Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
need opinions on what to do next
Old 01-16-2018, 08:40 AM   #1
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
need opinions on what to do next

Hello
I have been subscribing to the philosophy of FIRE for a few years now. I'm am not ready to FIRE but I am hoping I am ready for at least switching to semi retirement. I hate Megacorp with a passion......it's too the point where it's making me sick just thinking about going to work everyday

Any suggestions on helping to improve my plan is greatly appreciated so that I can at least semi retire (working 3-6 months a year or a part time job).

I am debt free.....no mortgage, no car loans, no credit card debt, no student loans, no medical bills. I am completely debt free

My expenses are
Property Taxes - 1300 a year
Insurance (home and car) -1200 year (I live in a low cost of living rural area)
Food for just me - about 100.00 a month
Internet DSL -55.00
Utilites (trash, water, sewage) - 66.00
Electric (solar panels) - 25.00
Gas Heat - about 100.00 month only during the winter months.

My expense are about 500.00 per month. This includes all of the above expenses.

I have about 250K in savings and investments (stocks, bonds, Roth IRA and 401k).

The only unknown is health insurance. My goal is to work part time making enough to pay my bills because they are so low and the health insurance. 1500.00 a month is what I am shooting for. It could pay all my bills including health insurance plus give me extra to do the things I love doing while working only part time or 3 - 6 months a year doing IT consulting contracts. This way I won't have to touch my savings and will only use that for true emergencies like a car replacement or something like that.

It this a safe plan or do you think I need to work full time a little while longer to beef up my savings? I welcome all opinions. I have to get out of corporate america before it kills me but I am 54 and any financial mistakes I make now could mean I actually end working my entire life.


Any opinions will be greatly appreciated.

Thanks
Nanci
__________________

yavenay 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 01-16-2018, 08:42 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Posts: 2,631
Quote:
Originally Posted by yavenay View Post
hate Megacorp with a passion......it's too the point where it's making me sick just thinking about going to work everyday
What do you plan to do when retired? What are "the things [you] love doing"?
Have you considered finding a new non-Megacorp job instead?

I suspect you are underestimating your expenses.
No cable? No gas for your car? Nothing put aside to eventually replace the car (replacing a car is not an emergency, it's expected)? Nothing put aside for home maintenance?
No travel? No eating out? No gifts? No clothes? No movies?

Most of the things you listed will cost more with inflation.

A nest egg of $250k will only throw off about $10 per year, assuming a 4% withdrawal rate.
Maybe you can live on that tiny amount, with other expected income?
Social security? A pension? An inheritance?
__________________

__________________
Old enough to know better.
joeea is offline   Reply With Quote
Old 01-16-2018, 08:45 AM   #3
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: 45,127
Quote:
Originally Posted by joeea View Post

Have you considered finding a new non-Megacorp job instead?
+1

I might consider a job/career change rather than semi-retirement at this point.
__________________
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
I am in awe!
Old 01-16-2018, 08:55 AM   #4
Thinks s/he gets paid by the post
Mdlerth's Avatar
 
Join Date: Oct 2016
Location: The Shire
Posts: 1,105
I am in awe!

Quote:
Originally Posted by yavenay View Post
Hello

My expenses are
Property Taxes - 1300 a year
Insurance (home and car) -1200 year (I live in a low cost of living rural area)
Food for just me - about 100.00 a month
Internet DSL -55.00
Utilites (trash, water, sewage) - 66.00
Electric (solar panels) - 25.00
Gas Heat - about 100.00 month only during the winter months.

My expense are about 500.00 per month. This includes all of the above expenses.
Is this accurate? Not a typo? Your total living costs are only about five hundred dollars a month?

That's incredible. I bow in the presence of the empress of frugality.
__________________
Paying it forward is the best investment.
Mdlerth is offline   Reply With Quote
Old 01-16-2018, 08:56 AM   #5
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
Quote:
Originally Posted by joeea View Post
What do you plan to do when retired? What are "the things [you] love doing"?
Have you considered finding a new non-Megacorp job instead?

I suspect you are underestimating your expenses.
No cable? No gas for your car? Nothing put aside to eventually replace the car (replacing a car is not an emergency, it's expected)? Nothing put aside for home maintenance?
No travel? No eating out? No gifts? No clothes? No movies?

Most of the things you listed will cost more with inflation.

