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Am I crazy or does this make sense?
Old 11-28-2005, 08:45 AM   #1
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Am I crazy or does this make sense?

Been teaching for 27+ years and will be 50 this spring the state of NJ says they will pay me 31,000+ a year with medical bennies for both of us for life payed by the pension system, and a cost of living adjustment 24 months then every 12 months, if I leave this june of 06.

I can sell a house for close to 550,000 owe 200,000, will be moving to a new state and buy a home cash, taxes 1800 a year and a part time job making an additional 15,000 a year.

We have no debt both kids married and professionals.

My early retirement at 50 takes 14% away from my pension, but the pension as stated earlier is 31,000 even with the penalty.

If I die, the wife still gets 24,000 a year and a life insurance payment of 400,000. Plus the cost of living increase.

She will be 53 so in 9 years she could then collect her social security. She is a part time RN who is sick of nursing and will get a 300 dollar a month pension when she turns 55.
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Re: Am I crazy or does this make sense?
Old 11-28-2005, 09:14 AM   #2
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Re: Am I crazy or does this make sense?

Why do think that you are crazy? You got it made in the shade, dude
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Re: Am I crazy or does this make sense?
Old 11-28-2005, 09:22 AM   #3
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Re: Am I crazy or does this make sense?

Welcome to the board, NG.

The two biggest ER challenges are coping with inflation and having affordable medical coverage. It looks like your pension system offers the best of both as long as NJ doesn't go bankrupt. If you can live on $31K/year then you're in great shape.

Besides the house you don't mention other savings or assets. So far you'll have to live the rest of your lives on the pension income, SS in 12 or so years, and whatever's left over after your relocation. If your expenses are below that total then it's no problem. If your expenses are above that total but you have other savings, then you should be fine as long as you can keep their spending below 4%/year to cover your remaining expenses. If you're willing to work and able to find a job then the $15K/year gives you an even bigger margin of safety.

So, no, you're not crazy. You're reaping the benefits of 27 years on the front lines in a war zone in the classroom. Congratulations!

Seven months to go. Now you can start developing your own answer to that other ER eternal question: "Waddya DO all day?!?"
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Re: Am I crazy or does this make sense?
Old 11-28-2005, 09:34 AM   #4
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Re: Am I crazy or does this make sense?

Hey Newguy!

Sounds like you're in great shape - congratulations! You deserve every penny after 27 years of teaching.
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Re: Am I crazy or does this make sense?
Old 11-28-2005, 10:30 AM   #5
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by Nords
Welcome to the board, NG.

The two biggest ER challenges are coping with inflation and having affordable medical coverage.* It looks like your pension system offers the best of both as long as NJ doesn't go bankrupt.* If you can live on $31K/year then you're in great shape.*

Besides the house you don't mention other savings or assets.* So far you'll have to live the rest of your lives on the pension income, SS in 12 or so years, and whatever's left over after your relocation.* If your expenses are below that total then it's no problem.* If your expenses are above that total but you have other savings, then you should be fine as long as you can keep their spending below 4%/year to cover your remaining expenses.* If you're willing to work and able to find a job then the $15K/year gives you an even bigger margin of safety.

So, no, you're not crazy.* You're reaping the benefits of 27 years on the front lines in a war zone in the classroom.* Congratulations!

Seven months to go.* Now you can start developing your own answer to that other ER eternal question:* "Waddya DO all day?!?"
I will be working in a position that will give me something to do.

Coaching a track team and sub teaching in the carolinas. heck I might be able to make over 20,000 a year easy.

I am only 50 and seriously I will do something forever, just teaching in new jersey and working just to pay a mortgage car payments and gasoline high insurance rates makes little sense.
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Re: Am I crazy or does this make sense?
Old 11-28-2005, 09:05 PM   #6
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Re: Am I crazy or does this make sense?

I think that rather than going with a gut feeling of you'll be fine -- its important to develop a very detailed budget of your post retirement expenses. I have done this in trying to determine when I can relax and enjoy the good life. I've created three budgets, one is a bare-bones budget, the second a moderate ( more realistic) and an extravagant one. I am not a believer in that you need a set percent of your pre-retirement income -- it all depends on the ability of living within your means. I do agree that a $31K pension with a safety net of additional income from a part tiime job, this would seem doable as long as your expenses are managed properly.

I'm 51 and in a similar financial bracket, if I had access to affordable health coverage it would make it a lot easier to say adios to the corporate jungle. My wife (who is a RN) is undergoing treatment for metastatic breast cancer -- right now it's too risky without medical coverage.

I'm curious, where in NC would you be relocating? We have a 2nd home ion Charlotte Harbor in Florida and are considering NC/SC as a location for our other home.

