The hocus Early Retirement Plan

Rob's vision of "honest and informed debate" doesn't include answering simple and straightforward questions put to him. The unanswered questions cataloged here are an important part of Rob Bennett's Passion Saving, Hocomania.

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The hocus Early Retirement Plan

Postby Schroeder » 06/08/06 at 20:24:32

I want to add this to the "Simple Questions Rob Bennett Doesn't Answer" section. There were actually three threads in parallel on this subject. So I'll give you all three here.

Schroeder wrote:
hocus wrote:There should be no detractors of other posters in a Retire Early community. The purpose is to faciliate discussions of how to put together a successful Retire Early plan.

Rob

Well, then. Let's discuss! [highlight]How does a successful Retire Early Plan which includes $400,000 in fixed income and a $300,000 paid-for home generate real returns to cover $28,000 in annual expenses?[/highlight]

Schroeder


ben wrote:As well as this one from the "Busted Retirement" board.
For a detailed discussion, Including input from Hocus, about 1 year old kindly see here:
http://nofeeboards.info/Sewer/viewtopic.php?t=3380
As well as this one from the "Busted Retirement" board.
http://www.s152957355.onlinehome.us/cgi ... 786644/0#0

My understanding is that hocus planned on the base costs (2005 budget) being covered by $28k from his assets being $700k (in reality selling CDs/bonds that expire) - but NEEDED an additional $10k in oncome which he would obtain from writing.

The PE10 method would ensure that he earns more than 7% real on his (future) equity holdings (expected to be dividend paying stocks).

Recently Hocus have also pointed out that he is better of than when he FIREd in 2000 - so he should still be good for around $700k or so. (often misunderstood; Hocus house was worth LESS than 300k in 2000 but is was worth 300k when he first posted about it on the boards - and is now worth around $350k I think).

Hocus; just wrote above to assist you in typing too much :) but can you advise us how your kept your 2005 budget($38k) and what your budget is for 2006? Also are the book publishing costs part of your budget or is that a seperate business budget probably based on your TMF-report earnings of $15k?

Cheers!


syke-- wrote:
ben wrote:
Hocus believes that 7% real in stocks is realistic currently but still holds back his equity purchases until the PE10 model (or rather JWR) says it is time to get back in. I fear a long wait - but as long as book sales kicks in that should not stop Disney world Etc. from happening.

Cheers!


Someone please correct me if I'm wrong, I'm a little confused on the hoco-plan:

If I understand it correctly, hocus thinks that because stocks on average return 7% real, if he stays out at times of high valuations and then jumps back when the gong sounds, he'll get some high rate of return that balanaces the 3% real (or whatever he's getting now). ?

That way he can plan on his portolio returning 7% because he'll capture some higher rate of return in the future. ?

I think that is the confusion that LynnC has about why hocus is advocating 100% (sometimes) but doesn't own any. ?Hocus is planning to go to 100% stocks when JWR puts up the Batsignal.

Now I notice that hocus did not address these questions directly here at REHP. However, I just read the link to the SeWeR board. And hocus does give his answer there. (That was back in February 2005) That thread is kinda long. But in it, you'll find hocus does elaborate, as best he could, on answering these questions.

http://nofeeboards.info/Sewer/viewtopic.php?t=3380

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Re: The hocus Early Retirement Plan

Postby syke-- » 06/09/06 at 10:08:30

Schroeder wrote:
Now I notice that hocus did not address these questions directly here at REHP. However, I just read the link to the SeWeR board. And hocus does give his answer there. (That was back in February 2005) That thread is kinda long. But in it, you'll find hocus does elaborate, as best he could, on answering these questions.

http://nofeeboards.info/Sewer/viewtopic.php?t=3380

Schroeder



I remember that thread, but he doesn't really elaborate.  

He has a 7% WR, from the $400,000.  As Ben points out in the thread, toss in some inflation and he needs to grow his nest egg at something more like 10% or 11% to maintian that.  How are you going to do that with bonds and CDs?  And that's assuming he's earning $10K/year from writing, which he isn't.  

I think a budget of $38K/year for a family of four with a paid off house is tight, but doable.  28K seems awfully lean.  

How long has hocus been retired?  Six years?  That means there a 60K shortfall. He made 15K on his soapbox report, which is probably a wash with the  the community draft version of his book.  

I think the last time we went through this, hocus said his net work was a little more than when he retired, but it is probably more like $400K in the house and $300K in cash.  
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Re: The hocus Early Retirement Plan

Postby Schroeder » 06/09/06 at 10:34:10

Of course, you're speaking from a rational point of view with realistic expectations of the amount of income that can be generated from hocus' assets.

However, hocus believes it is rational to sit in fixed income and as you said "go to 100% stocks when JWR puts up the Batsignal."

And if you've been following their predictions, the Batsignal should appear in about 10 to 15 years. Of course, by that time, there may not be much left in hocus' fixed income accounts to switch over into stocks.

Also, it'll be interesting the how the impact of two young boys growing up into teenagers affects the hoco-budget.

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Re: The hocus Early Retirement Plan

Postby Schroeder » 06/09/06 at 10:43:51

Schroeder wrote:Also, it'll be interesting the how the impact of two young boys growing up into teenagers affects the hoco-budget.

Schroeder

I think I can answer my question. After Timothy and Robert are old enough to not need Boo as a stay-at-home mom, hocus becomes "Mr. Mom." And Boo goes back to work.

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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 12/06/06 at 17:42:10

Schroeder wrote:
Schroeder wrote:Also, it'll be interesting the how the impact of two young boys growing up into teenagers affects the hoco-budget.

Schroeder

I think I can answer my question. After Timothy and Robert are old enough to not need Boo as a stay-at-home mom, hocus becomes "Mr. Mom." And Boo goes back to work.

