Introduction
I retired in late 1999 at the age of 48. I had saved, diligently, and felt that the need to enjoy the great American west, to travel the world (and nation), and basically to enjoy hiking, biking, camping, backpacking and traveling surpassed the need to be “rich”.
Basically, I had gotten lucky. Having graduated from the University of Southern California in 1982 and done a three-year Post doc with William Stwalley at the University of Iowa, I entered the Job market in the fall of 1985. When Black Friday hit on October 17, 1987, I had but a small amount saved in retirement. I started working at the University of Dayton that November and given that Dayton is much cheaper for living than Washington DC (site of my first job) and that I had accepted a fair pay raise to move to Dayton, I began to save quite a bit – both in retirement funds and in personal savings.
During my 12-year career in Dayton, the markets boomed. it bottomed at about 2300 (on Black Friday) and peaked at the end of 1999 at 11500: about a 5-fold increase. The result is that I had saved more money in my 12-year career than many would ever save after a lifetime of work. I certainly had more money than I thought that I would need to make a nice retirement – despite my age.
So, I quit. I took my “winnings” (https://shawnpheneghan.wordpress.com/2019/01/31/winning-the-game/), left the equity markets, and began to really enjoy life. Yes, the markets have had another real nice run (a factor of 6 in the past 15 years) and I have “missed out” but I have enjoyed a lot of things along the way that falling to a Fear of Missing Out (FOMO) might have prevented.
Bumps in the Road
Many might think that I have just been lucky. Perhaps I have but all has not been smooth sailing. I will list here – with a bit of detail – some of the problems I have encountered and overcome or avoided.
Major Financial Crisis
There have been three major depressions since I quit. The last one (Covid caused) under Trump did not happen until I was well into retirement. The first two, under George Bush II were obstacles to overcome.
I and several people that I knew in Utah had “retired” after the phenomenal markets in the 1990s. However, as a result of the dot-com crash in 2001, many of these people had to return to work (or as they put it, they had the “opportunity” to return to work). The downturn hurt but was not fatal to my plans. By the time the of the financial crisis of 2008 happened I had insulated myself from serious downturns.
Mid-Life Crisis
My wife had a serious breakdown early on in my retirement. At one point she was locked in a secure psychiatric facility. She had run off to Las Vegas, threatened me, and was detained walking on the street dressed in sleepwear while carrying a glass of wine.
Psychiatrists were originally of little help. It wasn’t until she was actually locked up that anyone cared. She was discharged and given drugs – but the dosages had her sleeping 16-20 hours a day. It took nearly a year to find correct/acceptable dosages – something the docs did not think necessary. She has lived with these meds for the last 20 years.
To help with her problems, we moved to a small town in Nevada – Hawthorne. She has recovered significantly, but remains on her meds.
Thrown out of Utah
We had lived in our summer home on the Markagunt plateau in southern Utah for 20 years. The trailer we lived in had been on the lot that we bought for twenty years before we bought it. According to the HOA president, the property manager, and essentially all of our neighbors at the time, we were grandfathered in. But in 2015 the new HOA board decided that we were in violation of the rules and had to remove the trailer.
Could we have won if there were a court fight? Maybe. I think yes, but, who wants to live where they are not wanted. We sold the trailer and then the lot. We bought a new summer home (a real 2 BR cabin) in Markleeville CA.
Tornado
During the summer of 2015 while we were in Utah, a tornado went through Hawthorne NV. It ripped the roof off my home, tore out a large tree (deposited it upon the roof), blew away my gazebo, blew out some windows and one wall of the house, destroyed most of the skirting, destroyed a chain link fence and blew down fencing around my yards.
Needless to say, it was a major disaster. Finding workers in Hawthorne (or even northern Nevada) was essentially impossible. I called in a work crew from Utah to do some repairs. While we recovered the home, it has never been (and likely will never be) the same. Finding insurance on mobile homes is generally expensive so I had none. The total cost of repairs was mine to bear.
Fires and Evacuations
I have made it through three evacuations. Many who live in the mountains of the American west have done so. Still it is not a pleasant experience. See https://shawnpheneghan.wordpress.com/2021/08/01/fires-and-evacuations/.
I Had a Stroke
Probably the biggest change to my retirement came when I had a major stroke (https://shawnpheneghan.wordpress.com/2021/06/04/i-had-a-stroke/).
Final Analysis
My retirement has not been ideal, but I am not sure that it has been particularly unlucky or lucky. Any plans that are made for retirement should have contingencies for the unexpected. I have had the opportunity to do many things and go many places. Opportunities that would not have existed but that I retired early.
Current Budget
I don’t keep a tight rein on spending/saving so this “budget” is really just a bit of a guess – also known as an approximation.
Housing/Utility
I own two homes: One in the desert of Nevada (Hawthorne) and one in the Sierra Nevada of California (Markleeville). Both homes are owned without a mortgage. The total for taxes, insurance (there is no insurance on my Nevada home) and HOA is about 6K.
Water/sewer/trash runs about 50/month in NV. It is included in the HOA in CA.
Electric runs as high as 150/month in the winter in Hawthorne to a low of about 25/month in the summer in CA.
Propane (only in NV) runs about 1500/year.
Internet is free. I get it in NV from the local hotels. In CA I mooch off my neighbors. In return, I watch their homes all summer when they are not there (Occasionally I run off a bear).
TV is satellite (Dish) in NV. There is none in CA but rather I spend about 10/month on satellite radio (there is no broadcast signal, TV or Radio, available). Total cost is less than 1200/year or 100/month
I use a “disposable” Cell Phone on a yearly plan (Tracphone). It costs about 20/month for unlimited dialing.
