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Final push - decided on ER a bit earlier than I thought
Old 11-01-2012, 03:59 PM   #1
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Final push - decided on ER a bit earlier than I thought

Planning on ER next February (2013) before I got this news, now decided to ER in two weeks. This company has been going thru merger (merging entities that belong to a division) and I see my department moving to Houston one after the other. One of my department was moved last year February and the new entity is still in a mess to this point. The other department is also being moved shortly. I guess it is the way they carry out their action plan making me sick. I just cannot allow myself to withness another departmental move. Maybe this is the American way.

Here is my up-to-dated numbers:

Liquid non-tax deferral account $775,000
Retirement - tax deferral account $620,000
Other investment - Stock, etc $165,000

Total around $1.56 MM

House paid for. Looking for withdrawal rate around 3%. Firecal say I will have no problem. By the way, I am 50 and DW is 48.

My planned AA is 60% stock and 40% bonds.

What do you think?
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Old 11-01-2012, 04:15 PM   #2
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If your expenses don't exceed $46,800/year then you are good.

I had the same issue at a previous company, they bought us and told us nothing would change, but after 2 years the local office was closed, all jobs move to Atlanta, and I just told them I was not going to Atlanta and left, they really did not care one way or the other.
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Old 11-01-2012, 04:19 PM   #3
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Thanks DFA for your support. $46,800/year is good. Actually, I have kept tracking my monthly expenses for the past 10 years we only spend $36K a year. The different between $46,800 and $36,000 would be our other spending money, like a bit of travel here and there, or for something that is unexpected.
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Old 11-01-2012, 04:27 PM   #4
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What about health insurance ? That's usually the killer.
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Old 11-01-2012, 04:28 PM   #5
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Originally Posted by nikon_d40 View Post
Firecal say I will have no problem.
What do you think?
I think you've answered your own question...
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Old 11-01-2012, 05:51 PM   #6
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If your withdrawal rate is 3%, I would say you are fine.
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Originally Posted by nikon_d40 View Post
What do you think?
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Old 11-01-2012, 07:02 PM   #7
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Originally Posted by nikon_d40 View Post
Thanks DFA for your support. $46,800/year is good. Actually, I have kept tracking my monthly expenses for the past 10 years we only spend $36K a year. The different between $46,800 and $36,000 would be our other spending money, like a bit of travel here and there, or for something that is unexpected.
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What about health insurance ? That's usually the killer.
+1. Looks good on paper, but health insurance is probably the key variable. I know of people who spend $30K/yr on health insurance alone (premiums and out-of-pocket).
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Old 11-01-2012, 07:08 PM   #8
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We ER'd close to your age (48 & 46 for us).

We chose to use a 4% of portfolio balance on the 1st of the year for our annual budget. It has led to a lot of volatility, but we felt that it was more conservative than the more normal x% of initial portfolio value adjusted each year for inflation. We also put a small chunk of money aside (ie, not used to calculate SWR) as an emergency/slush fund.

Whatever method you choose, be sure to be ready to adapt quickly to changing situations.

All the best.
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Old 11-01-2012, 08:00 PM   #9
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Thank you for all your support. In terms of health care cost, we are going to reside back to Canada, so our health care cost would be around $350 per month, including government health care premium and private insurance to extend our health/dental/vision coverage.

Walkinwood: good advise in terms of the need to adapt quickly to changing situations.

Thanks all.
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Old 11-01-2012, 08:38 PM   #10
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Thank you for all your support. In terms of health care cost, we are going to reside back to Canada,
Did you do anything to hedge your portfolio against changes in USD/CAD exchange rate? When I left canada the dollar was worth a little more than 60cents US and now it's at par.
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Old 11-01-2012, 09:02 PM   #11
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Quote:
Originally Posted by nikon_d40
Planning on ER next February (2013) before I got this news, now decided to ER in two weeks. This company has been going thru merger (merging entities that belong to a division) and I see my department moving to Houston one after the other. One of my department was moved last year February and the new entity is still in a mess to this point. The other department is also being moved shortly. I guess it is the way they carry out their action plan making me sick. I just cannot allow myself to withness another departmental move. Maybe this is the American way.
If they move your job to Texas, that might well constitute constructive dismissal and entitle you to severance when you decline the move ... at least under Canadian law. If the same is true in the jurisdiction where you're working, you might want to consider the option of hanging on and waiting for the axe (or February '13, whichever comes first) rather than quitting.

On the other hand, you might well feel that you already have enough and the extra cash that you would be leaving on the table simply isn't worth the aggravation of a negative work environment.
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Old 11-01-2012, 09:16 PM   #12
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Oh, forgot to mention. I am a duel Canadian and US citizen. I am have been working in the US (Oklahoma City) for the past 9 years. The company has not asked me to move to Houston, but I am seeing my department here in OKC moving one by one..

I terms of US/CAD hedge. My plan is to have most of my stock in CAD (Canadian stocks), bonds like CHB that would hedge my US$ risk. Frankly speaking, I see USD will continue its decline at least in the short/near term due to QE forever. With its resource base, I believe CAD will continue strengthen, maybe to 1.05 (currently around 1). But I don't see CAD will go too much higher due to the fact that its economy is so tight up with the US's and strong CAD will negatively impact its competitiveness.

When I left Canada, USD = 1.3 CAD. I am effectively getting a pay cut every year in CAD term...
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Old 11-01-2012, 09:21 PM   #13
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I am a duel Canadian and US citizen.
Yep, that sometimes describes our relationship with each other...
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