Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Concern re: Job Loss
Old 02-26-2005, 07:39 PM   #1
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Concern re: Job Loss

Alright, this will likely sound a bit goofy, but this is a nearly anonymous board, so let me give this a try. *Your collective wisdom and decency is evident here.

The job market has been pretty tough last few years, and I do financial management for a living. *Great pay when you can land the jobs, but very high pressure, and the average CFO gig only lasts an average of 28 months. *[I've generally stayed employed, but it has been "interesting".] *That 28 months comes from a solid source, and I've seen it in action. *My age 54 wife is training to be a paralegal, and should be working by July or August (likely comp $28K to start). *My age is 53, and we've created $500K liquid savings, plus another $900K in net real estate equity producing about $1,900 net rental income monthly. *The PITI on our home is less than $1,600, though we're paying it off in 5 years with a much higher payment. *No other debt.

We're now able to save significantly while I'm employed, since we've finally learned to LBYM, and, when I run the numbers, it appears we should be fine, even if I couldn't get another job after this one ends.

Still, I'll be honest ... I worry. *We have a 13 year old, and a 21 year old (diagnosed as disabled a year and a half ago, and not likely to ever hold a decent paying job). *Lost both parents in the last 4 years, and I think that adds to my sense of unease.

Now, as I've worked and reworked our numbers and our plan, I've started to wonder if I am going through what perhaps some or most of you went through when you finally decided to stop working. *That is, it must be a leap of faith to finally quit, and begin drawing down your nest egg, especially if you do so in anticipation of SS saving you from depleting your funds.

So, the sensitive, and perhaps too touchy feely question ... have you dealt with this kind of worry, and how have you gotten past the pit in your stomach that tells you to never stop working, and not to touch those savings? *Or is it some algorithm of size of net worth and number of times you work the numbers? *

Thanks.
__________________

__________________
Craig is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Concern Job Loss
Old 02-26-2005, 10:43 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Concern Job Loss

Hey Charles. Let me get quickly by the part where I let you know that we have satellite pictures of your house. You should mow your front lawn, by the way.

Sounds like you've been through a bit of tragedy these last few years. Let me start by saying I'm sorry for the loss of your parents and the other bad news regarding your oldest child.

That can certainly decrease ones sense of stability.

You know what though, there is no clean answer to your question. As someon in the financial business you can run all the scenarios, spreadsheets and what-ifs and know where you stand risk-wise with regards to a stop-work plan.

Make sure you put all the other factors on the other side of the balance sheet. Even the ones you cant measure.

Since I ER'ed, I was able to focus on my love relationship with the lady thats turned out to be the love of my life. My stress level is 1/10th of what it used to be and that certainly doesnt hurt the quality of life that we enjoy. We just had our first baby last month and I will get the pleasure of being his primary caregiver through most of his life. Note I said 'pleasure' after just having him scream blue bloody murder through his bath a couple of hours ago and just changing the most incredibly poopy diapers I could ever imagine.

You have to run your numbers. Ten ways from sunday. When you think you've got a good shot, and truth be told there no such thing as a sure thing, take it. You're going to be nervous for a year or two or three. Use the coping, analytical and managerial skills you've developed over the years to defeat those concerns that make you nervous.

When I was 17, I was worried about hacking it in my first new big job. When I was 24 I was mortified at the prospects of managing people for the first time. When I was 42, I sat sleepless for several weeks over the prospects of becoming someones husband, and at 43, the same over becoming someones daddy!

This too shall pass. Assess your life and make your move.
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 02:52 AM   #3
 
Posts: n/a
Re: Concern Job Loss

TH is right. All of those "life changes" scared me too.
It's worthy of note that becoming a parent frightened me more than anything before or since and yet
being a "Dad" became the best thing that has happened
in my life.

JG
__________________
  Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 04:44 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
Re: Concern Job Loss

Quote:

" That is, it must be a leap of faith to finally quit, and begin drawing down your nest egg, especially if you do so in anticipation of SS saving you from depleting your funds."

