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Old 09-27-2011, 07:19 PM   #21
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Originally Posted by Coolius View Post
I retired in April at 60. I had been working part time for a few years prior to that, but was offered a job that paid well and was what I liked. That was in 2007.

Fast forward 3 years, I was really exhausted with the 45 minute commute, late evening conference calls, ( I was managing the company's Asia Pacific business ), and long travel. The last 6 months were especially tough, I kept telling myself that I would work one more week, and then when Friday arrived, I told myself one more week, and so on, and so on....

The final straw was when a friend who had been postponing his retirement ( like me ) had a heart attack and died at his desk. He never got to realize his dream of traveling and just doing low stress volunteer work. His wife never got the chance to have her husband completely to herself.

When I attended his funeral, the CEO of the company gave a long speech about Bob's incredible loyalty commitment and work ethic, the long hours, the deadlines met time & again. He said that the best thing the company could do was to ensure Bob's legacy would be kept alive by making the product line he was managing, a success.

Just about walked out of there in disgust. No mention about the wife and the children. No mention about their loss, and the fact that the company took away the husband and father from that family, left to carry on without a loved one. It was all about the product, the company.

None of us know when our earthly journey will end. Disease, accident, crime, or whatever - we just don't know when the final breath will come.

I say, if you feel comfortable retiring now, and calculations support it ....take it. You work hard in the accumulation phase, make sure you take time to enjoy what you built up.
Yes, I know how that goes....I work for a Fortune250 company and have seen a dozen or so people pass before their time...near the time they should be leaving the wo*kforce. I'm only 49, so it's not like I'm contemplating rehiring at 70...but a year is a year...point well taken.
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Originally Posted by Nords View Post
No, because the rewards are still less than the incremental reduction in volatility risk.

In the first place, you're limiting your choices to the constraints of a retirement calculator that doesn't account for variable spending, let alone the possibility of part-time work.

Second, if you're that close to the ragged edge of retirement ruin, maybe it's worth annuitizing part of your income to insulate you from most of the volatility risk.

Finally you're contemplating another year of workplace stress, of not being around for your family as much as you want, of further compromising your health, and of missing all the opportunities that retirement affords. Or at least the opportunities it should afford, if only you knew how much time you had left.

But then I kept my mortgage in ER, too.
I'm no where near the edge of retirement ruin...not sure where that came from. My plan does include annuitizing a portion of my income. I plan to annuitize the portion needed to support BASIC expenses such as food/utilities/housing/medical premiums, and the rest would be left to float...and yes I'd employ a variable spending philosophy either way. It's just that with the high equities strategy, the variable piece could move considerably, which may cause my lifestyle to also swing...whereas the other option would give me a much lower swing of portfolio values.
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Old 10-02-2011, 12:57 AM   #22
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I'm no where near the edge of retirement ruin...not sure where that came from.
Sorry, missed this last time through.

My point wasn't limited specifically to your situation. My point is that if any retirement plan is jeopardized by a single point of failure (whatever that may be) then it's worth annuitizing a portion of the portfolio to provide a safety net. For some that may be just Social Security. For others, particularly in Otar's "red light zone", it may be a substantial portion of their assets.

Only after taking the annuity step to adding a margin of safety, if the plan still had too high a risk of failure, would I consider "just one more year" a good idea.
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Old 10-04-2011, 09:40 AM   #23
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Sorry, missed this last time through.

My point wasn't limited specifically to your situation. My point is that if any retirement plan is jeopardized by a single point of failure (whatever that may be) then it's worth annuitizing a portion of the portfolio to provide a safety net. For some that may be just Social Security. For others, particularly in Otar's "red light zone", it may be a substantial portion of their assets.

Only after taking the annuity step to adding a margin of safety, if the plan still had too high a risk of failure, would I consider "just one more year" a good idea.
Thanks for clarifying Nords
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