Somewhat obsessed with ER

[Moemg]

thinks it should work out ok if we keep our expenses to under $50,000 a year. The calculators I have used (many, Firecalc etc) seem to think it is ok. Finally put ourselves on a money spending check the last 4 months...a high of $3500 in July while doing some traveling and the last 2 month both look to come in at $2000 or less.....plan is for $4000 a month so well within that limit even with a few unexpected costs. ..

I can really understand your need to retire but make sure you really can live on that budget . I 've seen too many people with bare bone budgets just because they really want to retire . I spend the same amount in retirement as I did while working and sometimes more if I ramp up my travel or do home projects . Will you be happy with that budget or will you feel stifled ? That is the thing you need to look at .

 

[Amethyst]

W2R, I know you had your own good reasons for using your leave instead of getting paid for it. Still, it is a great benefit to be able to get paid for unused vacation time.

Husband saved all his leave--carryover from previous year, plus current year's earned leave--for a whole year before retiring, and got a very nice check for his 440-plus hours, even after 40% was deducted for taxes. During the year that he didn't take annual leave, he still was able to take days off by working credit hours [for those unfamiliar, credit hours are hours worked beyond your normal work day; you get to take them off later]. Not saying it was easy, but he was committed to the idea, and I admired him for it. Hope I can manage to do the same, when it's my turn.

 

[Alan]

W2R, I know you had your own good reasons for using your leave instead of getting paid for it. Still, it is a great benefit to be able to get paid for unused vacation time.

Husband saved all his leave--carryover from previous year, plus current year's earned leave--for a whole year before retiring, and got a very nice check for his 440-plus hours, even after 40% was deducted for taxes. During the year that he didn't take annual leave, he still was able to take days off by working credit hours [for those unfamiliar, credit hours are hours worked beyond your normal work day; you get to take them off later]. Not saying it was easy, but he was committed to the idea, and I admired him for it. Hope I can manage to do the same, when it's my turn.

Horses for courses I think and I can understand W2R completely. I have been literally gritting my teeth and hanging on for the last 3 years, really disliking going to work each day but the huge bonus of hanging on is pension plus health benefits. An extra 5 weeks pay (for me) is peanuts compared to the pension and health insurance.

 

[W2R]

Like Amethyst's husband, last summer I had built up the maximum possible amount of leave time (reached use or lose at the end of 2008, and used no leave after that). I have been busily using it up since then, especially during the past three months.

Yes, you get money for cashing it in, though I suppose you get money for working, too. At present my nestegg is in decent shape, and the extra pay (after taxes less than $10K) just isn't that important to my retirement financial plan. Some people pay that much for international travel - - to me, the equivalent luxury was using most of my leave on my four long "staycations" to maintain my health and sanity, instead of going in to spend long hours at a high pressure and stressful job every day. My vacations have allowed me to be essentially semi-retired (periodically retired?) since September, and to ease the transition to retirement. All in all, I think using vacation or not is simply a matter of personal preference regarding how to spend one's money.

Alan, I really ENJOYED having the time off!

 

[audreyh1]

I did a similar thing as W2R - but not quite as much, I had more than the max the company would pay for unused vacation time (7 weeks), so I took a week off the week before my last week. It actually had the additional benefit of kicking me into another month which meant my health benefits were paid for a whole 'nother month!

I used this week as a "test run" for me, and for everyone else! The folks at work got a chance to make sure they really had everything they needed, I went out and did a lot of fun things at home pretending to be retired. My last week working was a lot more relaxed, I think, than it would have been because of taking the week off before as people got things figured out sooner rather than later. Somehow miraculously it worked that way.

Wow W2R - 9 more days!!!!! We'll be counting down with you!

DH says - then you can enjoy your back yard and watch the ever changing views on your TV. He doesn't browse this forum very often, but he remembers you and your TV views!!!!

Audrey

 

[megacorp-firee]

I don't want to shoot holes in your plan but having retired in Jan. 2008 I saw what a bad year could do to a portfolio . I would never retire without ample padding . It would just be to stressful and you do not seem to have ample padding IMO.

July 2007 for me. .... what Moemg said

 

[F4mandolin]

Moemg, oh yes....constantly wondering about things like this..... it's what is qualifying me as obsessed. Some people wash their hands all the time.... I day-dream. We started an accurate check back in Jan 08 that we (probably me) were just too lazy to keep doing. I thought I had a pretty good idea what we were spending without the budget but I wanted it in black and white right in front of my eyes. Just added up the Oct total and including insurance, utilities, food, and 2 days hotel bills etc, we were at $2074.43. Our main point of confidence is the fact that we are BORING people. We LIKE being at home. We just spent 2 days at the beach at Saltburn by-the-sea (don't go there, Redcar is better)....we like being home better. Once my wife spends money on fixing the house she doesn't spend as much as I do.....and I don't spend much until I need a "new toy" which doesn't happen much anymore. We DO need to come back to the UK once a year, but that is basically just a plane ticket and maybe a rental car for a week or so. Ahh, hell...I can sit here and justify things all day long. I would like to have a little more money, and working even one year longer "makes sense" financially. It will be this time next year before we can make a decision.....and even that will depend a little bit on the Pound/Dollar exchange rate. Right now I would think it is at least 75% that we pull the plug at the end of the next school year.

