65. It will only cover emergency care in Mexico, so we will get another policy down there, but emergency care is significant if you need it.
Eventually we will take Social Security. The timing of that will depend on how long we can wait to add it to our income.
The pensions and Social Security should cover our monthly living expenses. The defined contribution bits will be consolidated into self-managed IRAs, and I have worked on learning investing and personal finance stuff over the past 15 years. Most of that money will invested in dividend yielding stocks that will provide us with a supplement to our pensions/social security. Some I will use to pursue my hobby of fairly aggressive stock and options investing. Enough to make it fun, but not enough to hurt us if I screw up.
Investing has been an intellectually challenging and profitable hobby. Who knew that an old liberal (almost socialist) fellow would enjoy capitalism so much :). My professional background as a research analyst has been helpful with this hobby. There may be more on this later, as I have joined a group of independent Apple analysts, and my first quarterly Apple earnings and revenue estimates will be published as part of that group in a few weeks. If mine don’t suck, I may post a link to them in this blog.
Hobbies are supposed to be good in retirement :). This is not my only one, but I do rather enjoy it.