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THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65 This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORS The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO. early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY? What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. HOW MUCH SHOULD I BE PAYING IN FEES AND COMMISSIONS? It looks like we just made it. At $80 in fees, it works out to just under 2 basis points in fees and commissions for a $500,000 account. As a comparison, let's look at creating the same type of portfolio at a full service brokerage firm. THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65 This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORS The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO. early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY? What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. HOW MUCH SHOULD I BE PAYING IN FEES AND COMMISSIONS? It looks like we just made it. At $80 in fees, it works out to just under 2 basis points in fees and commissions for a $500,000 account. As a comparison, let's look at creating the same type of portfolio at a full service brokerage firm. RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

RETIRE EARLY'S SAFE WITHDRAWAL RATES IN RETIREMENT. Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

annuity calculator.

THE 4% WITHDRAWAL IN BAD TIMES. This article was first posted November 1, 2001. With the S&P500 down about 30% from it's March 2000 high of 1553, many skittish early retirees are wondering CAN RETIRING EARLY MAKE YOU CRAZY? GETTING TO KNOW The making of an author and Internet "investment advisor" Bennett first became known in the year 2000, during the height of the dot.com boom, when his 23-page report "The Secrets of Retiring Early" was favorably reviewed by Motley Fool co-founder Tom Gardner.The report was the best selling product on Motley Fool's Soapbox marketplace and Bennett earned some $15,000 in royalties. MORNINGSTAR EXPOSES PASSION SAVING AUTHOR ROB BENNETT AS A This article was first posted April 6, 2006. Morningstar's "Diehards" board is one of the legendary personal finance forums on the web. It was chartered to host discussions about Vanguard founder Jack Bogle's approach to investing using low-cost index funds. THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65 This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORS The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO. early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY? What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. HOW MUCH SHOULD I BE PAYING IN FEES AND COMMISSIONS? It looks like we just made it. At $80 in fees, it works out to just under 2 basis points in fees and commissions for a $500,000 account. As a comparison, let's look at creating the same type of portfolio at a full service brokerage firm. THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65 This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORS The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO. early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY? What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. HOW MUCH SHOULD I BE PAYING IN FEES AND COMMISSIONS? It looks like we just made it. At $80 in fees, it works out to just under 2 basis points in fees and commissions for a $500,000 account. As a comparison, let's look at creating the same type of portfolio at a full service brokerage firm. RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. RETIRE EARLY'S SAFE WITHDRAWAL RATES IN RETIREMENT. Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

THE RETIRE EARLY STUDY ON SAFE WITHDRAWAL RATES Maximum "100% Safe" Inflation Adjusted Withdrawal Rates. The maximum "100% safe" withdrawal rate decreases as the pay out period increases. Using the PPI to index withdrawals, a 20-Year pay out period allows for a 4.78% first year, inflation adjusted withdrawal, while a 60-Year pay out period requires that the first year withdrawal be reduced to 3.24% to remain 100% safe. CALCULATE YOUR OWN SAFE WITHDRAWAL RATES. For a 40-Year pay out period, many of the worst case months are for a retirement starting in 1964-1966. We won't know the actual 40-Year safe withdrawal rate for these periods until 2006, but even if we assume the S&P500 continues to decline 20% per year through 2006, it still won't breech the 3.52% withdrawal rate for a 40-Year retirement starting in September 1929. RETIRE EARLY: CAN I WITHDRAW MONEY FROM MY IRA BEFORE AGE The life expectancy method is outlined on Page 28 of IRS Publication 590, "Individual Retirement Arrangements."The withdrawal in 2003 would be calculated by dividing the balance of any or all of your IRAs on December 31, 2002, by your life expectancy (or the joint life expectancy of you and the beneficiary of your IRA). FINANCIALENGINES.COM AND "SAFE" WITHDRAWAL RATES. Discussion of the Results. A first glance, the most striking result is the low "downside" withdrawal rates. For all but the Bill Gates and Jerry Yang portfolios, Financial Engines' "95% probability of success" withdrawal rate was much lower than the Retire Early study. It's also noteworthy that the 5% withdrawal rate recommended by many financial experts (i.e. $50,000 per year from a $1 THE 4% WITHDRAWAL IN BAD TIMES. This article was first posted November 1, 2001. With the S&P500 down about 30% from it's March 2000 high of 1553, many skittish early retirees are wondering UNCLE SAM WILL 'SELL' YOU A SINGLE-PREMIUM IMMEDIATE Last November Retire Early noted that single-premium immediate annuities (SPIA) are a bad deal for most people. Several readers asked "How can this be?" It seems that every day there's another article from a financial "expert" extolling the virtues of using an SPIA to provide a pension-like gauranteed income in retirement. MORNINGSTAR EXPOSES PASSION SAVING AUTHOR ROB BENNETT AS A This article was first posted April 6, 2006. Morningstar's "Diehards" board is one of the legendary personal finance forums on the web. It was chartered to host discussions about Vanguard founder Jack Bogle's approach to investing using low-cost index funds. THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65 This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORS The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO. early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY? What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. HOW MUCH SHOULD I BE PAYING IN FEES AND COMMISSIONS? It looks like we just made it. At $80 in fees, it works out to just under 2 basis points in fees and commissions for a $500,000 account. As a comparison, let's look at creating the same type of portfolio at a full service brokerage firm. RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

