Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Think maritally, act individually
Old 04-23-2019, 08:26 AM   #21
Thinks s/he gets paid by the post
Mdlerth's Avatar
 
Join Date: Oct 2016
Location: The Shire
Posts: 1,129
Think maritally, act individually

Are you genuinely content with 73% success rate? I've been trudging through OMY because I wasn't comfortable with my plan being at only 150% (I am still a little uncertain whether discretionary expenses will jump in concert with more free time).

Also, suppose you were to catch the early bus to heaven? Would your widow still be okay without the dough from your side gig?
__________________

__________________
Paying it forward is the best investment.
Mdlerth is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-23-2019, 08:42 AM   #22
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 2,753
I wouldn't be comfortable retiring with 73% either.
__________________

tmm99 is online now   Reply With Quote
Old 04-23-2019, 08:56 AM   #23
Full time employment: Posting here.
 
Join Date: Jun 2016
Posts: 718
* House value is not part of the retirement calculation. You can't spend the $ without replacing a roof over your heads.
* Your 401K MIGHT go to 600K in 2 years, but then again it might not.
* No where in the math presented is there an allowance for inflation.
* IF the ACA stays in place at your income levels you should qualify for health insurance premium subsidies.
* 73% success rate = a 1 in 4 failure rate. You want to bet your wife's well being at those odds?



If 460K is all you got (no other savings) and a wife that is going to need income for 40 years, it sounds like a very lean retirement to me. As others have stated, with no wiggle room for error, you need to KNOW your actual spending.
Spock is offline   Reply With Quote
Old 04-23-2019, 09:15 AM   #24
Thinks s/he gets paid by the post
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 3,745
There is no way you could make a informed decision without knowing your expenses. Plus what do you intend to do with your free time? Do you want to travel, eat out, etc.
Teacher Terry is offline   Reply With Quote
Old 04-23-2019, 10:55 AM   #25
Recycles dryer sheets
 
Join Date: Jan 2018
Posts: 183
You've made some very bold assumptions that are flat out wrong or inconsistent with history at best.

You might be able to eek it out, but your wife will be on her own.
DFDubb is offline   Reply With Quote
Old 04-23-2019, 11:08 AM   #26
Full time employment: Posting here.
 
Join Date: Apr 2015
Posts: 818
Quote:
Originally Posted by bbbamI View Post
This link may help...

Some Important Questions to Answer Before Asking - Can I Retire?

Welcome to the forum.
Answering these questions was what really helped me decide if we were ready to retire. Plus running firecalc with multiple scenarios.

It sounds a too close for me, but you are the one who knows your true spending budget. Almost 2 years severance pay does give you some time to drill down on your plans.

Welcome!
__________________
Give me a fish, I will eat for a day. Teach me to fish, I will eat for a lifetime.
pacergal is offline   Reply With Quote
Old 04-23-2019, 11:12 AM   #27
Dryer sheet aficionado
 
Join Date: Apr 2019
Location: Atlanta
Posts: 26
Thanks so much for the responses. There's a lot of food for thought. I agree with heeding the warnings of the 73%. As was mentioned, I do have some time on my side. I don't have to make any decisions in the next - even few months. I am in the mode of preparing though. I don't have much in savings because I've been hammering my mortgage; there's only 16k.... but at this point I'm able to sock away up to a couple of grand a month with such low outgo.
unixfreak is offline   Reply With Quote
Old 04-23-2019, 11:30 AM   #28
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 4,226
Quote:
Originally Posted by unixfreak View Post
Thanks so much for the responses. There's a lot of food for thought. I agree with heeding the warnings of the 73%. As was mentioned, I do have some time on my side. I don't have to make any decisions in the next - even few months. I am in the mode of preparing though. I don't have much in savings because I've been hammering my mortgage; there's only 16k.... but at this point I'm able to sock away up to a couple of grand a month with such low outgo.
Stop with house paydown, if you need to go on ACA you'll need every penny of that prepay money to live on. Hammering your mortgage is the house paid off or not.

