I am crazy to think I can retire at 48?

[Nomad4hire]

The only thing with retiring early is medical and change of what if something happens to the pension (ie the company bankrupts) and the insurance will only pay you $50K vs $115K. I assume the $8K is a type..maybe you meant $80K.. I'm more shocked you could get a pension of $115K taking it that early...but if you can, good for you, I'd retire.

as for Crazy.. I'm 42, DH 44, and I plan to resign in Jan. If we just bring in just $36K/year for the next 10 years, Firecalc says we have a 98% chance of success. Given I make $150k+ right now, its scary giving it all up. walking away from a very steady paycheck... which is driving me into an early grave. I consider myself smart. I also put together a plan for my early retirement because I have a long life ahead of me.. I have a book idea, I plan to hit the gym, I plan to learn to develop my own android apps (just for fun..maybe make a few bucks too), and take some more cooking classes. So my life will be busy without the day to day job and if something major would happen, I still have skillsets to fall back on

Karne1972 you just inspire me and I agree with your comments! --Nomad

 

[Evergreen]

I'm similar to you Gunslinger, I'm ready to get out at 52, done 35 years, sick of the daily grind. I can afford to do it now but it doesn't feel right somehow, too worried about what others will think. To hell with them I need to think about myself!

 

[Nomad4hire]

I'm similar to you Gunslinger, I'm ready to get out at 52, done 35 years, sick of the daily grind. I can afford to do it now but it doesn't feel right somehow, too worried about what others will think. To hell with them I need to think about myself!

Evergreen - I too am in the same boat. To hell with what others think. Basic formula someone wote on this post is: do you have more money than expenses? Yes! And can you do something else if you want to work (even part-time)? Yes! Go for it! -- Nomad

 

[REWahoo]

I'm ready to get out at 52, done 35 years, sick of the daily grind. I can afford to do it now but it doesn't feel right somehow, too worried about what others will think.

Hey, they could be thinking, "If I could retire now I'd do it in a heartbeat. Why in heck would anyone keep working at something they were sick of if they didn't have to?"

 

[Nomad4hire]

Hey, they could be thinking, "If I could retire now I'd do it in a heartbeat. Why in heck would anyone keep working at something they were sick of if they didn't have to?"

+1. --Nomad

 

[38Chevy454]

I'm similar to you Gunslinger, I'm ready to get out at 52, done 35 years, sick of the daily grind. I can afford to do it now but it doesn't feel right somehow, too worried about what others will think. To hell with them I need to think about myself!

You just need to become an INTJ and then you don't give a crap what other people think

(in case you have not read the personality types thread, go read it)

Back to the OP, I think you have it worked out and will be successful. Just watch the expenses and make sure you are within your income. Nice pension and being COLA'd is great. I second the get out of CA, I did it about 5 years ago and could not be happier. Although I am still working for now, I always said I would never retire in CA.

 

[Gunslinger]

Thanks for the input everyone. I guess no matter how long I wait it will never be the "perfect time." Unfortunately a friend of mine, in the same field, suddenly died unexpectedly in her sleep yesterday morning. Her husband, my Best Man 17 years ago, found her in the living room. She was only 40 years old. It made me realize even more that it's time to go, because you never know what will happen. I know numerous people like that. Another friend of mine died suddenly 3 months before retirement, never having a chance to enjoy the fruits of his labor.

I don't want to live an extravagant lifestyle in retirement, but I don't want to just survive either. I think we'll be able to live the life we've been living and with a little luck and proper financial management maybe a little more. I don't want to die with money in the bank. I'll tell you this....everyday I'm still working feels like it's taking two from my life.

Thanks again....wish me luck

 

[Gunslinger]

Check with a good tax adviser on access of 457 funds. The 457 plan I am in, the min. age is 55 . Does your plan have provisions to early withdraw for specific uses, like primary residence, medical etc?

Keep inflation in mind, as it is very corrosive over time.

Jump off the wagon if you can.

I could have 2 years earlier than I did, and regret staying the extra 2 years.

Minimum age for me is 59.5 without incurring a 10% penalty. I've contacted some financial planners/advisors recommended by family and we're looking for ways to deal with that situation. IRSC 72(t) being one.

 

[gauss]

A few thought provoking questions:

Can you start drawing the $115,000 /year pension at your current age without any age reduction? (edit: oops - I see that you answered that above)

Does this pension amount continue at least at this level for lifetime, or are changes made when you reach Social Security age?

When you say Government pension are you referring to the Federal government?

Will you be eligible for SS benefits later?