Thanks.
Craig,
I have not taken the "leap" yet and the quote above hits one of the questions or fears. I remember a movie where it was said "Give your fear (s) a name" once they are named, identified and acknoledged they can be delt with. This would be a great exercise to do with your wife.
On this Sunday morning I can think of several that may or may not apply to you. Maybe others can add to it.
Fears:
Poverty - I've been poor before - I never want to go back there. Add SWR, SS, Stock Market crash other financial concerns here.
Fool - Giving up a high paying easy job; that others envy for the unknown. See the movie "Lost in America"
Boredom - After retiring I have nothing to do and all I do is watch TV all day
Going against my conditioning - I have only been taught to work - the idea of not working was never even thought of
Freak - Am I crazy? I'm 50 and except for this board no one I know ever retired early. No one talks about ER or even the idea of doing what you want in life and not working.
On the outside - Similar to Freak and Fool. After ER you find out it doesn't measure up to your dreams - you made a mistake and can't get back what you had. All those who said that "He who dies with the most things, wins" were correct!
Indecision - Is ER really what I want or is it only an escapist idear because I don't have other ideas. Meaning does it have to be all or nothing? Would I be happy being a bartender instead of a lawyer (I'm neither).

Patton Once said "I do not take countsil from my fears." I'm guessing he at least identified his fears so he knew who they were so he could ignore them.

Another quote is that "Life is a battle between what you love and what you fear." Maybe we need a list of "Loves".

Finally, I do believe that after considerable thought and planning it really is a leap of faith. "Jump and the net shall appear."
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 06:07 AM   #5
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 123
Re: Concern Job Loss

Charles: I don't think it sounds goofy at all. I feel exactly the same way re: the leap of faith. I thought I was ready to take the leap but I haven't yet, probably for many of the reasons/fears Dex points out in his post. I'm 45 and by all the numbers I have put together, I "should" be ready to pull the RE trigger. I have been carrying my resignation letter around in my briefcase and each month print up a new one with a new date on it. I can not seem to adjust to the idea of taking money out of my accounts vs. putting it in, and the idea of retiring early will be madness to the people I work with. Fear of the unknown is what it is for me...my spouse even wants to work another year, so there still is some safety net.
__________________
You can either take action, or you can wait for a miracle. Miracles are<br />great, but they are so unpredictable.<br />(Peter Drucker)
kayelem is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 07:25 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Concern Job Loss

Quote:

Now, as I've worked and reworked our numbers and our plan, I've started to wonder if I am going through what perhaps some or most of you went through when you finally decided to stop working. *That is, it must be a leap of faith to finally quit, and begin drawing down your nest egg, especially if you do so in anticipation of SS saving you from depleting your funds.

So, the sensitive, and perhaps too touchy feely question ... have you dealt with this kind of worry, and how have you gotten past the pit in your stomach that tells you to never stop working, and not to touch those savings? *Or is it some algorithm of size of net worth and number of times you work the numbers? *

Thanks.
Craig:
Early retirement is not for everyone. I have seen more early retirements derailed because of other considerations, then financial.
I am a firm believer in motivation, and without that it will always leave you second guessing your decision.
I personally retired just shy of 50. (My friends, etc. thought I nuts. My children were pretty much raised, and homemaker spouse was O.K. with it.
I wanted to change locations, and pursue two activities that I didn't have time for while working. (It has been almost 18 years now, and my enthusiasm is still very strong in those two areas.
Excuse the life story, but I personally believe that without a very solid reason to retire early you will be leaving yourself wide open to doubts.
The "natural high" of not having to answer, or be responsible, to a job wears off after a relatively short period of time, and has to be replaced with activities that bring you a great deal of satisfaction.
As far as your current assets, it appears you would be O.K., but with a 13 year old and a handicapped 21 year old, (Sorry about that, and having raised children with no problems, can only imagine what adding that element into the mix would be like) you might consider soldiering on for a while yet.
You and your wife have done a great job in building assets, and considering your background, I'm sure that you would be able to make a go of it regardless of what decision you made.
Good luck, Jarhead
__________________
Jarhead* is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 07:37 AM   #7
 
Posts: n/a
Re: Concern Job Loss

I basically agree with Jarhead, even though I have not seen any ER plans destroyed, mainly because I am not really close to any true ERs. The ones I know about are mainly here or on similar sites.

I think doubts are natural. But, I didn't have any. In fact, you might say I was compelled to quit. However, in
the early going I eased into it by working part time,
and I was a bit nervous when I "crossed the ER Rubicon" for good in 1998. But, the actual fact of doing
it was never in doubt once I saw all of the possibilities
open to me. When my wife gets in a funk I always tell her that the world is our oyster if you can only look at your situation from the right perspective. I really believe that.

JG
__________________
  Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 08:06 AM   #8
Thinks s/he gets paid by the post
Eagle43's Avatar
 
Join Date: Jan 2005
Location: DFW
Posts: 1,883
Re: Concern Job Loss

I, too, agree with Jarhead.