Thanks!!!
dwk
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Re: Am I crazy or does this make sense?
Old 11-29-2005, 03:43 AM   #7
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by newguy88
I am only 50 and seriously I will do something forever, just teaching in new jersey and working just to pay a mortgage car payments and gasoline high insurance rates makes little sense.
NewGuy,

NJ sure is a financially and emotionally challenging state to live in (I grew up there and have to venture back frequently). NC/SC should be a great change. I think your plan works fine, especially with your parttime work goals, and the fact that NJ real estate seems to be peaking. I'd say you can always go back to visit frequently but I hate I95 so much that I wouldn't recommend it.
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Re: Am I crazy or does this make sense?
Old 11-29-2005, 03:49 AM   #8
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by dwk
I think that rather than going with a gut feeling of you'll be fine -- its important to develop a very detailed budget of your post retirement expenses. I have done this in trying to determine when I can relax and enjoy the good life. I've created three budgets, one is a bare-bones budget, the second a moderate ( more realistic) and an extravagant one. I am not a believer in that you need a set percent of your pre-retirement income -- it all depends on the ability of living within your means. I do agree that a $31K pension with a safety net of additional income from a part tiime job, this would seem doable as long as your expenses are managed properly.

I'm 51 and in a similar financial bracket, if I had access to affordable health coverage it would make it a lot easier to say adios to the corporate jungle. My wife (who is a RN) is undergoing treatment for metastatic breast cancer -- right now it's too risky without medical coverage.

I'm curious, where in NC would you be relocating? We have a 2nd home ion Charlotte Harbor in Florida and are considering NC/SC as a location for our other home.

Thanks!!!
dwk
Dwk

The wake county johnson cty area near raleigh.

College town, wife has family there.

I am gonna be 50 wife is also a RN with med issues herself we are not getting any younger and the fact her parents are also getting up in age moving now makes sense.

I kinda look at this situation as a life change, both of my kids are married and professionals, I have no reason to stay in new jersey.

My state pension gives me and the wife health insurance so going in june of 06 is an easy idea.

Now if my house sells for 550,000 which these homes are selling for now, I can pocket close to 300,000 even after the realtor commission.

In addition I will also work someplace, heck I can sell washing machines at sears, books at borders and sub teach!
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Re: Am I crazy or does this make sense?
Old 11-29-2005, 06:29 PM   #9
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Re: Am I crazy or does this make sense?

Hey Newbie, Im quite similar to you.*
Im across the river in Westchester, work for the State for 25 plus years, sick of it and already bought a home out in Vegas

Put my NY house up for sale, expect to net about 400 after all is said and done.* Will get pension next year, Im 53 now, about 30k a year with med benies if I leave shortly.

Upon receipt of sale monies in NY, will pay off house in Vegas.* Then be free and clear. Expect total nest egg of cash and funds to be about 550K after payoff of house

I was an ok saver, despite raising kids that freakin tried to bankrupt me.

This with 30K pension along with health bennies should put me and wife in decent position.* I figure that on 550K with* safe withdrawal rate of about 3.5 to 4 percent should generate another 20K a year or so.* This SWR hopefully will keep the nest egg intact, in case I reach age 85 and decide to blow it all at the casino, and have a good final ride at the "Chicken Ranch".

So this will give me about 50K a year to live on, with paid up house, inexpensive health insurance and when SS kicks in , in about 9 years or so for both self and wife, that should take care of inflation effect.

You have to essentially net everything out and see what you have when all is paid up.

I believe having the paid up house in retirement is very important, unless you have a sufficient cash flow to cover a mortgage.* I could wait another 5 years or so and realize another 15K in pension, but after age 50 in a job that is boring as hell and burning you out, its better to preserve what is left of your health, and go for it if you feel you have enough. I do believe I have enough, have no expensive taste, and* can live on 40-50 K each year easily.

Just take a look at most people over a certain age in the street, some are ok, some are infirm. Its important to realize we only go around once, so we have to find out what we really want in life and go for it. How many good years do we old farts have left?

I always wanted to try a bunch of jobs to actually find out what I like, and this is my chance to have my smorgesboard of jobs and basically have the freedom pick my own hours, be my own person, and leave a job when I feel like leaving it.* I'll start as a "towel boy" at the "Ranch".

What we are speaking about here is freedom, something most working stiffs know nothing about.* Some people dont even realize that freedom is what they really seek, freedom from constraint, from the humiliation of working and sucking up to some stiff with the brains of a turkey.

So that is my story, its about realizing when you have enough, when you need to go, and that time like money is limited.

Make the most of your time!

Jug
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Re: Am I crazy or does this make sense?
Old 11-29-2005, 07:53 PM   #10
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Re: Am I crazy or does this make sense?

Here, here!!
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Re: Am I crazy or does this make sense?
Old 12-03-2005, 04:21 PM   #11
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Re: Am I crazy or does this make sense?

I have been thinking after this awful week at work, travel time was terrible getting to work 3 out of 5 days with my 55 mile trip EACH way, two+ hour trips on rt 78 in new jersey.

