Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Feedback on my final OMY plan
Old 08-09-2018, 08:28 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,562
Feedback on my final OMY plan

I have been here 4 years, and have attempted ER twice. My financial fears get in the way, especially with respect to health insurance fears. So, I need feedback on whether or not I am good to go next year:

I am a hospitalist pediatrician. In 2014, I had about $3M in assets total, and quit working full time. The group and the area I work in have had physician shortages, so I was begged into working on a contract basis on and off for a couple of years. From July 2016 to July 2017, I did not work at all. It was great. However, health insurance costs are frightening in PA. For two of us, we were paying $22000/year in premiums alone. It would have hit $28K/year this year.

The group I worked with suddenly got assigned to take over another unit, with no time to hire new full time physicians. I was called and asked if I would come back to work, in an are that I enjoyed, but my skill set was rusty. I went back, got benefits, which means HI costs are minimal. And DS gets on our health insurance one last year.

I'm trying to put away about 2 years expenses in cash before quitting, by not reinvesting dividends and saving extra earnings in cash vehicles. It's been difficult due some car expenses, appliance failures, roof replacement, and other expenses. I'm about halfway there and see more savings then spending in the next year.

Where I am at:
Investments:
$950K in IRA ( I rolled my 401K into an IRA when I quit full time 4 years ago)
$64K in inherited IRA (need to w/d $3K/year minimum)
$2.35M in after tax investments 60/40
$80K-$100K cash assets
Other asset: 1/4 share of an orchard, nets about $4K/yr for me, but for the next few years will net $0 as we change out tree types. Value of my share is about $100K.

Debt: $75K on a HELOC--paid for roof, new deck, and solar installation. Needs to be paid off in 2024.

I don't count paid off house at this time ($300K-350K) as we don't want to move.

budget is about $70K/year + HI, so about $100K/year if we pay for HI ourselves.

I-ORP and FireCalc say I'm fine.

My plan: Work through next summer, giving the group time to find another pediatrician to replace me--it took 14 months to finally be fully staffed!
Save as much as cash as I can--no plans to replace cars in the next 3-4 years, and travel will not be too expensive, and is figured in our budget.

After retirement plans: We have several things we want to do travel-wise, so travel budget will be $10-15K/year, sometimes less, sometimes more.
DH makes about $5K/year in music. My orchard makes about $4K/year.

I hope to get a degree in music performance and start teaching in my home again. There are several schools in our area that will work for this, and will fit in our annual budget.

I would like to quit sooner, but would like to build up the cash first. I'm planning on giving notice at the end of this year, with a flexible end date so that the partners don't get over-worked again, but can quit as soon as someone is credentialled and trained.

What do you all think?
__________________

EastWest Gal 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!

Old 08-09-2018, 08:58 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 44,054
Quote:
Originally Posted by EastWest Gal View Post

What do you all think?
Two thoughts...

1. "Final OMY Plan" = oxymoron

2. You were probably good to go in 2014, you are good to go now, and you will be good to go at the end of the year - when you will probably decide to work OMY.
__________________

__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 08-09-2018, 09:34 AM   #3
Full time employment: Posting here.
flintnational's Avatar
 
Join Date: Mar 2008
Location: Atlanta Suburb
Posts: 803
You will be at or below a 3% WR. And, I assume SS in the future? So, you know the answer. But sometimes you just have to jump. It will be great. And as I have mentioned in other threads, shortly after fire you will wonder why you did not leave sooner. Congrats.
__________________
"Oh, twice as much ain't twice as good
And can't sustain like one half could
It's wanting more that's gonna send me to my knees" - John Mayer
flintnational is offline   Reply With Quote
Old 08-09-2018, 10:30 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,562
Of course SS in the future.
EastWest Gal is offline   Reply With Quote
Old 08-09-2018, 10:38 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 1,297
Quote:
Originally Posted by EastWest Gal View Post
Of course SS in the future.
Need to go now. At an effective <3%WR with SS, you are in a safety zone which has worked 100% of the time in the past.
Free time can't be measured.

Just played 2 hours of pickleball with 5 other retirees today. It is Thursday and we are NOT working................
__________________
TGIM
Dtail is offline   Reply With Quote
Old 08-09-2018, 11:05 AM   #6
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,685
If you are truly enjoying the w*rk, then go with your plan. If not, I would tell them NOW that they should start looking for your replacement and leave when they are on board. You could offer to stay on part-time for a period if that would help (or not). Remember that it is YOUR decision how to spend your time now that you are FI.

I know the HI is scary, but if you have budgeted for it, then it's just another expense.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 08-09-2018, 11:05 AM   #7
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,685
If you are truly enjoying the w*rk, then go with your plan. If not, I would tell them NOW that they should start looking for your replacement and leave when they are on board. You could offer to stay on part-time for a period if that would help (or not). Remember that it is YOUR decision how to spend your time now that you are FI.

