FI verus RE - a Poll

[Rich_by_the_Bay]

I'll bet you could bale tomorrow too if you weren't emotionally tied to the work. Right?

Probably not quite at that point, but getting there. I don't think I'm ready to be totally retired or totally separated from the profession I've been practicing and enjoying for 33 years.

A flexible part-time scenario would be nice, earning just enough to live off of - no more retirement savings, downsize the house, upsize the RV for example .

This is kind of a fun pre-retirement state of mind to be in for the time being, especially with a little more time to visit family and less night and weekend call starting in July (that's a killer at my stage).

 

[Walt34]

It was about three or four years for me. I'd reached the "normal" retirement time - 25 years and age 48 - but was enjoying the work so much as I was in one of those rare positions that "Wow, I can't believe they're actually paying me to do this!" We had zero debt and at the time were saving about 45% of gross income.

But the bureaucracy made it hard to keep up with training and equipment/software requirements, the traffic was driving me nuts - when you work in law enforcement shooting someone over road rage is generally considered a bad career move - and when I looked at the retirement numbers I saw that if I retired my take-home pay would go up. So I was working there why? Ditto DW, who was doing financial accounting stuff for bioterrorism research and working 10-12 hr. days six or seven days a week, neck and back pain constant, collapse on the couch when she got home and all that.

So we got out of the rat race and moved to West Virginia.

 

[Bikerdude]

When I turned 52 I met the "rule of 70" requirement for early retirement. The pension and health care benefit were the last part of my plan. I sent an email to my boss on my birthday indicating I would be retiring in the next few months. After the email I was already retired in my mind .

 

[copyright1997reloaded]

I'm a long time reader (originally under copyright1997), very infrequent poster. According to FireCalc and my own spreadsheet, I'm FI. But I am not quite "retirement eligible" at megacorp (less than a year), and the pension difference is significant. This, plus a general hesitation to leave additional room for unknowns has kept me from RE. Perhaps I should do yet another one of those "Can I Reitre Now" posts?

 

[REWahoo]

Perhaps I should do yet another one of those "Can I Reitre Now" posts?

Yes. And No. Or maybe no. And yes.

 

[Dawg52]

If I could ignore health care, I would consider myself to be FI right now.

But since I can't ignore health care, that's fiction. I can't retire until next year, about one microsecond after I qualify for lifetime medical.

As soon as I was approved for an individual health care policy, I felt FI. Within a month, I gave my notice. A 2 year notice. I won't go into all that again, but that time frame gave me a chance to pad 'the number'.

 

[Alan]

Yes. And No. Or maybe no. And yes.

Same here, I used to indecisive, but now I'm not so sure

 

[hogtied]

Became FI last month when I paid the last college tuition payment of my last child. I choose not to RE in this type of economy. I'll wait it out until things look better, when it looks like we've emerged from this downturn. Have great job with great hours, great pay and benefits and the 9% 401k match is my bonus. Just turned 57.

 

[SteveR]

More than two years.

FI is a relative thing to some of us. How much is really enough to be FI? Depends. I was technically FI long before I seriously considered retiring. The amount needed to be FI kept changing over the years; usually due to changes in life-style. Sometimes up...sometimes down. I know I have more than enough for a very good lifestyle for as long as either of us live and beyond. Not Bill Gates lifestyle but much better than the average Joe. I can live with that.

Some personal issues kept me in the w*rkforce longer than I intended. The original plan was out at age 55. I made it out a year earlier than my plan but still a few years after being FI. Sometimes you have to do what you have to do.

 

[Ronstar]

It will be one nanosecond after DW's pension and health care package kick in in 1233 days. Three years also gives me time to sell my share of my business and some Florida real estate ( I hope)

 

[megacorp-firee]

In many of the careers I had at megacorp I was managing complex projects, situations, and environments. So I got used to planning my work. Many years ago I 'planned' on retiring at the 30 year mark with megacorp.
So that is what I did.

