Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Trying to Decide When to go
Old 12-15-2006, 07:28 AM   #1
Full time employment: Posting here.
bruce1's Avatar
 
Join Date: Aug 2004
Location: Hagersville
Posts: 793
Trying to Decide When to go



I am currently spending about $2500 monthly and am in Canada so medical is out of my hands. I have supplemental drug and dental that will continue in all scenarios.
Single and age 53. Home is free and clear no debt anywhere. I have about $350 Monthly income outside my J@b that would continue in retirement. I have a good emergency fund and 200K invested.


I have three Choices.

One - Keep on as currently working till Sept 2008 which is a four day week, ten hour day with a one hour commute each way. The evening commute is rotton frustrating and miserable.

Currently clearing $3700 a month no overtime no weekends. Bored to tears. No real pressure but no motivation to get up and come to work.

In Sept 2008 I will qualify for $2975 pension after tax.


Two - Leave in Apr 2007 at which time I would receive $2575 monthly or $400 less than Sept 2008.


Three - Go to a three day eight hour per day week. I would take a big hit pay wise and go down to clearing just under $2300 monthly but would be working three short days. I would have to commit myseklf to staying until Sept 2008 and then I would receive the same pension as if I had worked the next twenty months full time or $2975 clear monthly.


The extra money would be nice but I am finding it harder and harder to rise and shine in the morning. Do you think the shorter and less days would be enough to get me through?

Other adviceor ideas?

Bruce
__________________

__________________
I wish I was half as good as my dog thinks I am!
bruce1 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!

Re: Trying to Decide When to go
Old 12-15-2006, 07:58 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,003
Re: Trying to Decide When to go

The extra money would be nice but I am finding it harder and harder to rise and shine in the morning. Do you think the shorter and less days would be enough to get me through?

At a quick glance, the 8 hour/3 day workweek sounds like a nice compromise, but it just depends on your personality. In my case, if I were that close to being able to retire, I think working a 3 day week would still be just as aggravating. It might feel better at first, but as I adjust to it, I'll just resent the days that I am at the office all that much more.

Some people are better suited to gradually phasing work out, but I think I'm more of the type where I'd rather just get to the point I can quit totally, and "reset" myself. And then, if I decide at a later date that I want to do the W-word, I'll go job hunting.

I dunno...could you try going to the 3 day work week and then, if you find out that it's not what you thought it would be, go back to the 4 day/10 hour week? Or would you have to commit to the 3 day work week until the end of the line?
__________________

__________________
Andre1969 is offline   Reply With Quote
Re: Trying to Decide When to go
Old 12-15-2006, 11:41 AM   #3
Confused about dryer sheets
 
Join Date: Aug 2006
Posts: 1
Re: Trying to Decide When to go

Bruce1, can you take leave without pay for 20 months, live on some of your $200K, and make yours and your employers pension contributions so you would retire with the full $2975 per month pension?
__________________
Maritimer is offline   Reply With Quote
Re: Trying to Decide When to go
Old 12-16-2006, 05:39 AM   #4
Full time employment: Posting here.
bruce1's Avatar
 
Join Date: Aug 2004
Location: Hagersville
Posts: 793
Re: Trying to Decide When to go

Quote:
Originally Posted by Maritimer
Bruce1, can you take leave without pay for 20 months, live on some of your $200K, and make yours and your employers pension contributions so you would retire with the full $2975 per month pension?
I may be able get leave without pay for a year but I would have to have a good reason since we are short bodies at the present time due mainly to retirements earlier in the year. The people I work for are not stupid, just short sighted. They have done nothing to replace the people who retired last spring let alone plan for me not being there. They know that I reach full pension in 2008 and nobody stays after they reach full pension.

Maritimer
I am committed to the three day week if I start it and probably would adjust to it fairly quickly.

Some other part time employemnt for a few years after taking an early out and six months off would not be out of the question either.

Oh well time to do some stuff outside

thanks
Bruce
__________________
I wish I was half as good as my dog thinks I am!
bruce1 is offline   Reply With Quote
Re: Trying to Decide When to go
Old 12-17-2006, 10:46 AM   #5
Full time employment: Posting here.
 
Join Date: Apr 2004
Posts: 802
Re: Trying to Decide When to go

Bruce, from your neighbour (London), if you can work til you are ~54 like I did, you should qualify for early CPP (-30%) at 60 without penalty.

Anything below that and you will exceed your 15% contributory period dropout provision. That's usually ~ 6 years.

I would check with CPP and see exactly when you can go and base your termination on that date.

And of course at 65 OAS kicks in.
__________________
Zipper is offline   Reply With Quote
Re: Trying to Decide When to go
Old 12-18-2006, 11:40 AM   #6
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 54
Re: Trying to Decide When to go

Bruce,

Leave in April 2007. If your adjusted pension covers your living costs of $2500/month and you have an extra 200K in the bank, plus CPP (at 60) and OAS (at 65), I think you have more than enough. As long as you don't plan on increasing your spending in retirement.

By the way is covered by that $2500/month? If there are work costs in there you might be able to live on less. Even without the pension that 200K would almost carry you all the way to 60 for your current costs.

Hope that helps,
CF

__________________
Warming up to FIRE while trying to avoid the cold!
Canadian FIRE is offline   Reply With Quote
Re: Trying to Decide When to go
Old 12-18-2006, 06:18 PM   #7
Full time employment: Posting here.
bruce1's Avatar
 
Join Date: Aug 2004
Location: Hagersville
Posts: 793
Re: Trying to Decide When to go

Thanks for the input.

I think I am going to have a CPP penalty unless I work till 57 since I already have three low/no contribution years from early when I was in collage and yonderiing. I will check as it is a good thing to know.

Not too much in the way of work costs other than commuting at $425 month but half that will probably continue when I am reitred. Lunches/coffee are about $125 a month and probably will go down but I am not counting on it. Clothing will drop a little but not much.

I have asked our personnal department a few questions about my options and should hear back from them by the end of the week. WE will be having aretiremetn seminar in January and I am holding off on a decision till then but am gathering all the info I can.

Bruce
__________________
I wish I was half as good as my dog thinks I am!
bruce1 is offline   Reply With Quote
Re: Trying to Decide When to go
Old 12-19-2006, 12:55 PM   #8
Thinks s/he gets paid by the post
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 4,384
Send a message via Skype™ to kcowan
Re: Trying to Decide When to go

Bruce the other thing you can do with the 3 day approach is to practice ER because you will have 4 days for you. If your employer is short-sighted and short-staffed, perhaps you can extract some additional concessions as well.

I would go for the full pension because you will then have a comfortable buffer in case of unforeseen events.
__________________

__________________
For the fun of it...Keith
kcowan 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
How do you decide you've saved enough? spitting_llama Young Dreamers 25 07-13-2007 02:28 PM
How do you decide whom to marry? (Re: if you had only known...) soupcxan Other topics 95 01-24-2007 02:10 PM
MOVED: Questions to ask to help decide...where Cut-Throat Life after FIRE 0 09-21-2006 06:33 PM
Trying to decide when/how to leave my company...(LONG) thefed Other topics 49 07-31-2006 07:23 AM
Trailer Home with Land or Small House...You Decide daystar Young Dreamers 18 12-04-2004 10:20 AM

 

 
All times are GMT -6. The time now is 08:00 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.