42 seems too early but the calcs say I can

[medved]

Glad to hear it is working well. There is not the slightest chance that I would have felt comfortable pulling the plug with your NW and at your age -- or even with three times your NW and at your age. That is not (at all) a criticism. It just shows how each of us is different, in terms of risk tolerance, desired spending, etc. But I am happy for each person who I see do what they want to do, and have it work out well. Congratulations.

 

[aida2003]

Great update and it's inspirational for others. What's your AA?
It's funny (well, it's not) how life gives unexpected surprises like you said you both were both healthy before pulling the plug and now the update mentions ER visits. This part scares me the most when thinking about the ER.

 

[Diver]

Thanks for the update and Congrats on it all w*rking out. It is always interesting to get honest updates on these threads. I need to do one myself!

 

[karen1972]

Great update and it's inspirational for others. What's your AA?
It's funny (well, it's not) how life gives unexpected surprises like you said you both were both healthy before pulling the plug and now the update mentions ER visits. This part scares me the most when thinking about the ER.

I'm 85% Equity/ 10% Bond/ 5% cash equivalent.

Yeh I know the medical thing is scary to think about but then I just realized there is zero way to plan for it.. whatever you put in your plan is just a wild guess anyway... who knows what the laws will be, what treatments will exist in 10 years, what meds will cost, etc. Everyone has to figure out what their comfort level is.

 

[ExFlyBoy5]

Congrats Karen...sounds like your retirement has been fabulous!

I have to admit I was a little confused as I didn't realize that this thread originated back in 2014. I was wondering, "Why is she using 1972 if she's 42 in 2017?" The math just wasn't working...but then I realized you recently updated the thread and cleared my confusion!

 

[Rianne]

I'm glad this thread was bumped to the top. I also was surprised when I realized I was reading posts from 2014. Thank you for updating Karen.

 

[RunningBum]

I'm 85% Equity/ 10% Bond/ 5% cash equivalent.

Yeh I know the medical thing is scary to think about but then I just realized there is zero way to plan for it.. whatever you put in your plan is just a wild guess anyway... who knows what the laws will be, what treatments will exist in 10 years, what meds will cost, etc. Everyone has to figure out what their comfort level is.

I did a 10 year average estimate based on how many times I thought I might hit my max out of pocket, went through the deductible, and various smaller amounts down to virtually nothing. I thought I was being conservative and overestimated them since I rarely needed to see doctors, but some bad luck with injuries, illnesses, and age related stuff made my estimates a bit low. Plus max OOP limits went up more than I expected. So did premiums, though the ACA subsidy helps. I don't feel like I made a wild guess, but it was a guess for sure.

 

[haha]

For my own benefit thought I'd update this 3 years into it.

Did pull the plug in Feb 2015, sold my home in Illinois (good bye astronomic taxes).. and ended up in North Carolina (well because Denver was booming and didn't like the housing prices or the snow it was having at that time).

Now: 45
Spousish: 46
No Kids
Annual Expenses: $52K which didn't change after all due to added health care costs.

Net Worth: $1.3M ($1.2M is invested assets)
- $80K ROTH IRA
- $600K Traditional IRA
- $520K Stock Investments
- Pension of $2,050/yr no inflation adjustment
- Spousish income currently at $12K at part-time gig which I consider a solid floor.

So $52K-12K-2K=$38K out of $1.2M or about 3.2% WR and still not accounting for SS.

I think I made the right decision, I wouldn't mind an extra $100k to be able to slightly upsize our home but not important enough to make me go back to work.

When the market tanked in 2015 and my honey lost his job right after moving here I was a little freaked out... I did something completely opposite to what I would normally do and we went on an extended trip to Europe. When we came back refreshed, we simply changed our plans and he went to work full-time for a year.. which allowed us to offset cost of a new car, trip to Europe, cost of two moves, closing costs on the home, and cost of 4 trips to the ER at $3500/trip and tons of physical therapy/chiropractor.

Now we are much closer to where we need to be and he is back to working part time. Just like in savings mode, I figure early retiring is about having a plan, sticking to the plan, adjusting to the bumps along the way to get you back on plan.