So you work a regular job and a side job and does your DW bring in money? You have 16k non-retirement? Your not ready, you need to spend more time educating yourself about spending in retirement. What's your low outgo? Why don't you try laying out your plan a little more clearly. Start with the thing almost everyone has asked about, How much is your annual spend?
ivinsfan is offline   Reply With Quote
Old 04-23-2019, 12:13 PM   #29
Dryer sheet aficionado
 
Join Date: Apr 2019
Location: Atlanta
Posts: 26
Quote:
Originally Posted by ivinsfan View Post
Stop with house paydown, if you need to go on ACA you'll need every penny of that prepay money to live on. Hammering your mortgage is the house paid off or not.

So you work a regular job and a side job and does your DW bring in money? You have 16k non-retirement? Your not ready, you need to spend more time educating yourself about spending in retirement. What's your low outgo? Why don't you try laying out your plan a little more clearly. Start with the thing almost everyone has asked about, How much is your annual spend?
No. My wife doesn't bring any money in at this time.

That's right. I have 16k in liquid assets.

That's what I'm doing here is spending time. Maybe I should have started educated myself earlier. I only just in the past few weeks found that I'm a candidate for the company's voluntary separation program. I am spending even more time on reading and doing the very thing you suggest: educating myself.

Why stop with the house paydown? It's about to roll into a 0% apr for a year credit card. I claim the standard deduction on my taxes so now I'm interest free on my home which will pay off within a year.

I absolutely plan to tap into more freelance as i have plenty of connections in my industry of work.

My annual spend is 42k.
unixfreak is offline   Reply With Quote
Do I need to go back to work?
Old 04-23-2019, 12:31 PM   #30
Recycles dryer sheets
 
Join Date: Jun 2017
Location: Rural community
Posts: 111
Do I need to go back to work?

You really need a detail account of your expenses for an extended period of time. And plan for some future large unexpected items - example, new roof. Canít really say if youíll be okay. Not a luxurious retirement but you could end up struggling financially.

Who really knows where healthcare is headed in the next 5-10 years and whatíll cost - it could be and is for some a very large monthly expense.

Does your wife have a full time job with health insurance? If not could she consider finding one?
nhcycling is offline   Reply With Quote
Old 04-23-2019, 12:58 PM   #31
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 4,226
Quote:
Originally Posted by unixfreak View Post
No. My wife doesn't bring any money in at this time.

That's right. I have 16k in liquid assets.

That's what I'm doing here is spending time. Maybe I should have started educated myself earlier. I only just in the past few weeks found that I'm a candidate for the company's voluntary separation program. I am spending even more time on reading and doing the very thing you suggest: educating myself.

Why stop with the house paydown? It's about to roll into a 0% apr for a year credit card. I claim the standard deduction on my taxes so now I'm interest free on my home which will pay off within a year.

I absolutely plan to tap into more freelance as i have plenty of connections in my industry of work.

My annual spend is 42k.
Your original post said your house was paid off and you had no debt. What is rolling into a 0 apr on a CC..I can't follow what you saying.

If you want to take advantage of a cheap ACA plan you will need after tax money to supplement your part time earnings. If you start pulling money out of your 401, it's taxable and might put you over the income limits.
ivinsfan is offline   Reply With Quote
Old 04-23-2019, 01:01 PM   #32
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 45,243
Quote:
Originally Posted by unixfreak View Post

FireCalc said that I have a 73% chance of success. 32 of the 119 cycles failed.
This tells me the answer to your thread question is "Yes".
__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 04-23-2019, 01:03 PM   #33
Dryer sheet aficionado
 
Join Date: Apr 2019
Location: Atlanta
Posts: 26
Quote:
Originally Posted by ivinsfan View Post
Your original post said your house was paid off and you had no debt. What is rolling into a 0 apr on a CC..I can't follow what you saying.

