early retirement?

[MNGeeks61]

Hello,

My wife and I are almost 50, she's getting really sick of the rat race. She's been working fulltime since she was 16 and I've been working since I was 19.

We already have a destination trailer a bit southwest of Brainerd, MN, outside of Garrison. I like the campground and my neighbors, but since it's been extremely cold and snowy this winter, it's been difficult if not impossible to spend time there. The cold and snow brought up the possibility of early semi-retirement where we'd probably work part time (I can work on computers anywhere I go) and the rest of the time just relax.

I've perused the forums a bit but I haven't really gotten a feel for any specific RV park. Our neighbors are looking at a place called BlueStar in Apache Junction. We visited Tucson last year and looked at Benson, but my wife is a bit picky so it didn't pan out.

I've debated acquiring a used TT (less than 10 years old) and seeing what parks look good, but since we're both full time I haven't had a chance to get down to Apache Junction.

My wife is more social than I and prefers activities and community, while I am a bit less social and wouldn't care if I was on a hillside in a popup camper, as long as I see great sunrises and occasional wildlife. Are there any parks that stand out as decent? We're looking for a park that does HOA, similar to what we've got up here. That way, my parents could also use the park if they wanted to.

[RoadLife]

Plan Plan Plan, look at all the angles, all the problems, figure out solutions, then go for it. Stress kills. Most Folks who retire earlier live longer.

You are in IT, consider registering with a few USA-wide contracting agencies and go for short term contracts in different areas of the country to supplement your income and your nest egg.

[dcason]

Retire early!

That said, FIRST. Make yourself a complete spreadsheet (ask if you need suggestions as to what should be on it) project from retirement year out to say 85 years (hubby does 100 which I think is highly unlikely). Try and plan for everything and see how things look. You might want to work on the road as you can...which would your later years look better.

TRAVEL some and don't limit yourself to just one park...explore more.

[rkortes]

John&Joey wrote:
PAWATT

Yes, but you still hopefully have at least 20 years left to go (based on your prior post.) That thing about inflation and health care costs (unless you're military) goes for you (just like for me) also.

I saw my FIL living day to day at the end of his retirement. He thought his&her SS and his $230/month lifetime pension would keep him and my MIL happy forever. 25 years later my BIL and I were picking up the pieces (he owned his house at least.) I'm sure there are many readers of this forum that has had similar experiences.

My FIL never pondered what could be around the next corner, he just wanted to live for the moment. They did have a nice retirement in the beginning even if it was humble compared to others (small house north/double wide in Florida.) Between medicine, Florida getting costly, inflation on necessities, his buying power just eroded away.

I guess it's difficult not to get a bit philosophical or "preachy" when topics like these arise. Folks have brought up great points re: healthcare, happiness, really having enough money, social security considerations, etc.

MNGeeks61, I know you were asking specifically about landing at a specific park, but are you really ready to pull the trigger on this? Are you truly being realistic? Running out of money before time does not sound fun to me. Heck, maybe you've inherited a couple of mil and this is a no brainier for ya.

Reading between the lines, it seams like you might want to really crunch some numbers... although maybe you have.

Absolute best of luck to you in whatever you decide.

[John_Joey]

PAWATT

Yes, but you still hopefully have at least 20 years left to go (based on your prior post.) That thing about inflation and health care costs (unless you're military) goes for you (just like for me) also.

I saw my FIL living day to day at the end of his retirement. He thought his&her SS and his $230/month lifetime pension would keep him and my MIL happy forever. 25 years later my BIL and I were picking up the pieces (he owned his house at least.) I'm sure there are many readers of this forum that has had similar experiences.

My FIL never pondered what could be around the next corner, he just wanted to live for the moment. They did have a nice retirement in the beginning even if it was humble compared to others (small house north/double wide in Florida.) Between medicine, Florida getting costly, inflation on necessities, his buying power just eroded away.

[pawatt]

John&Joey wrote:

MNGeeks61 wrote:

John&Joey wrote:
How are you setup for health care coverage? That will be the cornerstone on your early retirement plans.

I have coverage through my employer, but the Affordable Care Act might be able to assist in that regard if I were to retire. I admit that I had started a budget spreadsheet but I don't think budgeting $600 per month for health insurance is going to be enough.

IMO, no it won't be unless you have a very high deductible. Also the current assumption is the new care act will not come under fire if there is a change in government. It may look entirely different in 10 years then it does now.

I'm not trying to be mean here, I'm just not one that will lead you down the "Rainbows and Sunshine" path then off the cliff. So here I go.

When a person retires early (let's say 50) they have 30 years ahead of them. The current plan is to have two RV's in the 10 year old vintage, so in 30 years they will be 40. That's pretty darn old for an RV. So better allocate money for replacements.

Somewhere in those 30 years there will be a high probability that one will become sick and require long term care (1-2 years, i.e cancer, stroke, etc...) Where will that occur? Will either of those two places be where you want to be when one of you are in that situation. Can both of you handle that type of lifestyle while providing care for the other?

Last but not least is inflation. Your today budget could be doubled that in 10-20 years. How will your source of income provide for that. Do you have a source that will rise with inflation.

