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Firecalc says I could but I wont
Old 01-18-2013, 11:32 AM   #1
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Firecalc says I could but I wont

I have been reading this forum for about a year now and I love it. I have started posting so I thought it was only fair to tell a little about myself.
I am married DW and I are both mid forties with 2 kids around 10 yo. According to firecalc and other tools I could probably retire now or in the very near future but I won't. We all know that retiring early opens you up to several risks portfolio failure, long term care, major healthcare event and so on. While I am prepared to accept these risks I cannot in good conscience accept them on behalf of my children so I will wait until they are college age or close to it before I take the leap. I think early retirement in the mid fifties sounds good enough for me.

Thanks and if I post something that is wrong or you disagree with remember its not my fault.

NMF
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Old 01-18-2013, 11:38 AM   #2
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Welcome! Wise of you to recognize your own risk tolerance and stay the course to maintain your comfort level and that of your family.
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Old 01-18-2013, 11:44 AM   #3
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Welcome ! I can "almost" retire now and I keep telling myself I'm going to do it but then I scare myself out of it. It must feel good to know exactly what you are going to do.
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Old 01-18-2013, 01:24 PM   #4
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Congrats on reaching the threshold of FIRECALC "success" - that's an accomplishment to be proud of.

FI is one goal, one everyone should pursue IMO. ER is another. They are not necessarily corresponding goals...
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Old 01-18-2013, 04:33 PM   #5
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Agree 100% w/Midpack. FI takes much pressure off your life, inc worry about financial security of your family. But kids pose other non-financial issues, too. Unless you live in a neighborhood of idle rich, ER can affect how kids are seen by their peers. Growing up I remember a kid who was teased 'cause his Dad didn't have a job. Fellow was actually an older father who started young, worked hard, & retired from municipal job after 35yrs of honorable service. But 10 yr olds just don't understand sometimes.

NMF- Seems like you basically got this figgured out
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Old 01-18-2013, 06:30 PM   #6
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Welcome to the club :-) like you I am financially independent but haven't managed to make the jump yet.

Quote:
Originally Posted by NotMyFault
According to firecalc and other tools I could probably retire now or in the very near future but I won't. We all know that retiring early opens you up to several risks portfolio failure, long term care, major healthcare event and so on.
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Old 01-18-2013, 07:24 PM   #7
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Your call. You only get so many retirement years. It seems like it is easier to buy them on the front end than the back end.
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Old 01-18-2013, 07:35 PM   #8
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Your call. You only get so many retirement years. It seems like it is easier to buy them on the front end than the back end.
I like to take a more zen like approach. I try to find maximum satisfaction in what I am doing instead of worrying about what I could be doing. If you look outside and it is raining you may think what a rotten day it's raining. Remember the day is just a day and the rain is only rain. You supply the rotten.

NMF
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Old 01-18-2013, 08:02 PM   #9
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.......You supply the rotten.

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No, my old boss provided the rotten.
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Old 01-18-2013, 08:03 PM   #10
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Quote:
Originally Posted by NotMyFault View Post
I have been reading this forum for about a year now and I love it. I have started posting so I thought it was only fair to tell a little about myself.
I am married DW and I are both mid forties with 2 kids around 10 yo. According to firecalc and other tools I could probably retire now or in the very near future but I won't. We all know that retiring early opens you up to several risks portfolio failure, long term care, major healthcare event and so on. While I am prepared to accept these risks I cannot in good conscience accept them on behalf of my children so I will wait until they are college age or close to it before I take the leap. I think early retirement in the mid fifties sounds good enough for me.

Thanks and if I post something that is wrong or you disagree with remember its not my fault.


NMF
I understand the part about possible portfolio failure, but how does long term care or major healthcare events figure in? If you're working and have a major health issue, you're done working anyway, aren't you? And I would assume that if you were to retire, you would have taken steps to ensure that you have adequate health care coverage, right? Maybe I'm missing something, but if your portfolio's strong now, and you have the healthcare bases covered in retirement, then what are you worried about?

