Poll: If you were in my situation, when would you retire?

[REWahoo]

Just a few clarifications. Our tiny pensions will only total $6000/yr, not $12,000.

FYI, $6,000 is what I used in the FIRECalc run I posted here.

I think taking a few months to get your health insurance squared away and to wrap your head around the fact you're truly FI (really!) and can retire now is a good move. Just don't get sucked into the "just one more year" syndrome as your numbers clearly indicate that would be a waste of precious retirement time!

 

[MBAustin]

I think taking a few months to get your health insurance squared away and to wrap your head around the fact you're truly FI (really!) and can retire now is a good move. Just don't get sucked into the "just one more year" syndrome as your numbers clearly indicate that would be a waste of precious retirement time!

+1

That's exactly what I did - took a couple of months once I realized we were FI to get my head around it and test in my mind that I was really as fed up with w*rk as I thought I was. After that, I gave 6 weeks notice and enjoyed the countdown. Best decision I could have made.

 

[rescueme]

So, how much is a year of your life worth?

This cartoon is what helped me come up with a decision (believe it or not), and yes, I retired in 2007 (at age 59) with no regrets:

 

[Mulligan]

So, how much is a year of your life worth?

This cartoon is what helped me come up with a decision (believe it or not), and yes, I retired in 2007 (at age 59) with no regrets:

That picture resonated with me a few years back. That picture is the classic example of the word "succinct".

 

[73ss454]

I sure didn't expect so many would think I had enough now. I figured the majority would say at 62 with $2 million. I seem to think there was a recent poll that indicated the majority would feel comfortable at that level.Tom

Tom, what did you expect, this is an early retirement forum after all.

 

[scrabbler1]

Tom, it looks to me you are doing many of the same things I did as I was preparing to ER back in 2008 at age 45.

You do need to investigate the health insurance issue, as many others here have suggested. For me, lining that up was the last piece which fell into place for my ER. I used COBRA as a bridge when I cut my weekly work hours to 12 in my last few months of working so I would not be without coverage before or after I ERed. [My dad used COBRA when he retired at 63.5 so he could get to 65 while maintaining continuous HI coverage.]

You have recognized how your "reinforcements," as I have so often described them, will fit into your ER plan once you have access to them. For me, they are my frozen company pension, Social Security, and unfettered access to your IRAs. This means my main ER challenge is to get to age ~60 when the first of those reinforcements kick in. You are already a lot closer to gaiing access to them so that challenge for you is a lot smaller than it will be for me.

You are also preparing to have a cushion or surplus built into your ER budget so any relatively small and unforeseen expenses will not cause any great angst if and when they occur. The surplus will simply cover them.

I also had a spreadsheet which projected my taxes in ER, taking into account my greater HI premiums (mostly tax-deductible) and the elimination of FICA taxes. You should do that, too.

I basically agree with what the others here have written.

 

[ziggy29]

Heck, I pay SS, Medicare indefinately, I don't know why I don't get at least a little love on this forum.

Probably because it's an "early retirement" forum, so people generally are a little put off by suggestions that "keep working" should be the answer.

 

[REWahoo]

Myabe the world comes back to historical growth rates and everyone sings kum-bay-ah as this forum likes to project.

OK, so, maybe I've been a little dismissive of the idea of retirement from an overly young perspective, given that it is essentially the most experienced wise sucking assets off of the inexperienced vulnerable....

Ah to be young again and looking to the future, certain I'll be able to say "I told you so" when the self-fulfilling prediction of my own financial insufficiency comes true...

Sam, buy some shares in a company that manufactures black paint. You'll make a killing.

 

[Mulligan]

Simple answer. If you are willing to live on a strict budget, that might adjust downward, then you are in RE Valhalla. Myabe the world comes back to historical growth rates and everyone sings kum-bay-ah as this forum likes to project. But I think these frugal folks will be fine and I am probably overly acerbic toward them. I don't want to retire because income covers over many flaws that I can easily avoid, but I have this luxury and seem to be at liabitlity for it. Heck, I pay SS, Medicare indefinately, I don't know why I don't get at least a little love on this forum. OK, so, maybe I've been a little dismissive of the idea of retirement from an overly young perspective, given that it is essentially the most experienced wise sucking assets off of the inexperienced vulnerable....

