Retired at 46

[Blacksambellamy]

Hello,

I retired this year at 46. The raises at my job were minimal and if I kept working I was going to be trapped paying into medical insurance.

I chose to secure what I had and retired with a pension of 8k a month and free top of the line medical insurance for life.

Sure I'm young and I don't have piles of cash saved but I can always go back to work.

I was tired of police work and only getting 1 percent raises.


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[scrabbler1]

You have a pension of $8k a month? That's nearly $100k a year, and you have free lifetime medical insurance? Day-UM! I thought I was doing fine retiring at 45 with a relatively tiny investment income. Congrats!

[Blacksambellamy]

Yes that's my retirement. Even with those numbers I'm one of the few that just picked up and left.

Most cops fear leaving because they are so power hungry and the stay until their late 50s or 60s.

I understood at a young age that at 25 years I could walk out the door like a lottery winner. Why stick around in a environment that you are not appreciated and cops are getting gunned down weekly.

So I punched out to enjoy life!!!!


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[stlguy57]

That's awesome! Congrats on making the move to retirement. You won't regret and you'll enjoy life so much more.

[Blacksambellamy]

Thanks. I really appreciate the positive response from everyone in this board.

My experience with friends and neighbors has been nothing but negative so far. They are all extremely jealous had cant hold back their negative comments.

Anyone else experience this with early retirement ?


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[aim-high]

It's easy to be envious. Even for those who are doing it right those numbers are staggering. For 25 years you were able to live within your means and walk away with a secure retirement. Most private sector people would have to live way below their means to save for that kind of retirement. And they would have to earn a really high income.

My bro is in a similar situation although he started much later than you did. At 60 he'll be able to retire with $130K pension. He could go earlier for less. I told him how large my portfolio needed to be to reasonably return that kind of income and he was floored. Needless to say, I won't get there.

I'd be dishonest if I said I wasn't a bit envious, but not begrudgingly so. Good for you. Thanks for serving in the force and use your time for good!

[Travelwanted]

BSB- first congrats and thanks for your service as a police officer. I won't let this get political but I'll say you are appreciated by many.

That is a great pension plus healthcare benefit. You could have done far worse.

There have been many threads about the jealousy issues with ER. Especially at your young age, you should expect it. Generally speaking many of us prefer to avoid the subject or say we are on sabbatical or perhaps investing. Who cares what they think anyway! Good luck to you.

[Senator]

Quote:

Originally Posted by Travelwanted BSB- first congrats and thanks for your service as a police officer. I won't let this get political but I'll say you are appreciated by many.

++1.

[Dawg52]

Fantastic package. I would gladly trade my portfolio for a package like that.

[Racer X]

Congrats, and let me pile on the "thank you for your service" comments. I have a buddy who's an ex detective who tells some of the most horrific (and sometimes hilarious) stories from back in the day. I am sure you earned every penny of that pension.

[stlguy57]

Blacksambellamy, first off thanks for your service in law enforcement.

I retired at 58 at the end of 2015 and received the responses below because I didn't follow the script until 65 or later. Most of the comments when like "What are you going to do with all your time" or "You're too young to retire". The latter was my favorite. I also was told "Well, we know who has all the money!" Hang in there because you know it's eating them up. LBYM also helps.

Welcome.

[aggie76]

I appreciate your service BUT your story highlites a HUGE problem looming over every American city and most states. There is NO WAY that a city can finance this pension and benefit you have earned for the 30 or 40 years of life you probably have left. You were made a promise and it needs to be kept BUT these insane municipal promises made under pie-in-the-sky scenarios and absolutely un-sustainable and will eventually bankrupt hundreds of cites all over the nation. In the next decade we will face a crisis that will dwarf the " too big to fail" insanity of a few years ago. We will be looking at muni bailouts that will make TARP and the GM garbage look tame.
An 8k/month and benefits for a 46 year old package is NOT usutainable for ANY city on the planet.
You EARNEd this and you were made a promise and performed a service that few of us could handle. I don't have an answer BUT as a warning..be prepared for this promise to collapse in a few years...your town will face exactly what Detroit and other are facing. There just aren't enough taxpayers and enough tax money to pay for your package for the next 40 years. Look out for the haircut a coming...

[ivinsfan]

That's a great package and good for you. But people talk about pension envy, there is also the other side of the coin which is, your comment about the measly one percent raise. One of the reasons you got one percent was because of the cost of this pension benefit.

Healthcare as well, the "trapped into paying for it myself" someone has to pay for it and it's pretty costly. You had a long run and came out safely so enjoy your second act.

[Blacksambellamy]

Our system is at 80 Percent and its funded by us the police and fire.

I understand what's happening in other cities but that's because they don't fund their pensions like we do. Our public workers system which includes teachers is about to bust. But again they didn't find it properly.


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[harley]

One thing I didn't see was whether or not your pension is COLA'd. If it is, you're in the gravy. If not, by the time you are 65 it might be getting a little tight. Good luck.

[Blacksambellamy]

NO COLA they took that away. Currently the NJ courts are hearing the case to get it back. Once my kids hit college I will move down south to increase my pension.

With That move alone I won't pay state tax on my pension which is currently 8k

Plus I will save on property taxes. I currently pay 12k for a 1300 Sf ranch with no property. Down south my property taxes will be 5k.

That's a 15k savings. I will also be mortgage free down there.


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[ivinsfan]

Quote:

Originally Posted by Blacksambellamy Our system is at 80 Percent and its funded by us the police and fire. I understand what's happening in other cities but that's because they don't fund their pensions like we do. Our public workers system which includes teachers is about to bust. But again they didn't find it properly. Sent from my iPhone using Early Retirement Forum

Police and Fire have budget constraints too. You just mentioned that people seemed put-off by your retirement and I pointed out that some of the complaints you had about raises and benefits are probably tied to funding your pension. Best to just smile and enjoy your life of less stress, if you had been a teacher you'd have to worry about a broken pension system.Police and fire generally have very good pension systems, which is how it should be.

[fidler4]

Quote:

Originally Posted by Blacksambellamy Most cops fear leaving because they are so power hungry and the stay until their late 50s or 60s.

Congratulations on your retirement however based on my 29 year career as a west coast LEO I would tend to disagree with this statement. Some? Yes but most?




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[Blacksambellamy]

I was also paying 1000 a month into medical. Our lovely governor passed a bill that made everyone pay into medical. But those people who had at least 20 years on got free medical if they retired.




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[petershk]

If friends are envious, get new friends . Everyone is entitled to their opinion but envy is always bad... at least that's my opinion .

As a thought since you're not COLA'd is maybe cola yourself.

Assuming your pension is currently comfortably more than your cost of living treat it like you're still "accumulating" until you've got enough saved up to hit the COLA'd pension difference at whatever safe withdrawal rate you want to use. Sort of like your pension is a shrinking % subsidy.

If you have insurance covered that takes a HUGE chunk away.

Also... I'm 40... FI but not retired yet. I bet you are also able to do side hustles. I'm working on a few of these now. It's fun and can bring in some income.

Enjoy!

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