When we fail to pause and contemplate, we sway with the latest breeze of options. I like to try out tools, and I have two favorites: Goals to Metrics, and a separate Global Bucket List. Goals to Metrics is a table with these headings:
Goal - Strategies - Actions - Objectives - Constraints - Metrics Goal: What is important for me in the next year?
Strategies: What will be my strategy to work on this goal?
Actions: What specifically will I do toward this goal?
Objectives: Why am I working on this? What do I want to accomplish?
Constraints: What might get in my way?
Metrics: What gets measured, gets done. How will I measure progress? Each year I start with a new table, and give myself the gift of contemplation about what is important for me in the next year, why, how, purpose, impediments, and how I'll measure progress. Global Bucket List is a file I keep online. Split by continents, I jot down countries of interest, and follow with notes about specific places I want to visit, links to articles, pictures that sparked my interest. The first few years of travel during early retirement, this was a key guide. "A cheap flight to XXX, where else nearby can we also visit while we are in that part of the globe?"
Now, I'm approaching a slow down in travel, and I find myself taking some destinations off the list for lack of motivation and interest, and reminding myself I still want to do that Canadian cross country rail trip.
I agree with Jonathan, as usual. And I live in Italy most of the year, so I want some tilt toward non-US markets. I hold 55% in US stock index, and 45% in Global XUS (no US) stock index. I could use a single global index, but I like to rebalance, taking some profits from the stronger (currently US) and buying more of the weaker (Europe is on sale!). Gives me something to do with my hands that keeps me from doing anything stupid.
Actually, my reaction is the opposite. What a good job the actuaries did to make many of these decisions of so little consequence for most people. (in my evaluation, $23,000 amortized over 30 years, without inflation discounting the future payments is a difference that will not make a difference for most people.)
For those of us so inclined, the calculations are enlightening. But basically boil down to delay as long as able to increase benefits. And pay attention when two parties (or more if dependents are involved) have different economic situations.
We here love to get into the weeds. But most folks can't/won't. I am happy to see that for those dependent on Social Security, there are few traps, but a few self-inflicted wounds. Remember, most folks taking early are either forced to by sudden loss of income or inclined to because they mistrust everyone. Not much can be done to remedy either situation.
I constantly harp on Bogleheads who spend all kinds of time and energy building the "perfect" retirement strategy and withdrawal plan, but don't once run the numbers for the "last man standing." It frustrates me, especially since the last man standing is likely to be the person less familiar with financial details and uncertain of what to do next.
You are absolutely right to be streamlining your portfolio, and running numbers for the last man standing.
My career had similar changes and pivots. My first year working I was anxious to contribute to the brand new IRA, and my maximum was $600. Then the lid was raised to $2,000, and I stepped up my contributions. I've used 401K, SEP-IRA, Solo 401K, and Roth IRA, in addition to traditional IRA. I am so grateful these savings programs were available because it made my retirement possible.
See what your US carrier offers. My carrier was T-mobile and they have good international plans for month-long trips abroad. Now, I use Tello for my US number because they allow me to adjust the amount of coverage I need (not very much when I am abroad, more when I'm in the US). Verizon was a problem for international travel, so I left them for T-mobile a couple years before beginning my travel. GoogleFi used to be ideal for international travel, but they are no longer tolerating international users, so buyer beware.
I did the same as you and don't regret anything about it. After a few years, I knew I would not return to my original home base, so I emptied the storage unit after 4 years of travel. After 7 years as a nomad, it was time to have a home base again. It was such a pleasure to furnish a place without the burden and constraints of bringing all my precious things. For the same cost I would have paid in moving expenses, I furnished my new place with entirely new furniture, and I'll gradually add new art as I go.
It is a shock to realize that if we give up our home base, we have plenty of cash flow to cover full-time travel.
Another nomad said the same thing as you, "This isn't a vacation, it is our life." But all the day to day is manageable with internet access and a mail service. This year I combined my home phone number with my US phone number on one device, and it works great!
Good luck on your continued journeys. This is the best kind of retirement I could imagine.