I know the HI is scary, but if you have budgeted for it, then it's just another expense.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 08-09-2018, 11:29 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 2,035
Agree with other posters. Sounds like youíre financially ready and just need to be emotionally ready. Best wishes!
Scuba is offline   Reply With Quote
Old 08-09-2018, 12:35 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,562
Quote:
Originally Posted by MBAustin View Post
If you are truly enjoying the w*rk, then go with your plan. If not, I would tell them NOW that they should start looking for your replacement and leave when they are on board. You could offer to stay on part-time for a period if that would help (or not). Remember that it is YOUR decision how to spend your time now that you are FI.

I know the HI is scary, but if you have budgeted for it, then it's just another expense.
Health insurance cost more than doubled from 2015-2018. Given the political climate in early 2017, I wasn't sure it would even be there. I just need to budget for a new reality. Yes, it can be done. I feel more emotionally ready now. Before I was just tired and burnt out.
EastWest Gal is offline   Reply With Quote
Old 08-09-2018, 01:25 PM   #10
Recycles dryer sheets
 
Join Date: Dec 2017
Location: Honolulu
Posts: 328
IMHO, you're more than financially ready, but not mentally ready! Do you have something to retire TO? Hobbies? You said you enjoyed your couple of years off. How does spending the rest of your life that way sound? No need financially for OMY, unless you want to.
HNL Bill is offline   Reply With Quote
Old 08-09-2018, 02:30 PM   #11
Recycles dryer sheets
Floridatennisplayer's Avatar
 
Join Date: May 2014
Posts: 182
How old are you?
__________________
Ohio/Florida
Floridatennisplayer is offline   Reply With Quote
Old 08-09-2018, 03:11 PM   #12
Recycles dryer sheets
swakyaby's Avatar
 
Join Date: Feb 2011
Location: Northern Cal
Posts: 310
Quote:
Originally Posted by Floridatennisplayer View Post
How old are you?
A good question.
swakyaby is offline   Reply With Quote
Old 08-09-2018, 03:16 PM   #13
Thinks s/he gets paid by the post
GalaxyBoy's Avatar
 
Join Date: Jul 2009
Location: The Beautiful Blue Ridge Mountains
Posts: 1,183
Indeed. How many years to Medicare?

In any case, I’d retire.
__________________
If you push something hard enough, it will fall over ó Fudd's First Law of Opposition.
GalaxyBoy is offline   Reply With Quote
Old 08-09-2018, 03:25 PM   #14
Recycles dryer sheets
Floridatennisplayer's Avatar
 
Join Date: May 2014
Posts: 182
Itís all about 3 things:

How much money do you have?

What are your annual expenses?

How many years do you need it to last?


Canít figure it out without your age.
__________________
Ohio/Florida
Floridatennisplayer is offline   Reply With Quote
Old 08-09-2018, 03:44 PM   #15
Recycles dryer sheets
Floridatennisplayer's Avatar
 
Join Date: May 2014
Posts: 182
I meant what are your annual expenses minus your annual income in retirement such as Social Security annuities pension payments
__________________
Ohio/Florida
Floridatennisplayer is offline   Reply With Quote
Old 08-09-2018, 04:11 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 18,609
Quote:
Originally Posted by EastWest Gal View Post
....What do you all think?
Here is what I think:

($950k + $64k +$2,350k + $80k) = $3,444k.... * 3.5% WR = $120k... $120k>($100k + $10-15k for travel)... and all that ignores SS.... = retire now.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 08-09-2018, 04:13 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 18,609
Quote:
Originally Posted by MBAustin View Post
..... I know the HI is scary, but if you have budgeted for it, then it's just another expensethe cost of freedom.
FIFY
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 08-09-2018, 04:29 PM   #18
Recycles dryer sheets
 
Join Date: Feb 2018
Posts: 67
Health insurance costs will be sketchy today as well as 5 years from today. Definitely something you have to mentally make peace with and budget for. Thats about all you have control over except managing your AGI for potential subsidies. You seem to have plenty of funds in a taxable account to manage AGI if you choose to do so.
Conundrum is offline   Reply With Quote
Old 08-09-2018, 05:20 PM   #19
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,562
I'm almost 59, DH is the same age. 6 years to Medicare. And if the orchard and DH don't make too much money, cap gains distributions and dividends will keep me just under the cliff. If I have to sell assets, some of the equities have been there a long time, and the cap gains put us over the ACA cliff. So I'm building up the cash to give me the ability to stay under the ACA cliff. It looks like the ACA will be around awhile; I wasn't so sure in 2017 when I decided to go back to work for benefits.
EastWest Gal is offline   Reply With Quote
Old 08-09-2018, 05:24 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 18,609
If you have Roth money you may be able to use Roth withdrawals to avoid going over the cliff.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski 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
OMY Calc idea prototype - feedback request. petershk FIRE and Money 9 11-23-2015 08:07 PM
The ultimate OMY plan Rick_Head Other topics 0 03-03-2015 05:07 PM
Mid year review of my OMY plan fh2000 FIRE and Money 3 07-04-2014 01:25 PM
Final Gut Check...Feedback? REattempt FIRE and Money 21 07-18-2011 08:20 AM


 
All times are GMT -6. The time now is 12:25 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.