I was FI at least 3 years before I RE'ed. I was probably (never reviewed detailed numbers) there before the 2000 [-]debacle[/-] minor market correction but had to [-]RESIST PANICKING [/-] stay the course while the market righted itself But pre-2000 was way to early for me to focus on retirement so I didn't. My [-]ignorance[/-] delaying RE has actually helped me to build a bigger buffer so that I don't have to sweat any of these '2000 like minor market corrections'. (like in January for instance).

 

[firewhen]

Hard to know

I have no goal on the horizon in terms of perks to attain (pension, lifetime medical, etc.). We will have to live totally off the nest egg. So there is no specific date to reach, only a general feeling/estimation that we have enough. My hope at this point is the next president and congress will create some sort of universal health plan, which is my biggest concern at this point. The unsteadiness in the stock market has not helped.

By most measures we are FI, but I am gunning for a 2% SWR. That may seem extreme, but we would be around 2.5% now and are only in our 40s so it does not seem that bad to wait a few years and pad the nest egg. I guess by most measures I am FI but not choosing to RE (yet).

 

[cardude]

I'm still not RE, but have been FI for about 3 years now.

The bad thing is, the longer I work the more my expenses seem to go up. Just bought a new house, taking more vacations to try to get the attitude better, etc. I really want a simplier lifestyle, and I used to have one, but lately I'm going in the wrong direction it seems. Like the treadmill is speeding up on me.........

 

[megacorp-firee]

. My hope at this point is the next president and congress will create some sort of universal health plan, which is my biggest concern at this point.

You seem to have done a fine job without some president or congress creating anything for you. I would not hang my retirement on them. Rely upon what you can provide (i.e. plan for health insurance). It's a better bet IMO.

The unsteadiness in the stock market has not helped.

hmmm I like to think of the market and it's associated volitility as my friend. It has a track record of going up. Nothing I have seen presently or in the near term future seems to indicate that it will do otherwise. Sure, if you've never lived thru down markets, it can be nerve racking. If you get the right AA (for your 'sleep level') then you'll be alright.

By most measures we are FI, but I am gunning for a 2% SWR. That may seem extreme, but we would be around 2.5% now and are only in our 40s so it does not seem that bad to wait a few years and pad the nest egg. I guess by most measures I am FI but not choosing to RE (yet).

Whatever will allow you to sleep at night. I see nothing wrong with having a buffer... in fact I (inadvertently) built one myself. I find myself so mellow that I think I'm back in the 60's. O0

 

[Meadbh]

I became FI after an inheritance but continue to work. Without the inheritance, I would not have been FI for at least another decade. It took a while to get it into my head that I now had options. Psychologically, I was not ready to RE at that time so I began some long term planning. I'm glad I did, because the gyrations in the markets would otherwise make me feel a bit queasy, given that I will not have a pension. I have actually become more LBYM since receiving the inheritance, because I now have a goal and don't want to jeopardize it. All told, the time between receiving the inheritance and RE is estimated to be 7-8 years.

 

[megacorp-firee]

I'm still not RE, but have been FI for about 3 years now.

The bad thing is, the longer I work the more my expenses seem to go up. Just bought a new house, taking more vacations to try to get the attitude better, etc. I really want a simplier lifestyle, and I used to have one, but lately I'm going in the wrong direction it seems. Like the treadmill is speeding up on me.........

hmmm seems like you have met the enemy and he is YOU.
IMO, easy or hard to fix ... it's up to you.

 

[megacorp-firee]

I became FI after an inheritance but continue to work. Without the inheritance, I would not have been FI for at least another decade. It took a while to get it into my head that I now had options. Psychologically, I was not ready to RE at that time so I began some long term planning. I'm glad I did, because the gyrations in the markets would otherwise make me feel a bit queasy, given that I will not have a pension. I have actually become more LBYM since receiving the inheritance, because I now have a goal and don't want to jeopardize it. All told, the time between receiving the inheritance and RE is estimated to be 7-8 years.

