Trapped in OMY land

[Scarecrow]

Hello all.

I'm one of those notorious lurkers, decided to come in from the cold. I'm an avid reader/watcher/listener of all things personal finance. I just finished year one of OMY syndrome, gearing up to start year two of OMY.

I attribute my interest in personal finance to the following:

1) I started work at 14. Not long into my first day, I decided I wanted to be an early retiree. The work itself was actually quite enjoyable to my 14 year old self (mom and pop grocery store). The problem, as I'm sure many of you can relate to, was coworkers and management.

2) Back around 1980'ish, there was one TV in our house. Mom and Dad controlled the dial, so we kids watched what Mom and Dad watched. One show they watched was "Wall Street Week with Louis Rukeyser". They didn't watch for financial reasons, they had government / megacorp pensions and benefits, and could literally not save a dime, and still have a middle to upper middle class lifestyle until the end. They watched for the witty comments of the host. I, on the other hand, watched with rapt attention, thinking "Tell me more of this thing you call financial independence". The downsizing / benefit cutting mania was starting to really get going then, so I knew my ride to retirement would not be nearly as smooth.

3) In my early 20's, I picked up a magazine called "Changing Times" at the news stand. Anybody remember "Changing Times"? Somewhere along the way, the name was changed to "Kiplinger's Personal Finance". I don't remember now why I picked up the magazine, probably some headline such as "How to retire before you die". I became a subscriber, and that magazine has helped keep me on the path to the promised land.

4) Sometime in my 20's, I stumbled across a book (probably saw it in aforementioned magazine) called "Your Money or Your Life" by Joe Dominguez and Vicki Robin. The ideas in that book exploded like a super nova in my brain (hey, I was 20 something, I was still quite impressionable).
The book is somewhat dated now, but I would still recommend it to any current 20 somethings just starting out. I found it to be life changing.

Well, I've rambled on too long here, sorry for the long post. I thought I might fit in at this community. I sure don't fit in with my "shop til you drop" coworkers...

 

[dirt_dobber]

welcome aboard. I was in OMY mode for 4 years and found this forum about 3 years ago or so. I was scared to death about jumping off and finally was pushed (laid off) Oct.13th of last year. You will get a lot of info here.

 

[rodi]

Welcome Scarecrow.

Sounds like you've entered two-more-year mode... I hope you find a cure before it turns into three-more-year mode.

Nice intro.

 

[TracyJ]

Scarecrow------------

I remember Wall Street Week fondly! I was in grad school with no money to invest but my wife and I would never miss it. We saw it on public TV in Pittsburgh every Friday night-----great show. I think it came on right after the McClaughlin report but that was the late 1970's so my memory may be foggy.

It is easy to get trapped in OMY land----I think it happens to most of us. I was stuck in it long after I had achieved a pretty good measure of financial independence. Its just hard to give up making a living and walking away from doing what you've done most of your life. What finally did it for me was the realization I wasn't getting any younger, constant reminders to myself that I no longer needed the money and complete, abject boredom with my career.

I finally pulled the trigger last Spring.

I would urge you to think a lot about what you want to do in the next stage of your life. For me (and others on this board) finding purpose, structure and motivation to achieve something more than lowering my golf score, have been the biggest challenge of retirement.

Good Luck.

 

[Senator]

Unless I missed it, you did not say your age. OMY+ at 40 is not that big of a deal. OMY+ at 62+, is starting to eat into your remaining years.

People get the idea that they are invincible. Another year will not hurt, etc. Unfortunately, your health is great for many years, then all of a sudden you decline at an exponential pace.

Keep things realistic.

 

[Scarecrow]

Senator: I am closing in on 56. My plan for decades was 55, primarily because:

a. Modest pension vests at 55.

b. Retiree health care is available starting at 55. This used to be a huge deal to me, but with ACA, not as much of an issue now. Plus, mgmt has been pecking away at our retiree health care.

c. In my earlier years, I could not stomach the thought of working at my job past 55.

d. My plans for retirement require a decent level of physical capability. The "work until you're 70 (or more)" plan was always a non-starter for me.

 

[Scarecrow]

TracyJ: Yes, the McClaughlin show was also on back then. I remember that. He's still at it, after all these years. Rukeyser died way too young, early 60's if I remember correctly.

 

[meleana]

4) Sometime in my 20's, I stumbled across a book (probably saw it in aforementioned magazine) called "Your Money or Your Life" by Joe Dominguez and Vicki Robin. The ideas in that book exploded like a super nova in my brain (hey, I was 20 something, I was still quite impressionable).
The book is somewhat dated now, but I would still recommend it to any current 20 somethings just starting out. I found it to be life changing.

Well, I've rambled on too long here, sorry for the long post. I thought I might fit in at this community. I sure don't fit in with my "shop til you drop" coworkers...

I loved that book. Unfortunately, it was my life.

 

[38Chevy454]

Scarecrow, welcome to the forum. At least you seem to use your brain and not needing one like the Wizard of Oz scarecrow. OK back to serious, have you figured out your budget needs for retirement and what your level of current assets are to support that? If so you are financially independent and you can retire if you want to. You never really say why you are still working, now past OMY into TMY. Your choice, but it seems with your strong interest in personal finance and desire to retire when younger, that now you are not following those plans? People keep working for many reasons, it does not have to be bad.

 

[Fedup]

Welcome to the forum, I loved all those 3 things you mentioned. My husband and I watched Louis Rukeyser religiously every Friday, I read Money magazine mostly, but did read a lot of Kiplinger's as well. The book Your money or your life was one of my favorites. So was the Die Broke book. You'll fit in with the early retirement thread very well.