MORNINGSTAR EXPOSES PASSION SAVING AUTHOR ROB BENNETT AS A This article was first posted April 6, 2006. Morningstar's "Diehards" board is one of the legendary personal finance forums on the web. It was chartered to host discussions about Vanguard founder Jack Bogle's approach to investing using low-cost index funds. MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE 4% WITHDRAWAL IN BAD TIMES. This article was first posted November 1, 2001. With the S&P500 down about 30% from it's March 2000 high of 1553, many skittish early retirees are wondering RETIRE EARLY: CAN I WITHDRAW MONEY FROM MY IRA BEFORE AGE The life expectancy method is outlined on Page 28 of IRS Publication 590, "Individual Retirement Arrangements."The withdrawal in 2003 would be calculated by dividing the balance of any or all of your IRAs on December 31, 2002, by your life expectancy (or the joint life expectancy of you and the beneficiary of your IRA). CALCULATE YOUR OWN SAFE WITHDRAWAL RATES. For a 40-Year pay out period, many of the worst case months are for a retirement starting in 1964-1966. We won't know the actual 40-Year safe withdrawal rate for these periods until 2006, but even if we assume the S&P500 continues to decline 20% per year through 2006, it still won't breech the 3.52% withdrawal rate for a 40-Year retirement starting in September 1929. THE RETIRE EARLY STUDY ON SAFE WITHDRAWAL RATES Maximum "100% Safe" Inflation Adjusted Withdrawal Rates. The maximum "100% safe" withdrawal rate decreases as the pay out period increases. Using the PPI to index withdrawals, a 20-Year pay out period allows for a 4.78% first year, inflation adjusted withdrawal, while a 60-Year pay out period requires that the first year withdrawal be reduced to 3.24% to remain 100% safe. RETIRE EARLY'S SAFE WITHDRAWAL RATES IN RETIREMENT. Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