IT sucks!

I am really primed for this move sooner than later and with the New Jersey legislature talking about raising the retirement age and adding conditions I am gonna take that 31,000 dollar early retirement in june of 06 with FULL medical bennies for both my wife and myself, I have 300,000 of cheap term life insuranjce, the house will sell and bring me a profit of near 300,000, we by the house for cash in North Carolina the wife is then near her mom and sister I find work ANYTHING that I want to do!!

NOT RETIRE BUT IT IS TIME TO REWIRE!!!

I am jumping sooner than later!!

I turn 50 in April time for a change!
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Re: Am I crazy or does this make sense?
Old 12-03-2005, 05:54 PM   #12
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by newguy88
I have been thinking after this awful week at work, travel time was terrible getting to work 3 out of 5 days with my 55 mile trip EACH way, two+ hour trips on rt 78 in new jersey.

IT sucks!

I am really primed for this move sooner than later and with the New Jersey legislature talking about raising the retirement age and adding conditions I am gonna take that 31,000 dollar early retirement in june of 06 with FULL medical bennies for both my wife and myself, I have 300,000 of cheap term life insuranjce, the house will sell and bring me a profit of near 300,000, we by the house for cash in North Carolina the wife is then near her mom and sister I find work ANYTHING that I want to do!!

NOT RETIRE BUT IT IS TIME TO REWIRE!!!

I am jumping sooner than later!!

I turn 50 in April time for a change!
Sounds like a plan.

Ha
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Re: Am I crazy or does this make sense?
Old 12-04-2005, 02:39 PM   #13
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Re: Am I crazy or does this make sense?

Welcome Newguy88

Exciting plan. Run the numbers every which way you can and then jump and enjoy your life.
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Re: Am I crazy or does this make sense?
Old 12-04-2005, 02:52 PM   #14
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Re: Am I crazy or does this make sense?

KB

I have been crunching the numbers everyday!

I feel like an idiot!

I try not to talk to anyone about my ideas except my wife, When the house sells BINGO it will be time to make the move!
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Re: Am I crazy or does this make sense?
Old 12-04-2005, 03:16 PM   #15
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by newguy88
KB

I have been crunching the numbers everyday!

I feel like an idiot!

I try not to talk to anyone about my ideas except my wife, When the house sells BINGO it will be time to make the move!
Don't talk to your wife (about this stuff). Big mistake.

JG
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Re: Am I crazy or does this make sense?
Old 12-05-2005, 07:45 AM   #16
 
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Re: Am I crazy or does this make sense?

You can overanalyse yourself to death, just do what Sam Houston(?Not too familiar with US History, or even Texas?) did, draw a line in the sand.

At a point in time, you say, that is my line in the sand, regardless of anything, that is when I step over the line.
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Re: Am I crazy or does this make sense?
Old 12-06-2005, 11:20 AM   #17
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by Howard
You can overanalyse yourself to death, just do what Sam Houston(?Not too familiar with US History, or even Texas?) did, draw a line in the sand.
Lt. Col. Travis drew the line in the sand. Sam Houston, though a hero of the Texas Republic, wasn't at the Alamo.
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Re: Am I crazy or does this make sense?
Old 12-06-2005, 11:44 AM   #18
 
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Re: Am I crazy or does this make sense?

Thank You, like I said, not too familiar with US/Texas History.

Crockett was the guy that used to wear dead animals on his head??

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Re: Am I crazy or does this make sense?
Old 12-06-2005, 02:42 PM   #19
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by newguy88
KB

I have been crunching the numbers everyday!

I feel like an idiot!

I try not to talk to anyone about my ideas except my wife, When the house sells BINGO it will be time to make the move!
That's why many/most of us are regulars on this board: you don't get looked at strangely or gossiped about for being frank about your plans here.
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Re: Am I crazy or does this make sense?
Old 12-07-2005, 05:59 AM   #20
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Re: Am I crazy or does this make sense?

Quote:
Originally Posted by brewer12345
That's why many/most of us are regulars on this board: you don't get looked at strangely or gossiped about for being frank about your plans here.
Thanks for the response.

As I have been discussing here I thought last night staying here as a teacher for say 5 more years just DELAYS and increases my chances of getting sick!

The stress of having to make a large amount of money just to be able to pay the mortgage car payments, taxes and travel costs in gasoline monthly make little sense anymore. My kids are grown and married, I will only be 50 in april, had the medical scare a couple of years ago with chest pain, A VIRAL infection around my heart, but a Cardiac Cath at 2am is NOT FUN!

Anyway taking the 300,000 profit on the house will make it possible to have a home owned free and clear in a low tax area and a pension with medical bennies that pays over 30,000 a year with no additional debt and a FUN part time job well You guys get the picture.

The best thing about this so far is my wife is ALL FOR THE IDEA!!

She has talked to a realtor and the house goes on the market sometime in January!
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