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I Have 12 Hours to Make the Decision
05-29-2019, 05:07 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Oct 2013
Posts: 1,180
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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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05-29-2019, 05:12 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,229
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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.
__________________
TGIM
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05-29-2019, 05:13 PM
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#3
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Moderator
Join Date: Nov 2015
Posts: 13,879
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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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05-29-2019, 05:13 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,951
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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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05-29-2019, 05:31 PM
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#5
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Recycles dryer sheets
Join Date: Mar 2014
Location: Lexington
Posts: 83
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Do it.
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05-29-2019, 05:36 PM
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#6
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Take the package and retire!
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05-29-2019, 05:39 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Quote:
Originally Posted by treeofpain
Do it.
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Quote:
Originally Posted by SheitlQueen
Take the package and retire!
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^ What they said.
Congratulations!
__________________
Numbers is hard
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05-29-2019, 05:51 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Posts: 1,030
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Quote:
Originally Posted by Aerides
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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+1
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05-29-2019, 06:00 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Location: St. Charles
Posts: 3,903
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Quote:
Originally Posted by Dtail
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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+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!
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05-29-2019, 06:08 PM
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#10
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Recycles dryer sheets
Join Date: May 2013
Location: Western US
Posts: 226
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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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05-29-2019, 06:47 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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Yes act now on this limited time offer!
Truly, not like the TV ads -
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05-29-2019, 06:56 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,417
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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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05-29-2019, 06:59 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2010
Posts: 5,859
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Take the money and run.
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I Have 12 Hours to Make the Decision
05-29-2019, 07:03 PM
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#14
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,543
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I Have 12 Hours to Make the Decision
Take the package.
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05-29-2019, 07:08 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,069
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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??
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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05-29-2019, 07:16 PM
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#16
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Recycles dryer sheets
Join Date: Jun 2017
Location: Rural community
Posts: 217
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Take the package!
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05-29-2019, 07:21 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,109
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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.
__________________
Duck bjorn.
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05-29-2019, 07:39 PM
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#18
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Full time employment: Posting here.
Join Date: Jan 2008
Location: Flyover America
Posts: 679
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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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05-29-2019, 07:55 PM
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#19
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Recycles dryer sheets
Join Date: May 2019
Location: Living room couch
Posts: 153
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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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05-29-2019, 08:08 PM
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#20
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Recycles dryer sheets
Join Date: May 2019
Posts: 367
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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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