Senator
Thinks s/he gets paid by the post
I am always trying to find the ‘right’ time to pull the plug. Where do you folks that retire early get the courage to just walk away from a good paying job?
My situation is this. 54 years old. No kids. House paid off. No debt. Healthy as an ox. A girlfriend who has been with me for a very long time and who is 11 years younger. She will work for another ~5 years after I retire, then we will move to a warmer climate. She also has ~$500K in assets and a decent pension at 65.
I have a great technical job, over $100K per year, with a 401K match and a pension. I max out my 401K every year ($23K) and get ~$4K in a match. I max out my Heath Care saving account ($3K). Save $6,500 in a Roth every year. My pension at 65 yrs. old will be ~$1100 a month, more if I keep working. I take in 10% VA Disability of $131 a month, with COLA, for the rest of my life, and that includes free VA health care. Social Security at 70 years old will be ~$2800 per month.
My portfolio value is $880K, with about 2/3 in retirement accounts. The goal is to have over $1M by the end of 2014, which should not be a problem as I can save over 10K per month. I have 24 rental units across 7 buildings that generate ~ 295K per year in gross rents. There is another ~65K per year in hard expenses (taxes, utilities, Assn dues), and another ~65K per year in soft expenses (vacancy, management, maintenance). Mortgages (P&I) are ~54K a year. The properties cash flow over $100K per year. I currently do my own maintenance and management. There is about $1.3M in equity between them, as three of the buildings are paid off.
I also pick up some part time work, which generates another ~$15K per year in my spare time. Most of the income I intend to keep for a few years after I retire from my real job. At some point, I intend on moving to a warmer state, which will require hiring a property manager, or doing a 1031 exchange. Then I will lose most, if not all, of the part-time income and the rentals will not generate as much cash flow.
My personal expenses are only $45K a year, max. Even accounting for a spending splurge once in a while, I should have more than enough income to retire now. I plan on maxing out my 401K in 2015 and 2016, getting the company 401K match, and retiring in the spring of 2016. I could probably bail now, but I want to hedge myself even more. But I am also feeing the desire to work less than 80+ hours a week.
Even with all of these income streams and assets, I get nervous about pulling the plug. Once I leave, it will be near impossible to come back after a few years. I don’t want to have to live in my own apartments, even though they are fairly nice. I have run many income planners, all come out well, except when I do some input incorrectly, which only increases the hesitation (what if it was really right…?).
What thoughts went through your heads when making the decision to retire and leave the workforce?
My situation is this. 54 years old. No kids. House paid off. No debt. Healthy as an ox. A girlfriend who has been with me for a very long time and who is 11 years younger. She will work for another ~5 years after I retire, then we will move to a warmer climate. She also has ~$500K in assets and a decent pension at 65.
I have a great technical job, over $100K per year, with a 401K match and a pension. I max out my 401K every year ($23K) and get ~$4K in a match. I max out my Heath Care saving account ($3K). Save $6,500 in a Roth every year. My pension at 65 yrs. old will be ~$1100 a month, more if I keep working. I take in 10% VA Disability of $131 a month, with COLA, for the rest of my life, and that includes free VA health care. Social Security at 70 years old will be ~$2800 per month.
My portfolio value is $880K, with about 2/3 in retirement accounts. The goal is to have over $1M by the end of 2014, which should not be a problem as I can save over 10K per month. I have 24 rental units across 7 buildings that generate ~ 295K per year in gross rents. There is another ~65K per year in hard expenses (taxes, utilities, Assn dues), and another ~65K per year in soft expenses (vacancy, management, maintenance). Mortgages (P&I) are ~54K a year. The properties cash flow over $100K per year. I currently do my own maintenance and management. There is about $1.3M in equity between them, as three of the buildings are paid off.
I also pick up some part time work, which generates another ~$15K per year in my spare time. Most of the income I intend to keep for a few years after I retire from my real job. At some point, I intend on moving to a warmer state, which will require hiring a property manager, or doing a 1031 exchange. Then I will lose most, if not all, of the part-time income and the rentals will not generate as much cash flow.
My personal expenses are only $45K a year, max. Even accounting for a spending splurge once in a while, I should have more than enough income to retire now. I plan on maxing out my 401K in 2015 and 2016, getting the company 401K match, and retiring in the spring of 2016. I could probably bail now, but I want to hedge myself even more. But I am also feeing the desire to work less than 80+ hours a week.
Even with all of these income streams and assets, I get nervous about pulling the plug. Once I leave, it will be near impossible to come back after a few years. I don’t want to have to live in my own apartments, even though they are fairly nice. I have run many income planners, all come out well, except when I do some input incorrectly, which only increases the hesitation (what if it was really right…?).
What thoughts went through your heads when making the decision to retire and leave the workforce?
