11 months out - fighting the OMY urge

[tominboise]

I have decided to go in July, 2020. I will be 60 (DW will be 58 and may or may not be working - she is currently employed as a programmer by IBM but may not be by that time). Anyway, I have had a (mental) target of $3mil in taxable & non taxable assets (IRA, 401k, Savings/brokerage). We have been bouncing around at $2.950mil for the last couple of months, so presuming that the economy doesn't completely tank between now and then, I think we will make it to that threshold. Assets are invested at 60%/32%/8% and the split between taxable and tax exempt is 35% taxable and 65% tax exempt (meaning 35% of our money is in post tax accounts and the rest is in IRA401K).

We also have around $1mil of value in our primary house, a nice cabin and some bare land. We have no debt. I have always used $120k annually as our spending rate. Our budget information would show we spend somewhat less then that.

Things that have me worried - cost of health care insurance.

We would probably start SS for DW at 62 and me at 70. I could go consulting after retirement if needed but don't really want to if I don't have to. Although maybe three months a year to pay the healthcare for the year. Then you aren't really retired, however.

Should I count down the remaining 330 days or make it 695 days?

Probably a stupid question.

[Mdlerth]

If you mentally set your countdown at 330, I predict you'll go out in 330 days.

If you mentally set it to 695 days, I suspect you'll still on the j*b a year from now.

A lot of times when people get into the minutiae of their portfolio, I just kinda skim through because I'm not really expert enough to offer detailed analysis. But when you say "tax exempt" do you really mean "tax deferred"?

[MBAustin]

Sounds like you are ready. Personally, I'd go sooner rather than later, but get that clock started now and don't look back. Even if your health insurance is $20K per person per year between next year and Medicare (highly unlikely), that's a total of less than $300K. Take that out of your assets and see if it changes your FIREcalc results significantly.

[jjflyman]

With a net worth like that you should have retired already and enjoying life. Your time on earth is not unlimited

[atmsmshr]

My signature line tells of my failure at OMY. Twice.

Finally realized I would never say this on my deathbed:

"If only I had worked more."

[HI Bill]

Quote:

Originally Posted by tominboise I have decided to go in July, 2020. I will be 60 (DW will be 58 and may or may not be working - she is currently employed as a programmer by IBM but may not be by that time). Anyway, I have had a (mental) target of $3mil in taxable & non taxable assets (IRA, 401k, Savings/brokerage). We have been bouncing around at $2.950mil for the last couple of months, so presuming that the economy doesn't completely tank between now and then, I think we will make it to that threshold. Assets are invested at 60%/32%/8% and the split between taxable and tax exempt is 35% taxable and 65% tax exempt (meaning 35% of our money is in post tax accounts and the rest is in IRA401K). Should I count down the remaining 330 days or make it 695 days? Probably a stupid question.

Sounds like you are well-prepared to FIRE NOW. Make it 14 days. You're already 57/59, and you won't get back your working years or health to enjoy in retirement. Your proximity to SS make this a no-brainer for me. You might start out at slightly higher than 4% WR, but that will quickly drop once SS kicks in. Enjoy life, you seem to be well-prepared, financially!

[tominboise]

Quote:

Originally Posted by Mdlerth If you mentally set your countdown at 330, I predict you'll go out in 330 days. If you mentally set it to 695 days, I suspect you'll still on the j*b a year from now. A lot of times when people get into the minutiae of their portfolio, I just kinda skim through because I'm not really expert enough to offer detailed analysis. But when you say "tax exempt" do you really mean "tax deferred"?

Yes - Tax defered. You are correct.

[pb4uski]

Quote:

Originally Posted by tominboise ....Should I count down the remaining 330 days or make it 695 days? Probably a stupid question.

330 days.... or 30 days!

To get an idea what health insurance would cost check out healthsherpa.com and pretend that you had an event where you lost coverage.

[MichaelB]

Quote:

Originally Posted by tominboise Should I count down the remaining 330 days or make it 695 days? Probably a stupid question.

A good question, and an important one. A couple of questions in response. Have you run your numbers through FIRECalc? How solid is your budget estimate? It helps to really dig down into the budget and make sure all the bases are covered. This includes health insurance, emergency fund, and taxes. Gumby’s thread may help you with that. http://www.early-retirement.org/foru...ire-69999.html

[Aerides]

You mention HI as a worry, but given you'd have only 5 years to cover, even if costs go up tremendously each year...eh, given your savings and your WD you have room to absorb the expense for a short time frame. And you can always COBRA the first 18 months, which, while pricey and un-subsidized does afford you to continue on your current plan, and bridge a good chunk of the time.

I think you can make the count down 30 days, but would vote 330 given your choices.

[tominboise]

Quote:

Originally Posted by pb4uski 330 days.... or 30 days! To get an idea what health insurance would cost check out healthsherpa.com and pretend that you had an event where you lost coverage.

