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Should have retire 5 years earlier
Old 04-01-2017, 11:32 AM   #1
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Should have retire 5 years earlier

as i was in the accumulation stage i was putting money into a 401k/ and a 457 retirement plan, paying into my pension etc after maxing them out my take home pay after all deduction was about 50k a year from a 125 k year job, my house was paid off so my yearly expenses was about 35k a year. my pension after taxes is 84k (no inflation raises it stays there). im in vanguard for my non retirement accounts 80 % vtsax(total stock market index) 20 % intermediate bonds, the retirement funds are held in 75 % small cap 15 % international (horrible but its what i pick 20 years ago so i run with it, 10 % sp500. im 55 years old, according to fire calc as best as i could figure out. i can draw out 3 % forever from a 80/20 portfolio , ive been retired for 9 years now , last year we spent 55 000 well below the 84k i clear, looks like ill be leaving my only child a load, we tried to spend more, i spent almost 12k on the kid( gifts), he is married with a super job doesnt need or want anything , so long story short, i should have left 5 years earlier, pension would have been 61 k still well above what i spend, 5 years wasted building a nest egg we will never use, house was paid off before i retired, i live in new york, we own a 13 year old car that i bought new in 2003 it has 38k miles i tried to do a budget for a few months after we retired, but it was stupid, if i have 10 bucks in my wallet or a hundred , we spend the same.
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Old 04-01-2017, 12:20 PM   #2
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Congratulations!!

First visit a lawyer who has a speciality in estate planning. Bring in a copy of how your home and other assets are titled and their current value. Prepare wills, trust(s) and other documents.

Now is the time for you and your significant other to construct a do list for the next 10 years. Check a couple off each year.
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Old 04-01-2017, 12:27 PM   #3
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as i was in the accumulation stage i was putting money into a 401k/ and a 457 retirement plan, paying into my pension etc after maxing them out my take home pay after all deduction was about 50k a year from a 125 k year job, my house was paid off so my yearly expenses was about 35k a year. my pension after taxes is 84k (no inflation raises it stays there). im in vanguard for my non retirement accounts 80 % vtsax(total stock market index) 20 % intermediate bonds, the retirement funds are held in 75 % small cap 15 % international (horrible but its what i pick 20 years ago so i run with it, 10 % sp500. im 55 years old, according to fire calc as best as i could figure out. i can draw out 3 % forever from a 80/20 portfolio , ive been retired for 9 years now , last year we spent 55 000 well below the 84k i clear, looks like ill be leaving my only child a load, we tried to spend more, i spent almost 12k on the kid( gifts), he is married with a super job doesnt need or want anything , so long story short, i should have left 5 years earlier, pension would have been 61 k still well above what i spend, 5 years wasted building a nest egg we will never use, house was paid off before i retired, i live in new york, we own a 13 year old car that i bought new in 2003 it has 38k miles i tried to do a budget for a few months after we retired, but it was stupid, if i have 10 bucks in my wallet or a hundred , we spend the same.
Yeah, funny thing, we plan for the worst case scenarios and most likely end up with way more money than we need. Heading down that path myself but it's tough to not want to play it conservative just in case all doesn't go as planned. The good thing is you can start trying to spend more of that money on some fun : )
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Old 04-01-2017, 12:41 PM   #4
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I'm sure you'd have been just fine retiring 5 years ago too, but it will be nice to have extra cushion if inflation increases significantly, or you have substantial long term care costs. And in the worst case, you'll be able to help support some causes you care about in addition to leaving a nice amount for your son.
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Old 04-01-2017, 12:56 PM   #5
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Sounds like it's time to find an expensive hobby. Might I suggest golf or traveling?
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Old 04-01-2017, 01:05 PM   #6
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Sounds like it's time to find an expensive hobby. Might I suggest golf or traveling?
Nah, just buy a boat

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Old 04-01-2017, 01:50 PM   #7
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yeah i heard that about boats, Break Out Another Thousand,
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Old 04-01-2017, 01:56 PM   #8
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Nah, just buy a boat

