Net just passed $3MM, $2.9MM invested, cannot FIRE!?

[coltsfan53]

I have taxes & medical baked into the number cited. It would be a mistake on par with your imagined scenario had I not. Thanks for your opinion, nonetheless.

Quote:

Originally Posted by HarveyS Boy, lots of anger out there.... OP asked for thoughts. I guess he (and the community) only wanted thoughts that agreed with his......seems to be alot of that lately. $85k spend was stated. I assume he needs to spend $85k to live his life as he lives today (inclusive of a generous travel budget). Food, shelter, transport, etc. But, he needs to pay medical, dental, income tax, life insurance. So, if $85k to live, he needs another $25k for medical. That is max out of pocket for plans I am familiar with. May be less without kids - I'll give you that. And maybe he can get ACA subsidies. But I plan for worst case, and that's $25k/year. Subsidies may go away someday. Bear with me, if they don't that's now at $110k to live. Oh, what about tax? Thats easily another 15%, assuming a low income tax state. Now we are at $126.5k. Oh, and the markets dropped ~2% from peak last week, so OP's 2.9M is now $2.84M. $126.5/2.84M = 4.4%. Sorry if I am raindrops on your parade. Not sure how many of you support a 4.4% SWR for 50+ years, but I am willing to say this is not a good plan. OP asked for opinions. My opinions are in line with what he got several years ago. Not sure why today they are being bashed in the forum. As I said in post 18, Good Luck.

[coltsfan53]

How have you found ACA to be? It appears you receive a small subsidy. Did you state a level of assumed income at sign up? I do not understand how they arrive at the payment level from ACA inception (and can it be paid online / even with credit card)? Thanks.

Quote:

Originally Posted by Henry Lili I pulled the plug 5 years ago at 46 years of age. No regrets at all. Had less then $2.9 at the time but have over that now[emoji16]. As others have noted health care is the big unknown. My HI was $225/mo pre O-care now $520/mo.

[coltsfan53]

I have $5500 budgeted per year for ACA or Liberty Healthshare -- and an HSA beyond this budget, if not using Liberty.

Quote:

Originally Posted by audreyh1 Healthcare costs are the biggest wild card for someone retiring in their 40s. So how much of that $85K annual spend is slated for health insurance and other medical expenses?

[Henry Lili]

I get no subsidy. My investment income is too high lol. That's the rate by buying directly from Independence Blue Cross.

[coltsfan53]

Thanks - forgive my ignorance but is this available nationally? Is this for you alone or with additional family members? Not bad.

Quote:

Originally Posted by Henry Lili I get no subsidy. My investment income is too high lol. That's the rate by buying directly from Independence Blue Cross.

[Henry Lili]

It all depends on where you live and which companies do business there. The policy is just for me. If I bought it via the exchange it would be over $700/mo.

[ivinsfan]

Quote:

Originally Posted by coltsfan53 I have $5500 budgeted per year for ACA or Liberty Healthshare -- and an HSA beyond this budget, if not using Liberty.

This number doesn't seem adequate for a couple your age. even Medicare with a supplement as of right now costs more then that.

[cfran]

Quote:

Originally Posted by HarveyS Boy, lots of anger out there.... OP asked for thoughts. I guess he (and the community) only wanted thoughts that agreed with his......seems to be alot of that lately. $85k spend was stated. I assume he needs to spend $85k to live his life as he lives today (inclusive of a generous travel budget). Food, shelter, transport, etc. But, he needs to pay medical, dental, income tax, life insurance. So, if $85k to live, he needs another $25k for medical. That is max out of pocket for plans I am familiar with. May be less without kids - I'll give you that. And maybe he can get ACA subsidies. But I plan for worst case, and that's $25k/year. Subsidies may go away someday. Bear with me, if they don't that's now at $110k to live. Oh, what about tax? Thats easily another 15%, assuming a low income tax state. Now we are at $126.5k. Oh, and the markets dropped ~2% from peak last week, so OP's 2.9M is now $2.84M. $126.5/2.84M = 4.4%. Sorry if I am raindrops on your parade. Not sure how many of you support a 4.4% SWR for 50+ years, but I am willing to say this is not a good plan. OP asked for opinions. My opinions are in line with what he got several years ago. Not sure why today they are being bashed in the forum. As I said in post 18, Good Luck.

No anger here, I just see no evidence that the OP hadn’t backed in taxes/medical which you assumed he hadn’t. That’s it, and if his withdrawal rate was all inclusive it appears to be a workable plan. All good.