-gauss

 

[gauss]

My good buddy from work - we went to lunch every day for 10 years - died suddenly while I was on my leave of absence before my retiring outright. He was about 10 years older than me and was planning to retire in the next year or two. He had plenty of money and big dreams for retirement but they went awry.

Yes - that had an effect on my decision to FIRE. DW and I also had two parents pass away with 2 years of my FIRING too.

-gauss

 

[Gunslinger]

Hi, yes I draw 115,000 pension right away and it continues for my lifetime, plus cola of 1-2% regardless of SS.

Both my wife and I will be retiring from County Government, this is our combined pension.

I'm 3 quarters shy of SS eligibility. I started with the county young, but will at least gain part time employment until those are earned so I don't lose out on what I contributed as a teenager. So SS will be in my future. Probably not much, but it will be there barring total collapse of the system.

 

[Accidental Retiree]

Minimum age for me is 59.5 without incurring a 10% penalty. I've contacted some financial planners/advisors recommended by family and we're looking for ways to deal with that situation. IRSC 72(t) being one.

That surprises me about your 457. I also had one from public sector work, and one attractive feature was that there was never any early withdrawal penalty, only income taxes.

My 457(b) tided me over in late 2008/early 2009, when I "got retired" a little earlier than I'd expected from the bank where I w*rked. Great time for banking, wasn't it?

Financial advisors don't always know about that little wrinkle in 457s. The one at the bank didn't. I had to explain to him how 457s are different so that he would quit pestering me about rolling mine into the bank's 401(k).

 

[Accidental Retiree]

Hi, yes I draw 115,000 pension right away and it continues for my lifetime, plus cola of 1-2% regardless of SS.

Both my wife and I will be retiring from County Government, this is our combined pension.

I'm 3 quarters shy of SS eligibility. I started with the county young, but will at least gain part time employment until those are earned so I don't lose out on what I contributed as a teenager. So SS will be in my future. Probably not much, but it will be there barring total collapse of the system.

Has anyone talked to you about how WEP and GPO could affect your social security benefits?

If you are with CalPERS, there will probably be an impact on your SS. if you're with some other retirement system, maybe not.

 

[Lakewood90712]

That surprises me about your 457. I also had one from public sector work, and one attractive feature was that there was never any early withdrawal penalty, only income taxes.

My 457(b) tided me over in late 2008/early 2009, when I "got retired" a little earlier than I'd expected from the bank where I w*rked. Great time for banking, wasn't it?

Financial advisors don't always know about that little wrinkle in 457s. The one at the bank didn't. I had to explain to him how 457s are different so that he would quit pestering me about rolling mine into the bank's 401(k).

457 specific rules vary by each plan. The one I am in, if you are still employed at 55 , you can withdraw w/o penalty, just pay taxes. I left short of 55, so it's also 59 1/2 for me too. Public safety (sworn) employees often have earlier age provisions.

 

[Gunslinger]

Has anyone talked to you about how WEP and GPO could affect your social security benefits?

If you are with CalPERS, there will probably be an impact on your SS. if you're with some other retirement system, maybe not.

Not with CalPers....LACERA. WEP and GPO may affect me by reducing my SS benefits, whatever they may be. But at my age I'll still work for those 3 quarters and get a little. when I'm eligible due to age. It's better than nothing I guess. I hope I'm understanding GPO and WEP right, but may not be. I'll definitely check with my advisor.

 

[Gunslinger]

457 specific rules vary by each plan. The one I am in, if you are still employed at 55 , you can withdraw w/o penalty, just pay taxes. I left short of 55, so it's also 59 1/2 for me too. Public safety (sworn) employees often have earlier age provisions.

I'll have to double check that, thanks!!

 

[Evergreen]

Thanks for the input everyone. I guess no matter how long I wait it will never be the "perfect time." Unfortunately a friend of mine, in the same field, suddenly died unexpectedly in her sleep yesterday morning. Her husband, my Best Man 17 years ago, found her in the living room. She was only 40 years old. It made me realize even more that it's time to go, because you never know what will happen. I know numerous people like that. Another friend of mine died suddenly 3 months before retirement, never having a chance to enjoy the fruits of his labor.

I don't want to live an extravagant lifestyle in retirement, but I don't want to just survive either. I think we'll be able to live the life we've been living and with a little luck and proper financial management maybe a little more. I don't want to die with money in the bank. I'll tell you this....everyday I'm still working feels like it's taking two from my life.

Thanks again....wish me luck

Agree with you about everyday still working taking 2 from your life. Life is so short and time is really precious. It is so important to make the most of early retirement, we are all getting older and who knows how long we can stay healthy. The clock is ticking away.