If you want to take advantage of a cheap ACA plan you will need after tax money to supplement your part time earnings. If you start pulling money out of your 401, it's taxable and might put you over the income limits.
Sorry ... I am getting a one time payoff for the unused PTO upon departure from work. That will pay it off.
unixfreak is offline   Reply With Quote
Old 04-23-2019, 01:17 PM   #34
Thinks s/he gets paid by the post
euro's Avatar
 
Join Date: Oct 2015
Posts: 1,206
Quote:
Originally Posted by unixfreak View Post
Sorry ... I am getting a one time payoff for the unused PTO upon departure from work. That will pay it off.
OK, that makes sense then, so your house will be paid off when the severance period starts.
One thing to consider about that: see if you can get a HELOC on the house before your job ends - this is a line of credit that you don't have to use if you don't want to, but is basically readily available cash in case of an unexpected need. It'll be very easy to qualify for now, but very hard, once you don't have a W2.
euro is offline   Reply With Quote
Old 04-23-2019, 01:27 PM   #35
Dryer sheet aficionado
 
Join Date: Apr 2019
Location: Atlanta
Posts: 26
Quote:
Originally Posted by euro View Post
OK, that makes sense then, so your house will be paid off when the severance period starts.
One thing to consider about that: see if you can get a HELOC on the house before your job ends - this is a line of credit that you don't have to use if you don't want to, but is basically readily available cash in case of an unexpected need. It'll be very easy to qualify for now, but very hard, once you don't have a W2.
Actually I do have a HELOC which is part of the 12k balance on the mortgage.
unixfreak is offline   Reply With Quote
Old 04-23-2019, 01:35 PM   #36
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 4,226
Quote:
Originally Posted by unixfreak View Post
Actually I do have a HELOC which is part of the 12k balance on the mortgage.
OK you have a HELOC on your home so at one point you borrowed against your home equity. You are using a part of your severance package to pay this off.

Your numbers do not add up for you to stop working however, if you can get a job instead of using up all your severance weeks for living expenses, in a few years you will be in a better position.
ivinsfan is offline   Reply With Quote
Old 04-23-2019, 01:46 PM   #37
Thinks s/he gets paid by the post
HNL Bill's Avatar
 
Join Date: Dec 2017
Posts: 1,282
Quote:
Originally Posted by ivinsfan View Post
Your numbers do not add for you to stop working however, if you can get a job instead of using up all your severance weeks for living expenses, in a few years you will be in a better position.
Agree. There is no contingency for anything unexpeceted, including long term care, or emergency house repairs, etc. I would work a few more years.
__________________
Balance in everything.
HNL Bill is offline   Reply With Quote
Old 04-23-2019, 04:30 PM   #38
Recycles dryer sheets
 
Join Date: Aug 2017
Posts: 201
Is that your after tax spend rate? How much did you budget for health insurance?
badatmath is offline   Reply With Quote
Old 04-23-2019, 07:15 PM   #39
Full time employment: Posting here.
 
Join Date: Jul 2017
Location: Long Island
Posts: 971
Yes. Plan looks shaky for you and worse for you wife.
__________________
Use it up, wear it out, make it do or do without.
MarieIG is offline   Reply With Quote
Old 04-23-2019, 07:47 PM   #40
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,806
Quote:
Originally Posted by REWahoo View Post
This tells me the answer to your thread question is "Yes".
+1
No retirement calculator is perfect, but would not retire with a 73% success rate.
__________________

__________________
TGIM
Dtail is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Trip Cancellation/Interruption Insurance for multiple back-to-back tours overseas audreyh1 Travel Information 35 02-08-2019 07:24 PM
WHOAA!!! Everyone back to work! mangodance FIRE and Money 36 07-11-2005 01:20 PM
I went back to work yesterday. Nords Life after FIRE 5 06-22-2005 11:51 AM
I have decided to go back to work........... Cut-Throat Other topics 9 04-03-2005 12:54 AM

» Quick Links

 
All times are GMT -6. The time now is 02:32 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.