Comments:
When we fail to pause and contemplate, we sway with the latest breeze of options. I like to try out tools, and I have two favorites: Goals to Metrics, and a separate Global Bucket List. Goals to Metrics is a table with these headings: Goal - Strategies - Actions - Objectives - Constraints - Metrics Goal: What is important for me in the next year? Strategies: What will be my strategy to work on this goal? Actions: What specifically will I do toward this goal? Objectives: Why am I working on this? What do I want to accomplish? Constraints: What might get in my way? Metrics: What gets measured, gets done. How will I measure progress? Each year I start with a new table, and give myself the gift of contemplation about what is important for me in the next year, why, how, purpose, impediments, and how I'll measure progress. Global Bucket List is a file I keep online. Split by continents, I jot down countries of interest, and follow with notes about specific places I want to visit, links to articles, pictures that sparked my interest. The first few years of travel during early retirement, this was a key guide. "A cheap flight to XXX, where else nearby can we also visit while we are in that part of the globe?" Now, I'm approaching a slow down in travel, and I find myself taking some destinations off the list for lack of motivation and interest, and reminding myself I still want to do that Canadian cross country rail trip.
Post: What’s on Your List?
Link to comment from November 23, 2024
I agree with Jonathan, as usual. And I live in Italy most of the year, so I want some tilt toward non-US markets. I hold 55% in US stock index, and 45% in Global XUS (no US) stock index. I could use a single global index, but I like to rebalance, taking some profits from the stronger (currently US) and buying more of the weaker (Europe is on sale!). Gives me something to do with my hands that keeps me from doing anything stupid.
Post: Stuck at Home
Link to comment from November 23, 2024
Actually, my reaction is the opposite. What a good job the actuaries did to make many of these decisions of so little consequence for most people. (in my evaluation, $23,000 amortized over 30 years, without inflation discounting the future payments is a difference that will not make a difference for most people.) For those of us so inclined, the calculations are enlightening. But basically boil down to delay as long as able to increase benefits. And pay attention when two parties (or more if dependents are involved) have different economic situations. We here love to get into the weeds. But most folks can't/won't. I am happy to see that for those dependent on Social Security, there are few traps, but a few self-inflicted wounds. Remember, most folks taking early are either forced to by sudden loss of income or inclined to because they mistrust everyone. Not much can be done to remedy either situation.
Post: Death Benefits
Link to comment from October 19, 2024
I constantly harp on Bogleheads who spend all kinds of time and energy building the "perfect" retirement strategy and withdrawal plan, but don't once run the numbers for the "last man standing." It frustrates me, especially since the last man standing is likely to be the person less familiar with financial details and uncertain of what to do next. You are absolutely right to be streamlining your portfolio, and running numbers for the last man standing.
Post: Unasked Questions
Link to comment from August 3, 2024
My career had similar changes and pivots. My first year working I was anxious to contribute to the brand new IRA, and my maximum was $600. Then the lid was raised to $2,000, and I stepped up my contributions. I've used 401K, SEP-IRA, Solo 401K, and Roth IRA, in addition to traditional IRA. I am so grateful these savings programs were available because it made my retirement possible.
Post: Rolling Right Along
Link to comment from June 5, 2024
See what your US carrier offers. My carrier was T-mobile and they have good international plans for month-long trips abroad. Now, I use Tello for my US number because they allow me to adjust the amount of coverage I need (not very much when I am abroad, more when I'm in the US). Verizon was a problem for international travel, so I left them for T-mobile a couple years before beginning my travel. GoogleFi used to be ideal for international travel, but they are no longer tolerating international users, so buyer beware.
Post: Our Nomadic Life
Link to comment from June 5, 2024
I did the same as you and don't regret anything about it. After a few years, I knew I would not return to my original home base, so I emptied the storage unit after 4 years of travel. After 7 years as a nomad, it was time to have a home base again. It was such a pleasure to furnish a place without the burden and constraints of bringing all my precious things. For the same cost I would have paid in moving expenses, I furnished my new place with entirely new furniture, and I'll gradually add new art as I go. It is a shock to realize that if we give up our home base, we have plenty of cash flow to cover full-time travel. Another nomad said the same thing as you, "This isn't a vacation, it is our life." But all the day to day is manageable with internet access and a mail service. This year I combined my home phone number with my US phone number on one device, and it works great! Good luck on your continued journeys. This is the best kind of retirement I could imagine.
Post: Our Nomadic Life
Link to comment from June 5, 2024