 

[militaryman]

actually it is MRA with 30 years of service or 60 with 20years.

Correct - at 56 (my MRA Min Retirement Age) I will have 38+ years in and will get the SS Supplement until 62

 

[F4mandolin]

militaryman.....would you get the suppliment without the early retirement offer? I don't think I would. I think I would also get a decent hit (5% a year) penalty on getting out before 62 I thought...... The VERA is the only chance I could get out early, and with the way the school system is going these days I don't want to stick around and deal with things.

 

[Sea Kayaker]

Umm... is it normal (or healthy) to be obsessed by ER at age 37?

 

[W2R]

Umm... is it normal (or healthy) to be obsessed by ER at age 37?

It is around here!

 

[Stevewc]

On my last day I am tempted to shout "I DID IT!!" on my way out the door.

I've been thinking something more to the tune of: free at last, free at last, lord god almighty I'm free at last

Steve
PS. Not sure I have the guts to do it though !!!

 

[militaryman]

militaryman.....would you get the suppliment without the early retirement offer? I don't think I would. I think I would also get a decent hit (5% a year) penalty on getting out before 62 I thought...... The VERA is the only chance I could get out early, and with the way the school system is going these days I don't want to stick around and deal with things.

My MRA is 56 and 8months as I was born in 1968 and aill have over 30 years of service at 56yrs and 8mos

Here are the requirements for Federal SS Supplement

1. after 30 years of service at or after your MRA (minimum retirement age); or
2. after 20 years of service at or after age 60; or
3. under one of the special provisions for law enforcement officers, firefighters, air traffic controllers, or military reserve technicians; or
4. under discontinued service retirement or early retirement (that is, a major RIF, reorganization, or transfer of function) provisions. However, if you retire on a discontinued service or an early retirement, you will have to wait until you reach your MRA before you can begin to receive the supplement.

Your Minimum Retirement Age will range between 55 and 57, depending on the year you were born. Take a look at the list below to find your MRA for FERS Retirement...
Choose the year you were born to find your MRA



Year you were born......Your MRA is

• Born Before 1948.......55
• Born in 1948.............55 and 2 months
• Born in 1949.............55 and 4 months
• Born in 1950.............55 and 6 months
• Born in 1951.............55 and 8 months
• Born in 1952.............55 and 10 months
• Born in 1953-1964.....56
• Born in 1965.............56 and 2 months
• Born in 1966.............56 and 4 months
• Born in 1967.............56 and 6 months
• Born in 1968.............56 and 8 months
• Born in 1969.............56 and 10 months
• Born in 1970.............57
• Born after 1970.........57

The special retirement supplement (also known as the FERS supplement) is unique to FERS. It substitutes for the Social Security part of your total FERS benefit until age 62, when most people become eligible for Social Security. The purpose of the supplement is to provide a level of income before age 62 similar to what you will receive at age 62 as part of a Social Security benefit. The supplement stops at age 62 even if you are not eligible for Social Security.

 

[Moemg]

I received the Fers Survivor Pension benefit with the SS supplement since I was only 51 when I was widowed . The benefit was only $300 a month and stopped at age 60 when I became eligible for the SS survivor benefit . You do not automatically get it . You have to call the government several times and be put on hold and transferred forever but if you have the patience you will get it .

 

[Alan]

Umm... is it normal (or healthy) to be obsessed by ER at age 37?

I made my ER plans at age 38 - started getting obsessed about 10 years later

 

[Bikerchick]

My MRA is 56 and 8months as I was born in 1968 and aill have over 30 years of service at 56yrs and 8mos

Here are the requirements for Federal SS Supplement

1. after 30 years of service at or after your MRA (minimum retirement age); or
2. after 20 years of service at or after age 60;

Militaryman, is it correct then that someone who retires at 60, with at least 20 years of service, does NOT lose 5% per year for each year under age 62? It seems odd that someone could get the supplement while retiring at 90% of their pension. Or does that 5% annual reduction apply only to someone retiring at MRA + 10?


I thought I knew all this but the closer the day comes, the more little details there are. - Thanks.

 

[NW-Bound]

Umm... is it normal (or healthy) to be obsessed by ER at age 37?

I dunno.

What I am afraid of is that my children of 20 and 24 discover this Web site, and want to skip college to go straight into ER.

 

[mews]

NW, you also want to avoid letting them see "Oh, Dad, Poor Dad, Momma's hung you in the closet and I'm feeling so sad."

No sense giving them ideas.

ta,
mew

 

[jdw_fire]

[/LIST] is it correct then that someone who retires at 60, with at least 20 years of service, does NOT lose 5% per year for each year under age 62?

yes that is correct

 

[Sea Kayaker]

As of 6 months ago, this whole ER/FIRE concept wasn't even a consideration for me... but for the heck of it I sat down and did a net worth assesment - and then the light came on. I hadn't realized that by meeting (and marrying) a likewise financially sane and wonderful woman we had made some significant financial progress in the last two years - the DINK effect, I'm thinkin'.

And hanging around this place has really done nothing to curb my growing enthusiasm that this actually *MIGHT* be possible.