Schroeder


Yup. He recently has taken to proclaiming "I have done well since leaving my job" or words to that effect, but he avoids the bald-face outright lie of saying he hasn't eaten dramatically into his 'seed corn', i.e. TIPS-based retirement funding. Instead, he is like many Americans, counting his home as if it were ready cash:
"...my net worth today is higher than it has ever been before, and has grown in every year since I handed in my resignation from the corporate job..."
[bold added]

By the way, he often says he 'handed in his resignation', and so perhaps he did -- once it was REQUESTED, like Rumsfield's -- that is certainly how I read this passage he provides in his own words, during an unguarded moment:
I lost my "dream job," a job I had worked to get for over seven years, in the recession of the early 1990s.
http://www.passionsaving.com/200608.html

and:

For me, it was a job loss that caused me to stop in my tracks and begin questioning how much longer I wanted to continue through life dependent on "The Man" to cover the costs of my groceries and housing and health insurance. It was a painful experience to lose that job.
http://www.passionsaving.com/bad-boss.html

And I wonder what Rob currently has to lay out per year in health insurance for himself, Boo, Rodd, and Todd...  :o

And a car... auto insurance... property taxes... home insurance...food for four...  no wonder they can't go to Disney or expect Pops to help with college. Sadly, he from time to time does actually acknowledge his dire straits:
"The author of the Financial Freedom Blog warns not to assume that money will follow a career change. That sort of thinking may be okay when someone is 25, but not when there is a family to support, Bennett said.

"Instead, the Purcellville resident 'saved like a mad man' to finance his career change.

" 'As long as you need money, you're always going to be compromising. You're always going to be settling,' he said."
[bold added] http://www.passionsaving.com/200603.html

Rare wise words from Rob. And, finally:

" 'It was hard to get started as a freelance writer,' he explains. 'My strategy was to develop enough financial independence so that I wouldn't panic in the event that it took my [writing] business several years to take off.'


Rob? If you are out there....

PANIC!

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Robert Michael "Hocus" Bennett, October 22, 2010: "I have been living off my savings for 10 years"
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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 11/03/08 at 07:44:41

Schroeder wrote:Let's discuss! [highlight]How does a successful Retire Early Plan which includes $400,000 in fixed income and a $300,000 paid-for home generate real returns to cover $28,000 in annual expenses?[/highlight]

Schroeder


Rob?
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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 12/27/08 at 19:28:57

DRiP Guy wrote:
Schroeder wrote:Let's discuss! [highlight]How does a successful Retire Early Plan which includes $400,000 in fixed income and a $300,000 paid-for home generate real returns to cover $28,000 in annual expenses?[/highlight]

Schroeder


Rob?



Rob?
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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 04/06/10 at 23:11:40

[highlight]How does a successful Retire Early Plan which includes $400,000 in fixed income and a $300,000 paid-for home generate real returns to cover $28,000 in annual expenses?[/highlight]



Rob?

BTW, here is an indicator on how your writing career has fared over the years you said you'd be relying on it to stoke up your income:

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Robert Michael "Hocus" Bennett, October 22, 2010: "I have been living off my savings for 10 years"
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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 04/06/10 at 23:33:39

Have you ever gone back and sought to discover the seeds of your failure, Rob?

You could do worse than to recollect what you wrote several years ago, regarding your book:

[snips]
Book Marketing And The Proposal Doctor
by Rob Bennett

When I was writing my book... I sought the advice of a book proposal doctor.

I worked with three editors:
? 1. A proposal doctor
? 2. a line editor; and
? 3. a proofer.

...the proposal doctor did not approve of the way in which I structured and presented the material in my book...

She obviously has more experience than me in selling books to publishers. I believe that there are a number of publishers who would share her views... she showed integrity in telling me things that I did not want to hear.

I decided not to follow the proposal doctor's advice.

My editor favored one way to sell my book: the more conventional and safer way. I elected to choose an approach that I view as riskier...

I am now writing a second book, Investing for Humans: How to Get What Works on Paper to Work in Real Life....

http://www.writershelper.com/book-proposal-doctor.html

Have you learned anything, Rob?
Robert Michael "Hocus" Bennett, October 22, 2010: "I have been living off my savings for 10 years"
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Re: The hocus Early Retirement Plan

Postby Yipee-Ki-O » 04/07/10 at 16:43:55

And Rob "Hocus" Bennet ignored some well-intentioned life coaching advice proffered to him by two individuals of impeccable integrity; Scott Burnszzz and Carl Richards. Rob's Narcisstic Personality Disorder assures him continued success in the dead-end career path he's chosen for himself; trolling the internet.
Work is the refuge of those who have nothing better to do, Oscar Wilde
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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 04/09/10 at 20:13:48

DRiP Guy wrote: [highlight]How does a successful Retire Early Plan which includes $400,000 in fixed income and a $300,000 paid-for home generate real returns to cover $28,000 in annual expenses?[/highlight]





Rob?


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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 04/13/10 at 08:34:13

DRiP Guy wrote:
DRiP Guy wrote: [highlight]How does a successful Retire Early Plan which includes $400,000 in fixed income and a $300,000 paid-for home generate real returns to cover $28,000 in annual expenses?[/highlight]





Rob?



Rob?
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Re: The hocus Early Retirement Plan

Postby DRiP_Guy » 04/18/10 at 22:01:26

DRiP Guy wrote:
DRiP Guy wrote:
DRiP Guy wrote: [highlight]How does a successful Retire Early Plan which includes $400,000 in fixed income and a $300,000 paid-for home generate real returns to cover $28,000 in annual expenses?[/highlight]





Rob?



Rob?



Rob?
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