How did you handle the period from FI to FIRE?

[RetireAge50]

OP here. Currently, we plan to retire in two years at 55, with a few conditions: (1) my son gets out of college and is gainfully employed, (2) the market is not lower than it is, (3) there is a reliable place to buy health insurance, (4) we are healthy.

I don't know what we may do in two years. But I think I can handle my work for two more years.

Or you could say [insert favorite expletive] it and just retire now. You only live once and your conditions may never happen.

 

[googily]

Or you could say [insert favorite expletive] it and just retire now. You only live once and your conditions may never happen.

+1. You Never Know.

 

[Scuba]

For me reaching a FI didn't happen at a moment in time. Was a more gradual realization that I was "there". "There" moved a bit over this period as well. If having $x dollars meant I was "there", wouldn't if be better to have 1.5$x?



This happend in my early 50's and one thing happened for sure. It became more difficult to get motivated at work. Took about 3 years to effect retirement at 56.

+1
My experience was similar. I had a large financial incentive through my former employer to remain there through a certain date. As the date approached, I realized I was ready not only financially but also emotionally. I gave notice shortly after my incentive cleared and ER'd at 56 about 10 months ago. Life is good!

 

[coalduck]

Longest three days of my life. [emoji3]

 

[Toocold]

I've been FI since 2 years ago, and have yet to RE. I like my job so I am in no hurry to RE. I have a tentative date and an "official" plan for 2020 before I turn 50. I am somewhat ambivalent if I were to get laid off.

My personal struggle is my internal need to always shoot for the next promotion (resulting in more work) and tampering those feelings with my logic that tells me another promotion is no longer necessary and I should ramp down my career.

 

[brett]

We reviewed all of our finances in terms of who was handling our investments etc. right down to bank charges. We selected a new investment council because we were not happy with our previous arrangement. We moved most business away from our bank in favour of on line banks, etc. who has higher interest etc. We consolidated our accounts to make management easier and more straightforward. Reviewed our credit cards.

We made the decision to downsize and began to think of what stays, what goes. We did no buy any new items for our home and we planned out the mtce we needed to do in order to sell...mostly paint. All 25 gallons in the end. We started redoing some of the rooms were were not using. We went thought the house to discard items and sell others in order to de-clutter.

We spent some time deciding what we wanted to do after selling but remained flexible in case the sale or closing might be extended. We followed the currencies and travel opportunities in some of the countries high on our list.

We worked with our accountant to complete some tax planning that went 3 years out. Then did some tweeking with our investment counsel. We rolled these forward each year based on good advice. We updated our wills, POA's etc.

We moved as much personal business as possible from snail mail to email. This actually took more time than I thought. We still have a few pesky items that have to come through the mail.

We kept these plans in the forefront since I had no intention of FIRE without receiving a termination package from my employer. After a few years it came quite suddenly and quite quickly. I had a months notice. We then put our plans into high gear. A month or so later it became reality. A few months later house was sold, items in storage, we were homeless, and our world changed. It was a wonderful feeling. The financial prep and changes that we made prior to FIRE, after FI have made a significant difference to our net worth and our our comfort with the investment/risk situation.

 

[48Fire]

For those who are FIREd, how did you handle the period from FI to FIRE?

Well, it only lasted 2 weeks for me I was planning it for a while, and pulled the trigger after a few days of consideration.

 

[Midpack]

It was a very good time in my career. I felt free to speak up and say the things the entire team was thinking but that management or clients did not want to hear.... after all, the worst that could happen was that they would fire me and so what....... and they loved the candor and I was in more demand than ever.

+1. I was always pretty outspoken, but even more so during the 6 year period between FI and ER. I wasn't belligerent or disrespectful, just even more candid. And though I was somewhat bored with my job/career and tired of Corporate, I was very well paid, worked a long time to reach that position, and was able to easily handle anything that job could ever throw at me. Why not collect a $ cushion?

And I also put even more effort into developing as many of my qualified people to advance inside our location as well as other locations or Corporate. I took great pride in having more of my peeps promoted than my peers, some of them thank me to this day.

I expect to live into my 90's, 6 years is nothing in the overall scheme of things - I consciously reminded myself of same when I got antsy near the end of my career.