The end result is I probably spend about 1K a month on housing – not including maintenance.
Transportation
I own a 2004 Toyota Tacoma. It is, obviously, paid for. Insurance (it has just risen) is about 600/year. So far I have been lucky as maintenance costs have been very reasonable. I don’t drive a lot – generally about 3000 miles/year. Even allowing 60 cents a mile my total cost is about 2K/year.
Total 200/month.
Groceries/Household items
We have a local grocery (Safeway) at which I normally spend about 400/month. I also buy quite a few things through Amazon (that is what you do when you live in the desert). I spend less in CA because there is significant shopping nearby – but I have to buy more as I get a lot of free food in NV.
Total 600/month.
Health
I buy Medicare part B (175/month). I get my drugs through the VA and buy a supplemental policy for 50/month. My wife gets buys Medicare Part C. Her drugs are covered. These costs are deducted from our SS payments – and not considered here.
Dental care is generally about 800/year – certainly less than 1200/year.
Total 100/month
Wine
I like wine. I spend quite a bit on wine because I like wine. I get it delivered and probably spend about 4-500/month on wine. Occasionally (regularly) I head to the local for a cold glass of beer.
Total 600/month
Summary
This listing totals about 2500/month. I have SS income (Mine and my wife’s) in the neighborhood of 4000/month (after medicare deductions). In addition, I have 401K retirement income of about 2200/month after taxes. The end result is that I have about 3500/month to save, invest, spend on travel, hotels, shows etc. It also easily covers any items that I may have overlooked.
Since I had made a fair bit of money in the market at the end of the 20th century, essentially all of my savings is in Government guaranteed bonds – mostly inflation indexed. Besides not wanting to risk the markets, I think it is important to keep things simple so as to avoid any senioritis problems.
My monthly spending had been quite a bit more (probably around 15K/month) but in 2019 I suffered a stroke. In 2020 Covid hit. These events caused me to curtail much of my travels and adventures. I have foregone my season theatre tickets, divested myself of Las Vegas Timeshares, and have not flown internationally (or nationally for that matter) for 6 years. I generally stopped dining out (there really is no place in Hawthorne or Markleeville at which to dine). I generally only dined out when I stayed in Reno for the theatre or in Las Vegas when I stayed at my timeshares. I have taken up cooking as a serious hobby to “make up” for the lack of dining out.
Highlights
While I have stressed that not all has been peaches and cream, I have had quite the retirement (so far). A retirement that I would not have enjoyed had I worked until age 65 or so. I have written several articles addressing the many adventures I have had both before and during retirement.
I have enjoyed bike riding, camping, traveling and backpacking, canoeing, rafting, etc. See the following:
https://shawnpheneghan.wordpress.com/2021/01/06/great-adventures/
https://shawnpheneghan.wordpress.com/2023/03/05/bicycling/
https://shawnpheneghan.wordpress.com/2023/09/22/shay-creek-summers/
https://shawnpheneghan.wordpress.com/2022/09/21/backpacking/
International Trips
The Pro Fun Tours – twenty Utah Summers
FIRE
When I “retired” at the end of 1999, FIRE (Financial Independence, Retire Early) was not even a thing (at least I was unaware of it). I’m sure that I was not alone in wanting to retire or actually retiring early. Many of the articles available online on FIRE are written by folks that have not really retired. They have just changed how they earn. They may not earn much and they may not work hard, but they work and earn. The only money I have earned since my retirement came as an unemployment benefit during Covid. I was paid unemployment for having lost my volunteer (unpaid) position at Grover Hot Springs SP. Go Figger.
I do not intend to go into great details on how to retire early. There are many sites that will discuss the planning and execution of FIRE. There are a couple of notable opportunities that many either do not recognize or just do not wish to share.
Social Security can be gamed. One can get a fair bit out of SS without working for 35 or more years. See https://shawnpheneghan.wordpress.com/2019/11/25/gaming-social-security/.
Finding a nice retirement home may not cost what you think – but you do have to adjust your plans accordingly. See https://shawnpheneghan.wordpress.com/2022/11/20/finding-a-a-retirement-home/
And, even if you do not “move” you may be able to avoid many taxes. See https://shawnpheneghan.wordpress.com/2020/12/31/where-do-i-live/
You probably don’t need nearly as much as you think; taxes may be lower and the benefits of not working may be greater. See https://shawnpheneghan.wordpress.com/2018/02/23/retirement-planning/
Finally, it is good to remember Heneghan’s Yin Yang Rules (https://shawnpheneghan.wordpress.com/2018/12/19/heneghans-rules/).
- Spend Less, Save More (good for financial health)
- Eat Less, Exercise More (good for physical health)
- Work Less, Recreate More (good for mental health)
Results
It has now been nearly a quarter century since I retired. In hindsight I would call it successful – if not fantastic. I have been challenged personally but never financially.
I have more income today than I spend. I have more in savings (and it is growing) than I had when I retired. And, I have enjoyed nearly a quarter century of great retirement.
Yes, I have been lucky. Markets were good and I had a great, even if short, career. The future, which might be another 25 years, may hold a lot of surprises. Not the least of which is that living in my desert home in Hawthorne NV and at my summer cabin may become difficult. Necessary medical care is not always available in either location and driving is a necessity in Markleeville. But, we have planned for future changes/surprises.
In retrospect, I would not change much.
shawnpheneghan 