Retiring at 53

[PamInCA]

Don't you love being able to think, "Oh, poor baby! The CIO's happiness is not my problem"?

I love your story. The 16-year-old must be in Heaven, knowing that Grandma will be minding the younger sibs

And yes, the 16 year old is a great help to her mom now. My daughter is a Hospice nurse and is often called out at odd hours and she travels all over the area. I hope my contribution eases some of the burden between her schedule and the kids'.

 

[cyber888]

Pam, does the $650k include the equity of the primary house you just sold ?

 

[InTheSticks]

My last day is March 31st, next week!
Part of the severance is 3 months of job/education/financial advice from a local firm. I'll see if they have anything truly helpful to say in the financial area.

And yes, I've seen a lot in my IT career. I started out as data entry, moved to AS400 operations, to PCs, then network, and then telecom. I've been with this company for 22 years and they were a wonderful company, voted one of the best places to work in the metro area. That's no longer the case and there are a lot of unhappy people here.

I am so grateful for all I've been given and the chance to spend these years with the grandkids before they're too old to want grandma around.

March 31 is also my last day! I'd be interested to know if the local firm can add to your knowledge in the financial area. I bet they aren't geared to the retirement area.

I also have AS400 and PC experience. Not much in the network and none in telecom.

You shouldn't have any problem picking up freelance work, if you want it. But, it sounds like you don't need or want it. I've already had people ask and I tell them to come back when the weather gets cold and the days get short.

 

[InTheSticks]

You should add yourself to the Class of 2016.

 

[PamInCA]

Pam, does the $650k include the equity of the primary house you just sold ?

Yes, that includes the one house but not the second house (yet). Keeping that in reserve and if all else fails, I can move into it with a mortgage that's under $700 per month.

 

[Walt34]

Screw the CIO and horse he rode in on.

Isn't that a great place to be, to be able to say that? Have you stopped laughing yet?

I am so grateful for all I've been given and the chance to spend these years with the grandkids before they're too old to want grandma around.

And that's a great place to be too, to be able to do what you want. Congratulations!

 

[imoldernu]

Excuse me?

I guess he thought my job was nothing and I had a bunch of free time so I could do the thin PCs and virtual machines too.

Love that... so reminded me of my last days in Albany, before being promoted to Chicago. Never got along too well with the operating manager there, so was delighted to learn that after I left, I was replaced with two managers and an extra secretary.

...hmmm... or maybe that was because I was too dumb to know.

 

[PamInCA]

Love that... so reminded me of my last days in Albany, before being promoted to Chicago. Never got along too well with the operating manager there, so was delighted to learn that after I left, I was replaced with two managers and an extra secretary.

...hmmm... or maybe that was because I was too dumb to know.

That's always nice! Being appreciated for what you do goes a long ways in being happy with a job.

 

[Retch The Grate]

grats, seems like a great situation to be able to walk away from.

 

[Live And Learn]

I am so grateful for all I've been given and the chance to spend these years with the grandkids before they're too old to want grandma around.

My fondest memories are of the time I spent with my grandmother. I wish the same for you and your grandkids. Congratulations!!!!!

 

[PamInCA]

A co-worker gave me a card today since I won't see him next week. He wrote, "I'll never truly be able to express my sincere thanks for everything you've done for me. Your charm, your grace, your humor, your smarts, everything about you has made working in a challenging environment bearable! I will miss you dearly, at the same time, I couldn't be happier knowing that an exciting new chapter of your life is about to begin!" Forever your friend.

He hugged me in the elevator from the 4th floor to the 1st as we were leaving and then a big kiss on the cheek. I'll miss him too but we'll stay in touch.

 

[tmm99]

A co-worker gave me a card today since I won't see him next week. He wrote, "I'll never truly be able to express my sincere thanks for everything you've done for me. Your charm, your grace, your humor, your smarts, everything about you has made working in a challenging environment bearable! I will miss you dearly, at the same time, I couldn't be happier knowing that an exciting new chapter of your life is about to begin!" Forever your friend.

He hugged me in the elevator from the 4th floor to the 1st as we were leaving and then a big kiss on the cheek. I'll miss him too but we'll stay in touch.

WOW, a wonderful comment!
I cannot EVER imagine anybody at my old w*rk giving me a kiss!!!! And that is a crazy long hug!!!

Maybe he likes you in more ways than just as a co-worker

 

[PamInCA]

WOW, a wonderful comment!
I cannot EVER imagine anybody at my old w*rk giving me a kiss!!!! And that is a crazy long hug!!!

Maybe he likes you in more ways than just as a co-worker

Nah, he's happily married. We've sat next to each other for about 8 years, a lot of talking over the wall.

He does know that if I hadn't retired, he would have been let go. He gave me a heartfelt thanks for that too.

 

[Sunset]

I've thought of the pros and cons of selling it now. $100k would have to generate at least 3.6% income and I would lose any increase in equity. I will keep an eye on prices in the area and would probably sell at $200k equity, which isn't unreasonable as it sold for about $75k more than that before.

You are building up a tax debt here, as since you have to depreciate the property (you save paying now probably 10%). But when you sell it, you have to re-capture the depreciation at 25% (its flat mandated rate, regardless of your marginal tax rate).
So subtract 15% of your depreciation amount from the income per year to get a more "true" number.

As for needing to generate 3.6% in stock investments, fairly easy since many pay dividends of approx 2% (at for you 0% tax rate), plus appreciation over the years of few percentage points.

 

[PamInCA]

Since the house purchase price was only $115k there's not a huge amount there. Not like a $400k house or something. Or, I could move into the house for 2 years and then sell it. When I'm ready to make that decision I'm sure I'll run the numbers. Would probably cost me more in mortgage cost and loss rental income to live in it for 2 years than to just pay the taxes.

 

[tmm99]

Nah, he's happily married. We've sat next to each other for about 8 years, a lot of talking over the wall.

He does know that if I hadn't retired, he would have been let go. He gave me a heartfelt thanks for that too.

Ah now it makes more sense. You saved his job/livelihood. I can understand his overwhelming appreciation for you.


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[Sunset]

Since the house purchase price was only $115k there's not a huge amount there. Not like a $400k house or something. Or, I could move into the house for 2 years and then sell it. When I'm ready to make that decision I'm sure I'll run the numbers. Would probably cost me more in mortgage cost and loss rental income to live in it for 2 years than to just pay the taxes.

Sure that could be a plan:
"If you rented out your property when you bought it, but if you then live there for two years before you sell it, you can claim a portion of this exclusion if you owned the property for at least five years. Your exclusion is reduced by the amount of time the home served as an investment property. For example, if you owned the property for eight years, rented it out for six years, and lived in it for the last two years, it served as an investment property 75 percent of the time. Therefore, you can exclude 25 percent of your gain from taxation."

Not sure it protects the depreciation recapture which you are building up at $4,250 per year of rental.