FINANCIALENGINES.COM AND "SAFE" WITHDRAWAL RATES. Discussion of the Results. A first glance, the most striking result is the low "downside" withdrawal rates. For all but the Bill Gates and Jerry Yang portfolios, Financial Engines' "95% probability of success" withdrawal rate was much lower than the Retire Early study. It's also noteworthy that the 5% withdrawal rate recommended by many financial experts (i.e. $50,000 per year from a $1 UNCLE SAM WILL 'SELL' YOU A SINGLE-PREMIUM IMMEDIATE Last November Retire Early noted that single-premium immediate annuities (SPIA) are a bad deal for most people. Several readers asked "How can this be?" It seems that every day there's another article from a financial "expert" extolling the virtues of using an SPIA to provide a pension-like gauranteed income in retirement. THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65 This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY? What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO. early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORS The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of MUTUAL FUNDS' HIDDEN COSTS This article was last updated October 31, 2005. Most investors are familiar with the expense ratio that a mutual fund manager takes from shareholders each year as compensation for running the fund, but they may be unaware of other hidden costs that may take even more from an investor's pocket. Brokerage commissions paid by the fund, the bid/asked spread on every trade, and market impact costs EARLY RETIREMENT PLAN FAILURES This article was posted September 1, 2006. Early retirement plans typically fail for three reasons; 1) retiring before you've saved enough money to be financially-independent, 2) inadequate diversification of your retirement assets, and, 3) underestimating your annual living expenses in retirement. DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65 This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY? What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO. early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORS The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of MUTUAL FUNDS' HIDDEN COSTS This article was last updated October 31, 2005. Most investors are familiar with the expense ratio that a mutual fund manager takes from shareholders each year as compensation for running the fund, but they may be unaware of other hidden costs that may take even more from an investor's pocket. Brokerage commissions paid by the fund, the bid/asked spread on every trade, and market impact costs EARLY RETIREMENT PLAN FAILURES This article was posted September 1, 2006. Early retirement plans typically fail for three reasons; 1) retiring before you've saved enough money to be financially-independent, 2) inadequate diversification of your retirement assets, and, 3) underestimating your annual living expenses in retirement. DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