Of course, if you couldn't get or afford health insurance in retirement at your current age, then I could understand. Long-term healthcare is purchasable as well, although I haven't gone that route...yet.
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Old 01-18-2013, 08:17 PM   #11
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I understand where you are coming from. I found there to be some tension between the desire to make the FI part bulletproof and the wish to get out of the rat race and spend more time with my children (among other things). The former prevailed and has kept me in the workforce for a bit longer than is strictly necessary, but no longer than that. I'm actually hoping that lower stress and more time to do things that interest me. (physically and mentally) will keep me healthier for longer (pf course, I have no idea whether things will work out that way).
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Old 01-18-2013, 08:22 PM   #12
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I like to take a more zen like approach. I try to find maximum satisfaction in what I am doing instead of worrying about what I could be doing. If you look outside and it is raining you may think what a rotten day it's raining. Remember the day is just a day and the rain is only rain. You supply the rotten.

NMF
My trouble is I only employ this philosophy during triathlon training days. If I'm planning to golf that day my 'zen' attitude turns as ugly as the weather
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Old 01-18-2013, 08:30 PM   #13
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My youngest has two years at home before she leaves the nest. Thinking about ER now and then if the plan goes south, back to work after she is gone. I know it's unlikely to get a good paying job like I have now. That is what makes the decision hard in my world.
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Old 01-18-2013, 08:52 PM   #14
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NMF - welcome to the board.

I'm in the same boat, age 43, FIRECalc and other tools gives us the thumbs up, but with young kids, youngest being 5, makes it a little more difficult. My rental income exceeds my barebones budget and approaching current budget as I self manage.

I decided to take some of the edge off, but changing into a contract role and increased spending from prior year for more family activities/vacations. That's my trade off for now.
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Old 01-18-2013, 09:57 PM   #15
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Quote:
Originally Posted by martyb View Post

I understand the part about possible portfolio failure, but how does long term care or major healthcare events figure in? If you're working and have a major health issue, you're done working anyway, aren't you? And I would assume that if you were to retire, you would have taken steps to ensure that you have adequate health care coverage, right? Maybe I'm missing something, but if your portfolio's strong now, and you have the healthcare bases covered in retirement, then what are you worried about?

Of course, if you couldn't get or afford health insurance in retirement at your current age, then I could understand. Long-term healthcare is purchasable as well, although I haven't gone that route...yet.
I have long term disability/long term care insurance through work so if I go into a coma tomorrow my family would get 60% of my pay until I turn 65, die or recover.
Even with insurance a major long term health event can really eat up some funds. I have a high level of confidence that we can handle this but it would definitely move us to one of our plan b austerity budgets. I may be wrong but I do not think that most people have enough insurance to handle having someone in custodial care for 20 years. I accept this type of risk and realize my portfolio will be spent down to what the government lets me keep. I won't accept it on behalf of my kids.
Everyone has their own risk/reward matrix. With 2 young girls and a job that is not torture working a little longer makes me feel good. Feeling good is what it's all about.

NMF
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Old 01-18-2013, 10:04 PM   #16
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I have long term disability/long term care insurance through work so if I go into a coma tomorrow my family would get 60% of my pay until I turn 65, die or recover.
Even with insurance a major long term health event can really eat up some funds. I have a high level of confidence that we can handle this but it would definitely move us to one of our plan b austerity budgets. I may be wrong but I do not think that most people have enough insurance to handle having someone in custodial care for 20 years. I accept this type of risk and realize my portfolio will be spent down to what the government lets me keep. I won't accept it on behalf of my kids.
Everyone has their own risk/reward matrix. With 2 young girls and a job that is not torture working a little longer makes me feel good. Feeling good is what it's all about.

NMF

Makes more sense when you put it that way. I'm 55, wife is 52, our kids are grown & on their own. I also will have 2 pensions, so I'm less worried about portfolio demise. Bottom line is we all have to do what works for us.
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