So.... when to retire?

[pb4uski]

Quote:

Originally Posted by Car-Guy ....I've been retired almost 3 years now and I'm really surprised at how accurate my financial spreadsheet projections have been "so far". YMMV

Same 3 years here but my nestegg is 20% off from what I projected it would be today when I retired (I saved the spreadsheet).

20% higher that is.....

[dunkelblau]

This may not make sense but I did it when the percentage increase in invested assets from after-tax base pay dropped below the percentage decrease in my estimated remaining lifetime. Then management blinked and offered a retention incentive that tipped the scale the other way, so that was my 1MY. Then our company stock price moved up so the options I was ignoring are vesting with significant value. 2MY got me half, and the rest come next year.

For me the decision is easy because my job is fun and nothing attracts me towards retirement at the moment. But the reason my job is fun is purely because of FI, it's in a shaky business and the end can come any time. It would be a lot less fun if I had to be able to replace my job as a middle-aged computer tech engineer. Or if I had less control over what I work on day to day. I know this firsthand through relatives who are similarly situated income-wise but who have much higher expense commitments.

Even though I'm a habitual low spender (for me 70k/yr vs 100k/yr is "no difference"), the extra money might not be useless. Some black swan can happen, like some medical breakthrough that can add 10 or 20 years to our life span. It may be very expensive to start, but if I'm in good health when it happens, that would be something I'd buy into. Granted it's highly unlikely in my lifetime but then hopefully my heirs will be in a better position to take advantage should the opportunity arise in theirs.

[MuirWannabe]

Quote:

Originally Posted by 2B I am finding that as my "date" approaches I'm getting more and more ready for it to happen. I was planning to retire in the middle of 2014 until I ran what would happen to my income taxes. A lump sum payment I'll get would have added about $60,000 to my income tax bill in 2014 over what it will do to me in 2015. I decided to hang in there for the principle and principal of the situation. I shudder at the thought of writing a six figure check to the IRS. My job isn't hated. It just seemed like it was time to stop working for the grandkids. I've got 8 "in-office" days left until 5 Jan 2015 when I'll resign. After that it's whether I agree to two weeks or six weeks to transfer project assignments or finish things up. I don't plan on going past six weeks and would prefer to leave 5 Jan.

Lately 2B, I feel like you post mostly to rub our noses in your impending retirement and so you can do a public countdown. I don't blame you one bit for it either.

Muir

[Hamlet]

The thing is, I think most of us could live okay with just a little supplement to SS. The "broke at 80" scenario is really pretty hard to get to if you start with at least enough money to have a decent shot at success.

The real risk for most people is needing to downgrade their lifestyle if they live a long time and their investment returns are subpar.

I think a plan to sell the house and live in a small apartment if you live past 85 probably makes more sense than a plan to work an extra 5 years to make absolutely sure that you can keep spending fairly high into your 80s, but its a personal decision, and it depends a lot on your family situation.

I would be much more willing to take the risk of being low-income in my 80s if I wasn't married with young children. The real likelyhood is not me outliving our money but my wife. I'm less inclined to make her take the risk of reducing her standard of living in her 80s/90s than if it was just me.

Quote:

Originally Posted by Live And Learn Prepare for the worst, hope for the best ! You can't plan long term with potential short term assumptions. What happens if you end up healthy ? Who want's to be 80 and totally broke, looking for handouts ?

[2B]

Quote:

Originally Posted by MuirWannabe Lately 2B, I feel like you post mostly to rub our noses in your impending retirement and so you can do a public countdown. I don't blame you one bit for it either. Muir

I'm not intentionally trying to rub anyone's nose in it. I'm just excited about finally doing it. I've been OMY for almost a decade. At 63 I don't consider myself an "early retiree."

[MuirWannabe]

Quote:

Originally Posted by 2B I'm not intentionally trying to rub anyone's nose in it. I'm just excited about finally doing it. I've been OMY for almost a decade. At 63 I don't consider myself an "early retiree."

I didn't really mean to imply you were doing anything wrong. You're excited. Understandable! I'm jealous. Congrats to you on your very soon to be retirement.

Muir


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