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Case Study: Can I Comfortably Retire in 5 years??

2K views 14 replies 8 participants last post by  AltaRed 
You are well on your way but I won't say whether you can, or cannot, in the next 5 years. My view would be to acknowledge that you will be able to retire early but I'd also say it is inappropriate to target a specific date just yet. Enjoy the journey and you will 'know' much better in 3-5 years. I'd target getting rid of at least the mortgage on your principal residence before retirement, and more travel upon retirement will be compromised by children in school for some time. Continuing to work at least part time until the children are of legal age and can be escorted out of the house is likely the other compromise for the interim.
 
Per Gator13, there are far too many variables to get fixated on a date. Financial markets, a change in the business environment, parenting curve balls, etc. It is good to have an objective such as 'retire early' but an overly prescriptive approach as to when will almost certainly need to be revised at least a few times
 
It does provide a better perspective of the transition to part time work by backing off the work hours to work back-end office only. The bonus is being able to spend more quality family time with children especially in their preteen years, albeit when they are teens, they will have their own opinions of when and where and how much time they will really want Mom and Dad hanging around.

However, it doesn't change my broad opinion to have early retirement as an objective, but to avoid hard wiring a date to it at this time. Your crystal ball will become more clear in a few years, especially with the current turmoil about rampant inflation and a possible recession on its way IOW, it is good to have a spreadsheet plan but real life doesn't give a damn about your spreadsheet. Remain flexible in your overall plan.
 
My point was you were not going to retire in the next ~2 years anyway, so by then inflation and/or recession may be over as well. It is true there will always be curve balls thrown one's way and one has to have flexibility to deal with those as they come. I've been through 2 curve balls so far.... the 2008 financial crisis and 2020 since I retired 16 years ago. This is probably #3.
 
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