Decision Made

[brewer12345]

DW and I have been talking lately and have made the decision that I am going to bail on my day job next spring. I have had more than I can take of sitting in a cube and there is no upside or flexibility in my job. We do not have enough to safely fully retire on, but DW's business covers about half of our budget and I will find some freelance, contract, etc. work to make up the rest. Assuming we make about enough to cover expenses for 10 years and then fully retire, firecalc gives up a thumbs up. If things go better than the downside historical scenarios, we will be able to hang things up well before 10 years.

Why wait until next spring?

- I vest in about $50k in bonus and retirement goodies in December 2013
- There is a bunch of things I need to do before I check out to position myself well
- I need to line up healthcare insurance and healthcare reform makes for a lot of uncertainty as to the price of coverage. I will know a lot more come early 2014.
- I need to figure out what I will be doing to bring in some cash, although I may take the balance of 2014 off.

In a way, I am admitting defeat in that I am acknowledging I will not make it to full FIRE. However, I don't know how I could get to comfort with doing so given that DW will likely live at least another 50 years, which is an awfully long period to cover entirely with a portfolio. If I transition to ESR I hedge some of that risk by not tapping the portfolio for a good while longer.

My to-dos include:

- Line up a HELOC
- get a vasectomy (planned anyway, but might as well do it with cadillac med coverage)
- finish an employer-sponsored professional credential
- line up health insurance
- take advantage of benefits as much as possible

What else should I consider doing from a position of strength?

I am really looking forward to no longer being a prisoner of my cube and getting to spend more time with family. I have no end of things I would rather be doing than my day job.

 

[pb4uski]

Congratulations!! Sounds like it is well thought out and your BS scale just reached its tipping point.

I'd add get physicals/dental exams done for you and yours between now and freedom day. If you have a 401k you could begin to plan what you'll do with it once you're free.

One surprise I had was that I could have rolled my post-tax 401k into my Roth but I didn't become aware that I could do it until well after i had received and cashed the check. I also had a DC plan that I was planning on rolling into my IRA but didn't because I learned that it had an annitization option that was more attractively priced than current market SPIAs, so I held on to it for now.

 

[REWahoo]

What else should I consider doing from a position of strength?

Here's an old thread that may have some worthwhile information: http://www.early-retirement.org/forums/f29/how-do-did-you-prepare-for-er-20952.html#post387011

 

[samclem]

Are you in the house you'll want to be in for a long time? Is it feasible to buy that house before you pull the plug?

If you are in the house you want: know you've recently refinanced--I can't recall if you went for the 30 year fixed. That might be a good option (reduce cash out, use the cheap money and wait for inflation).

Start networking/building leads for the new business while you are still securely in your job. Nothing at all overt, but that's the point: a contact who you've been in touch with frequently for a year before you hung out your shingle will be more useful than someone you called out of the blue from a meeting 5 year ago.

Congrats on the decision.

 

[braumeister]

Pick up a spare freezer and stock up on what is becoming the ultimate inflation hedge: hops.

Congrats and best wishes!

 

[brewer12345]

I bought the house I hope to be carried out of in the location I planned to retire in, so that is done. Refi'd to a 30 year fixed at 3.5% last July.

Networking is definitely on the list.

As I am sitting on an infuriating conference call at the moment, its going to be a long year to wait.

 

[HFWR]

As I am sitting on an infuriating conference call at the moment, its going to be a long year to wait.

Time for some medicinal marijuana? You are in Colorado, after all...

 

[REWahoo]

Time for some medicinal marijuana? You are in Colorado, after all...

I know you are a hunter - maybe time to become a farmer?

 

[brewer12345]

I know you are a hunter - maybe time to become a farmer?

CO law actually makes it legal to grow up to 6 plants for personal use. Federal law, OTOH... Rather not give anyone an excuse to send me to the federal prison system.

 

[Brdofpray]

- get a vasectomy

I never thought about this before I fired.

 

[donheff]

Good luck Brewer. You can set up a consultancy advising boomers on bond strategies.

 

[Midpack]

Congrats Brewer! You're one of the most capable people here, so I am sure you'll do very well come what may. If you have problems, most of us will probably be in the same boat...

 

[brewer12345]

Eh, if I have problems I will go back to work and call the time off a sabbatical.

I was so angry this afternoon I was ready to make it this spring...