A nest egg of $250k will only throw off about $10 per year, assuming a 4% withdrawal rate.
Maybe you can live on that tiny amount, with other expected income?
Social security? A pension? An inheritance?
Yes I do have those expenses and that is why I would continue to work part time or semi retire to pay for the things you just mention. I don't have cable, I stream everything. My expenses are so low I can work part time to pay for all of those things and not draw anything from savings at all unless I had too.
yavenay is offline   Reply With Quote
Old 01-16-2018, 09:00 AM   #6
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
Quote:
Originally Posted by Mdlerth View Post
Is this accurate? Not a typo? Your total living costs are only about five hundred dollars a month?

That's incredible. I bow in the presence of the empress of frugality.
I don't have any debt and live in a rural area where the cost of living is very low. The only monthly bills I have are taxes, utilities, food and internet.
Right now I am still working full time and basically saving my paychecks but I gotta get out of corporate america. The money just doesn't seem worth it anymore
yavenay is offline   Reply With Quote
Old 01-16-2018, 09:03 AM   #7
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
Quote:
Originally Posted by REWahoo View Post
+1

I might consider a job/career change rather than semi-retirement at this point.
That's actually a pretty good idea too. My friend recommended I look in to non-profit. I have worked in the most stressful industries like financial services and healthcare. Maybe I just need to change to a less stressful job.
yavenay is offline   Reply With Quote
Old 01-16-2018, 09:06 AM   #8
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
Quote:
Originally Posted by joeea View Post
What do you plan to do when retired? What are "the things [you] love doing"?
Have you considered finding a new non-Megacorp job instead?

I suspect you are underestimating your expenses.
No cable? No gas for your car? Nothing put aside to eventually replace the car (replacing a car is not an emergency, it's expected)? Nothing put aside for home maintenance?
No travel? No eating out? No gifts? No clothes? No movies?

Most of the things you listed will cost more with inflation.

A nest egg of $250k will only throw off about $10 per year, assuming a 4% withdrawal rate.
Maybe you can live on that tiny amount, with other expected income?
Social security? A pension? An inheritance?
Yes I do have social security and a small pension coming. Keep in mind, if I continue to work even part time, I do not have to withdrawal anything at this time. I guess my post is more about can I safely switch to part time or semi retirement. My expenses are so low that I am just trying to find out if reducing my working hours is something that is feasible.
yavenay is offline   Reply With Quote
need opinions on what to do next
Old 01-16-2018, 04:10 PM   #9
Thinks s/he gets paid by the post
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 1,227
need opinions on what to do next

Yavenay; Welcome. On the face of it your financials appear risky. As others have said your expenses are surely more than $6,000/year. Some more questions for you.

Have you tracked your expenses? If so what were they last year, or are you really saying they were only $6,000 last year. If you donít have exact info on expenses, start tracking them now. You would need at least a years worth of detail-ideally 2-3 years worth of detail. Have you put your info into firecalc? What will your pension be and at what age will you start collecting? What will your SS be based on future limited income between now and the age you expect to claim? The big issue here is your limited savings, as others have pointed out. That fact places you in avery tenuous situation which ideally should be shored up (addressed) before RE or SRE.
__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Old 01-16-2018, 04:48 PM   #10
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 19,482
Quote:
Originally Posted by yavenay View Post
I hate Megacorp with a passion......it's too the point where it's making me sick just thinking about going to work everyday.
This means that a change is necessary and you need to get out of there. It can and may very well kill you.

That said, I have to agree with the others though that while your expenses are impressively low this is a risky plan. Eventually and inevitably "lumpy expenses" (as they're known here) like a replacement car, new roof, furnace, etc. are going to come up and bite you.

Health insurance is a huge unknown right now and that one may really kick you in the teeth.

Also, living in a rural area is going to limit your employment opportunities. Would you consider moving to a more urban area (not necessarily a city) where employment is more plentiful? (Just kind of "thinking out loud" here.) If I lived in a rural area with expenses that low I'd be loathe to move too!

A good book on job/career changes is "What Color is Your Parachute?" by Richard N. Bolles. It's updated every year now. I first read it ~1982 or so and taking a page from that book I convinced my then-employer to create the job I wanted so if your employer is large enough that might be an option for you. Before buying it check the library first of course and even if the book is a few years old the changes from year to year are probably not significant.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 01-16-2018, 06:37 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 21,667
It really depends on how much SS and your small pension are. Have you run your numbers through FIRECalc? Put SS and pensions in on the Other Income/Spending tab.