Thanks for link. Health Care insurance is my biggest concern. I think I'll be spending between $25-30k per year until I get on Medicare (I have one 17yo child still on my plan and she will be until she gets out of high school and college - about 5 years).

Basically 1% of my retirement assets per year for 5 years just for health insurance.

[brydanger]

I would say take the date you wrote in the calendar and erase it.
Then quickly grab a sharpie and write it again (either on that same date or a few months earlier just for fun).

Taking the leap is never going to be easy and you'll never feel 100% confident in the decision (until after you make it...then you'll laugh at this conversation ever having happened)... but that's just what fear and society does to all of us.

Don't get me wrong, if you had written a single word about how much you love the work you do, the passion you gain from your work and coworkers...maybe it's worth seeking out more time - but I don't hear those things.

I hear someone who has done the hard work and just needs the nudge... and in case you haven't actively looked at other threads in this forum - if everyone here says you're ready (which they do above), then you're SO VERY READY!!

The simple fact is that none of us even know if we'll still be around in OMY... and if you're really looking at changing the date... 8.6.19 has a nice ring to it!
Seriously...Go enjoy what you've worked so hard for.

[Senator]

Each year is about 5% of your remaining (useful) life. How many more 5%'s do you want to give up?

It's like flying on a plane going in circles that you know 100% sure is going to crash. You can jump anytime, as you have a parachute. You can only jump at a set point in the route, as it is too dangerous or risky to jump at other times in loop pattern.

How many loops do you want to take, and do you know the plane will not crash on this next loop?

[H2ODude]

Best friend at 68 still working, already delayed a year. Has generous pension and assets, as well as house and condo. He's had some significant health issues that seem to be under control, his wife's not so much. Because he may have to help his mother in a nursing home (she's I think 98) he keeps working.

We saw him a few weeks ago and I couldn't seem to make him understand that time is limited. I understand money "concerns" but even worst case with his mother would put only a minor dent in long term performance. I'm very afraid that when he does pull the cord some health issues are going to affect him or his wife. We happen to be international travel buds and would be sad if that gets curtailed.

I understand the OMY syndrome when previous life has been all about "accumulating enough" but I'm afraid financial conservatism can remove a lot of late life opportunities for joy. Of course, YMMV,

[joeea]

Quote:

Originally Posted by tominboise Should I count down the remaining 330 days or make it 695 days? Probably a stupid question.

It's not a stupid question, but it's one you should be asking while looking in a mirror.

[ivinsfan]

Quote:

Originally Posted by tominboise Thanks for link. Health Care insurance is my biggest concern. I think I'll be spending between $25-30k per year until I get on Medicare (I have one 17yo child still on my plan and she will be until she gets out of high school and college - about 5 years). Basically 1% of my retirement assets per year for 5 years just for health insurance.

Are you sure with 3 people if you can keep your taxable income low enough you can save a lot of money on ACA.study up.

[GalaxyBoy]

I suffered from OMY for a long while, and now that I've been retired for over two years I truly regret that. I won't ever get that time back.

[tominboise]

Quote:

Originally Posted by brydanger Don't get me wrong, if you had written a single word about how much you love the work you do, the passion you gain from your work and coworkers...maybe it's worth seeking out more time - but I don't hear those things. I hear someone who has done the hard work and just needs the nudge... and in case you haven't actively looked at other threads in this forum - if everyone here says you're ready (which they do above), then you're SO VERY READY!! .

I've had a good career and enjoyed my working life -started at age 14 or so and been working ever since, (part time while in school, of course).

I like the people I work with now but the guys running the division of the Megacorp where I have worked for the last 5 years, lack any strategic direction and most importantly, leadership. Being a leader personality and a team player myself, working for a "every man for himself" outfit has been a tough time. Lots of selfish behaviors and egos, which I find distasteful.

Plus, I don't want to be one of the guys who gets enough $$ to retire and then dies a year later. What's the point of all that work, anyway? Got my kids raised and through college and launched on their way, paid my taxes, mowed my lawn, worked 60 hours a week, etc, etc, etc. Typical type A stuff.

[SlowlySaving]

Quote:

Originally Posted by jjflyman With a net worth like that you should have retired already and enjoying life. Your time on earth is not unlimited

+1

[HarveyS]

Tom - leave now, on your terms. We have all seen many examples where Megacorp decides when you are done and that leaves a sour taste. I agree with Senator; how many 5%'s do you want to give to Mega? Also, some universities require students buy university healthcare. Those that don't require it usually give the option. That could remove DD from your health insurance needs. Not sure how much that would change the cost, but it will go down. Finally, 1% of portfolio for HC, while quite a bit, is overall not that much considering what the risk is. You are fortunate to have a large portfolio. Others are paying a much larger percentage......