What's your exit plan? Or what comes after you're done investing?
By - filiona2
Downsize to an updated home, travel the world, vacation at a lake cottage every year. Eat at restaurants all the time. Just enjoy life. Take up hobbies. Learn languages, learn an instrument, join a club, take up sports(they have them for old people)
My main goal is to get to $1M in my personal brokerage. The sooner I hit this goal the sooner I can “retire” but still have a part-time job I actually enjoy.
The $1M number is what I’m aiming for because at 8%, that’s $80k, and that’s more than enough to live on a year. Years where I would make more than 8%, they would just grow my money that much more. Years where I would make less (although rare), I would withdraw only what I needed to get by to protect the nest egg.
This $1M brokerage goal is the bridge I’ll need between when I quit and when I truly *retire* with a decent pension and 401k.
No kids yet (fiancée didn’t have what it took to get married lol), but hope to have a family one day. I plan to take care of them and my folks. Maybe help send my nephews to a nice college.
Other than that, spend what I can of it before I’m gone. That’s the whole intention I think.
Best of luck to everyone trying to reach their financial goals!
> Years where I would make less (although rare)
I'm well over that number now but I'm curious what you would be investing in to hit your 8% goal on a consistent basis?
You state "years where I would make less, although rare".. I've been investing since the 90's and have personally lost $$ in RE and equities.. and watched my portfolio spend many, many years either down or going sideways making nil.
Since my life doesn’t depend on it, just earlier retirement, once I hit $1M, I would stay invested in riskier assets (mainly ETFs). Diversify amongst multiple ETFs sounds like a safe bet to me.
I currently leverage some available margin, which is considered risky to many, into these same ETFs and have had no problem. In other words, they have outpaced the interest rate of the margin.
Covered call ETFs will generate those kinds of yields, more even - if volatility is elevated.
> Covered call ETFs will generate those kinds of yields
Yeah, I've been watching QYLD and the others for awhile now but just don't feel that confident putting 7-figures into it. Since inception, it's averaged 9% annually.
Personally, I treat it like a savings account. I'm not going to live a meager life for 30 more years just to start splurging when my body's old and tired and can't do everything I could when I was younger. I'll never stop investing and trading, but I'm going to have fun when I'm young. I'm going to do what I want to do when I'm young enough to still be able to do it. DON'T WASTE YOUR YOUTH hoarding wealth like Smaug.
No such thing as being "done" with investing. If you have accumulated more money than what you can spend in your lifetime, the sensible thing to do is to keep investing so you're leaving a nice sum to your heirs or charity or some other worthy cause. In a sense, you are no longer investing for yourself but for those whom you are passionate about.
Some people want to retire
Its called the "decumulation phase" of your investing life. It's a broad topic and depends on your situation and goals. At the very least, its about not going out of money before you die (to put it bluntly). As you rightly put it by asking the question, it requires to be planned before you retire. It is also why most suggest to change your equities/bonds balance as you progress towards retirement so that you are not overexposed to market downturns.
Well after i reached my FIRE number, i would just switch to a cozy part-time job, let the investments ride enough to get an extra 60-70k, buy an apartment, then retire. So of the market gods are nice that's within 10 years, if not maybe never gonna happen
I will never have enough money to retire but if I could I would just have a cabin in the woods near a nice lake and spend the rest of my life doing gardening, reading books and writting books. And maybe do some classes such as dance or painting.
I don't care about big houses, fast cars, restaurantes and fancy clothes. I don't care about travelling abroad every year. I don't care about expensive fornitures and big computers.
I just want tranquility, art and contemplation.
Retire to Portugal
Edit: Maybe Greece too
Oh, that's funny you say that, I was there just last week. Definitely an amazing place to spend time / retire.
Specially since I can speak portuguese and have portuguese citizenship, all I have to do is buy a plane ticket
Already have 1M make it 10X and I am out.
I'm pretty conservative in my planning, so once I'm "done" I'll probably continue to be conservative for a few years just in case some kind of unexpected bombshell hits us.
After that I actually expect to have a little bit more money annually--without drawing down the principal--than I do now. I will probably continue to live modestly and maybe vacation a bit, but nothing crazy. Maybe I'll see a few Broadway shows a year. Visit a few museums. Spend some time and money to get into some kind of dog sport like agility.
I have no kids, but my intention is to leave a big chunk of money to the next generation of my family (hence my plan to not touch my principal if possible, and to leave the full value of my home untapped). So nephews and nieces. My parents set me up pretty well including allowing me to basically to have a retirement pension that conservatively could cover almost all my retirement needs. My goal is to do the same for the next generation, and hopefully they will keep paying it forward. Almost like setting up a family foundation, I guess.
I've spent zilch time thinking about this myself, as it's more than 20 years away. But I've read before that if you have individual holdings you should sell those that have made done the best in the last year. Makes sense.
Keep them invested so they will continue to fund a 4 percent withdrawal rate through my 30+ years of retirement. The portfolio composition will change...I'll stay invested in the market to fund 80 to 100% of my pre-retirement expenses.
Sell off small amounts, like 4-5% per year while retired to cover expenses. Move some percentage into bonds to decrease your short term risk.
Specify in a will where the remaining money goes when you die: charity, pass it on to relatives, etc.
I don't know. It depends on my needs at the time and the value of my holdings are at the time.
If the value is significant, I'll have to figure out a tax strategy. This isn't my only holding.
If the value moons in the short term (2-3 years), I'll probably sell a healthy portion.
Won't quit til I die. I spent covid learning to trade options and I'm straight fucking addicted. The only thing that'll change is rather than making moves from work, I'll be making moves poolside.
I’m planning to invest till the rest of my life and give my money to charity and my kids.