CalamityJane's Journal

Where are you and where are you going?
calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

CalamityJane's Journal

Post by calamityjane »

My New Year’s resolution was to stop being a lurker on this forum!

2022 was ostensibly the first year of my early retirement. I quit my university job in December of 2021 at the age of 43, but was quickly rehired on a part time/contract basis…one semester became two, then I was asked to chair a search committee to fill my old position, and then I was asked to be a virtual assistant to my boss. This requires maybe 1-2 hours of actual work 3 or so days a week, but I get paid for 16 hours a week. It was an offer I couldn’t refuse and it still allows me a ton of freedom. I guess this means I continue to fail at early retirement.

Part of my ER plan was to buy some semi-rural property here in New Mexico to try homesteading on a small scale. I now live in a fairly small town, which has its limitations, but is also a college town so there are enough amenities to get by. It’s also centrally located for the hiking and camping I do on a regular basis. I thought for years about going nomadic in a travel trailer (mostly for adventure but also cutting down costs), but always liked the idea of having a home base. I got a 3% mortgage while I was still working full time, and my monthly payment is less than what a friend pays to rent a lot in an RV park. I’m less inclined towards the nomadic life these days, mostly because I keep accumulating animals and have been fostering with Animal Humane. If I do, I’ll probably rent out the house and mostly boondock. My annual expenses are currently more than 2 JAFIs, but I could cut back. A lot of that has been renovation costs.

More than anything, I want to be part of a community of like-minded people. I follow so many of the journals here and am constantly inspired and encouraged by what you all are accomplishing. I know we’re all different, but I think there’s a lot of overlap as well. My ultimate dream is to find a functional intentional community of some sort. I’m not sure exactly what form this would take, but I hope that it’s a model of living that grows in popularity. I am a single (INFJ) female, and while I am pretty solitary and self-sufficient I also really enjoy working on things with other people and sharing ideas. I’m most drawn to the ideals of DIY, sustainability, simplicity, creativity, and resource/skill-sharing. My time on the “homestead” is a way for me to develop some of those skills so I can hopefully be a good contributor to a community and the world in my own small way. I am trying to become less of a consumer every day.

Anyway, thanks for reading, and I’m looking forward to being a more active participant here.

mathiverse
Posts: 786
Joined: Fri Feb 01, 2019 8:40 pm

Re: CalamityJane's Journal

Post by mathiverse »

I'm glad to see your post! I'm excited to follow along in your journal!

Also taking a job or doing some part time work after retirement may not be very FIRE or conventionally ER, but it's very ERE.

calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

Re: CalamityJane's Journal

Post by calamityjane »

Thanks, Mathiverse! Yes, I like to think that I'm just getting better at pivoting according to circumstances. :)

UrbanHomesteader
Posts: 87
Joined: Fri Apr 29, 2011 9:02 pm

Re: CalamityJane's Journal

Post by UrbanHomesteader »

Welcome CalamityJane! I look forward to following your journal, since we have so many similar interests.

Western Red Cedar
Posts: 1200
Joined: Tue Sep 01, 2020 2:15 pm

Re: CalamityJane's Journal

Post by Western Red Cedar »

Welcome aboard! It sounds like you have a lot of exciting opportunities ahead. It sounds like you're winning early retirement to me.

sodatrain
Posts: 122
Joined: Tue Sep 20, 2022 5:43 pm

Re: CalamityJane's Journal

Post by sodatrain »

Welcome! I'm new here too. Gonna kick off my Journal today and I clicked on yours seeing that it was new and shiny!

User avatar
unemployable
Posts: 1007
Joined: Mon Jan 08, 2018 11:36 am
Location: Homeless

Re: CalamityJane's Journal

Post by unemployable »

I think I can narrow your location down to two places. 😉

I spend a decent amount of time in NM on the way to and from my summer residence in Colorado. The tax code is surprisingly friendly to people on ERE-type incomes. I've looked at property in some of the higher-elevation areas but I'm the opposite of you, so far I've enjoyed my particular brand of nomadism and am in little hurry to buy a house for now.

calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

Re: CalamityJane's Journal

Post by calamityjane »

Thanks for the warm welcome! @unemployable, yeah, I'm sure I could have done a better job keeping my location secret. :)

My week has been an adorable whirlwind (occasionally a shitstorm). I got three new foster puppies a week and a half ago and they are a handful. Likely shepherd/pitbull mixes though it’s hard to tell. They came into the shelter at 5-6 weeks, and they can’t get shots or be adopted out until 8 weeks so need a place to stay until then. Unfortunately, knowing little about their backgrounds means surprises sometimes, such as giardia. Hence the shitstorm. Luckily they got some medicine and are doing much better. I bring them back on Wednesday, and it’s always with a heavy heart. I have no intention of adopting any of them – I already have two shelter rescue dogs and know the puppies find homes almost immediately – but there’s always one in each litter that has me questioning that decision.