 

[Closet_Gamer]

OP here. Currently, we plan to retire in two years at 55, with a few conditions: (1) my son gets out of college and is gainfully employed, (2) the market is not lower than it is, (3) there is a reliable place to buy health insurance, (4) we are healthy.
I don't know what we may do in two years. But I think I can handle my work for two more years.

A few thoughts...

Regarding #2...perhaps "stress test" your portfolio. If your equity components dropped 20%, are you still FI? 30%? 40%? If so, I think you can safely set restriction #2 to the side. You could also adjust your AA to make an equity market correction (bust) less impactful.

On #3...given the state of things, that could be true when you FIRE and not true a year later. Seems like you should set that one aside and live life.

On #4, that seems inverted...if you're not healthy you may need/want to not work to focus on your health. If you are healthy, enjoy the FIRE.

Can't speak to #1...that's family stuff and the older I get the less inclined I am to offer advice on that front!

 

[brett]

I was in no rush between FI and FIRE. As it turned out those four years were some of the highest earnings years for me because of performance bonuses on P&L performance.

These bonuses significantly enhanced my termination settlement and my DB since bonuses were included in pensionable income in our plan. So I was not sitting around yearning to get out. I wanted out but was not about to do anything silly like quit. It was also different for me since the person that I reported to was 2000 miles and two time zones away.

It took a year or so after reaching FI for it to actually sink in that I was ready and able to go. It changed my attitude. I worked just as diligently however the noise level things than may have bothered me in the past ceased bothering me.

 

[Nightcap]

I had lunch.

 

[flyingaway]

A few thoughts...

Regarding #2...perhaps "stress test" your portfolio. If your equity components dropped 20%, are you still FI? 30%? 40%? If so, I think you can safely set restriction #2 to the side. You could also adjust your AA to make an equity market correction (bust) less impactful.

On #3...given the state of things, that could be true when you FIRE and not true a year later. Seems like you should set that one aside and live life.

On #4, that seems inverted...if you're not healthy you may need/want to not work to focus on your health. If you are healthy, enjoy the FIRE.

Can't speak to #1...that's family stuff and the older I get the less inclined I am to offer advice on that front!

On #2, I just reached FI. In two years, I don't know where the market is going. If it is lowers, maybe I should keep working.
On #3, according to the current rule, I will be eligible for buying my current employer's group insurance for around $16,000 a year (the current year price) in two years.
On #4, this may deserve another thread. If I am not healthy, I have to hang on with a reliable health insurance plan, which is my employer's. Also, lots of benefits are associated with employment, i.e., term life insurance, disability insurance, etc. I am just basically FI, larger medical expenses might put me backwards from FI.

 

[green night]

Interesting thread and I'm in this transition right now. FIRE is just a few months away.

Job kind of sucks right now but it's mostly my ego that is suffering. I was moved under someone incompetent and I could have had that role but my early retirement plans have spread through the org. And I didn't take any proactive steps for the role. I didnt want it mostly do to what is truly required for the role to be successful as well as I've been positioning for a package. And I'm in a project /temporarily role that is not a permanent headcount.

Still working for some dude that is incompetent is something new for me.

I am more candid as others have said. I spend a lot time checking my retirement model for errors and sensitivity.

I also keep thinking that if I worked a few more years we could afford a kickass retirement house instead of going for just a nice place.

I guess the short of it is that I'm a little nervous for the next step of our lives.

 

[CoolRich59]

The first time I realized I was close to FI, my company was acquired. I saw a lot of good people panic and jump ship because they didn't want to risk being let go. I was 53 at the time, with enough resources that I knew I could survive a few months of unemployment if it happened, so I stayed. It worked out well and I stayed there for another 6 years. It was good to have the resources to allow me to take that chance.

Not to hijack this thread, but this is just the point I've been making to my kids.

IMO, saving is not just about getting ready for retirement. Saving has the added benefit of giving you the ability to choose; of being able to make a decision based on what's best for you or what you want to do, instead of being "driven" into a decision because you can't afford to go without a paycheck for any period of time.

 

[Mdlerth]

...working for some dude that is incompetent is something new for me.

You must lead a charmed life. I bet most people would say it's the norm.