THE TONTINE ANNUITY

A tontine is a financial instrument where each participant pays an agreed sum into the fund, and thereafter receives an annuity. As members die, their shares devolve to the remaining participants, and so the value of each annuity increases. CALCULATE YOUR OWN SAFE WITHDRAWAL RATES. For a 40-Year pay out period, many of the worst case months are for a retirement starting in 1964-1966. We won't know the actual 40-Year safe withdrawal rate for these periods until 2006, but even if we assume the S&P500 continues to decline 20% per year through 2006, it still won't breech the 3.52% withdrawal rate for a 40-Year retirement starting in September 1929. MUTUAL FUNDS' HIDDEN COSTS This article was last updated October 31, 2005. Most investors are familiar with the expense ratio that a mutual fund manager takes from shareholders each year as compensation for running the fund, but they may be unaware of other hidden costs that may take even more from an investor's pocket. Brokerage commissions paid by the fund, the bid/asked spread on every trade, and market impact costs EARLY RETIREMENT PLAN FAILURES This article was posted September 1, 2006. Early retirement plans typically fail for three reasons; 1) retiring before you've saved enough money to be financially-independent, 2) inadequate diversification of your retirement assets, and, 3) underestimating your annual living expenses in retirement. RETIRE EARLY: CAN I WITHDRAW MONEY FROM MY IRA BEFORE AGE The life expectancy method is outlined on Page 28 of IRS Publication 590, "Individual Retirement Arrangements."The withdrawal in 2003 would be calculated by dividing the balance of any or all of your IRAs on December 31, 2002, by your life expectancy (or the joint life expectancy of you and the beneficiary of your IRA). MORNINGSTAR EXPOSES PASSION SAVING AUTHOR ROB BENNETT AS A This article was first posted April 6, 2006. Morningstar's "Diehards" board is one of the legendary personal finance forums on the web. It was chartered to host discussions about Vanguard founder Jack Bogle's approach to investing using low-cost index funds. THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65DID MEDICARE INCREASEMEDICARE SUPPLEMENT RATE INCREASE HISTORYNEW MEDICARE RATESWHEN DO MEDICARE RATES INCREASE This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY?50 % SOCIAL SECURITY SPOUSAL BENEFIT What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO.BEST FIXED INCOME PORTFOLIOMODEL FIXED INCOME PORTFOLIOVANGUARD FIXED INCOME PORTFOLIOFIXED INCOME INVESTMENT RATESFIXED INCOME INVESTMENTS 2020WHAT ARE FIXED INCOME INVESTMENTS early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORSDFA FINANCIAL ADVISOR The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of EARLY RETIREMENT PLAN FAILURES This article was posted September 1, 2006. Early retirement plans typically fail for three reasons; 1) retiring before you've saved enough money to be financially-independent, 2) inadequate diversification of your retirement assets, and, 3) underestimating your annual living expenses in retirement. DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. 72(T) AMORTIZATION METHOD WITH RECALCULATION This article was first posted on August 9, 2004, updated January 18, 2005. In addition to the three methods for calculating "substantially equal periodic payments" (SEPP) outlined in the Internal Revenue Service Revenue Ruling 2002-62, there have been two IRS private letter rulings (PLR) allowing for recalculation using the amortization method (PLRs plr200432021, and plr200432024.) and one THE RETIRE EARLY HOME PAGE.THE TONTINE ANNUITYHEALTH INSURANCE AND EARLY RETIREMENTRETIRE EARLY'S IRA TOOLKIT The online magazine for people who used to work for a living. Editor's note: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things RETIRE EARLY: IRS LIFE EXPECTACY TABLE. Frequently Asked Questions (FAQs) Question 1. What does the "divisor" in the table above represent? Answer: The divisor is the number of years a person has left. WHAT I'M DOING FOR MEDICARE INSURANCE AT AGE 65DID MEDICARE INCREASEMEDICARE SUPPLEMENT RATE INCREASE HISTORYNEW MEDICARE RATESWHEN DO MEDICARE RATES INCREASE This article was first posted October 1, 2020. After 26+ years of early retirement, I'm about 4 months away from Medicare eligibility. A few readers have asked what I'm doing for Medicare insurance post age-65 and how I'm going to manage it, so here goes. WHAT HAPPENS TO MY SOCIAL SECURITY BENEFIT IF I RETIRE EARLY?50 % SOCIAL SECURITY SPOUSAL BENEFIT What to conclude from this analysis? There may be many reasons to keep working past the point where you've reached financial independence, but a larger Social Security check probably shouldn't be MILLENNIUM EDITION GENERATION-X RETIREMENT CALCULATOR. The article was first posted on August 1, 2000, updated November 1, 2006. The Millennium Edition Generation-X Retirement Planner is an Excel spreadsheet offering a quick and easy way to calculate how much money you'll need to Retire Early.It allows you to vary several parameters to see what affect they will have on your retirement date. THE FIXED INCOME PORTION OF A RETIREMENT PORTFOLIO.BEST FIXED INCOME PORTFOLIOMODEL FIXED INCOME PORTFOLIOVANGUARD FIXED INCOME PORTFOLIOFIXED INCOME INVESTMENT RATESFIXED INCOME INVESTMENTS 2020WHAT ARE FIXED INCOME INVESTMENTS early retirement, investments, manage expenses. Despite several years of near zero percent interest rates for savers, just about every retiree will want to hold some portion of their retirement portfolio in fixed income securities. LOW-COST, FIXED-FEE DFA INVESTMENT ADVISORSDFA FINANCIAL ADVISOR The second layer of fees is the commission paid to the custodian for actually buying or selling DFA fund. Schwab Institutional appears to be the most popular custodian among DFA-approved advisors, though TD Ameritrade offers lower fees. For the typical portfolio encompassing 10 to 15 asset classes, the annual transaction costs would range from $250 to $750 per year at Schwab and about half of EARLY RETIREMENT PLAN FAILURES This article was posted September 1, 2006. Early retirement plans typically fail for three reasons; 1) retiring before you've saved enough money to be financially-independent, 2) inadequate diversification of your retirement assets, and, 3) underestimating your annual living expenses in retirement. DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. 72(T) AMORTIZATION METHOD WITH RECALCULATION This article was first posted on August 9, 2004, updated January 18, 2005. In addition to the three methods for calculating "substantially equal periodic payments" (SEPP) outlined in the Internal Revenue Service Revenue Ruling 2002-62, there have been two IRS private letter rulings (PLR) allowing for recalculation using the amortization method (PLRs plr200432021, and plr200432024.) and one RETIRE EARLY: SHOULD I STICK AROUND FOR 40 YEARS TO Download FREE Retirement Planning Software. How to retire early; 1) Manage expenses, 2) accumulate capital, 3) invest wisely with low fees

and commissions.