Other than that, the work/life balance is going well. Much easier to say that working 1-2 days a week rather than 5. I do check email almost every day, but it’s never too stressful. My arrangement with my boss is that I may be completely unreachable between Thursday and Sunday, so he has no expectations that I will be responding to email during that time. It takes a lot of pressure off.

The life stuff is a combination of reading, writing, research, Coursera, mindfulness practice/dharma talks/yoga, hiking, cooking, Duolingo, art, and home renovation/garden projects. Some highlights this week include making paneer (Indian cheese) from scratch and adding it to homemade palak. It turned out pretty well. I also went to check out a new-to-me forest road in the foothills of some mountains close to my house, which got the dogs out for a nice 6 mile jaunt and discovered some new campsites along the way. The best part of living where I do is the convenience of national forest and BLM land all around. Just a 20 minute drive, and total isolation combined with natural beauty.

Currently reading (selections):

Leaving New Buffalo Commune by Arthur Kopecky (sequel to New Buffalo: Journals from a Taos Commune)
I am fascinated by these books. There were a lot of problems with the 60s/70s communes, but these people got a lot of things right too. They had a pretty impressive farm going despite operating with almost no money, and made a decent business for awhile out of their dairy operation. Of course it all eventually crashed and burned, but the potential was there. I think New Buffalo still exists, but it’s more of a retreat center now.

Enlightenment now : the case for reason, science, humanism, and progress by Steven Pinker
I have mixed feelings about Steven Pinker and this book, but it does present kind of a compelling devil’s advocate alternative to the pessimism of most progressive/academic writers. TLDR: this is the best time ever to be alive, and things are just getting better!

The Harder They Come by T.C. Boyle
LOVE T.C. Boyle. I read a few of his books in the past, but recently have been reading every single one of them voraciously. This one was great – about a mentally ill young man in a standoff with authorities in the California redwood forests, along with his father who killed a man in a botched robbery in Costa Rica, and an older girlfriend who has her own anti-government sentiments. I also highly recommend Drop City and The Tortilla Curtain.

recal
Posts: 79
Joined: Sun Nov 14, 2021 12:29 pm

Re: CalamityJane's Journal

Post by recal »

Adding a reply here to start following along with this. Welcome! Looking forward to seeing more of what you're up to.

zbigi
Posts: 968
Joined: Fri Oct 30, 2020 2:04 pm

Re: CalamityJane's Journal

Post by zbigi »

recal wrote:
Thu Jan 19, 2023 6:24 pm
Adding a reply here to start following along with this. Welcome! Looking forward to seeing more of what you're up to.
You can also use the "Subscribe topic" feature in a drop-down menu at the top of the thread.

calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

Re: CalamityJane's Journal

Post by calamityjane »

This week was rough in unforeseen and frustrating ways. My job situation went from easy money to stress insomnia overnight, and while I think that situation has been rectified, it made me realize that employment is still inherently exploitative and stressful no matter how much FU money you have and how flexible the terms of employment are. My boss begged me not to quit and I promised I won’t (for now), but I won’t deny it was a thought that crossed my mind. At least I have the ability to do so, which was the real impetus for my financial independence.

I found out on Friday that my brother is getting a divorce. They’d been separated a few months so it wasn’t a total surprise, but in the end he still had the rug pulled out from under him and I hate to see him suffering. I was glad he reached out to me though, that he considers me an emotional support. Situations like that make me glad I never got married.

Currently reading:

Financial Security for Dummies by Eric Tyson

I read one of Tyson’s other “For Dummies” books many years ago and thought his advice was solid, but this one is…weird. He starts out with a diatribe about Bernie Sanders and continues on to skewer media bias during the pandemic, and the choice of topics just seems meandering and random. Do not recommend.