I looked up spousish but was unable to find much. Could you clarify what is a spousish? Does the net worth figure include spousish's assets?

Ha

 

[Yarnstormer]

Well shoot editing to say congrats and glad it's working out!

 

[NgineER]

Great update and it's inspirational for others. What's your AA?

It's funny (well, it's not) how life gives unexpected surprises like you said you both were both healthy before pulling the plug and now the update mentions ER visits. This part scares me the most when thinking about the ER.

I thought you were full time ER, not just visiting the ER. [emoji6]

 

[karen1972]

I looked up spousish but was unable to find much. Could you clarify what is a spousish? Does the net worth figure include spousish's assets?

Ha

LOL yes spousish ..when you have been living with someone over 7 years but stay happily unmarried.. it makes one well versed on differences in tax/marriage/gifting laws.

it does include spousish assets which in 2014 his NW was zero ( or slightly negative) and has improved to $27K to the plus side, so a huge improvement on his side, but really negligible when talking our NW.

 

[karen1972]

I did a 10 year average estimate based on how many times I thought I might hit my max out of pocket, went through the deductible, and various smaller amounts down to virtually nothing. I thought I was being conservative and overestimated them since I rarely needed to see doctors, but some bad luck with injuries, illnesses, and age related stuff made my estimates a bit low. Plus max OOP limits went up more than I expected. So did premiums, though the ACA subsidy helps. I don't feel like I made a wild guess, but it was a guess for sure.

I tried a 17% premium increase YoY plus $5K oop per person factor and still think that is a wild guess as max out of pocket isn't actually max, since lots of times there are caveats on medicines, therapy co-pays, things not covered like only X amount of therapy/chiropractor visits per year allowed.. etc etc etc.

My cousin had been diagnosed with a terminal, non treatable illness. Her family decided to give up everything to save her.. she found a doctor in Colorado doing experimental treatments and after 10 treatments she is doing great, no evidence of the disease after 5 years... but it was all out of pocket at massive expense..losing over $3M in real estate, plus their personal home, business, etc. ie dead broke but alive and starting over at 45.

 

[ugeauxgirl]

Thanks for the update- I am your age and glad to hear about your situation. Like your spouseish- I would be happy to be re-employed at some point if its necessary. My resume looks good and unemployment is (currently) low- I'm pretty sure I could get a job if I really needed to. I just need to get out of THIS job. Looking forward to joining you in the ranks of 40ish retirees soon.

 

[bloom2708]

OP, how are you estimating your healthcare costs? Seems low.

You are in the discovery phase. Now you need to dig in and see if you are comfortable with the numbers.

How will you handle lumpy type purchases? Cars, new furnace, roof repair, etc. Do you have a good idea of your spending over 2,3,4 years?

Are taxes included in your spending?

The pension is nice, but just eyeballing, I don't think you are quite there yet unless you want to really tighten the spending.

We are currently power saving for another 5 years or so. That might be a strategy. Look into career shifts where you can find the motivation for another few years.

Good luck!

 

[panhead]

Very cool OP, thanks for the update! I am in a very similar circumstance to yours, although a couple years older. I'm hoping to work till about 50 (about 3 more years) and then pull the plug. Our assets and such are similar, so nice to see you killing it! Please keep us up to date!


-Pan-

 

[gauss]

I read your intro post after it popped to the top of the list. I thought, I should write a reply.

I then proceeded to scroll down and realized that I already did -- in 2014. LOL

Congrats on it all working out.

Folks have different tolerances for what they think they will need financially. The thing that some don't recognize is the risk of major health risks of staying employed in a job that is not healthy. I saw way too many guys in their 40s having heart attacks /strokes/cancer.

Some of my former colleagues are now starting to follow my lead out albeit 5 years later.

Other close colleagues, unfortunately, wound up in graves since I left, while they were still in their mid-50's.

-gauss

 

[aida2003]

OP, how are you estimating your healthcare costs? Seems low.

You are in the discovery phase. Now you need to dig in and see if you are comfortable with the numbers.

How will you handle lumpy type purchases? Cars, new furnace, roof repair, etc. Do you have a good idea of your spending over 2,3,4 years?

