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FIRECalc- Part-time work before full-time retirement
Old 02-15-2014, 12:19 PM   #1
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FIRECalc- Part-time work before full-time retirement

Hi. My job becomes more difficult by the day, and the specter of being laid off due to a relocation looms within the next year. I am earning a good wage, and it is one of the few things causing me to stay in my current job.

I currently have about 85% of the total investment portfolio value that I would need to FIRE with 95% success rate, based on FIRECalc.

My thought was this, stick it out in my present job for a year, then work part-time or full time in a lower paying but less stressful job where I would earn enough to pay my current cost of living. I compared in FIRECalc a scenario where I just worked in my current job and fully retired at the end one additional year to working in my current job for one additional year and then working three years in part time employment. I inputted the one year in current job and three years in part time scenario into FIRECalc by using the following variable changes:


Spending- no change
Portfolio- no change
Year- no change (it looks like I am supposed to use the difference in years between the current year and the year of my life expectancy for both scenarios?)
Social Security- no change (I know that the 3 years of part time work may increase my social security amount slightly)
What year retire- 2018 (one year in current job and three years in part time work)
constant spending power- no change
expense ratio- no change
total market- no change
lump sum changes to portfolio- add 30,000 2014 (that is the additional amount I will have to contribute into investment portfolio during the year I continue to work in present job)
Investigate- Display Results of Retirement Plan, the success rate of portfolio and withdrawal plan- no change

Did I set these variables up correctly for the scenario where I remain in current job for one year and then work three years in a part time/lower pay capacity? Are there any other variable changes that I should make?

Thank you for your advice.
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Old 02-15-2014, 02:24 PM   #2
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I used the Fidelity Retirement planner and my own retirement spreadsheet to run calculations with and without part time work.

We plan to work part time indefinitely at low stress, hobby jobs. I don't have any mentally challenging hobbies like chess or bridge, so I like the mental stimulation I get from working, plus the extra money.
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Old 02-16-2014, 07:00 PM   #3
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I will work full-time for another 5 years or so and then (hopefully) will work part-time indefinitely. That's the plan anyway. My current position offers the same benefits etc if I work 20 hours per week. I work from a home-based office and have a lot of flexibility. I actually really like my job. I am hoping thing are the same in five years, only time will tell .
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Old 02-17-2014, 10:47 AM   #4
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I do the par-time option, especially if you can find one that will pay you cash only!!
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Old 02-17-2014, 11:15 AM   #5
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I do the par-time option, especially if you can find one that will pay you cash only!!
Especially if it allows one to cheat on their taxes?
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Old 02-17-2014, 11:21 AM   #6
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being laid off = an unemployment check for 18 months. Why not hang on until the relocation.
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Old 02-17-2014, 11:36 AM   #7
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being laid off = an unemployment check for 18 months. Why not hang on until the relocation.
I believe congress did not extend unemployment so most states are back to 6 months:
Here's How Long Unemployment Benefits Now Last In Each State - Business Insider

6 months is still better than 0.
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Old 02-17-2014, 11:45 AM   #8
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Thanks for correcting my post. Truth is, I was never able to figure out how to get laid off in order to collect unemployment -- though I tried.
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Old 02-17-2014, 11:51 AM   #9
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Originally Posted by nico08 View Post
Hi. My job becomes more difficult by the day, and the specter of being laid off due to a relocation looms within the next year. I am earning a good wage, and it is one of the few things causing me to stay in my current job.

I currently have about 85% of the total investment portfolio value that I would need to FIRE with 95% success rate, based on FIRECalc.

My thought was this, stick it out in my present job for a year, then work part-time or full time in a lower paying but less stressful job where I would earn enough to pay my current cost of living. I compared in FIRECalc a scenario where I just worked in my current job and fully retired at the end one additional year to working in my current job for one additional year and then working three years in part time employment. I inputted the one year in current job and three years in part time scenario into FIRECalc by using the following variable changes:


Spending- no change
Portfolio- no change
Year- no change (it looks like I am supposed to use the difference in years between the current year and the year of my life expectancy for both scenarios?)
Social Security- no change (I know that the 3 years of part time work may increase my social security amount slightly)
What year retire- 2018 (one year in current job and three years in part time work)
constant spending power- no change
expense ratio- no change
total market- no change
lump sum changes to portfolio- add 30,000 2014 (that is the additional amount I will have to contribute into investment portfolio during the year I continue to work in present job)
Investigate- Display Results of Retirement Plan, the success rate of portfolio and withdrawal plan- no change

Did I set these variables up correctly for the scenario where I remain in current job for one year and then work three years in a part time/lower pay capacity? Are there any other variable changes that I should make?

Thank you for your advice.
Any chance you'll get any kind of severance package? I know companies are being unbelievably stingy these days (i.e., minimum 2 month, with a week for every year of "service"), but would it be worth your time to hang on for the free money? Alternatively, are you burned out on your field or would simply getting another job turn things around for you? Since you plan on leaving anyway, have you thought of simply mentally divorcing yourself from the "difficult" job while you're there?
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