Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
I Have 12 Hours to Make the Decision
Old 05-29-2019, 05:07 PM   #1
Recycles dryer sheets
 
Join Date: Oct 2013
Posts: 255
I Have 12 Hours to Make the Decision

For years I've been planning to ER in 2019 or 2020. I turn 60 in January 2020.

I'm still working ($150k/yr) and presently have invested assets of about 3.7M plus a rental property that should yield about $100,000 after expenses and taxes when sold. My pension starts in January 2020 of $15,000/yr not indexed to inflation. DW plans to work until December 2020 ($65k/yr) when her non-indexed for inflation pension of about $15,000/yr will start. My social security at 70 years old should be about $38,000/yr and DW social security will be at least $19,000/yr at 70 years old. Of course we can start SS earlier if desired. We will be moving in the next year or two, but the new house won't be more than $150,000 more than the old one as estimated.

Expenses the last few years have been between $80,000 and $85,000/yr which included paying for a wedding, home improvements/upgrades and a new car over the last few years.

I have plenty of hobbies so what to do all day shouldn't be a problem.

Here's the decision I need to make by tomorrow at 7:00 AM: I have a very rare opportunity to take an early out package of one year's salary, including one year medical coverage. I can sign up for unemployment after severance runs out. After my medical coverage ends, I can be on DW's medical plan at her work. After she retires, we're on our own for medical coverage.

My calculations indicate we will be eligible for ACA insurance at a very low cost due to a stash of cash that will enable low MAGI till we reach 65.

But we're not counting on this so I'll add $20,000 for medical to the $85,000 annual expenses for a total of $105,000/yr .

For the last six months, the job has not been bad or super high stress, but for the previous 5 years it was it was super high stress and extremely dysfunctional. The direction could turn extremely negative again at any time.

Firecalc says I'm good for annual spending of about $165,000 at 100% success, so that gives me quite a margin for error.

I'm leaning toward taking the package and to ER, especially after a health scare last year, (turned out to be nothing) but would appreciate the experienced here to take a look at what I may be missing and to add what they would do given the circumstances, based on their experience and evaluation.

Thanks in advance.
__________________

freedomatlast 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 05-29-2019, 05:12 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,800
Take the package and run.
You are probably at your healthiest time right now.
The finances are clearly in place.
I volunteered for a very similar package with less NW than you and more spending.
Go for it.
__________________

__________________
TGIM
Dtail is offline   Reply With Quote
Old 05-29-2019, 05:13 PM   #3
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 3,219
Lean more! Yes, I vote strongly for the package, and to ER.

If you don't take it, you could end up working the next year and then retiring anyway, no package. Then you've basically worked a year for free.
Aerides is offline   Reply With Quote
Old 05-29-2019, 05:13 PM   #4
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 4,217
What your question again? You can retire in 2019 as planned and get a regular paycheck for one year? They would have had my yes in the first 12 minutes, who needs 12 hours?
ivinsfan is offline   Reply With Quote
Old 05-29-2019, 05:31 PM   #5
Recycles dryer sheets
 
Join Date: Mar 2014
Location: Lexington
Posts: 64
Do it.
treeofpain is offline   Reply With Quote
Old 05-29-2019, 05:36 PM   #6
Recycles dryer sheets
 
Join Date: Mar 2017
Posts: 451
Take the package and retire!
SheitlQueen is offline   Reply With Quote
Old 05-29-2019, 05:39 PM   #7
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: 45,238
Quote:
Originally Posted by treeofpain View Post
Do it.
Quote:
Originally Posted by SheitlQueen View Post
Take the package and retire!
^ What they said.

Congratulations!
__________________
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 05-29-2019, 05:51 PM   #8
Full time employment: Posting here.
 
Join Date: Nov 2013
Posts: 527
Quote:
Originally Posted by Aerides View Post
Lean more! Yes, I vote strongly for the package, and to ER.

If you don't take it, you could end up working the next year and then retiring anyway, no package. Then you've basically worked a year for free.


+1
NgineER is online now   Reply With Quote
Old 05-29-2019, 06:00 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: St. Charles
Posts: 1,278
Quote:
Originally Posted by Dtail View Post
Take the package and run.
You are probably at your healthiest time right now.
The finances are clearly in place.
I volunteered for a very similar package with less NW than you and more spending.
Go for it.
+1.

Perfect timing. Take the package.
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
CardsFan is offline   Reply With Quote
Old 05-29-2019, 06:08 PM   #10
Recycles dryer sheets
cranberryjoe's Avatar
 
Join Date: May 2013
Location: Western US
Posts: 153
You were planning to retire in 2019 anyway and this opportunity comes along? Do it. Your numbers look great.
__________________
Life is good
cranberryjoe is offline   Reply With Quote
Old 05-29-2019, 06:47 PM   #11
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 4,071
Yes act now on this limited time offer!