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[Scarecrow]

38Chevy454: I have run the numbers and am satisfied with them. What is holding me back is really more family than financial. DS is finishing up senior year of college, and has now decided he wants to go to grad school, which he says will be one more year. We (myself, DW, DD) are waiting for him to finish school and get a job, which will most likely be west coast or southwest. Once he gets settled in, we would follow. We have been wanting to move anyway, looking for less winter, more nature than where we are now (midwest). Might as well move somewhat near DS. We don't have to be right on top of him, but within several hours drive would be nice.

I can't start the retirement lifestyle I want until we move, so, in the meantime, I'm thinking, gee, I can rack up another year's pay, 401k match, bonus, health insurance. Which keeps me in OMY.

 

[Eileen]

Hi Scarecrow,
Hope things are coming along. As for me, I am set to retire in about 5 months, and also find myself wondering about OMY ...for one thing the financial aspect and also enjoy the work much of the time but hate it at other times, do not like being tied to it and have not decided if OMY is needed in any way. Still a very very hard thing to decide.

 

[Sasset]

I think I too have caught the OMY virus or at least the AFMM ( a few more months) virus. After counting down for more than 2 years, I find my self rethinking the timing.I was planning on 3/1/16.

Part of it is the economy and stock prices, but part is that having taken another position that is less stressful and much fewer hours per week, why not see how it goes.

Once I hit 55 in a week (an important milestone), I will then be eligible for retiree medical benefits and have access to my 401k when I retire. It is then my choice! If it becomes stressful or the BS bucket finally spills over, I can give my notice any day I want.

I still plan on being in the class of 2016, but for now it is wait and see.

 

[meleana]

If you have a halfway decent pension and paid health insurance benefits and you can meet your expenses- and if you have a sizable nest egg that should take you into old age along with your social security when you become eligible- you would be crazy not to quit work- unless you love it.

I should be so lucky! Most of us have no pensions and no paid health insurance and that is what keeps us trudging through- hopefully not until death.

 

[DrRoy]

I was a huge fan of Louis Rukeyser and watched Wall Street Week religiously. I liked Marty Zweig a lot too. As for good investment reading and advice, I highly recommend "Your Money and Your Brain" by Jason Zweig.

 

[Milton]

Wall Street Week

Remember Gail Dudack? She was always bearish, frequently predicting sell-offs. Even a stopped clock is accurate twice a day …

 

[Hangingitup]

Kid is out of medical school and making his own salary now, wife is heathy ( knock on wood), megacorp not on the rise, 32-34x expenses saved, and still haven't pulled the trigger. Sheesh.



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[brett]

I went at 58. It has been a wonderful 4 years. Lots of travel, no worries, much better diet/health.

One of my former colleagues passed away at 67. He did OMY until he was 65. Never did take his family, grandkids on that family cruise he spoke of for the past few years.

Just heard about another colleague, slightly younger than me, who passed away suddenly this week. He was more fortunate...he had been ER'd for the past four years as well.


The way I look at it is not my age but how many healthy years I may have left and what I want to do in those years. In my case OMY was easily excluded from the decision matrix.

 

[REWahoo]

Kid is out of medical school and making his own salary now, wife is heathy ( knock on wood), megacorp not on the rise, 32-34x expenses saved, and still haven't pulled the trigger. Sheesh.

For years on this forum I'd read statements like yours and admonish the poster to face the fact we are all going to die, most of us far sooner than we hope. I gave that up after realizing far too many need a wake up call from their own serious illness or the death of someone close to them before they get it.

 

[fh2000]

For years on this forum I'd read statements like yours and admonish the poster to face the fact we are all going to die, most of us far sooner than we hope. I gave that up after realizing far too many need a wake up call from their own serious illness or the death of someone close to them before they get it.

I know this is a good advice, but how much is enough?

In my case, I have 26X. I like to keep 10% for future large purchase, kids' graduate school, and DD's wedding. That reduced to 23X. So, we are still going with me 60, DW 54 1/2 this year.

 

[Scarecrow]

Some people need an "assist" to get over to the "other side". Some years ago, my coworker (57 at the time) was planning to work until 62. Along came a downsizing, and he was "picked". He got a year's severance, and unemployment, so that really boosted him up to 58+. We exchange emails every once in a while, and he is quite happy he was tossed out the door. He even thanked the manager that fired him for giving him that push (he left on good terms, no hard feelings).
He says he has been pleasantly surprised by how little he actually needs to spend in retirement. He is always cautioning me "Don't wait to long"....

 

[Andy2]

Choosing a time is really hard, and once you get into OMY mode it it really hard to stop. There will always be a correction on the horizon, a collapse on the way. In my view you just have to focus on your expenses and when you have a decent safety margin, pull the trigger.

If the market does correct, budget till it recovers, but if you wait there will never be a "perfect" time.

 

[Meadbh]

Kid is out of medical school and making his own salary now, wife is heathy ( knock on wood), megacorp not on the rise, 32-34x expenses saved, and still haven't pulled the trigger. Sheesh.

The day I graduated from medical school, my Dad submitted his resignation letter. He had been planning for years and couldn't wait to ER. He enjoyed a wonderful decade before ill health set in. What are you waiting for?

 

[kcowan]

The day I graduated from medical school, my Dad submitted his resignation letter. He had been planning for years and couldn't wait to ER. He enjoyed a wonderful decade before ill health set in. What are you waiting for?

Wow he worked until you graduated! I suppose you were one of his major projects. Could he have retired sooner and had 20 years?

 

[kcowan]

I know this is a good advice, but how much is enough?

In my case, I have 26X. I like to keep 10% for future large purchase, kids' graduate school, and DD's wedding. That reduced to 23X. So, we are still going with me 60, DW 54 1/2 this year.

So your DW is good until age 77 plus any net returns on your portfolio? Or do you have pensions too?