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I Have 12 Hours to Make the Decision
Old 05-29-2019, 05:07 PM   #1
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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.
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Old 05-29-2019, 05:12 PM   #2
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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.
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Old 05-29-2019, 05:13 PM   #3
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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.
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Old 05-29-2019, 05:13 PM   #4
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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?
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Old 05-29-2019, 05:31 PM   #5
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Do it.
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Old 05-29-2019, 05:36 PM   #6
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Take the package and retire!
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Old 05-29-2019, 05:39 PM   #7
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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!
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Old 05-29-2019, 05:51 PM   #8
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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
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Old 05-29-2019, 06:00 PM   #9
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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.
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Old 05-29-2019, 06:08 PM   #10
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You were planning to retire in 2019 anyway and this opportunity comes along? Do it. Your numbers look great.
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Old 05-29-2019, 06:47 PM   #11
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Yes act now on this limited time offer!

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Old 05-29-2019, 06:56 PM   #12
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Financially I see absolutely no issues but if work is still is where your heart is, stay and work.
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Old 05-29-2019, 06:59 PM   #13
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Take the money and run.
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I Have 12 Hours to Make the Decision
Old 05-29-2019, 07:03 PM   #14
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I Have 12 Hours to Make the Decision

Take the package.
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Old 05-29-2019, 07:08 PM   #15
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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??
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Old 05-29-2019, 07:16 PM   #16
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Take the package!
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Old 05-29-2019, 07:21 PM   #17
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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.
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Old 05-29-2019, 07:39 PM   #18
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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?
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Old 05-29-2019, 07:55 PM   #19
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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
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Old 05-29-2019, 08:08 PM   #20
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I certainly would take the offer if I were in your shoes. Good luck with your decision.
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