Are taxes included in your spending?

The pension is nice, but just eyeballing, I don't think you are quite there yet unless you want to really tighten the spending.

We are currently power saving for another 5 years or so. That might be a strategy. Look into career shifts where you can find the motivation for another few years.
Good luck!

Now this comment confused me. I think Karen is happily retired. Did you check the date of her OP?

 

[ugeauxgirl]

Folks have different tolerances for what they think they will need financially. The thing that some don't recognize is the risk of major health risks of staying employed in a job that is not healthy. I saw way too many guys in their 40s having heart attacks /strokes/cancer.

Some of my former colleagues are now starting to follow my lead out albeit 5 years later.

Other close colleagues, unfortunately, wound up in graves since I left, while they were still in their mid-50's.

-gauss

Agree with this. I went to the Dr a couple of years ago with chest pains. I got a clean bill of health but the doctor gave me a sobering lecture re the effects of stress on my health. I took him very seriously. I took steps to reduce my stress and plan my exit. I might be in the class of 2018 at the age of 46. My contingency plan is get another job (though I don't think I'll have to). If I do get another job, the stress level will be much lower than this one.

 

[EvrClrx311]

OP,

Great to see an update and hear your plans are going well. I'm a decade behind you, but on a similar path with the figures and ages. Looking forward to another update in 3-5 years if you happen across this thread again!

Enjoy

 

[hilltide]

Great update. Thanks for sharing.

 

[dvalley]

Awesome, congrats! Keep us posted on an annual basis if possible.

 

[karen1972]

Update: I'm officially 3 years retired, so wanted to put out a quick update. Used todays numbers (so minus $65K from end of Jan)

Now: 45
Spousish: 47
No Kids
2017 Expenses: $69,427 which included $14.6K for a newer car.

Net Worth: $1.35M ($1.247M is invested assets)
- $99.5K ROTH IRA
- $629.1K Traditional IRA
- $510.5K Stock Investments
- $7.7K in HSA
- Pension of $2,050/yr no inflation adjustment
- Spousish income currently $14K at part-time gig and still contributing to ROTH

2018 Budget of $52K

52K-14K-2K=$36K out of $1.25M or about 2.9% WR projected.

Managed to move 2% more of my assets from taxed to non-taxed, so progress.

I guess according to Reddit posts maybe I'm in Coast Fire? I like my honey working part-time M-T, out of house and loves what he does but still plenty of time for us to do things.

 

[zedd]

Update: I'm officially 3 years retired

Now: 45
Spousish: 47
No Kids
2017 Expenses: $69,427 which included $14.6K for a newer car.

Net Worth: $1.35M ($1.247M is invested assets)
- $99.5K ROTH IRA
- $629.1K Traditional IRA
- $510.5K Stock Investments
- $7.7K in HSA
- Pension of $2,050/yr no inflation adjustment
- Spousish income currently $14K at part-time gig and still contributing to ROTH

2018 Budget of $52K
-14K-2K=$36K out of $1.25M or about 3.2% WR and still not accounting for SS.

I think I made the right decision, I wouldn't mind an extra $100k to be able to slightly upsize our home but not important enough to make me go back to work.

When the market tanked in 2015 and my honey lost his job right after moving here I was a little freaked out... I did something completely opposite to what I would normally do and we went on an extended trip to Europe. When we came back refreshed, we simply changed our plans and he went to work full-time for a year.. which allowed us to offset cost of a new car, trip to Europe, cost of two moves, closing costs on the home, and cost of 4 trips to the ER at $3500/trip and tons of physical therapy/chiropractor.

Now we are much closer to where we need to be and he is back to working part time. Just like in savings mode, I figure early retiring is about having a plan, sticking to the plan, adjusting to the bumps along the way to get you back on plan.

What's a Spousish?

 

[FIREmenow]

What's a Spousish?

....about 47.

 

[karen1972]

What's a Spousish?

Spousish, when you live as a married couple, but refuse to get married. ie no worries about divorce, common law, etc. We make it clear we are not married legally, but when planning for retirement, we plan as one.