That said, perhaps a job change is worth a try more than downshifting. A friend of mine was burnt out and changed jobs in his 50s... loves the new job and is still working in his mid/late 60s because he wants to even though he doesn't need to.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 01-16-2018, 07:35 PM   #12
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
Quote:
Originally Posted by Golden sunsets View Post
Yavenay; Welcome. On the face of it your financials appear risky. As others have said your expenses are surely more than $6,000/year. Some more questions for you.

Have you tracked your expenses? If so what were they last year, or are you really saying they were only $6,000 last year. If you donít have exact info on expenses, start tracking them now. You would need at least a years worth of detail-ideally 2-3 years worth of detail. Have you put your info into firecalc? What will your pension be and at what age will you start collecting? What will your SS be based on future limited income between now and the age you expect to claim? The big issue here is your limited savings, as others have pointed out. That fact places you in avery tenuous situation which ideally should be shored up (addressed) before RE or SRE.
I have been tracking my expenses meticulously for the last 10 years using Quicken. I could run a report at get the last 10 years expenses. Trust me my expenses are that low. I have no debts, literally just taxes, utilites, home and car insurance, food and Internet. According to SS, if I take SS at 62, I would qualify for about 1500 a month and a pension of about 600 a month (which I can start drawing at 59.5) before taxes.

I guess I was thinking because my expenses are so low, I would never need to tap into savings. If I were able to make 1500 a month working fewer hours, I was thinking it could cover all of my expenses including health insurance and pay for miscellaneous stuff like those occasional things that come up like birthdays, holidays and travel. It would also allow me to save additional money as well. Oh well, I guess I was wrong.
yavenay is offline   Reply With Quote
Old 01-16-2018, 07:49 PM   #13
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
Quote:
Originally Posted by Walt34 View Post
This means that a change is necessary and you need to get out of there. It can and may very well kill you.

That said, I have to agree with the others though that while your expenses are impressively low this is a risky plan. Eventually and inevitably "lumpy expenses" (as they're known here) like a replacement car, new roof, furnace, etc. are going to come up and bite you.

Health insurance is a huge unknown right now and that one may really kick you in the teeth.

Also, living in a rural area is going to limit your employment opportunities. Would you consider moving to a more urban area (not necessarily a city) where employment is more plentiful? (Just kind of "thinking out loud" here.) If I lived in a rural area with expenses that low I'd be loathe to move too!

A good book on job/career changes is "What Color is Your Parachute?" by Richard N. Bolles. It's updated every year now. I first read it ~1982 or so and taking a page from that book I convinced my then-employer to create the job I wanted so if your employer is large enough that might be an option for you. Before buying it check the library first of course and even if the book is a few years old the changes from year to year are probably not significant.
I'll check the book out. Also, I am an IT consultant and could work from anywhere in the world. I can work remotely so my job choices are not limited to a physical location. Also those lumpy expenses like roof replacement or new appliances can easily be taken care of simply by working a few extra hours or by switching back to full time for a brief period. I'm not ready to retire financially but it sure would be nice to at least be able to work when I want to. I am even considering working full time positions for 6 months a year. As an IT contractor, I can pick up short term 3-6 month contracts that pay 45 per hour. I could make enough to last a few years with just one contract.....now that would be heaven.....work 6 months and take a 6 month vacation.

I guess I didn't think it was that risky because I would still be working and contributing to savings, I just don't want to work full time anymore. I was thinking with my expenses being so low I could reduce my hours and would never need to tap into savings. My home is paid off and I have not other debt so maybe I no longer require as much income?

I would never used what I had in savings right now, not as long as I can live off part time income. If I ever needed more money I can always work more hours. If I needed a new car, I could always work extra hours and save up for a car. Basically as long as I am able bodied, there would never be a need for me to ever touch the savings unless there is a medical emergency or I need a lawyer


But judging from the opinions, reducing my hours would not be a good decision. I am at a cross roads. I make good money but I no longer think working just for the money is worth it. Maybe I will look into changing fields? I certainly can afford to start from the bottom.....at least that's a good thing. Now I just have to figure out what I want to do.........oye vey, I need a glass a wine.......too much thinking.
yavenay is offline   Reply With Quote
Old 01-16-2018, 08:39 PM   #14
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 15
Quote:
Originally Posted by Mdlerth View Post
Is this accurate? Not a typo? Your total living costs are only about five hundred dollars a month?

That's incredible. I bow in the presence of the empress of frugality.
There is another guy who runs extremeretirement.com who claims him and his wife are only have 14k a year in expenses or 7k a year each. I have low expenses because it's just me......no kids. It took me years to reach this point and I couldn't believe it either. I kept thinking I am missing some bills but nope it's true.

