Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Ready or not?
Old 11-11-2015, 02:02 PM   #1
Confused about dryer sheets
 
Join Date: Nov 2015
Posts: 2
Ready or not?

I知 ready. Or at least I think I知 ready. I知 48, my wife is 42. We have a couple of kids entering high school next year. I can retire with a defined benefit pension with basic 3% COLA in 2017. Net from that would be $3100 monthly. I am currently bringing home 4k monthly, working 50 hours weekly. I have a part-time job in place after I retire that would net me $800 monthly, working 20 hours weekly. Before my retirement date my wife and I will pay off her student loans ($100 monthly) and a car payment ($400 monthly). Through work I値l be eligible for health insurance for $150 monthly. My wife will continue to be employed full-time for 8 more years and carry the kids on her policy as she has done for the past several years.

I'm just thinking my income will pretty much be the same and actually increase because of the COLA kicking in. I have topped out on my salary earnings at my job. Is there any reason why I shouldn稚 retire?
__________________

__________________
ganewbie 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!

Ready or not?
Old 11-11-2015, 02:19 PM   #2
Thinks s/he gets paid by the post
RetireAge50's Avatar
 
Join Date: Aug 2013
Posts: 1,121
Ready or not?

From the information you provided I would say not (ready). You might be but if it were me I would want some actual money in addition to the pension. Also would not want to work part time for $10/hour. Finally, would still want to provide a bit more while my wife and children are still depending on me. But this is just how I think but for you it might be a go!
__________________

__________________
RetireAge50 is offline   Reply With Quote
Old 11-11-2015, 02:56 PM   #3
Full time employment: Posting here.
 
Join Date: Apr 2014
Location: Houston
Posts: 639
Quote:
Originally Posted by ganewbie View Post
I'm just thinking my income will pretty much be the same and actually increase because of the COLA kicking in. I have topped out on my salary earnings at my job. Is there any reason why I shouldn稚 retire?
Guess everyone has to decide their own comfort level. Mine led me to work until my kids appeared to be exiting college, healthy and likely to be self sufficient. Had too many friends with kids that came back to live with them for many years after they were adults. Some with serious health issues that an early retirement may have made it difficult for them to handle financially.

Having said all that, I don't see a reason not to retire from your current job, taking the pension and looking for something that would provide a higher total income than you currently have. Just not sure I'd go the route of the part time job yet.

Best of luck with whatever you choose.
__________________
Whisper66 is offline   Reply With Quote
Old 11-20-2015, 11:14 PM   #4
Recycles dryer sheets
Backpacker's Avatar
 
Join Date: Feb 2011
Location: On a dirt road
Posts: 191
Seems like with young kids and unknown future expenses related to them, and wife still working 8 more years a few more years of socking away cash would be a good cushion.

My wife has less than 3 years to work and tells me that I can quit any time I want, but I'm just not sure if either of us would really be OK with that for 3 years. (Not to mention 8!)

Sent from my XT1254 using Early Retirement Forum mobile app
__________________
"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
Backpacker is offline   Reply With Quote
Old 11-20-2015, 11:39 PM   #5
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 402
So, you will have $4,000 (pension + part time), and wife will continue working for 8 years. I assume your wife salary will be enough to put your kids through high school and they will be finished by then. I think you can retire, and get your kids to graduate high school. But you probably won't have money to get your kids through college unless your wife's salary of 8 years includes your kids finishing college. Now, of course, if your kids will fund their own college education and get student loan, then you are free and clear.


__________________
cyber888 is offline   Reply With Quote
Old 11-20-2015, 11:40 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,327
I think you have some intriguing possibilities there. I'm a big fan of downshifting and not working 50 hours a week.

Here are questions you don't have to answer but just to consider: Have you run your plan through a retirement planner like the Fidelity RIP with any future Social Security amounts or pensions for your wife, and any future expenses like college? Do you have a plan for long term care? What kind of pension do you have (public or private) and how well funded is it using realistic returns? How secure is your wife's job?
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 11-21-2015, 12:25 AM   #7
Recycles dryer sheets
 
Join Date: Jul 2015
Posts: 423
Quote:
Originally Posted by ganewbie View Post
I'm just thinking my income will pretty much be the same and actually increase because of the COLA kicking in. I have topped out on my salary earnings at my job. Is there any reason why I shouldn稚 retire?
A several questions/thoughts:

1) What's in it for your wife if you retire?? You get to work part-time, but how does it benefit her? Happy wife = happy life!