My sneaky little GF. Switched my bookmarks on my computer and sent me to the "Die Working on the Job" forum.... Wait til I see her tonight.
Just scanning some of your posts, even a man of my limited intelligence understands why you recieve " little love". Many of your few posts you have written are on the negative if not insulting side. I wouldnt spend much time on the weight watchers forum if I was espousing the benefits of gluttony.

 

[meekie]

I sure didn't expect so many would think I had enough now. I figured the majority would say at 62 with $2 million. I seem to think there was a recent poll that indicated the majority would feel comfortable at that level.

As one of the $2mil people, I think you're in awfully good shape since you've got what looks like really good control of your spending.

That bonus sounds worth waiting for, as does having more time to investigate insurance, but the class of 2012 sure sounds possible!

 

[WB52]

Tom,
I would just like to add my congratulations on achieving Financial Independance. I am almost 52 and I think about reaching that FI milestone every day. Well done!
Have you considered how to enjoy your new FIRE freedom? There is a plethora of books on ER. Many focus only on the financial side, but a few, like Ernie Zelinski's "Work Less, Live More", also give a lot of tips about building interests before taking the plunge. Many folks say that retiring to something is better than retiring to escape something. Perhaps some of the Retired forum members can comment on that.
Anyway, Congrats!

 

[landover]

I think this is kind of loaded question of ER world. With this kind of data most on this board will choose answer one. Health Insurance is only thing which is uncertain at this point.

 

[MichaelB]

FYI, $6,000 is what I used in the FIRECalc run I posted here.

I think taking a few months to get your health insurance squared away and to wrap your head around the fact you're truly FI (really!) and can retire now is a good move. Just don't get sucked into the "just one more year" syndrome as your numbers clearly indicate that would be a waste of precious retirement time!

+1
Don't underestimate the challenges you might face regarding health care insurance. Everything else looks great.

 

[Tom52]

I was originally a bit hesitant making this poll but am really glad I did. DW did not know about it till I showed it to her last night. I was hoping she would not be too upset laying it all out there for all to see. She was relieved and happy to read all your comments. It is reassuring to both of us to know that if we are not quite there financially or emotionally we are very close.

While we are still going to get some quotes for health insurance we have basically formulated the following plan:

1. We are going to work and save as much as possible in 2012 to reach that goal of $1.8 Mil. by the end of year. If the market doesn't help us, we sure hope it doesn't hurt us either.

2. During 2013 we will try to finish off our stash by accumulating about $75,000 that will be earmarked for a.) either future home improvements or relocation expenses if we decide to make the move to a warmer climate, (estimate $30,000) b.) $25,000 for a new auto c.) $20,000 for my long delayed hobby that has been sitting in my garage for the last 10 years.

3. If we accomplish 1. and 2. during 2013 I will approach my employer about the possibility to shift from full time management to part time (less stess and responsibility) if I can keep HI benefits. If they are difficult I will just turn in my resignation. If they can accommodate my request, well, I would just have to see how it goes. I can't see myself working part time for too long as we want to take some extended vacations.

We have a plan and we will work the plan. If things go as hoped we expect to RE by the end of 2013.

We thank you again for all your comments and the inspiration we get from reading and learning from you very kind and sharing people. We are hoping to be walking in your RE shoes before the end of next year.

 

[edsahara]

Quit now, while you're still healthy and can enjoy yourself. Health is more valuable than money.

 

[obgyn65]

I agree with Texas Proud below.

But, at your spending level and asset size, and you wanting to retire,.... I vote go for it now...

 

[Ken11]

IM 57 and took the plunge last year having somewhat less than your current balance.
So far no regrets. Firecalc shows me at 100% till age 90.
However, I do recognize its not a riskless scenario.

If the market is uncooperative over the next few years I'll just take a low key job for a while.

Good luck.

 

[ER_Hopeful]

If I were you, I'd have retired last year or last last year.

 

[edsahara]

When I run firecalc and input $80,000 per year spending with $1.7 million portfolio and 34 years I get 70% success rate.

When I look at the longevity tables and look at the odds of a person living to be 90, I get a 10% success rate.

 

[WestLake]

I too am waiting on the health care resolution - will be 55 in 2013 so it's really a magic number for me. Not inclined to do the COBRA dance. If I wait until early 2014 to RE I'll still be 55! Let us know what you get for an insurance quote. I am very curious.