The Year of Less by Cait Flanders

I used to read her Blonde on a Budget blog. It’s a quick read about her year-long shopping ban and personal experiences with addiction and healing.

UrbanHomesteader
Posts: 87
Joined: Fri Apr 29, 2011 9:02 pm

Re: CalamityJane's Journal

Post by UrbanHomesteader »

I hope the job stress dissipates soon! I know it can be a roller coaster.

Jin+Guice
Posts: 1274
Joined: Sat Jun 30, 2018 8:15 am

Re: CalamityJane's Journal

Post by Jin+Guice »

calamityjane wrote:
Fri Jan 20, 2023 8:20 am
Some highlights this week include making paneer
How did your paneer turn out and what was your process like? I have a particularly hard time getting paneer and tofu to stick to itself in a cohesive block that can be cut into squares. Did you have any success with that?

calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

Re: CalamityJane's Journal

Post by calamityjane »

@Jin+Guice, the paneer turned out surprisingly well. I used this recipe - https://www.indianhealthyrecipes.com/ho ... s-at-home/ and it was pretty easy to follow. Basically just boil up some whole milk, add vinegar to make curds, and compress it with cheese cloth or something similar to take out the moisture (I just used an old handkerchief, but it seemed to work fine.) Then press it flat for a few hours under something heavy. Mine was a bit crumbly, but I was still able to cut it into squares and the crumbles didn't really matter when it was added to the palak. I've never tried to make tofu, maybe that will be my next experiment! I'm actually a pretty lazy cook and take a lot of liberties with recipes, so if it turned out okay for me I promise you can do it too. :D

MidsizeLebowski
Posts: 79
Joined: Tue Nov 06, 2018 12:58 pm

Re: CalamityJane's Journal

Post by MidsizeLebowski »

Hola CalamityJane, welcome to the forum! I think we’re likely neighbors as far as the SW definition of the term goes.

Are you inclined towards joining a pre-existing community or looking to establish one on land you may purchase? When not cleaning up after ill pups what gardening projects are you getting into?

For the record, you seem to be living my special lady friend’s dreams wrt fostering and pt work

calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

Re: CalamityJane's Journal

Post by calamityjane »

Howdy neighbor, @MidsizeLebowski! :)

I really don't know what shape my intentional community will take. I am open to the existing ones and have spent some time perusing the ic.org site, but the opportunities seem pretty limited at this point. Either they're glorified suburbs with huge buy-in costs or they are aspirational more than functional. I am hoping this model of living evolves. Is this something that is more common in Europe? I also have thoughts of buying my own off-grid property, possibly to include several acres that could be developed into housing for a number of people. I feel like I don't have the charisma (not in a cult-leader way, but just generally) to really spearhead such a thing though. I have a friend who owned an off-grid property and thought seriously about moving out there, but unfortunately she sold it last year. I would also be interested in developing a family compound if I can talk my brother and sister into retiring out here. Though they are perhaps not as simple-living/homesteady as I am, it would still be a way to share resources and take care of each other's pets at the very least.

Right now I'm staring out the window wistfully at some residual snow in my raised beds, daydreaming about getting back in the dirt...I did plant some tomato seeds inside this week, and I hope to get some lettuce/spinach/kale/mustard seeds in the ground next week. I've also been updating my garden spreadsheet (such a nerd) and making decisions about placement for some new fruit trees.

Thanks for the reminder that for some I am living the dream. Most people I know think I'm a little crazy, and I wonder myself sometimes!

calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

My ER plan

Post by calamityjane »

I thought it might be helpful to lay out my plan for income in early retirement. After many years and iterations of this brainstorming, this is the current form it is taking. It will probably change – flexibility is the key component (hence me working when the markets are down). It is a phased approach based upon when different buckets of money will be available. As you can see, it hasn’t actually begun yet. Since I didn’t really “retire” at the end of 2021, I’ve mostly been able to cover my expenses with earned income. The rest has come from cash I saved up.

Phase 1, 2024-2032

Income sources: Cash, brokerage account, Roth contributions, 457b

I maxed out my Roth IRA contributions from age 26 onward. Contributions can be withdrawn at any time. This, in combination with savings and additional investments in a 457b account (allows all contributions AND earnings to be withdrawn), gives me enough in accessible funds for the first part of my plan. The cash at that point will be my emergency fund, so I don’t really plan to touch it unless necessary. I also have house equity I could turn into cash if I decide to sell.