[StuckinCT]

Quote:

Originally Posted by coltsfan53 Thanks - forgive my ignorance but is this available nationally? Is this for you alone or with additional family members? Not bad.

I agree on not budgeting subsidies in health insurance especially now that the ACA has been ruled unconstitutional by a Federal Judge.

Also, when you get into your 60s, Medicare only covers so much, 1 in three of us will require long term care and that is not covered by Medicare, for example.

If you have a family, which would greatly effect your confidence level, I would budget at least $20,000- $25,000 per year for health insurance and healthcare in general over retirement.

There ares some blogs and many bank on the ACA. Given the nature of the supreme court I think this is a risky strategy.

[I am He]

We'll be on ACA as of June. Today's the wife's last day. Now to see how it feels and will it be permanent? 54 and 52 here.

Low income and plan to convert as much money into a Roth to stay under 80k to keep ACA. We have a child so a family of three for computation.

[trumpeting_angel]

I cut down this month to two days/ week, and I’m out at the end of June. I was elated for awhile (and I’m loving the extra time off) but I’ve been starting to worry what I will do with myself. I have plans, of course, and freelance w*rk, but I think this is more about my identity as a psychologist.

I get flyers in the mail for continuing education and toss them. I still tell people what I do when I’m getting to know them, and I know I’m not willing to let the identity go. Sadly, there are no mega-paychecks to keep me in, but I have enough to retire. Anxiety and excitement, it will be an adventure!

[Rambler]

Coltsfan53, it sounds to me like you actually like the hard-driving, heavy stress position. You have things you like about it besides the money...you seem to also enjoy the people you work with. Remember, you won’t have that when/if you retire early. Your closest work friends will still be working. They likely won’t overtly resent you, but you need to know that your relationship with them will never be the same if you retire. I’m not saying that’s a bad thing, but it’s something I want you to consider, because it MIGHT be a bad thing for you. Do you have friends outside of work? I didn’t. My last j*b was in Tokyo, and when I retired, I went back to California, where I knew no one (we built a home there while I was working). Do you have something to retire TO? What are you going to do when you retire? If you are like me, you’ll have 70-90 hours a week to fill (commute time, airplane time, schmooz time included)...have you figured out how to fill that time? A lot of people want to just relax...but if that’s the case, have you considered that you may need a vacation, not retirement? So, that’s the part that concerned me the most...I’ve been retired 6 1/2 years now, and that’s STILL what concerns me about my retirement. We moved to AZ last year, and a few of the friends I had made in California also moved to other states, so I’m starting over again. I have less to do now than I did when I was in California (had a couple acres there, just a city lot here). I do have to support my wife more than ever with some illness issues she has, so having the time to do that is a plus, but I still have blocks of time here and there that remain empty and boring.

Now to the other concern, although it’s related. You’ve got $3m saved up. Good for you. But when you have 70-90 hours a week extra, if you get bored, you’ll spend money. Sure, much of it will be well spent, on home improvement projects, things that you may have seen a passing need to do before but never had the time. You also mention your DW is 37...you’ve got probably 35-40 years ahead of you, but she’s probably got 50+. Personally, $3m doesn’t give me comfort that you’ll have sufficient, let alone be able to cover her needs for a further 15ish years. The other thing to remember, is that if you get out now and too much time passes, you won’t be able to jump back in. I jumped at 51, and I’m 57 now, but my industry has changed so much that it would be difficult for me to catch up now.

Whatever you decide, I wish you the best. None of the issues I brought up are insurmountable. But they will take effort and determination, AND the ability to disconnect and relax...for a long time.

[Gumby]

^^^^ That is a really great post.

[ychuck46]

We were in similar circumstances when I retired at 60, except we had a large house and acreage to go with no debt (we still live in the same house in a low COL state). Thought I would always work because, well, I had always worked starting at age seven. Even though I ran the numbers in FIREcalc and other sites I just wanted to keep making $. Took a serious ankle surgery from too many sports over a lifetime, that would cause me to be non-weight bearing for three months, to convince me to pull the plug (well, that and the wife saying I had to join her in retirement and traveling).

The bottom line is that I wish I had done it sooner. Thanks to the stock market returns of the last three years we are worth more than five years ago, even with some major purchases along the way. With your assets you should be fine but I still understand the uncertainty. Good luck whichever way you go, my friend.

[Asabino]

I got layoffed at 46 and got a "silver" parachute. I've never looked back-not rich but comfortable. I could've worked again but had too much fun not working. At the end of anybody's life, who would say: "I wish I could have worked more"

[l8_apex]

I'm in the camp that says you've got enough money, assuming you follow typical FIRE investment thoughts.