Snowbirds never talk about exit plans, but if you're going to retire early then I think it's appropriate. If the exit plan is to go back to work that's OK, just make sure you accept the high probability of not being in your field. IT is a fast moving field and your skill set in five years will be outdated. At that point you will be put into a position of interviewing for entry level jobs against college grads. Trust me, I saw that many times when we were hiring. As the person who is hiring you have to ask yourself if placing an experience person will cause more problems then it solves in the shop.

I know winter is getting long up there and it's nice to daydream at work, but my advice is to go to Mille Lac's Grand hotel for a couple of nights. Eat good, jump in the hot tub, check on your seasonal and remember spring time is not that far away and the walleye's will be hungry.

All good points worth pondering, However I have seen and worked with way too many people who worked until they died or were too ill to do much of anything or came down with a terminal illness. Didn't want to be one of them so took a bit of risk & glad we did.

[RoadLife]

We've spent a winter in Florida, one in Texas, and this one in the southwest - New Mexico, Arizona, and California (San Diego). We prefer the southwest by far. Tucson and Yuma are very attractive areas with lots to do and great winter weather. Check out the Palms RV Resort in Yuma.

And Quartzsite a fun place to visit. We've just arrived in San Diego - it is a bit cooler on the beach than inland. Don't think you'd want to get involved with California taxes though.

[John_Joey]

MNGeeks61 wrote:

John&Joey wrote:
How are you setup for health care coverage? That will be the cornerstone on your early retirement plans.

I have coverage through my employer, but the Affordable Care Act might be able to assist in that regard if I were to retire. I admit that I had started a budget spreadsheet but I don't think budgeting $600 per month for health insurance is going to be enough.

IMO, no it won't be unless you have a very high deductible. Also the current assumption is the new care act will not come under fire if there is a change in government. It may look entirely different in 10 years then it does now.

I'm not trying to be mean here, I'm just not one that will lead you down the "Rainbows and Sunshine" path then off the cliff. So here I go.

When a person retires early (let's say 50) they have 30 years ahead of them. The current plan is to have two RV's in the 10 year old vintage, so in 30 years they will be 40. That's pretty darn old for an RV. So better allocate money for replacements.

Somewhere in those 30 years there will be a high probability that one will become sick and require long term care (1-2 years, i.e cancer, stroke, etc...) Where will that occur? Will either of those two places be where you want to be when one of you are in that situation. Can both of you handle that type of lifestyle while providing care for the other?

Last but not least is inflation. Your today budget could be doubled that in 10-20 years. How will your source of income provide for that. Do you have a source that will rise with inflation.

Snowbirds never talk about exit plans, but if you're going to retire early then I think it's appropriate. If the exit plan is to go back to work that's OK, just make sure you accept the high probability of not being in your field. IT is a fast moving field and your skill set in five years will be outdated. At that point you will be put into a position of interviewing for entry level jobs against college grads. Trust me, I saw that many times when we were hiring. As the person who is hiring you have to ask yourself if placing an experience person will cause more problems then it solves in the shop.

I know winter is getting long up there and it's nice to daydream at work, but my advice is to go to Mille Lac's Grand hotel for a couple of nights. Eat good, jump in the hot tub, check on your seasonal and remember spring time is not that far away and the walleye's will be hungry.

[MNGeeks61]

John&Joey wrote:
How are you setup for health care coverage? That will be the cornerstone on your early retirement plans.

I have coverage through my employer, but the Affordable Care Act might be able to assist in that regard if I were to retire. I admit that I had started a budget spreadsheet but I don't think budgeting $600 per month for health insurance is going to be enough.

[globehopper]

I retired a few years ago at 55, and became an olive farmer in spain for a few years, learned a new lifestyle and trade. then I returned to the us and starting working again at 59. I will retire again soon and will full time it until I want to back to my olives. the whole point is to keep active no matter where you are and what place you call home. there are great parks all over with a mix of activities and people. good luck in your future.

[pawatt]

I retired at 53, been snowbirds for 10 years. Early retirement was one of the best things I ever did, We have seen the USA coast to coast and border to border several times. Never one regret. Biggest expenses have been medical insurance and a bad Ford 6.0 diesel. After 6 years we found the perfect place for us and purchased a large RV lot and put a park model & Texas room on it.
Consider deep south Texas, friendly people, low cost of living, lots to do and about 500 RV & mobile parks in the Rio Grande Valley.

[Fizz]

2oldman wrote:

Fizz wrote:
The only money advise I can give is. PAY OFF YOUR DEPTS FIRST.

Yep.. the water dept, the sewer dept and especially the credit card dept.

Too deep for me 🙂

[arnko37]

My thoughts on this are; Do not buy into a park too quickly. Make sure you want the area rather than the other snowbird areas. After you know what area then rent in several of the parks that look good to you. You might find you don't like the rules, don't like the management, too crowded, the wrong type of fellow campers, too expensive on the monthly assoc. fees, too far from shopping, too close to something that you don't like, too many barking dogs etc. Also you might consider some work camping. Some parks will offer a free site in exchange for part time work in the office or on the grounds. They need extra help during the busy season. There is a website somewhere about workcamping that lists whats available. Good Luck to you both.

[2oldman]

Fizz wrote:
The only money advise I can give is. PAY OFF YOUR DEPTS FIRST.

Yep.. the water dept, the sewer dept and especially the credit card dept.

[John_Joey]

How are you setup for health care coverage? That will be the cornerstone on your early retirement plans.