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45 now and 50 is the goal to be done.

We have a different and somewhat fortunate situation: my wife is retiring this summer with a defined benefit pension that's indexed to inflation. We are also in our mid 50s so things like Canada pension plan and old age security play an important role in planning. Deccumulation is fairly complex since these additional sources of income kick in later in retirement and provide a significant amount of security in the "no go" stage of retirement. All that to say withdrawal is likely closer to 5% in early retirement going down to 3% later. We also plan to reduce withdrawals if market situations demands. We have a fairly large "cash wedge" to cover a year's worth of expenses.

Lamb of God would be a bucket list show for me. Talking about high power rocketry, it's a great hobby but can be expensive. I have a Tripoli Level 3 certification and can say for a fact it's a safe hobby. High power rockets are launched at specific events with strict safety guidelines.

The past few episodes (and feedback) have revealed a lot about the non-financial challenges round “RE” side of FIRE. I LOVED the “recreation employment” comments by the way. I Too am a recovering leader of a large scientific organization (am I seeing a pattern here?), and can relate to the challenges of leaving a lifetime of training behind. Potential for further discussion: 1. What does recreational employment or retirement look like for you? What is the TRUE motivation (self-reflection required). How might it change over the next 1 year and 3 years. 2. How will you resolve the inner conflict of going from an expert in your field to adopting a beginner’s mindset again? It is VERY hard shedding that skin. Do you comfortably jump in to new experiences? Are you a lifetime learner? Can you happily exist as that person? It’s a journey, not a destination.

Although my husband & I have watched you guys for a few years as we went through our own FIRE transition, this is the first time I’m commenting. We stopped watching for a while, but your most recent videos with Laura taking the big step really resonated with us. Regardless of how financially prepared you feel you are, that last step is HARD. I respect Eric (1) being totally honest about not having it figured out, (2) and allowing us to see that even YOU struggling with unplugging. It was important to hear you acknowledge that things can change (and becoming unexpectedly happier with work is actually a great thing). Even in a strong marriage, everyone is different. The key is to talk about things and enjoy watching your partner discover things about themselves through this process. For us, it hasn’t been an immediate tap that got turned off. The last few years have been what we call our “testing phase” and we’ve enjoyed learning more about ourselves and each other in the process. Thank you for willingness to share, the effort that I know it takes to create this content, and the quality of the discussion. We wish you continued good fortune.

Something that almost everyone alive can do is make sure to be present with family members when they're nearing end of life. I have gone and visited grandparents and was there for when a recent grandparent died and spent time with them regularly the last year explaining what I was doing in my profession and helping out with things around the house, and during those last few days the insight shared through what they said in those final moments reflecting on their own life and their perspective on mine were some of the most important things I've ever heard. It can be really uncomfortable to be present and experience death like that, but I think its really important to do. I noticed that only a fraction of the people who showed up to the funeral had even visited that last year. I know people are busy but what you prioritize says a lot about who you are as a person. You tend to get more than you can ever imagine by doing things without any expectation of return going into it. Whether it be volunteering, spending time with elders near end of life, or even setting out on pursuing a goal. I've found that the more you can be present, remember that life IS the journey, and not need to justify everything with some projected value that you think will be derived from it down the road, the more fulfilling you will find your life. If you take all of the rewards away and any promise of value in a life pursuit, and you would still do it anyways, then that's where you've found passion and you should follow that wherever it goes. And last, but most importantly, never compromise on your values.

Do you ever change the a (intercept) and b (slope)? I've read some of the blogs but I cannot find an explanation what to do with these.

4k/month. Not enough. Keep working.

Thanks, really interesting hearing both of your experiences here.

Lads I don't understand half of what Yee are discussing, but it's always interesting

I’m retired at 57 and I’m spending my time during “working hours” watching this video ;) I can just do what I want.

Retired at 39. 46 now. I’ve spent the time since age 39 doing everything I’ve wanted to do and now I’m bored. Also have no family never been married. I’m very healthy and active and fit but miserable.

This channel should have way more subs! Always really good conversations.

I think negative reactions primarily fall into two camps: jealousy or people who love their jobs and don’t understand that not everyone does.

