Would you pull the trigger

[komisarr]

Hi All,
I am 42 and seriously considering early retirement in about 6 months.
Here's my situation:
Stressed out/anxious at work, although it is not crazy hours, just soul-draining.
About $1.5M total net worth, .5M of which is in 401(k), rest in taxable acct
No family
I expect to move (closer to my aging parents who could use my help) and buy a home+car outright, spending about $150K total, with anticipated expenses of about $30K/year after that
To fill the time I plan to explore volunteering, taking classes at community colleges, spending more time on hobbies, helping parents.
My major concern is health coverage

Would you do it in my situation or try to grind it out a couple more years or look for a different job?
Thank you all, this is such a great supportive community!

 

[pacergal]

Have you priced health coverage in the area you will be moving too?
If the $30,000 year spend includes everything (taxes, healthcare, etc), it looks like you would be OK.
Will your parents be needing/expecting financial help?
Could you find another job near your new area if you needed too?
In the FAQ section, there is a post that lists several questions if you are ready to retire. I encourage you to read and answer honestly. They gave mea good reflection on what we needed to do before we retired.

 

[tominboise]

Its up to you, but 42 seems a bit young to pull the plug. Not sure what field you are in but looking for another job might be better. $1.5Mil isn't a huge nest egg with at least 40 years of life in front of you. Health care insurance is the big unknown.

 

[ugeauxgirl]

You're cutting it a little close IMO, but you've done a great job saving and you have certainly earned a break. You might consider taking a year off and then changing to a less stressful, less time consuming job. That might allow your portfolio to grow a bit before you retire for good.

 

[pb4uski]

42 is very young to pull the plug. Before you do it, you need to have more certainty that $30k a year is enough.... especially including health insurance. Also, $150k for a home + car seems a bit optimistic, but plausible in a LCOL area.

If the $150k for a home + car and $30k of expenses are solid then that would only be a 2.2% WR, which isn't bad at all.

 

[Aerides]

Your expenses need to be much more firm.

I'd do a lot more research on that home and car, deduct them from your networth now. You have a long time for your taxables to last so in your shoes I'd want 100% success of reaching 59.5 on that part alone.

your expenses would be fine if really 30k, but they are only in theory now. If it's really 50k you're in a much less attractive position. Do some digging on health sherpa for the place you plan to live to get a feel for plan premiums, with and without subsidies, since 23 years is a long gamble before medicare.

If you were someone with twice the assets and twice the expenses I'd be saying go for it, but when your expense plan is so small to begin with, you have much less wiggle room.

We're also at a high point in the market. Would you have made the same post on December 27th? (if not, then keep working for another ~2 years)

 

[joeea]

Hi All,
I am 42 and seriously considering early retirement in about 6 months.

Would you do it in my situation or try to grind it out a couple more years or look for a different job?
Thank you all, this is such a great supportive community!

You can likely afford to retire if that is really what you want.

But at your age, I'd far prefer to find a line of work that wouldn't cause you to be stressed out/anxious at work and wouldn't be soul-draining.

Depending on whatever skills you possess, I'm sure there are many jobs you could enjoy and companies/coworkers who could benefit from your help. Since salary isn't a concern, the field would be wide open for you.

At 42, half your life is ahead of you. Hopefully you can do better than just "fill the time". Life is good!

 

[Dtail]

Yeah seems a bit early to full time retire, even by this site's typical standards.
Have you checked out the potential healthcare costs in detail, including the ability to receive tax subsidies?
As others mentioned, perhaps a low stress part time job might work.

 

[HI Bill]

Hi All,
I am 42 and seriously considering early retirement in about 6 months...
To fill the time I plan to explore volunteering, taking classes at community colleges, spending more time on hobbies, helping parents.

Sound like financially, this is entirely plausible, assuming you can afford health insurance under the ACA in the state you intend to retire in.

When you started talking about 'to fill the time', I was wondering if you're retiring to escape work, rather than retiring to do something you'd really like to do. When you're done helping your parents, will the hobbies fulfill you and take up all your time? At your age, and with your assets, I'd consider working another 3 to 6 years to build up the assets, but if you have no desire to travel or spend more than $30K per year, that might be a waste of your time. Even living in a LCOL area, I can't imagine wanting to live on $30K in perpetuity. That makes it hard to take up new hobbies or travel or buy toys. Best wishes.

