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Old 08-25-2014, 06:36 PM   #21
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I'd be tempted to stick it out for that much money - but do whatever you can to start enjoying yourself - pay someone to mow your lawn, take all of your vacation time, avoid overtime wherever possible - and enjoy that time. though if you have enough to comfortably fund your lifestyle, why not gain the year.

And while I admire Jacob at ERE, I doubt many of us would want to live as cheaply as he does. Find your own comfort level.
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Old 08-25-2014, 07:08 PM   #22
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When I was 50, I can remember seriously saying I would retire at 55. At that point my numbers looked good enough for a 100K withdrawal rate for life, which was my target. Once I was there, I started figuring how much I could have by staying on to 57, then 58, then 59 then finally 60. (= Greed) If I remember correctly, I more than doubled my net worth from age 55 to 60 so in effect, I traded 5 "more" years of my life to be able to double my withdrawal rate. However the last five years was the easiest work years in my life. I had a lot more free time, flexibility and authority than ever before but I really wasn't enjoying the work anymore. The growing BS seemed to be the worst part of it.

Looking back, I was actually easing into retirement those last five years and I'm not sorry about my extended transition to full retirement (or the extra money)

Let's face it, we are all selling our "time" for $$$. We just need to find that "balance".
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Old 08-25-2014, 07:11 PM   #23
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When I was 50, I can remember seriously saying I would retire at 55. At that point my numbers looked good enough for a 100K withdrawal rate for life, which was my target. Once I was there, I started figuring how much I could have by staying on to 57, then 58, then 59 then finally 60. (= Greed) If I remember correctly, I more than doubled my net worth from age 55 to 60 so in effect, I traded 5 "more" years of my life to be able to double my withdrawal rate. However the last five years was the easiest work years in my life. I had a lot more free time, flexibility and authority than ever before but I really wasn't enjoying the work anymore. The growing BS seemed to be the worst part of it.

Looking back, I was actually easing into retirement those last five years and I'm not sorry about my extended transition to full retirement (or the extra money)
I'm glad it worked out well for you (really), but you could have also worked another 5 years and ended with a lower net worth. Might have changed your POV, and induced you to work even longer! Hindsight is a wonderful thing...

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Let's face it, we are all selling our "time" for $$$. We just need to find that "balance".
And live with the outcome come what may...
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Old 08-25-2014, 07:23 PM   #24
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I'm glad it worked out well for you (really), but you could have also worked another 5 years and ended with a lower net worth. Might have changed your POV, and induced you to work even longer! Hindsight is a wonderful thing...

.
True enough, anything is possible but with my job stability and very low risk investment strategy I wasn't worried about going in the wrong direction (financially speaking) - Just my story....
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Old 08-25-2014, 07:25 PM   #25
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I balanced that with the thought that the longer I work the less healthy years of retirement I have. So which is more valuable to a person; their money or their time and health?
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Old 08-25-2014, 10:33 PM   #26
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You could try immediateannuities.com to get the current value of a $500 a month life joint annuity. Making some guesses about your state and spouses age, I was quoted around $120K.

Would you want to work longer for your current salary + $120K? It depends on part your current NW and how much you hate your job if that extra money is worth it to you.
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Old 08-25-2014, 10:36 PM   #27
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And while I admire Jacob at ERE, I doubt many of us would want to live as cheaply as he does. Find your own comfort level.
I thought he took a full time job as a quant?
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Old 08-25-2014, 10:59 PM   #28
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With a projected 2% withdrawal rate this is even a question? Unless your spending drastically increases you are plenty safe.

I would trade more time and better health for a little less money. Especially since you already have enough money. If you don't spend it, your inheritance recipients will.
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Old 08-25-2014, 11:28 PM   #29
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Part of the reason I chose OMY and pushed out my target retirement a year was due to pension growth. After this year the rate of its growth tapers down, and another 13 years of will increase it to an additional 13K yearly above what I will get next year. So it doesn't make sense in my view to keep working for diminishing returns.

The more tempting part of OMY is that I like my job and the workload has actually gone down... there are a number of folks under my 2nd line manager who are FI and eligible to retire, and I think it now scares them enough to subtly come up with ways to keep us around.
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Old 08-26-2014, 10:56 AM   #30
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I had always planned to retire at 55, when my megacorp DB pension had a significant bump up in value. That age also entitled me to keep restricted stock and unvested options. I pulled the trigger at 52 and never felt bad about giving up that extra money. My boss thought I was nuts. But I have enough money. The job had become increasingly stressful and uninteresting. And most important, I was tired of not having enough time to do the things I enjoy in life. Easy decision. My advice to OP: Forget the extra money. You've already won. Start thinking about "real life" after work.
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Old 08-26-2014, 10:59 AM   #31
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One needs to ask two questions:

Do I have enough today to retire?
No, keep working
Who am I earning the money for?
If you have enough to retire, why do you need the extra amount? Who will benefit?

-- Rita
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Old 08-26-2014, 11:20 AM   #32
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I've run a few scenarios, and I'm at the point where, for the most part, working an extra year gets my safe withdrawal rate boosted by about $5,000. There are a few points though, where it takes two years, mainly because I look for a 95% success rate, and in some of the scenarios, it may come in at 92-94%, so it's close.

