Retire Early Home Page Discussion Board

[Roger_R]

I am still a working sot, though getting very close to ER. I've had two "hobbies" that I thought might supplement or advance my retirement. The first was a craft operation and in my spare time I made my craft and marketed it through several eager outlets. Pretty soon there were many orders to be filled and spent many long evenings doing what at first was fun, but eventually became a "job". When the weather was nice and my friends were out playing, I was inside putting things together. I might at least warn that once a hobby becomes a requirement for income it can loose it's newness and become repetative. I soon became bored and grouchy and had to quit.

My second hobby is outdoor photography. This is how I would like to spend my time in retirement and I think there is a small income stream availible. I have however learned my lesson that you do art for art's sake and not contingent on income. If the income is there, more power to you.

If i could offer some advice, it would be to not quit your day job until you are satisfied you have enough income without your art, or until you have done your art as a parttime income earner long enough to know how it suits you and that you have a predicable income from it.

[northwestbob]

JonnyM:

"So while we certainly won't be living large, we should end up with about $4K to $5K per month forever (Cost of Living built in). We think this is very doable. "

If you have a $4-5K monthly income, that is the same as having saved $1.2M+ for a retirement war chest, let alone the paid for health insurance. Your retirement income will be more than the working income of about 60% of US families.

If you have a paid for house or rent a reasonable apartment you ought to be able to do just fine. Try living on a budget based on this. You can ignore money you have to spend because both of you are working. But, add in costs for retirement activities. (Green fees aren't cheap.) If it works, then you are home free. Then the glass work income won't matter. If not, either postpone retirement or see where you can cut down.

If it takes more than $60K then I would call that living extravagantly. If it takes less then consider yourselves retired.

Cheers,
NW Bob
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Northwest Bob

[tryan]

I would define "retired" as not selling your time.

Managing your portfolio (be it stocks, bonds, or real estate) could be considered work since others are paid to do it. But the difference is you are your own boss.
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Buy Low, Sell High

[PipSqueak]

I think I'll define retired as a matter of having more choices. I can be retired and still be working because I choose to, not because I have to.

Won't you feel better if you wake up every morning for work or whatever knowing that you have enough funds to last for 50+ years than having 0 savings and bills unpaid?

[rtroxel]

Managing your portfolio (be it stocks, bonds, or real estate) could be considered work since others are paid to do it. But the difference is you are your own boss.

I would agree.

[tashina]

I'm going to dredge up this old topic just because I am interested in it and hadn't seen it before.

My opinion is that being retired generally requires two components: 1)you are financially independent of any of the pressures of having to work and 2) that you have the mindset of a retiree.

#1 is pretty simple. If you have enough money to live on without ever working again, you are financially independent (FI). If you do something in retirement which requires labor, it should be free of money pressures. If you are selling jewelry supposedly for fun, but are actually worried about making money doing it (or feel pressure to make money), you are not retired. If you would be making jewelry even with $50 million in the bank, and you just happen to like to take money for it, then you are retired. Some people get joy from seeing their bottom line increase no matter how much they have in the bank. Whether they check their stocks once a day or watch their eBay Paypal balance go up is all the same to me.

#2 is a little harder. Two people can have such different mindsets about the same circumstances that I think retirement must involve some component of desire to be retired or awareness of being retired. If you are FI but working full-time and love to work and never plan to retire, then you are not retired. However, if you are working full time, but you don't need the money and you think to yourself every day, "How great it is to be retired. I can work today because I feel like it, but the moment I get sick of it, I'm outta here", then that's a retirement mindset.

From there, there are probably plenty of sub-categories. I'd say someone is semi-retired if they are at or almost to FI and are working at an enjoyable task to bring in a little extra money, but they are relying on that extra cash.

FIRE wannabees are those who have #2 but not #1. I wanted to be retired early before I ever entered the workforce. I always had a "get me out of the working world" mentality. Only money stood between me and early retirement.

Anyway, I'd be interested in what others think.

[danielRay]

Interesting thread am only 24 but it was really interesting to read thoughts about after retirement life
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EMR | EHR

[scrabbler1]

DanielRay, thanks for bumping this thread to the top. I began posting here in 2008 so I had not seen it before.

Tashina's post just before yours is right on the mark for determining what it takes to be retired. Her remarks about being semi-retired are good, too.

In another thread, I described my path to semi-retirement and finally to full retirement last November. I worked full-time for 16 years, then part-time for 7 more years before taking a big company stock payout (before the stock price took a mild tumble) and calling it quits at the age of 45. I considered myself semi-retired for those 7 years.

I had been growing more and more sick of working, especially the commute (even 2-3 days a week while P/T), and was just waiting for some final pieces of my financial plan to come together (which they did in 2008). Now 10 months into my retirement, the plan is working out just fine if not somewhat better than I had originally anticipated because of the economic downturn. (Yes, the downturn was a BIG benefit to my being able to retire early although I would have done it anyway. Can you believe it?!)

[dab90south]

old thread, but anyway....

got laid off Jan 2009, haven't worked since, but have spent time designing and building furniture, maybe i'll sell some down the road.

tables i just finished:

[ogrecat]

Very nice.

[martha]

Those are lovely. Cherry? Or maybe walnut? Hard to tell the tone of the wood.

[dab90south]

sorry, solid walnut.

[martha]

I want them.

[sgeeeee]

[ogrecat]