Most important lines of Jarhead's post are: " Early retirement is not for everyone. I have seen more early retirements derailed because of other considerations, then financial. I am a firm believer in motivation, and without that it will always leave you second guessing your decision."

Take your time. Make sure that your medical expenses are nailed down. It looks like your financials are great. What you could do is try it; Take a sabbatical, do something else, and see how you feel about it. Then, depending on your decision, return to working or stay out. Good luck.
__________________
Resist much. Obey Little. . . . Ed Abbey

Disclaimer: My Posts are for my amusement only.
Eagle43 is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 08:27 AM   #9
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 420
Re: Concern Job Loss

I have the same thoughts. I am sure I will not be bored in FIRE though but taking the jump from a well paying job into the unknown is still difficult for me.

I have reached FI so now every month is used for adding some more padding, but more importantly; evaluating the pros/cons of work.

I have also set a financial target for stopping NO MATTER WHAT being $2M net worth maybe 4-5 years down the road.
__________________
preben is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 08:49 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Concern Job Loss

Quote:
I basically agree with Jarhead, even though I have not seen any ER plans destroyed, mainly because I am not really close to any true ERs. *The ones I know about are mainly here or on similar sites.



JG
JG: The area where I live, (according to the Chamber of Commerce), and I have no reason to doubt them, has the highest concentration of move-in early retirees, than any other place in Calif.
They move up here, for the same reason I did. A great spot for outdoor possibilities. Skiing, trout fishing, lots of lakes, rivers, good enough weather to allow year round golf, large University near-by, etc. etc.
Playing a lot of golf, and being around many of the early retirees, have time and time again seen many of them go back to work out of sheer boredom.
I personally have never suffered that affliction, but many have.
Retiring early (Especially under age 50), is not for everyone, in my opinion. For the ones that can think outside the box, it's great.
I personally wouldn't trade the 18 years I've been retired for any amount of money. But that's just me.
__________________
Jarhead* is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 11:44 AM   #11
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,113
Re: Concern Job Loss

Quote:
So, the sensitive, and perhaps too touchy feely question ... have you dealt with this kind of worry, and how have you gotten past the pit in your stomach that tells you to never stop working, and not to touch those savings?
Bill Clinton, isn't this when you are supposed to reply "I feel your pain"?

REW
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 02:58 PM   #12
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: Concern Job Loss

Hey Charles,

When I took ER I had a part time business that earned
about 1/4 of my income needs and provided the almost
absolute certainty that I could expand the business
if needed to provide the rest. That provided peace of
mind that helped reduce the flutters. I still have the
business BTW after 16 years into retirement.

As a CFO guru, it seems to me that you should be
able to start or buy a small business that uses your
experience .... something that does not require a lot
of capital for entry and can be run on a part time basis.

Obviously this is not for everyone .... just food for
thought.

Cheers,

Charlie

__________________
charlie is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 04:18 PM   #13
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Re: Concern Job Loss

Chuck-Lyn,

I've thought the same over the years, but have yet to find the right business. If I was a little closer to having sufficient assets (north of $2M feels necessary), then I'd be tempted to look for the classic mismanaged small business that needs some focus, but not great amounts of capital. At present, I'm too buried in long, long hours in the current gig.

The comments above are giving me some additional perspective. Thank you.
__________________
Craig is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 04:52 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Concern Job Loss

...and thanks for getting out this morning and cutting your lawn!

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Concern Job Loss
Old 02-27-2005, 05:43 PM   #15
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Re: Concern Job Loss

No problem, TH ... I took your comments to heart. Hope you didn't mind that old t-shirt, though ... :
__________________
Craig is offline   Reply With Quote
Re: Concern Job Loss
Old 02-28-2005, 11:34 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Concern Job Loss

Not at all Charles.

But those shorts! What...Emmitt Kelley have a garage sale?
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Legal for employer to advertise your job before you've left? TheGeneral Young Dreamers 9 03-06-2007 12:18 PM
Thinking out loud about a possible job move HobbyDave Young Dreamers 15 05-25-2006 02:29 PM
Which job to pick? geeman Young Dreamers 65 03-13-2006 06:00 PM
The Perfect Job flipstress Other topics 9 12-02-2005 05:00 PM
Possible Job Opportunity... brewer12345 Young Dreamers 18 12-10-2004 06:51 AM

 

 
All times are GMT -6. The time now is 10:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.