 

[daylatedollarshort]

I am really looking forward to no longer being a prisoner of my cube and getting to spend more time with family. I have no end of things I would rather be doing than my day job.

Good for you. I think I would rather live in a van by the river before I'd go back to a cube now that I've tasted freedom. Sitting at a desk all day just isn't healthy for me.

If our business stopped making money, we means tested out of SS and and our retirement plan fell apart, I think I'd go back to school for some job where I at least got to move around, like a physical therapy assistant or a locksmith, even if it paid a lot less than what I could get at a corporate position.

In preparing for full ER we found it helpful to go over the budget line by line and look for ways to save. Each week we still have a major cost cutting project to tackle - insulation, price shop insurance, selling an extra car we do not use, low flow shower heads, buying annual park passes for very cheap entertainment, making our own cleaning supplies, etc.

I really enjoy your posts and have followed much of your advice with our own portfolios. I am sure you will be a success in whatever you decide to do. Good luck.

 

[Brat]

Once I had a plan and set my exit date bureaucratic BS just washed over my psyche. I suggest you use your bike to commute every day the weather permits just to burn off frustration and start a daily diary. Diaries can be useful to look back over and contemporaneous observations can be very valuable.

Keep in mind that they need you very much. Power is knowing that deep in your bones.

 

[brewer12345]

Keep in mind that they need you very much. Power is knowing that deep in your bones.

Indeed. When I am ready to break the news to my superiors I plan to offer to be a contractor for them. I have unique expertise they cannot replace so I will pitch them on having access to my skills and a third to a half the cost of me as a full time employee.

 

[pb4uski]

A half a loaf is better than none.

 

[NW Landlady]

Big Congrats Brewer!
My Dh was in the same boat & hasn't looked back since he pulled the Plug at Big Co!
Now if I could only get him to do some work around the house...but that's another story!

My only advice is expect to do a lot of cleaning, purging & reorganizing once U drop out....at least that's how its been here..

 

[jon-nyc]

Congratulations!

Not much to add re advice, just one thought:

My to-dos include:

- Line up a HELOC
...

What else should I consider doing from a position of strength?

I'm retiring at the end of the month, at 44. I considered a HELOC but in my case (NY state) you pay an onerous mortgage recording tax on the capacity of the Heloc, even if you never use it. I therefore decided that my emergency lending capacity should be fulfilled by converting my vanguard brokerage account to a margin account.

It may not be a consideration in CO, but I thought I'd throw that out there.

 

[brewer12345]

Congratulations!


I'm retiring at the end of the month, at 44. I considered a HELOC but in my case (NY state) you pay an onerous mortgage recording tax on the capacity of the Heloc, even if you never use it. I therefore decided that my emergency lending capacity should be fulfilled by converting my vanguard brokerage account to a margin account.

It may not be a consideration in CO, but I thought I'd throw that out there.

As a formr property owner in NYC, I know exactly what you are talking about. Happily, there is almost nothing in CO that is not cheaper than in NYC and mortgage/HELOC origination costs are no exception.

 

[brewer12345]

My only advice is expect to do a lot of cleaning, purging & reorganizing once U drop out....at least that's how its been here..

When we moved less than 2 years ago, we did that in spades. We filled a 30 cubic yard dumpster with crap that was not coming with us and the tippage bill showed that it was almost 3 tons. Have not managed to reload on the junk yet.

 

[Free To Canoe]

Congrats Brewer! Work on your ER to do list to pass the time.

 

[CoolChange]

Indeed. When I am ready to break the news to my superiors I plan to offer to be a contractor for them. I have unique expertise they cannot replace so I will pitch them on having access to my skills and a third to a half the cost of me as a full time employee.

I am planning to make the same offer to my CEO this month and hope this works out for both of us. ESR must be better than sitting at a desk full time.

 

[brewer12345]

I am planning to make the same offer to my CEO this month and hope this works out for both of us. ESR must be better than sitting at a desk full time.

Meh, if they don't want to do a contractor thing, so be it. I am sick of the nonsense anyway.

 

[Sarah in SC]

Congrats to you Brew. A good plan for sure. I've been enjoying watching my DH get ready to leave his job for at least a year-long sabbatical this summer, and he has already been thinking of all the good fun stuff he will be able to do. I know you are equally excited now that you've settled on a plan.

Best to you and I can really see you gradually doing more consulting work in private practice as you detox from this job.