Thank you for this series. I love learning more about this tool and how you are using it in retirement.

I’m watching this a year after you made it and it’s an excellent discussion. Although markets have improved, it’s a question I ask myself often. I was originally planning on retiring in 2025 at 55, but I’ve moved to a job that I enjoy, so my headspace is no longer about getting away from the job, but wanting time to do the things that the daily grind doesn’t allow me to. My head tells me to carry on working for an extra year as I now enjoy my job, but my heart wants the 2025 date to start doing the things I want to.

What if no Spouse? Zero out the second b-day?

Great work gents. At 52 I'm very interested in joining the club. These conversations help untangle the options.

I would say that 99% are just jealous.

FI early a few years ago. How are you able to do mid-day gym classes is commonly asked. Surround yourself with those bettering themselve also.

I think what I would look for in FI would be the optionality it would give me to work as much or as little as I wanted to (assuming marketability in the market etc).

What car is that in the background Eric?

Are you guys take into account that you can no longer spend so much, especially in the last years of your life? I'd rather spend the money at 60 than at 92. I've read the book with zero and find the whole thing extremely exciting and sensible. My grandparents are well into their 80s and spend almost nothing anymore...they did alreday the big world tour etc..

I think even with the pension, it’s worth it to move out to the private sector. Retirement at 54 with $1M for a Gen Z? I think it’s not going to be enough.

Great show guys. Been wondering what you would consider to be a really big purchase in retirement (something fun like an expensive sports car or jewelry) and how you would feel about it after the fact (buyers r we Morse, etc). Keep up the solid. work.

I'm catching up on episodes after like a year of not checking in. All I can say is... ...RELEASE THE PHOTOS!!!

Wow if I find money in a bear market it will go straight into the market. Or use it for paying taxes on a mega Roth conversion which is a great idea in a bear market.

Is that CAPE withdrawal strategy jut for US investors? (CAPE is just for US equities?)

Thanks so much for this tool. I have been watching you guys for the last year and I personally retired 8 months ago at age 60. I have that "scarcity" mindset that Jason talked about even though when I do the math I've got the right finances and my regular withdrawal rate is maybe around 2%. Even when I go on long travel trips I don't even touch that 4% but do get close to it. This tool and knowing it factors in business cycles was a great additional piece of quantitative data to help me get over that scarcity mindset and relax a bit more on spending. A basic question here as I heard many references to variable SCR. Is the idea that as you update this tool every month or quarter - it may project a new SCR recommendation that may / may not require a spending adjustment depending now close you were aligned to the previous SCR? My first assessment of the tool was that the SCR it was projecting with 0% failure rate was a solid data point to just use going forward. I'm thinking that when we hit the next significant market downturn(I don't think it will be long before that happens) it will potentially start calculating lower SCR that I'll need to compare to current spending and decide about and adjustment? Sorry - feels like a basic question but want to make sure I understand.

My wife and I FIRE'd 11 years ago at 55. "Paying ourselves" has evolved over the years. Up until recently, we would just sell portfolio assets (while simultaneously rebalancing) 2X/ year to fill our checking account. Last fall, with interest rates higher, we've moved to more of a bucket strategy. We keep 6-12 months of cash in HY checking account and have a 5-year bond ladder of CDs/ treasuries. This ladder will bridge us to age 70 when I will start taking SS (wife started this year). Each bond will mature in the fall, which will be used to load our checking account for the following year's expenses. BTW, it took us about 5 years of RE to feel comfortable with spending more $$. Part of it was seeing that the portfolio didn't go down as much as we thought it would. The other key impetus was the realization that we needed to take advantage of the Go-Go years while we can. The future is so uncertain, and we are only one health episode (for either one of us) from not traveling (our passion), so we better do it now. The result is that we've doubled our annual spending since starting our RE and are still well within our SCR. More travel, more help for family/ charities, and more house projects that bring us joy every day (Japanese garden).

