how to fund retirement

marigold · Post by **marigold** » Fri Nov 19, 2010 8:37 pm

How is everyone planning to fund early retirement?

JohnnyH · Post by **JohnnyH** » Fri Nov 19, 2010 8:45 pm

With money? :]
Earned mostly with a regular 9-5...
Other sources of income being: consulting/small business, investments, trades, rental property.

dragoncar · Post by **dragoncar** » Fri Nov 19, 2010 10:06 pm

I plan to take my nest egg and put it on black. If it hits, I retire. If I lose, then I guess I just keep working like everyone else.

orinoco · Post by **orinoco** » Fri Nov 19, 2010 10:50 pm

@Dragoncar are you crazy?! Surely you mean red?

RightClawSouth · Post by **RightClawSouth** » Fri Nov 19, 2010 10:57 pm

What? No! Always bet on black!

RightClawSouth · Post by **RightClawSouth** » Fri Nov 19, 2010 11:08 pm

Incidentally, a British guy did this already. He sold everything except the clothes on his back and bet $135,300 on red.
In doing so he gave the casino $7121 of expected value but he lucked out and won.
(18/38) * 135300 + (20/38) * -135300 = -7121
If the guy had just placed his bet on a single zero wheel, rather than the double zero wheel he actually used, he would have only given up $3657 of expected value.
Of course, in this situation, it was better to be lucky than intelligent...
(also, if I owned the Plaza casino and heard that my employees initially didn't want to take that bet, I would have hunted down whoever that was and immediately fired him/her for GROSS ignorance of how the casino makes money)

Post by **jacob** » Fri Nov 19, 2010 11:08 pm

@marigold - Mainly dividend paying stocks. If I was capable of settling in one place, I'd like to have a (semi)passive and tangible business instead, e.g. a windmill, a laundromat, a soft drink dispenser, ...

RightClawSouth · Post by **RightClawSouth** » Fri Nov 19, 2010 11:26 pm

I plan to go the diversified portfolio route (although I really haven't made my mind up how that is going to look) and re-balance as often as I can without getting dinged with fees (hopefully weekly). I'm also going to supplement with a gambling side income and possibly a part time or consulting job if I'm feeling enthusiastic for something that pays like that.

Robert Muir · Post by **Robert Muir** » Sat Nov 20, 2010 1:05 am

RightClawSouth, Wesley's not the best role model since he's going to prison for three years on income tax evasion charges.

retirebyforty · Post by **retirebyforty** » Sat Nov 20, 2010 2:08 am

fund my early retirement

- rental income

- dividend yield income

- spouse income

- side job income (minimal minimal minimal work)

MossySF · Post by **MossySF** » Sat Nov 20, 2010 3:07 am

There's a point where at X retirement age and Y savings rate, you can even lose money on investment speculation but still have enough to retire. For example, if you saved 50% of your income over 20 years, you'd only need 2% nomimal (-1% real) return to building up a $800K portfolio to survive a 2.5% SWR. So if you're unsure about the investing stuff, decrease expenses + save more.
I went through these numbers in detail a week ago on my blog:
http://personalbizfinance.com/pbf/2010/ ... lysis.html