Would taking the inheritance and purchasing your own pension (the A word) help take the volitility worries out of your life? I have found that my pension is a huge help in easing my pain.

 

[cardude]

hmmm seems like you have met the enemy and he is YOU.
IMO, easy or hard to fix ... it's up to you.

LOL. Good point. I'm pretty sure it's fixable..........

 

[Rich_by_the_Bay]

As of the moment, over 60% of respondents waited more than a year after FI to RE, of whom 2/3 waited over 2 years.

Sometimes we seem like a real "take this job and shove it" group, but the poll suggests that most of us have been more than cautious.

 

[REWahoo]

As of the moment, over 60% of respondents waited more than a year after FI to RE, of whom 2/3 waited over 2 years.

Sometimes we seem like a real "take this job and shove it" group, but the poll suggests that most of us have been more than cautious.

Let me guess - your logic goes something like this: Since a majority waited one to two years after FI to R, I'll be conservative and double it. Once I get there I'll see if I'm ready...or if I need to wait just one more year.

 

[Notmuchlonger]

As of the moment, over 60% of respondents waited more than a year after FI to RE, of whom 2/3 waited over 2 years.

Sometimes we seem like a real "take this job and shove it" group, but the poll suggests that most of us have been more than cautious.

My guess for some people its hard to give up something you have been doing for a good deal of your life. My wife does patient care and she loves it. I have never meet someone who truly loved going to her job every day. I have a feeling she will not retire the day we are FI which is getting fairly close now.

 

[Rich_by_the_Bay]

Let me guess - your logic goes something like this: Since a majority waited one to two years after FI to R, I'll be conservative and double it. Once I get there I'll see if I'm ready...or if I need to wait just one more year.

Thank you for caring so consistently and so often .

I'm glad the issues which make it a non-straightforward decision for me (and apparently lots of others) are by and large positive. I've heard from some who FIREd abruptly for reasons beyond their control - even when it works out well in the end, that can't be fun.

 

[REWahoo]

Thank you for caring so consistently and so often .

Mia culpa.

Of course I'm hoping my [-]harassment[/-] reverse psychology will [-]goad[/-] influence you in making the move to your next life sooner rather than later...

 

[chinaco]

Let me guess - your logic goes something like this: Since a majority waited one to two years after FI to R, I'll be conservative and double it. Once I get there I'll see if I'm ready...or if I need to wait just one more year.

It makes sense to wait a bit or ease into it for some people.

The last piece of FI fell into place when DW took a buyout and got retirement health care. But I am waiting a few more years.

Why am I waiting? Because I can officially ER at 55 and take the pension and qualify for retirement health insurance. Plus waiting a couple more years increase my pension amount. Those are financial reasons. One the emotional side, I have been planning 55 for quite awhile and I am not prepared to take the leap yet.

As an alternative, I could quit and just get my pension at 65. But waiting till 55 makes my financial position for ER much more solid (chances of going bust and back to work because of money need is practically non-existent).

Of course, I have my short-timers calendar to keep me sane. The way I look at it is: If I hang in there for a couple more years I get a big bonus bonus. It make sense to me.

 

[Meadbh]

Would taking the inheritance and purchasing your own pension (the A word) help take the volitility worries out of your life? I have found that my pension is a huge help in easing my pain.

That's an interesting idea which I hadn't seriously considered but will look into. It would mean losing control of ~50% of my NW and annuity fees for 40 years might not be my cup of tea. All in all, I don't think it fits my risk profile and need for [-]total domination [/-]control.



However, as outlined in the article beginning on page 23 http://mdm.ca/content/Strategy/PDF/strategy.pdf I could establish an Individual Pension Plan through my corporation rather than through the inheritance. This may be worth considering: thank you MCF for the idea!