New Pre-Early Retiree!

[HDMan]

Hello all, Since I'm new here I might ask some stupid questions.
I'll be 55 and eligible for a nice early retirement, but not enough to live on just yet.
I am having a hard time figuring out what I could do to replace my 90K income.
I could dig into the pension but I don' t think that is wise.

Are there resources out there to help some figure out what to do when they grow up?

THANKS!

 

[jdw_fire]

Hello all, Since I'm new here I might ask some stupid questions.
I'll be 55 and eligible for a nice early retirement, but not enough to live on just yet.
I am having a hard time figuring out what I could do to replace my 90K income.
I could dig into the pension but I don' t think that is wise.

Are there resources out there to help some figure out what to do when they grow up?

THANKS!

Do you really need to "replace" your 90k income?  Once retired you won't be paying into SS, Medicare or your 401k (if you have one).  You should be pulling money out of savings instead of putting money into it.  Hopefully you will be debt-free and therefore won't have to make any payments there.  Maybe you don't need to replace the entire 90k.  Better to figure out what your expenses will be in retirement and base your income requirement on that number than to just replace a preretirement income.

 

[Nords]

I'll be 55 and eligible for a nice early retirement, but not enough to live on just yet.
I am having a hard time figuring out what I could do to replace my 90K income.

Are there resources out there to help some figure out what to do when they grow up?

Welcome to the board, HDMan.

Most ERs look at their post-retirement budget-- what they'll actually spend when not working. A whole category of commuting/office expenses disappear, as do savings, much of taxes, and possibly personal services like lawncare or housecleaners. Some expenses are as low as $24K/year, many spend about $48K/year. But the bell curve is broad and has fat tails.

You can also take a look at Bob Clyatt's approach in "Work Less, Live More" or Ernie Zelinski's lifestyle approach of "How to Retire Happy, Wild, and Free".