THE TONTINE ANNUITY

A tontine is a financial instrument where each participant pays an agreed sum into the fund, and thereafter receives an annuity. As members die, their shares devolve to the remaining participants, and so the value of each annuity increases. DOWNLOADING THE PKUNZIP.EXE FILE If you do not already have a PKUNZIP.EXE file, or if your own PKUNZIP.EXE file doesn't work properly, download the one from this page. Unfortunately, some BROWSERS don't always download EXE files properly, so they have to be tricked into doing it. FINANCIALENGINES.COM AND "SAFE" WITHDRAWAL RATES. Discussion of the Results. A first glance, the most striking result is the low "downside" withdrawal rates. For all but the Bill Gates and Jerry Yang portfolios, Financial Engines' "95% probability of success" withdrawal rate was much lower than the Retire Early study. It's also noteworthy that the 5% withdrawal rate recommended by many financial experts (i.e. $50,000 per year from a $1 RETIRE EARLY: CAN I WITHDRAW MONEY FROM MY IRA BEFORE AGE The life expectancy method is outlined on Page 28 of IRS Publication 590, "Individual Retirement Arrangements."The withdrawal in 2003 would be calculated by dividing the balance of any or all of your IRAs on December 31, 2002, by your life expectancy (or the joint life expectancy of you and the beneficiary of your IRA). CAN RETIRING EARLY MAKE YOU CRAZY? GETTING TO KNOW The making of an author and Internet "investment advisor" Bennett first became known in the year 2000, during the height of the dot.com boom, when his 23-page report "The Secrets of Retiring Early" was favorably reviewed by Motley Fool co-founder Tom Gardner.The report was the best selling product on Motley Fool's Soapbox marketplace and Bennett earned some $15,000 in royalties. RETIRE EARLY BOOK REVIEW -- THE LIES ABOUT MONEY, BY RIC This article was first posted March 1, 2008. The Lies About Money is basically a book-length sales pitch for Edelman Financial Services.The fact that Mr. Edelman can get people to pay $20 for his brochure is a testament to his sales, marketing, and self-promotion skills. MORNINGSTAR EXPOSES PASSION SAVING AUTHOR ROB BENNETT AS A This article was first posted April 6, 2006. Morningstar's "Diehards" board is one of the legendary personal finance forums on the web. It was chartered to host discussions about Vanguard founder Jack Bogle's approach to investing using low-cost index funds. _THE ONLINE MAGAZINE FOR PEOPLE WHO USED TO WORK FOR A LIVING._

APRIL/JUNE 2021

......................................................................................

VOLUME 26, NUMBER 2

-------------------------

CHRONOLOGICAL INDEX

- - - - - - - - - - - - - - - - - - - - - - - THE TRADITIONAL HOCOMANIA FORUM - - - - - - - - - - - - - - - - - - - - - - -

LEGAL DISCLAIMER

------------------------- EDITOR'S NOTE: Starting with the January 1, 2018 issue, the Retire Early Home Page will be updated four times per year (i.e., Jan, Apr, Jul, Oct). After doing this for twenty plus years, I'm running out of things to say about early retirement, other than the obvious -- it's

completely awesome.

Tired of commuting? Fed up with a nitwit boss? Bored with your job? Have you come to the conclusion that all this talk of empowerment is idiocy? Does Dilbert ring true? Are you, in the words of civil rights pioneer Fannie Lou Hamer

, just plain

"sick and tired of being sick and tired"? There's a solution. Start doin' what you want to do. Get control of your life, become financially independent, and _ RETIRE EARLY _. The Retire Early Home Page is one of the Web's first totally spam and scam free sites devoted to saving and investing for retirement. You need to be careful. It's easy to lose money even when dealing with an impressively credentialed, fully licensed financial professional. The investment world is a lot like political campaign financing -- the real scandal is what's legal. Just as the lady at K-Mart is unlikely to tell you that an item is cheaper at Wal-Mart, the man at Paine-Webber won't tell you you can save at Vanguard -- or completely eliminate fees and commissions by opening a Treasury Direct account. _ RETIRE EARLY _ shows you how to look out for your interests and make sure nobody yanks the yolk right out of your retirement nest egg. ------------------------- Invest with DFA Funds, 12-Step Program Oil Field Career Advice - JCMConsult.net

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-------------------------

.