2) What happens if your wife loses her job AND health insurance and can't or won't find another one that pays as much and has the health benefits of the current one? Have you looked into ACA on healthcare.gov The costs and poor coverage are sobering...

3) What will you do all day in retirement and how will your wife feel about it while she grinds it out another 8 years at work?

4) What happens financially if you die, ie are your pension survivor benefits strong enough to support your family in your passing? If not, is your life insurance good enough?

5) How will you handle huge but not permanent expenses like college for your kids? What about car(s) replacement, wedding expenses, home repair expenses, and other large but occasional expenses? How big is your emergency fund? How long can you 4 survive if wife loses her job?

6) Will the pension payout increase greatly if you wait, say until 55?

FB
__________________
Living the dream...
FreeBear is offline   Reply With Quote
Old 11-21-2015, 07:29 AM   #8
Recycles dryer sheets
 
Join Date: May 2013
Location: Toronto
Posts: 189
Do you make $4000 take-home pay, or $4000 gross? The quotes you give for pension and part-time work are probably gross, so if the $4000 is take-home, you need to account for the fact that your post-retirement income will be taxed.

If you have properly accounted for taxes and your wife is happy with the plan, then I say go for it!
__________________
Spudd is offline   Reply With Quote
Old 11-21-2015, 10:53 AM   #9
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,162
Welcome, ganewbie! If you haven't seen them yet, there are two excellent resources here that might help you in your decision making:

Some Important Questions to Answer Before Asking - Can I Retire?

and

Early Retirement FAQs - Early Retirement & Financial Independence Community

We'll do our best to answer your questions also - lots of friendly and knowledgeable folks hang out here!
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 11-23-2015, 02:01 PM   #10
Confused about dryer sheets
 
Join Date: Nov 2015
Posts: 2
Quote:
Originally Posted by FreeBear View Post
A several questions/thoughts:

1) What's in it for your wife if you retire?? You get to work part-time, but how does it benefit her? Happy wife = happy life!

2) What happens if your wife loses her job AND health insurance and can't or won't find another one that pays as much and has the health benefits of the current one? Have you looked into ACA on healthcare.gov The costs and poor coverage are sobering...

3) What will you do all day in retirement and how will your wife feel about it while she grinds it out another 8 years at work?

4) What happens financially if you die, ie are your pension survivor benefits strong enough to support your family in your passing? If not, is your life insurance good enough?

5) How will you handle huge but not permanent expenses like college for your kids? What about car(s) replacement, wedding expenses, home repair expenses, and other large but occasional expenses? How big is your emergency fund? How long can you 4 survive if wife loses her job?

6) Will the pension payout increase greatly if you wait, say until 55?

FB
Excellent questions and things I have thought about. My wife has a solid job, in a field where there are shortages. She is secure with pay and healthcare. We both have a 250k life insurance policy. We have a 100k emergency fund invested in high dividend low risk stocks. I have ran the numbers and we could invest 1k a month after I retire. The pension will not increase if I wait until 55. It will only increase because of the 3% COLA. It's in a pretty solid public fund.

Question number 1 and 3 is the main hurdle I think.
__________________

__________________
ganewbie 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
LED home lighting; not quite ready or ready for prime-time? skipro33 FIRE and Money 145 08-14-2016 12:11 PM
Hello Forum....not quite starting out, not quite ready to FIRE PV4ALL Hi, I am... 5 03-01-2009 11:10 AM
Not Ready for Winter Yet! SteveR Other topics 10 10-06-2005 04:35 PM
Ready but not DaveK Hi, I am... 18 06-01-2005 11:25 PM
Here It Comes, Ready or Not! JimW FIRE and Money 2 07-20-2003 03:21 AM

 

 
All times are GMT -6. The time now is 04:08 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.