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53/ 3mill and need a push-- first post
Old 01-03-2009, 05:33 AM   #1
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53/ 3mill and need a push-- first post

Hi all. I am 52 well, 53 in a few weeks. Married no kids at home. Wife quit last year. I run a insurance agency that I sold 2 years ago. Been nervous about making the jump to ER. Have 3.2 mill net worth. zero debt/ mort. Been hanging around this forum for a while. The money doesn't worry me so much as the shift in lifestyle. The job is 52k and a ton of stress and plenty of 50 hour + workweeks. Seems to be not really worth the effort considering the returns. Anyone have advice considering my situation??
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Old 01-03-2009, 07:26 AM   #2
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If you still have 3.2 after he decline you are in great shape. You already sold your business, now its time to make a life style change. Quit work and try things out. You can always try going back to work if you want but you can afford to be picky. Why do something that stresses you out for little reward?
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Old 01-03-2009, 08:39 AM   #3
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read the book:
How to retire happy, wild and free
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Old 01-03-2009, 09:51 AM   #4
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Welcome to the board!

Good idea of Dex's to read that book. Also go to the library or book store and see what other books there are about the nonfinancial concerns about retirement. What does your wife think about you retiring early--she also had a shift in lifestyle when she left the workforce, no?

Seems a shame to spend anytime now in a stressful job. You could go to a low-stress job (since it doesn't seem to matter how much it pays at this point) or perhaps go back to school in something you enjoy and wished you had studied before.
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Old 01-03-2009, 10:23 AM   #6
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Gee thanks Al, I just turned 54.


Tozo, unless you are a big spender, you have it made.
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Old 01-03-2009, 10:40 AM   #7
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Gee thanks Al, I just turned 54.
Al's 56 so he's feeling that he's home free...
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Old 01-03-2009, 10:46 AM   #8
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Al's 56 so he's feeling that he's home free...
I thought "home free" was the PC way of saying "homeless". Guess Al took a really big hit from the market crash, eh?
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Old 01-03-2009, 10:55 AM   #9
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Man, am I glad I'm older than 54. Sounds like a dangerous age.
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Old 01-03-2009, 11:31 AM   #10
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Hi tozo. Don't know how much of that net worth is in real estate or how much is spendable. You can figure it all out I'd assume.

Think of it this way, ER stress is (how am I going to live on 3mil) is far less lethal and a lot more fun than work stress.
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Old 01-03-2009, 12:06 PM   #11
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Tozo, I envy your financial position. 3.2m in a 5% CD equates to $150k /yr. Depending on where you live (cost of living) and your lifestyle, you are really in good shape financially. I retired when I was just shy of 52, That's too young to just sit around so you must have things to keep you active. I messed around in real estate for a number of years and then got a Community Association Managers license just to have something to do and keep my brain active. I was burned out at 52 and never regretted going ER. I survived it financially on about 1/3 of what you could be getting. Important thing is no debt. That was 20 years ago and have never looked back. Have a great time. Enjoy yourself, its later than you think. Those twenty years just flew by.
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Old 01-03-2009, 12:25 PM   #12
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Pull the plug Bubba. A no brainer.
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Old 01-03-2009, 01:16 PM   #13
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Welcome Tozo,

My initial advice is to take the jump to RE.

But maybe there are a few hurdles. Are you bound contractually to continue working for the agency you sold? I know of some business buyers that make the purchase price and payments subject to the former owner running the place for a few years making specified profits. Also, how liquid is the 3.2 mil? Do you have real estate or other business ownership value that should not be liquidated at this time?

If you are highly liquid with no contractual limitations to pulling the plug at the agency, I would do so. If not, I would iron out these issues and then pull the plug.
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Old 01-03-2009, 01:26 PM   #14
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I second what Ronstar said. Obviously there may be obligations and constraints that we don't know. I am a little younger than you, single, lower NW and in your situation, based on the information provided, would feel very comfortable choosing ER. But only you can make that decision.
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Old 01-03-2009, 01:30 PM   #15
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If it makes you happy keep working Maybe you are the type of person who needs that stress to keep them chugging along.
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Old 01-03-2009, 01:32 PM   #16
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Tozo, you sound like the perfect candidate for Bob Clyatt's book about early semi-retirement, Work Less, Live More.
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Old 01-03-2009, 02:52 PM   #17
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I'd at least start slacking off a little - no way I'd work that hard with the value of your portfolio and the business already sold. Take a walk on the wild side and sleep in on Monday morning and just see what happens. You might really like it.
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Old 01-03-2009, 04:42 PM   #18
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Welcome ! I also was a little nervous about retirement . Would I be bored ? Would I be able to manage my portfolio ? Would I have social contacts ? Well I did retire and the answer is yes . It all worked out better than expected .
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Old 01-03-2009, 09:45 PM   #19
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Tozo,

You are drawing your own conclusion: In terms of your finances, $52k per year means nothing compared to your net worth. If you loved your job and couldn't part with it for the world, great! But if that were true, you wouldn't have made this post.

It almost seems like you are working out of a sense of responsibility, perhaps to others? Keeping things going for others can be important. But the world will keep turning, and maybe they need a "push," too.

Best of luck.



Quote:
Originally Posted by tozo View Post
Hi all. I am 52 well, 53 in a few weeks. Married no kids at home. Wife quit last year. I run a insurance agency that I sold 2 years ago. Been nervous about making the jump to ER. Have 3.2 mill net worth. zero debt/ mort. Been hanging around this forum for a while. The money doesn't worry me so much as the shift in lifestyle. The job is 52k and a ton of stress and plenty of 50 hour + workweeks. Seems to be not really worth the effort considering the returns. Anyone have advice considering my situation??
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Old 01-03-2009, 09:51 PM   #20
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Welcome Tozo. All the above are good advice. If you have 3.2m in investments that return income and/or grow in value, not including your living quarters, you are in great shape. I personally am targeting a SWR of about 3-3.3%, retiring by 50, but most would say that percentage is conservative, offering 4% as a good target. So, are your expenses (incl investment expenses and tributes to your uncle in Washington) less than 3.3% (or 4%, depending on your way of thinking) of your invested, cash generating assets? If so, you are ready financially, especially if the 3.2m is after the decline in stock values (remember to account for health insurance). Are you emotionally ready for the change? What will you do with your time? ...etc, etc are things only you can decide.

Another poster has mentioned contractual obligations resulting from the sale of your business. I will bring up a related and similar, but not the same, topic. If you have an earn-out (a payment contingent on the ongoing success of the business), you may want to stay a little longer and make sure it continues to work. The reason is that we don't know where the market (your investments) will be in the next months. I often give career related lectures, and the advice I am giving right now is that if you have a job, don't quit. Finding a new one may be next to impossible in the coming months. If you know you are ready, I'm sure you will be fine, but if there is any doubt in your mind, wait to resign until all of that doubt departs.

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