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Old 09-27-2016, 07:13 PM   #41
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Goals for RE - grow cash/brokerage balance to $1.5 mil. Draw down over the next 15 years, in combination with megacorp pension at age 55. Continue the 401k contributions for next 1.5 years to get maximum company match, then let the balance grow for 15 years. No plans to return to w@rk after RE, but if needed will consider on a seasonal basis while kids are in high school.

Plans if market crash shortly before RE - plan for extended travel during summer 2018. If the international plane tickets haven't been purchased, then RE could be delayed until 2019 if there was a significant crash (greater than 40%)

Plans for market crash shortly after RE - would ride out the downturn by reducing discretionary spending, primarily extended travel (except for 2019 travel). If absolutely necessary, I could leverage 20 years of megacorp experience and return to megacorp as an Agency employee (hired by employment agency and not directly by megacorp). DW has very specialized legal experience and could get a consulting contract with minimal effort.

Kids expectations - our kids are generally aware of our RE goals. The only firm expectation we have given them is an extended family trip to France during summer 2019 for the Women's Soccer World Cup. That means our drop dead RE timing is June 2019. As for cars, they are saving for their car purchase/insurance. They will have to opportunity to buy our vehicles (150k miles) at trade-in value, where they will know the vehicle history. The alternative is to try their luck at local car lots or Craigslist.

In general, undertaking RE seems to be a very large 'leap of faith'. While we may never have the opportunity to earn this much money again, we only have a few full-time years left with our kids and we want to make the most of that time.

Omalley
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Old 09-27-2016, 07:43 PM   #42
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For the question about how we 'stayed the course' over the years. I have had a relatively short professional career of 22 years with two years 'off' to secure my MBA. DW has had a slightly shorter professional career.

Like most on the board, we have a strong LBYM mindset. We have used my take-home pay to run the household and have used DW pay for debt reduction and investing.

The hardest part of the RE journey has been last 1-2 years, since we have started to accumulate a significant amount of cash/brokerage funds. Thoughts about taking a one year sabbatical compete with buckling down for 1.5 years to reach the our RE goals sooner. We are working on the buckling down option, but an unending increase in work responsibilities has been hard to handle. However, once we RE we don't expect to ever return to w@rk again which is what keeps us going every day.

Omalley

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Old 12-21-2017, 11:30 AM   #43
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15 more months have gone by since my last update, and the planned RE date has once again slipped to mid-2019.

Current investments -
401/457 - 1,280k
After tax brokerage/Cash - 1,720k

I have been caught unaware how difficult it would be to walk away from w*orking and the security provided. In my younger years, I had big plans for entrepreneurship success by striking out on my own. In the end, I always stayed with a steady check, benefits, and pension plans. I now know that I didn't possess the risk gene needed for entrepreneurship, but I hope I can make the leap to ER in 18 months.

Waiting (and investing) until 2019 will lower our SWR to about 2.2%. A small pension in 2017 will reduce it to 1.8%, and finally SS in 2034 would move SWR well below 1%.

I will continue to look for ER inspiration from others on the site!

Omalley
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Old 12-21-2017, 01:33 PM   #44
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Grats Omalley, keep up the good work!!
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Old 12-21-2017, 06:52 PM   #45
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Way to go.....you are inspiring lot of folks here on ER. 11K views!!
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Old 12-21-2017, 07:18 PM   #46
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Originally Posted by Omalley View Post
15 more months have gone by since my last update, and the planned RE date has once again slipped to mid-2019.

Current investments -
401/457 - 1,280k
After tax brokerage/Cash - 1,720k

I have been caught unaware how difficult it would be to walk away from w*orking and the security provided. In my younger years, I had big plans for entrepreneurship success by striking out on my own. In the end, I always stayed with a steady check, benefits, and pension plans. I now know that I didn't possess the risk gene needed for entrepreneurship, but I hope I can make the leap to ER in 18 months.

Waiting (and investing) until 2019 will lower our SWR to about 2.2%. A small pension in 2017 will reduce it to 1.8%, and finally SS in 2034 would move SWR well below 1%.

I will continue to look for ER inspiration from others on the site!

Omalley
I just read all of your posts on this thread and it seems that you are moving the goal posts. Why? Seems like you can still punch next summer.
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Old 12-22-2017, 06:28 PM   #47
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Sounds like a good plan financially. Imagine you are 44 and not working. What will you be doing?

My point is to give thought to the non-financial aspects as well.
I am glad you raised this point. Firecalc flashing 99/100% depending on day for us- me 46, DW 36 with three kids 8,6,5. Now that I feel like I can responsibly quit, I must admit it is a little scary. Two weeks ago a great opportunity arose that will require a 5 year commitment-
dilemma!

Here is what I think: knowing you can quit is almost as great as not working. I am able to leave a bad day behind fairly quickly. I hear you though on the spending time with the kids in the summer, you just don't get those years back. Sounds like you have a good plan and staying involved in the community gives you options should you need to go back to work.
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Old 12-22-2017, 06:53 PM   #48
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Hmm, the OP is turning out to be an extremely ultra-conservative person. I'd say he's the first I've read who wishes to spend less than 1% of his portfolio. Self-insurance or golden hand-cuffs at work?
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Old 12-22-2017, 07:34 PM   #49
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Yes, I didn't realize quite how financially conservative I am. We have both been working non-stop since we were in our early teens, and leaving that security behind is daunting. I will go back and read about the successful ER journeys from others who made the leap before age 50.

Moving from 2018 to 2019 will allow my DW to complete some career goals. In both our cases, there aren't any golden handcuffs keeping us in place for another year. I am at megacorp and would have to stay for 14 more years (age 60) to get a retiree medical insurance stipend. I am not so conservative that I am willing to consider staying that long!

As was mentioned by others, reaching FI has made dealing with issues at megacorp more manageable. I am taking time to act more as a mentor to younger employees, helping them get off to a good start in their own careers.

Omalley
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Old 12-22-2017, 07:36 PM   #50
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Hmm, the OP is turning out to be an extremely ultra-conservative person. I'd say he's the first I've read who wishes to spend less than 1% of his portfolio. Self-insurance or golden hand-cuffs at work?
As the portfolio grows, DW keeps coming up with new ideas to add into the budget! She will do her best to keep the our SWR near 3% as new income streams are added.
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Old 12-23-2017, 06:25 AM   #51
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Waiting (and investing) until 2019 will lower our SWR to about 2.2%. A small pension in 2017 will reduce it to 1.8%, and finally SS in 2034 would move SWR well below 1%.
Hopefully you aren't waiting solely in order to reduce your SWR.
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Old 12-23-2017, 08:14 PM   #52
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Not waiting with any thought of reducing our future SWR. Primarily concerned if my planned health insurance costs are still accurate. Will see if the rates change when the 2019 rates are ready later in 2018.
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