Truly, not like the TV ads -
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 05-29-2019, 06:56 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Nov 2016
Posts: 2,474
Financially I see absolutely no issues but if work is still is where your heart is, stay and work.
street is offline   Reply With Quote
Old 05-29-2019, 06:59 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Apr 2010
Posts: 2,787
Take the money and run.
brett is offline   Reply With Quote
I Have 12 Hours to Make the Decision
Old 05-29-2019, 07:03 PM   #14
Moderator Emeritus
Ronstar's Avatar
 
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 11,080
I Have 12 Hours to Make the Decision

Take the package.
__________________
The wilderness is calling and I must go.
Ronstar is offline   Reply With Quote
Old 05-29-2019, 07:08 PM   #15
Thinks s/he gets paid by the post
Souschef's Avatar
 
Join Date: Dec 2015
Location: Santa Paula
Posts: 2,320
The classic quote is "On their deathbed, nobody says, gee I should have spent more time at the office"
WE do not know how much time we are allotted, and wouldn't you rather spend it at leisure instead of in an office??
__________________
Retired Jan 2009 Have not looked back.
AA 50/45/5 considering SS and pensions a SP annuity
WR 2% SI 2SS & 2 Pensions
Souschef is online now   Reply With Quote
Old 05-29-2019, 07:16 PM   #16
Recycles dryer sheets
 
Join Date: Jun 2017
Location: Rural community
Posts: 111
Take the package!
nhcycling is offline   Reply With Quote
Old 05-29-2019, 07:21 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 6,281
Take it and as you are sorting out the details sit down with an attorney who knows labor law, estate law and financial planning (or who knows a fee-based $ adviser) to button up details. With an offer such as you describe there will be lots of contracts/agreements to consider.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 05-29-2019, 07:39 PM   #18
Recycles dryer sheets
 
Join Date: Jan 2008
Location: Flyover America
Posts: 463
You are good to go and now you have a golden parachute....What's to think about....

Since it seems like an easy choice, it makes think why are you hesitating?
capjak is offline   Reply With Quote
Old 05-29-2019, 07:55 PM   #19
Dryer sheet wannabe
 
Join Date: May 2019
Location: Brunswick
Posts: 21
Agreed, take it. I just "retired" a few months before 64, at least a year earlier than planned. My stress levels dropped through the floor and I don't have anywhere near the assets you do, otherwise the numbers are similar.

One major issue for us is ACA. Unless you live in Florida (apparently) no ACA plan offers coverage outside of the area where you live. Nationwide coverage seems to have vanished in 2016 or so. The only coverage we would have is "emergency" which is defined as "a reasonable person thinks you would suffer permanent disability or death within 24 hours if not treated". So if we go to visit our kids in another state we have no health coverage under ACA unless we're darn near killed. Not a good plan for us.

I'm 14 months from 65 and Medicare but my wife is five years younger. We made the decision yesterday to go COBRA and switch with a cheaper plan in the November open enrollment period for my old employer. We'll be about $1,650 a month until then but should be close to $1,000 a month starting in 2020. Ugh.

Because I will transition to Medicare before my 18 months of COBRA are up, my dependents (just her) will be eligible for another 18 months which will take her to 61 1/2 and we'll just have to figure something out then.

But on the good news side, I can continue to move money from a pre-tax IRA to my HSA as long as I'm on COBRA and an HSA can be used for COBRA payments even though it cannot be used for regular health care premiums. So far...

So if you're planning to travel check that aspect out closely. It may behoove you for your wife to enroll in a lower-cost employer plan for 2021 to keep nationwide COBRA coverage and buy you both 18 months.

Ray
NXR7 is offline   Reply With Quote
Old 05-29-2019, 08:08 PM   #20
Recycles dryer sheets
 
Join Date: May 2019
Posts: 55
I certainly would take the offer if I were in your shoes. Good luck with your decision.
__________________

RxMan 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
Small businesses or jobs that you can make your own hours at? summer2007 FIRE and Money 14 10-30-2007 05:50 PM
Struggling to make decision DollahBillYall Young Dreamers 25 01-14-2007 05:44 PM
have to make a decision... slj455 FIRE and Money 3 12-03-2005 05:58 PM
Please help, I must make a decision this afternoon J. Tanne FIRE and Money 11 10-29-2003 07:00 AM
Please help, I must make a decision this afternoon J. Tanne FIRE and Money 1 10-29-2003 12:47 AM

» Quick Links

 
All times are GMT -6. The time now is 08:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.