Love your podcast--love the banter! I started watching a few months ago b/c of your clear explanation of how to use the Big ERN's SWR tool. At your suggestion, I was playing around with the Case Study tab from the tool and saw that a Glidepath shows better returns for every starting year I randomly plugged in. Do you use a Glidepath approach for your portfolio? I'd love to see a future Podcast on Two Sides of FI on how to implement the equity Glidepath in retirement. Thanks!

I love listening to you both especially with your wives!

Jason are you using the cash flow assist tab in your process? Thanks for the Safe Withdrawal Toolbox series. Good stuff!!

I’m just thankful that I will have a federal pension, and I don’t have to worry about downsizing my portfolio. I plan on living off of my pension and my wife’s pension, and never drawing a penny from our investments. Fingers crossed.

What do think of the critique of CAPE that Shiller's views on what CAPE value is a predictor of poor returns have been criticized as overly pessimistic and based on the original definition of CAPE, which fails to take into account changes in accounting standards in 1990s, which, according to Jeremy Siegel, produce understated earnings. (Right off of Wikipedia)

What "bonds" do you own, bond funds or specific bonds associated with your timeline?

Curious, do we know the probability of failure of the values from the CAPE tab (say if you use an intercept of 1.5%)?

My wife and I both got a good chuckle with Jay's comment about Lori not wanting the details of the CAPE ratio spreadsheet. My wife says the same: "I don't want the nuts and bolts; are we doing ok?"

Keep in mind that the 2% average inflation rate, and other assumptions, are for the life of your plan. Just because inflation is high today doesn't mean it will be continually high for the next 30 years.

Eric and Jason, great video. Curious, are you using an a (intercept) of 1.75% in the CAPE SWR?

I’m also using the ERN spreadsheet and amazed at how our experiences overlapped. I was tentative at first and had to use it for a while to start trusting it. Then I increased my spend once I was more comfortable.

Thank you guys!

That opening comment from Eric about how his and Laura's relationship has changed (for the better) since she pulled the trigger on retirement was fantastic. I think for all of us considering the same path that's a great piece of validation of the "why".

Always something new to think about when listening to your podcast. Great fun as usual. Thank you. Would love to know had Jason used the standard SWR (4% rule) what would the % have been last 2 years. I am hoping to use 3.5% but thinking it might ne too close to the edge.

love your show and love Erns toolbox. I was looking for a cape based program for years before i saw some of his stuff online and your episodes really helped me understand how to use it.

I heard that comment from Eric at the end about leaving the show! I mean, understandably you may be too busy enjoying life! I keep hoping you guys will pick me for a case study in "how to do it all wrong but NOT be broke" LOL! Have all of your retirement in tax deferred accounts (traditional instead of Roth) without enough time to switch to Roth? CHECK! Have all of your assets that would have preferential tax treatment (stocks eligible to be taxed at capital gains rates) in your 401k so they are eventually taxed as ordinary income upon withdrawal while having all of your regular interest assets outside a tax advantaged account so they are ALSO taxed as ordinary income CHECK! Think you can time the market before finding the FIRE community and get out of the market at the exact wrong time while also getting back in at the exact wrong time? CHECK Pay off your 2.5% 15 year mortgage in 7 years rather than pay the minimum and invest the excess? CHECK! Overcomplicate your finances by spending an enormous amount of time tracking expenses and moving money to get every last bit of interest? CHECK! Can't figure out whether you will have plenty of money in retirement due to social security and a pension while also wondering if you will go broke and end up eating cat food and living in a cardboard box? CHECK! Seriously, it's not as bad as all of that but if you're ever looking for a case study, I'm still your gal! LOL! I did take your advice from a prior episode and changed the value of my real estate on my net worth statement from a loose current market value to purchase price. It was a gut punch to take that much value off (my house has easily doubled in value) but it was fun to see my net worth eventually come back excluding the increased real estate value.

In Flames! Yeah!! 😀

Re: the "morbid" process of decreasing your months-remaining-to-live on ERN's spreadsheet, what's the plan if you end up living, say, 100 months longer than anticipated?

This is often the case with people who FIRED, they are still earning income even some of them earn a lot of income. It just makes me wonder if the 4% withdrawal rule ACTUALLY works because no one is living by it 😂

Great topic. Keep up the good work.