FI and Frugality: What it Means to Me (and What it Doesn’t)

Posted on July 4, 2017 by Oldster

 

If you have done any reading within the FIRE community, you hear the word “Frugal” bandied about a good bit.  Unless you’ve won the lottery, are related to one of Google’s original employees, or sold your internet company for a billion dollars, it is likely that you are going to have to discover what Frugal means to you in order to successfully accumulate the funds necessary to retire (early or otherwise).  Then, depending on the level of success during your accumulation phase, you’ll have to apply your understanding to spending in retirement, or distribution phase of the cycle.  This word does not conjure up the same image in everyone’s mind.  My frugal may not be yours. Continue reading →

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Five Years of Cash

Posted on July 3, 2017 by Oldster

 

 

 

 

Ok, the title is a little misleading, but the truth is that the more liquid assets you have available to you for the short to mid-term time frame, the less likely you are to be subject to the vagaries of Mr. Market.  Most financial advisers will tell you that you need to make sure you have at least 6 months expenses in an “Emergency Fund”.  This is especially important in the accumulation phase of your plan.  If you hit an income bump (a layoff or unexpected job change) you want to make sure that you do not have to access your retirement savings in order to eat or pay the rent.  But when you are late in the accumulation phase, or in retirement, the calculation is different.  A big drop in the market can materially affect your plan, or your ability to soldier on if you are not sufficiently liquid at the time of the drop. Continue reading →

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Twenty Years of Hard Labor – What I’ve Learned About Investing

Posted on June 30, 2017 by Oldster

I did some interesting research a couple of years ago.  You see, I’ve been an active investor for most of the accumulation phase of my investing years.  I’ve researched stocks and bought or sold individual companies for all of my investing career.  I’ve used options and other derivatives in an attempt to hedge my investments and to maximize my return.  I know what I’m doing and I’ve been fairly successful through the years.  Or so I thought. Continue reading →

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