NEW AND TIMELY THIS MONTH: ------------------------- 2020 UPDATE REAL-LIFE RETIREE INVESTMENT RETURNS _Retire Early's_ annual look at a few retirement portfolios. IS THERE A "RETIRE EARLY" PERSONALITY TYPE? Some interesting results from a survey we did on the _Motley Fool_

message board.

THE 4% WITHDRAWAL IN BAD TIMES _Retire Early_ looks at the 4% withdrawal rate and some things you can do to reduce volatility. (NOTE: This is the study mentioned in Scott Burns' columns of Nov. 4, 2001

and Feb. 26, 2002

.)

.

THE RETIRE EARLY STUDY ON SAFE WITHDRAWAL RATES. A brief summary of the research that first appeared on the _Retire Early_ web site in 1998. HOW MUCH CAN YOU SAFELY WITHDRAW FROM YOUR RETIREMENT PORTFOLIO?

(2ND EDITION)

Just published -- an update to the popular retirement report that first appeared on Soapbox.com last year. CAN I WITHDRAW MONEY FROM MY IRA BEFORE AGE 59 1/2? More and more people are interested in the 72(t) exception. Read the details and use _RETIRE EARLY'S_ online withdrawal calculator. THE RETIRE EARLY BOOK SHELF Several readers have asked for a list of the best books on retirement. Here's what I've found useful. DOWNLOAD FREE SOFTWARE _RETIRE EARLY_ has developed a variety of financial planning software programs. Click here to check out the list and download what you need. ------------------------- Here's a menu listing to quickly get you to what you want to know: Oil Field Career Advice - JCMConsult.net Top 10 reasons to _RETIRE EARLY._ Folks have all kinds of reasons to retire early. Is yours on the list? _RETIRE EARLY'S_ Kareer Korner. Experts agree. Working in most big companies (and many smaller companies) basically blows. Links for the beleaguered. How do I _RETIRE EARLY_? (1) Manage expenses, (2) accumulate capital, (3) invest wisely by minimizing fees and commissions. Fees, commissions, and financial advisors. How much should you be paying in fees ? How should you choose a

financial advisor ?

_RETIRE EARLY'S_ IRA Toolkit. A collection of research and spreadsheets for managing your IRA. Includes the popular JAVASCRIPT IRA Withdrawal Calculator. Millennium Edition -- The Generation-X Retirement Planner This spreadsheet allows you to calculate how much money you'll need to _RETIRE EARLY_. (Assumes no Social Security or company pension

benefits.)

Health Insurance and Early Retirement Health insurance is a big obstacle to early retirement for many people. Here are a few resources to help you navigate the swamp. Early Retirement Plan Failures. Studying some of the mistakes people make can sharpen your own retirement plan. _Passion Saving_ author Rob Bennett is the poster boy for bad retirement planning. Social Security and Early Retirement. How will retiring early reduce my Social Security benefit? Probably not as much as you think. Resume of John P. Greaney, P.E. Several readers have asked what I did before _ RETIRE EARLY._ Here's

the details.

Safe Withdrawal Rates in Retirement. How long will my money last? A collection of research and calculators designed to help you answer that questiion. Can you come speak to our group? John Greaney, the creator of _ RETIRE EARLY_ , is available for a limited number of speaking engagements each year. ------------------------- root dir http://www.RetireEarlyHomePage.com/index.htm Copyright ï¿½ 1996-2021 John P. Greaney, All rights reserved. ------------------------- -------------------------

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