Anyway, I could retire now, at 44, and have a good chance of making it on $40K per year. If I wait until 58, I have a good chance of making it on $100K per year. I don't have a problem right now, giving up a year for another $5K, as I'm still fairly young, and, well, $45K represents a pretty big jump over $40K, percentage wise. But, by the time I'm 55, waiting until 56 will bump it from $80 to $85K. That's only a 6.25% boost, versus 12.5%. Plus, unless I'm ramping up my lifestyle with each passing year, I have a feeling that the extra time is going to be worth more than the extra money long before I get to that point. Right now, I think I'm going to hit that point around the age of 50, where I should be able to do $60k per year with a good chance of success.

Of course, I'll keep re-running the numbers as I get closer to that date. And, as that date approaches the numbers should be more realistic, as I'll be running shorter Firecalc cycles, so there will be more data to pull from.
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Old 08-26-2014, 12:12 PM   #33
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There have been studies that show that every year you work past 55 costs you more than a year of retirement.

Sample discussion

(I was a CEO when I retired and I thought I was enjoying it, But it turns out that it was enjoyable compared to not being CEO. But it was stressful even though I dealt with it easily.)
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Old 08-26-2014, 01:05 PM   #34
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You could try immediateannuities.com to get the current value of a $500 a month life joint annuity. Making some guesses about your state and spouses age, I was quoted around $120K.

Would you want to work longer for your current salary + $120K? It depends on part your current NW and how much you hate your job if that extra money is worth it to you.
$120k minus one year of pension payments foregone.
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Old 08-26-2014, 02:33 PM   #35
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Anecdote:

I retired from Megacorp at age 49 on a DB pension that started immediately.

Only 2 of my peers worked until age 65. They both died within 2 years of retirement.
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Old 08-26-2014, 05:03 PM   #36
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I retired from Megacorp at age 49 on a DB pension that started immediately.

Only 2 of my peers worked until age 65. They both died within 2 years of retirement.
Oh sure, but I bet they were pulling in a nice monthly pension check when they checked out.
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Old 08-27-2014, 06:40 AM   #37
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Anecdote:

I retired from Megacorp at age 49 on a DB pension that started immediately.

Only 2 of my peers worked until age 65. They both died within 2 years of retirement.
The vast majority work because they believe they need the money. Sometimes it's because they "deserved" that BMW. Sometimes (like me) they don't realize they are FI and could retire until megacorp throws them out. The sad truth is that the typical person retires when their health forces them to retire. This forum is filled with "deviants."

I became a OMYer when I began considering retiring while in an easy but poorly paid position at NASA. I had just discovered this forum and ran FireCalc until I felt very comfortable. I had my mind made up to go when DW's parents went into a health spiral where my "retirement" would have made us home health workers for her parents for the duration. The duration worked out to be about 6 years. Early in that period I moved to a very well paying postion that is also very easy with no stress. When FIL finally died, we moved to our retirement home that is about an hour from my office. The only negatives are the drive and being totally free to do whatever I want. That was 2 1/2 years ago. I then planned for an August 2013 retirement but there was a lot of work to get done. I didn't want to leave in the middle of a big project I was on (a mistake). I thought I'd leave when it was over but then I saw the tax hit if I left in the middle of this year. I'm now on what I consider my second OMY. Prior to that I was avoiding the alternative.

On the plus side, I have more money than I can ever spend without reliving "Brewster's Million."
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Old 08-27-2014, 07:27 AM   #38
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+1. You will never get that year back.
Not only that, it is a year that you will likely be healthier and more active.

And if you "have enough" already, then the principal beneficiary will be your heirs unless you consciously splurge with the additional pension money.
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Old 08-27-2014, 07:30 AM   #39
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...........This forum is filled with "deviants.".........
I can attest to that.
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Old 08-27-2014, 08:30 AM   #40
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I had my mind made up to go when DW's parents went into a health spiral where my "retirement" would have made us home health workers for her parents for the duration. The duration worked out to be about 6 years.
I'm in a bit of a similar situation, and have to admit I feel a bit guilty about it. My grandmother, at the age of 90, is really getting old and feeble. We had to put her in the emergency room a week ago, because she was really out of it, and couldn't walk or even sit up. She's at a rehab place now, and slowly getting better.

My uncle lives with her, but he's not in the best health, himself. Goes to dialysis 3 times per week. He's 62, but not really a "healthy" 62. If I was to retire right now, I know I'd be on call almost 24/7, and it would make me miserable. I don't mind helping out with taking them to doctor's appointments and such, making sure Grandmom takes her pills at breakfast time on the days my uncle is at dialysis, and so on. But if I was on call all the time, I know I'd end up feeling trapped.

Also, I live right across the street from them, so I don't think I'd be able to retire on the downlow. Unless I made sure to leave the house all the time. Or at least, hide the car! So, for the time being at least, I figure I might as well keep w*rking. it's an easy, low-stress job for the most part, close to home, and they're flexible with my hours. In fact, if Grandmom does come back home and needs more regular surveillance, I could get away with taking off on Tuesday and Thursday mornings to watch her while my uncle is in dialysis. But I just fear that once I do retire, then I'll start getting all the "Well you don't have anything to do, you can help out..." sort of requests almost non-stop.
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