Phase 2, 2032-2038

Implement SEPP

The rules of a Substantially Equal Periodic Payment stipulate withdrawing a percentage of retirement investment holdings over a set period of time, 5 years or until the age of 59 ½, whichever is longer. It is a way to access investments before the age of 59 ½ without incurring the 10% penalty. You can choose between three formulas the IRS uses to determine the amount that can be withdrawn. This is the optimal timeframe I’ve determined to access the right amount of income for the right amount of time.

Phase 3, 2038-2043

Full access to retirement accounts

I turn 59 ½ in November, 2037. At that point, I can withdraw freely without penalty. I’m not sure yet what percentage I will draw down - I suppose it will depend on the performance of the markets and my own priorities at that time. It should be more than enough, because…

Phase 4, 2043-???

Pension and Social Security kick in

Starting in 2043, I’m eligible for monthly payments from my university pension plan, which includes an annual cost of living adjustment. I feel a little more secure about this than Social Security, but between the two of them I should have enough to cover my monthly expenses. This is the linchpin that makes me feel confident about early retirement regardless of market performance and SWR’s.

I made the choice to work in the humanities and in academia for personal fulfillment rather than financial reasons. My annual salary never got higher than $42,000 despite the fact that I have two master’s degrees. I know there are people who roll their eyes at choosing to pursue art history. But I had a fun and rewarding career, and I was still able to walk away from it on my own terms. Frugality for the win! Most of the early retirees I know came out of lucrative careers. I’d like to show that there’s other ways to make it possible without sacrificing what you love, even if it means working for a slightly longer amount of time.

I’d love to hear some feedback on this plan – what am I missing?

Western Red Cedar
Posts: 1200
Joined: Tue Sep 01, 2020 2:15 pm

Re: CalamityJane's Journal

Post by Western Red Cedar »

I've been refining my withdrawal strategy. My buckets and time frames are quite similar. The 457b is great for early retirees! A couple questions popped up:

1. Are you giving much consideration to taxes and is that informing which bucket you are withdrawing from?
2. What is the purpose of implementing SEPP? Is it for the Roth interest?
3. Do you have a plan for maintaining or adjusting your asset allocation through the first three phases?
4. Do you have goals for the amount of money you want left by 2043 considering you have a pension and SS? (50/75/100% of the original portfolio?) Is that influencing your SWR at all?

calamityjane
Posts: 59
Joined: Sun Jan 08, 2023 2:51 pm

Re: CalamityJane's Journal

Post by calamityjane »

Good questions, @Western Red Cedar!

I am considering taxes to a certain extent, and will draw down my Roth contributions vs. brokerage funds accordingly depending on what other income I'm counting for the year. My income should remain low enough that it doesn't matter too much. My thinking re: the SEPP is that because I didn't ever invest in a 401k and only have a small amount in a traditional IRA, there is not much point in doing a Roth conversion (almost all of my retirement funds are already in a Roth). The SEPP seems like the best solution for my circumstances, but I'd appreciate feedback on that. Yes, I adjust asset allocation annually in order to rebalance (currently 80% VTSAX, 10% international funds and 10% bonds).

As for your last question, I would love to come to 2043 with more money than I started! That's the likelihood. I'm still conservative with my SWR, though I did convince myself that 4% was reasonable. All of the cfiresim calculations I run show 100% likelihood of success. I'm sure I could spend more money each year than I'm budgeting, but enough is enough.

Western Red Cedar
Posts: 1200
Joined: Tue Sep 01, 2020 2:15 pm

Re: CalamityJane's Journal

Post by Western Red Cedar »

I think this all makes a lot of sense. As I was thinking about my personal situation which is quite similar, taxes and access to buckets created helpful sideboards in developing a framework for a phased withdrawal strategy. I'm assuming at this point that you've created a SS account and created accurate projections for SS and pension benefits. If not, it is quite helpful to have hard numbers. I created mine recently and realized I could probably increase my SWR, draw down the portfolio a bit over the next 20-25 years, and still be fine with anticipated pension and SS income.

In terms of tax optimization, I'm planning on doing Roth conversions up to the standard deduction in any low/no income years. I place a high value on Roth IRA accounts in situations like yours where there is a large bump in income anticipated through pension/SS/RMDs. I haven't done much research into SEPP as it doesn't apply to me, but your approach sounds logical.

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