Rich
Last week when I told my project team I was retiring in June, there was one guy [who happens to own a nice fishing boat] who just went on and on about how I must have saved my nickels better than him, and so on (no congratulations either). It was all I could do to not say what I was thinking, which was: "Its because I don't have a boat ". I still have to work with him for two months.
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Old 04-01-2017, 02:02 PM   #9
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Perfect opportunity to do a lot of good. Find a charity cause that you and DW find worthwhile and make an impactful donation. The choices are endless, as are the ways in which you can structure such a gift. Could be church, poverty, racial relations, politics, education, whatever.
Yes, I suppose you probably could have retired earlier. However, that;s water under the bridge, Instead of dwelling on something you can't possibly change, focus on the here and now and on the future.
And, sure enough, if a new boat turns you on, go ahead and splurge!
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Old 04-01-2017, 02:15 PM   #10
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Last week when I told my project team I was retiring in June, there was one guy [who happens to own a nice fishing boat] who just went on and on about how I must have saved my nickels better than him, and so on (no congratulations either). It was all I could do to not say what I was thinking, which was: "Its because I don't have a boat ". I still have to work with him for two months.
There is always that one guy.....
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Old 04-01-2017, 04:48 PM   #11
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No point in looking backward, only forward. Things you can do with that extra? Travel more (fly first class why not!), and support a charity. Don't think of that extra as wasted when it can still go to great use.
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Old 04-01-2017, 08:17 PM   #12
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Nah, just buy a boat

Rich
+1

Boating is a great hobby, and certainly able to consume cash faster than golf! Especially if you get those twin 350 outboard thingies

The wind is free but sails are expensive!
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Old 04-02-2017, 08:22 AM   #13
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Nah, just buy a boat

Rich
+1. That'll take care of any excess assets...

OP: Don't worry, you can't hit the age you pull the trigger just right. 30 years from now you may find you hit it just right after all. Later financially beats the heck out of too early. I wish I'd worked another 5 years, but not for financial reasons - though I change my mind once Summer hits every year (winter sucks is boring here).

Even those who say now they did hit retirement age right, can't know for sure until the end...
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Old 04-02-2017, 10:11 AM   #14
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B C G - You can't change the past, so just enjoy the future. It's great your son is doing so well. Like others have said, get more hobbies and/or find your "act of kindness" that gives you pleasure.

I'm probably in the same boat, worked more than needed but my family is more secure for that. I'm still working, not just for the financial gain, there are other reasons.
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Old 04-02-2017, 10:15 AM   #15
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OP, I'm taking this to heart. Thank you for posting. I will ask to go part time in some sort with Megacorp after the house is paid and I have about $700k investable assets. That should be in about 2+ years and I'll be 42. If I get denied, then I'll toil until maybe $1.5m and fully retire. If I get laid off, I'll work part time stocking shelves or whatever. You're right, you can't buy prime years of your life back with leftover money, although that is admittedly a good problem to have.

Anyway, you inspire me.
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Old 04-02-2017, 10:40 AM   #16
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OP - So sign up for a European River Cruise, you might as well enjoy a few moments of luxury from your stash.
We also worked/saved a bit too much for our natural cheap/frugal spending behavior.

So, we are signed up for a river cruise at a cost of $10,000 for 2.5 weeks and a Caribbean cruise with excursions $2,000 for a wk.
I've also resolved to buy nice cuts of meat, instead of finding the cheapest blade steak, which DW appreciates.
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Old 04-02-2017, 12:02 PM   #17
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Does it matter? Go spend the extra money now.
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Old 04-02-2017, 08:56 PM   #18
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I've also resolved to buy nice cuts of meat, instead of finding the cheapest blade steak, which DW appreciates.
My parents went from struggling to comfortable in their 50s, and my father's luxury was that he could buy eye round roast any time he wanted. He bought one most weeks.
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Old 04-03-2017, 01:28 AM   #19
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OP, I'm taking this to heart. Thank you for posting. I will ask to go part time in some sort with Megacorp after the house is paid and I have about $700k investable assets. That should be in about 2+ years and I'll be 42. If I get denied, then I'll toil until maybe $1.5m and fully retire. If I get laid off, I'll work part time stocking shelves or whatever. You're right, you can't buy prime years of your life back with leftover money, although that is admittedly a good problem to have.

Anyway, you inspire me.
Well said.

Forgive me as I am planning on stealing "you can't buy prime years of your life back with leftover money...".
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Old 04-03-2017, 02:01 AM   #20
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Hi Blue Collar Guy,

Just FYI. My wife and I are eligible for adoption and come fully certified for inheritances :-)

-BB
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