The only unknown is medical insurance.
yavenay is offline   Reply With Quote
Old 01-16-2018, 09:43 PM   #15
Dryer sheet aficionado
 
Join Date: Dec 2012
Posts: 43
Whatever decision you make, be sure you have good disability insurance. It sounds like everythingís riding on your ability to continue working to generate income, in some capacity.

Did you just recently adopt this low expense lifestyle? Just wondering, as you said you make good money in IT, save nearly your whole paycheck, but you only have $250k saved.

Just want to make sure this is sustainable.
SecretlyFI is offline   Reply With Quote
Old 01-17-2018, 04:12 AM   #16
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 4,960
Quote:
Originally Posted by yavenay View Post
Also, I am an IT consultant and could work from anywhere in the world. I can work remotely so my job choices are not limited to a physical location.
If I had to wager on this, I'd bet against you. The trend for working remotely will not continue upwards forever. My guess is that this benefit is something companies and government are pulling back on. Not eliminating in total, but bringing people back into the physical plant for various reasons.

There are exceptions, I know, but assuming you can get work past 55 that meets all of your requirements is not wise. Once you leave the permanent workforce, you may notice that lower-paid, younger replacements are plentiful.
target2019 is offline   Reply With Quote
Old 01-17-2018, 05:13 AM   #17
Full time employment: Posting here.
iloveyoga's Avatar
 
Join Date: Jan 2017
Location: Des Moines
Posts: 559
You might be surprised at how much you would like a different, part-time job.
__________________
Retired in 2013 and we are living the dream!
iloveyoga is offline   Reply With Quote
Old 01-17-2018, 05:34 AM   #18
Recycles dryer sheets
 
Join Date: Jun 2007
Location: Oklahoma City
Posts: 288
Quote:
Originally Posted by yavenay View Post
oye vey, I need a glass a wine.......too much thinking.

Is that wine included in the $100 groceries?

Seriously though if you're that confident in your spending and you know you'll have over $2000/mo coming in after SS and pension kick in then you could take the $250,000 and break it up over the next 8 years remaining until SS/pension and draw over $2600/mo. That's with a zero return on the 250k

Course you wouldn't do that but it reveals that really you can do whatever you want --- no need to be miserable in your current position
__________________
USAF Veteran -- Retired Air National Guard -- OSW -- ONW -- OIF
militaryman is offline   Reply With Quote
Old 01-17-2018, 05:49 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 21,667
You should run your situation through FIRECalc. I came up with annual spending of up to $26.2k assuming $250k 50/50 portfolio, 40 year time horizon, $18k of SS starting in 2026 when you are 62 and $7.2k of fixed pension starting in 2024 when you are 60. The result is $23.4k if you haircut SS by 25%. And your expenses are less than $12k a year as I understand it.

So, given how low your living expenses are, you probably have enough to retire now if you want to... so therefore you have enough to downshift now if you want to.

Or to think of it another way, even if you fully retired now and took $1,500 a month out of your $250k between now and when SS starts you would have over $100k left... once SS starts, between your pension and SS you'll be collecting $2,100/month ($1,725/month if you haircut SS by 25%) which exceeds your living expenses by a fair margin.

However, one potential downside to think about is that to some degree you may be locking yourself to where you currently live or another LCOL area so you may not be able to move if you later decide that you want to.

YMMV
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 01-17-2018, 08:48 AM   #20
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 3,038
To calculate your expenses, rather than just listing the known line-items, I'd take your actual outgoing everything:

Look at your checking account, how much went OUT in 2016/2017. Therein you'll find your real expenses, which probably include something more than the "needs" list above.

You never go to the movies? Or out for dinner/drinks with a friend? Or buy a book or a game? Or some clothing or shoes? Or some new plants or fertilizer, etc. All small things but they add up. A run to target or home depot, etc. These are the other things which might not be considered your necessary expenses, but should be included.
__________________

Aerides is offline   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
Another Wusss-Need Opinions Bandit FIRE and Money 7 04-20-2010 05:05 PM
Need opinions on getting out of cash Shafer239 FIRE and Money 9 07-27-2008 01:29 PM
Need opinions on coverage risks and COBRA Surfdaddy Health and Early Retirement 5 09-17-2007 11:05 AM
Re: Need the groups opinions/advice Bob_Smith Other topics 13 01-28-2004 04:05 AM

» Quick Links

 
All times are GMT -6. The time now is 01:05 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.