 

[komisarr]

Thank you all very much!!
I really appreciate the helpful inputs
It sounds like the general consensus is not to retire, but to change direction work-wise. I think I agree that is the optimal solution. I think the plan will be leaving current corporation, relocate to my parents' area and cast a wide net in terms of a new job, possibly something outside the typical corporate environment, that would either use my current skillset or allow for learning a new one. It seems I can afford a few months of searching, but not a permanent complete exit from the workforce.

Thank you all again!

 

[imoldernu]

If you're still here... you might want to peek at this... Our ER came @ age 53, 30 years ago, but with a (comparatively) lower net worth. Planned to go back if necessary, but never had to. Just learned to live happy without world travel, new cars, and like that.

http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html

Good luck!

 

[ckelly78z]

If I were single, and retiring early with a decent nest egg, I would consider living in an RV, and traveling/boondocking. Possibly working Summers in a National Park as a camper host, and living much cheaper than being in a S&B house. You may love that lifestyle, or you may hate it....it depends on what you want/need.

 

[davebarnes]

Keep your taxable income (aka MAGI) low and ObamaCare will be very affordable.
Learn the rules.

 

[RunningBum]

Thank you all very much!!
I really appreciate the helpful inputs
It sounds like the general consensus is not to retire, but to change direction work-wise. I think I agree that is the optimal solution. I think the plan will be leaving current corporation, relocate to my parents' area and cast a wide net in terms of a new job, possibly something outside the typical corporate environment, that would either use my current skillset or allow for learning a new one. It seems I can afford a few months of searching, but not a permanent complete exit from the workforce.

Thank you all again!

That sounds very reasonable. You'll also have a better handle on expenses once you move. Start really tracking expenses, and consider what the cost is to make repairs and do maintenance on the house is, how often you will replace the car (e.g., budget $2K/yr if you plan to replace the car for $20K in 10 years), how much your hobbies cost, and so on. As others have said, medical is the big wildcard. You probably will pay minimal now on an ACA subsidized plan, but will that hold for 20+ years?

It could very well be that you'd make it without working again, but at the very least you can have a nice reset, and the gap in your resume can be easily explained by taking care of your parents.

 

[pb4uski]

Thank you all very much!!
I really appreciate the helpful inputs
It sounds like the general consensus is not to retire, but to change direction work-wise. I think I agree that is the optimal solution. I think the plan will be leaving current corporation, relocate to my parents' area and cast a wide net in terms of a new job, possibly something outside the typical corporate environment, that would either use my current skillset or allow for learning a new one. It seems I can afford a few months of searching, but not a permanent complete exit from the workforce.

Thank you all again!

Think of it as a break to recharge your batteries with a move.

 

[Sunset]

OP - seems like you have a high paying job. While 42 is young to retire, which would you rather do, work 5 more years at your high paying job or work 15 more years as a Walmart greeter (oh wait they are all getting laid off).

This was the choice I thought about nearing the age to retire, that I could do a few more years at good pay , or lots more at lousy pay.

The thing is, most folks even low paid ones feel stressed out by their work, as the boss dumps his "shirt" on them. So a horror story is giving up a stressful great job for a lousy stressful job.

 

[HI Bill]

OP - seems like you have a high paying jo...which would you rather do, work 5 more years at your high paying job or work 15 more years as a Walmart greeter (oh wait they are all getting laid off).

+1!! For the past 19 years, I've considered myself a 'mercenary', doing whatever it took to get the highest salary, taking limited vacations, and saving as much as possible. For me at least, my goal has been to earn as much as possible as soon as possible (without taking breaks), to be able to retire as soon as possible. I have no desire to work much longer at a lower paying job...

 

[Col. Klink]

I share what the others have indicated being that 1.5M at age 42 is cutting it very thin. OTOH, you have plenty of opportunity with that kind of cash to consider a j*b which may not send your blood pressure through the roof. You did not indicate what your hobbies are or what classes you are interested in at the community college. However, these interests may lead to w*rk that may pay the 30K you say you will spend annually. What I am saying is that if you are willing to forego the big salary there are j*bs out there that may be consistent with your interests / passions in life. That is something to feel good about.

 

[Ready-4-ER-at-14]

OP - So a horror story is giving up a stressful great job for a lousy stressful job.

Salaried jobs do expect a lot but can have perks. Imagine a waiter, carpenter, or sales clerk saying they will work from home today and need to take off mid day tomorrow for a routine dental appointment.

Also when you could leave at any point and know you are there by choice, the power changes a bit. Spouse was asked how long she intended to work with her company as they knew we were basically independent. She said as long as I continue to enjoy working here.