I'm 46, and would like to retire in 2013

[pb4uski]

... I have a SERP plan that I screwed up when I set it up. Right now it has about a 1-1/2 years salary that will pay out immediately when I leave the company. If I retire anytime but January, I'll pay over 1/3 of it to the government. Leaving in January will give me a nominal 15% loss to income tax. So, I'm telling myself I'm hanging in untill then. I'll see what I do come December.

2B, I had a similar but not nearly as significant situation in that I had about 7 weeks of vacation when I RE'd. What I did was have my last day of work be in December and then went on vacation for January and February 2012 and increased my 401k deductions to 100%, which reduced my reportable income for 2012 by $22k and topped up the nestegg by the same amount.

 

[2B]

2B, I had a similar but not nearly as significant situation in that I had about 7 weeks of vacation when I RE'd. What I did was have my last day of work be in December and then went on vacation for January and February 2012 and increased my 401k deductions to 100%, which reduced my reportable income for 2012 by $22k and topped up the nestegg by the same amount.

I am carrying 12 weeks which will let me actually have my last day in late October based on my vacation plans this year. If I stay past then, your approach would let me go to 100% into my 401k for about 6 or 7 weeks. I'd get the 5% salary match but that would be less than the SS and medicare deductions.

 

[pb4uski]

Not a bad problem to have, eh..

 

[2B]

Not a bad problem to have, eh..

The problem is that if I don't check out near the end of this year I have effectively signed on until the following fall.

 

[Seattle]

I think I will struggle with not being able to buy whatever I want, whenever I want. I can live on a budget, but right now I am pretty free wheeling. I enjoy the lifestyle (away from work) that I live now. I do however feel I will enjoy the retirement lifestyle too. What retirement means is less eating out and more eating at home, less changing smartphones every 6 months, less buying a new car every 2 to 3 years, etc..


However, what I am reading indicates that 3.2mm is not enough at age 46 to retire and be free wheeling. I will continue to move forward with my original 52-54 range and see how things progress. I appreciate everyone's advice on this forum.

You hit the nail on the head of what I am also dealing with. Some of this is more psychological then it is calculator based. Like you, I have the great fortune of not looking at price tags, eating out whenever and wherever I want, going to Maui on a whim, being part of a very nice country club that I will all have to give up to do ER.

But I think I am getting better at just recognizing that none of that stuff really made me happy and that time is the most important commodity any of us have. I am actually thinking about going to counseling using the medical benefits I have left to help me really priortize my life and what is important be get some help to put the toys and the "things" behind me and not let them own me...

Good luck...

 

[Midpack]

But I think I am getting better at just recognizing that none of that stuff really made me happy and that time is the most important commodity any of us have. I am actually thinking about going to counseling using the medical benefits I have left to help me really priortize my life and what is important be get some help to put the toys and the "things" behind me and not let them own me...

I could have written this. You really can't buy happiness, but it took me more than 40 years to fully understand that, and it's turned out to be one of the most important life lessons for me. "The most important things in life aren't things" contrary to Western culture.

 

[pb4uski]

It seems to me that when you are young and have all the time in the world, money seems more important than time. Once I accumulated some wealth, I came to realize that time is more important than money.

And while nice "things" (house, car, boat, etc) once seemed important, I have come to realize that it is really friends, family and relationships that have lasting importance.

I guess the grass does always seem greener on the other side of the fence.

 

[obgyn65]

IMO you are doing well. I am 47, with same ballpark numbers including a (small) pension. Firecalc is ok but I prefer this free online tool :
http://www.merrilledge.com/M/Pages/retirement/personal-retirement-number.aspx

Any advice is appreciated. Can I make it?

Thanks in advance TD