That being said, only you and your wife know if the time is right.

I ER'd at 46 a little prematurely as per my big-picture plans. I had a new boss at the time that I found to be unpleasant. Just a couple of months after I left that boss left, then the CEO asked me if I wanted to come back, and I told him we could do 3 days/week. (my boss knew full well about my ER) So that went on about a year and I decided to pull the plug for good at 47.

I'm single, no kids, and NW was 1.6MM at the time. It's been more than enough money, but I haven't yet run into a large unanticipated bill.

In my mind, ER was always the goal, so I don't have that level of uncertainty about it. If you can find any way to do a trial run, perhaps that will set your mind at ease.

Having worked in silicon valley, I knew lots of people that could have retired just based on their value of their home. Of course they'd pretty much have to sell and find another home in some other location, so I don't think I know anybody that went through the process of doing that. But hey, it worked for me, so, to each their own.

[imnontrad]

Maybe you can consider a different outlook. First keep a budget and track your spending. You may find a lot of ways that you are wasting money plus identify expenses that would not exist if you left work.
You may want to consider a 1-2 year sabbatical from work instead of retirement. Then use that time to travel, volunteer, get everything in the house in order (including dejunking). You can also use these years of lower income to convert Traditional to Roth for long term, tax free growth.
Then as you near the end of the 2 years, evaluate whether you will continue as you are, go back to work (because you enjoy it), go (back) to college to learn different subjects (and may be eligible for student health insurance), or even start your own business. The two years off will help you determine if your assets are enough based on your spending habits or not.

[incomefireball]

To get back to your original questions:

Quote:

What's wrong with me anyway?

I'm going to say nothing is wrong. Humans were made to get satisfaction from work, and based on your fantastic net worth, you've probably put in a good amount of work so far and have made a habit of it. It's hard to break a habit.

Quote:

Any advice from those who have been in this spot?

I haven't been in your situation yet (and being self-employed, probably will never be in an exactly analogous situation, unless I join the employed workforce.) That being said, even if you love your job, there are other jobs out there. So, biting the bullet and quitting that particular job will do no significant damage. You can always go back and find another job if you decide you hate not having a job. (Trying to do a sabbatical or leave of absence doesn't make sense to me. You're maintaining too many ties to that particular job.)

But my guess is that you might be bored not having something productive to do. If that's the case, I'd suggest talking about that with your wife. Then agree to, for example, quitting your job, taking 3 months off (no matter what) and start seeing the world, or whatever your wife's goal is. Do that just as a gift to her, even if it drives you nuts. Then after 3 months, re-evaluate your state of mind. My guess is that you may still want to do something productive. Start coming up with creative ideas for something productive to do that doesn't have you anchored down to the things your wife dislikes. (Things like consulting come to mind - you're probably near the top of your field with your great net worth. Or start a moonshot business. Mentor people who want to do what you did.)

Did I come even close to how you feel about things? It's possible I'm way off-base, but I think that's how I'd feel after killing it at my work for so long.

[SeanPizzle]

I'm in a similar situation. 50 years old, high stress/high reward technology sales career. Debt free, one kid in HS that has 120K in a 529 account and if I shuffled all of our assets around, I should be fine to quit tomorrow. However, if I quit, there probably wont be a way to come back. There arent s lot of guys in their mid 50s doing what I do. So while it's a grind, I'm going to give it two or three more years to bump up the 529 and 401k.

[cyber888]

Quote:

Originally Posted by coltsfan53 My wife knows this has been our aim for years. We have "arrived" at our number (and I have a $19k/year non-COLA pension at 65, not counted in the 2.9) and she is pissed that I do not seem to be pulling the proverbial plug on the high stress gig. I am 46. She is 37. Spend is around $85k with lots of travel baked in. We have shed the McMansion and most earthly possessions already. She is ready to see the world. I am too but cannot separate from megacorp (the people & THE CHECKs). What's wrong with me anyway? Any advice from those who have been in this spot?

My NW is a little less than 50% of yours at 55 yrs, but DW and I have travelled 30+ countries and several US states for the last 30 years. The travel experience is priceless. See the world, enjoy life, and travel now while you are still young and able. It’s a blast. If you travel when you are older, you may not enjoy it with your old aching body. I specially like trekking Tibet and Everest at 20k+ feet, and trekking the Highlands of Scotland .. I wont be able to do that when my old worn out knees are shaking. [emoji38]