I turn 40 next month and the earliest I could retire permanently, from my primitive calculations, is my early 50's. We are a one-income family and I will not have a pension so retirement depends on 401ks and other savings.
While early-50s does not sound bad to me as an early retirement age, my children will be grown by then and I'd really rather have some time NOW, or soon, while they still want to spend time with me. We currently have about a year and a half (at current spending levels) in savings outside of retirement accounts. I believe we could make it last 2-3 years with reasonable spending cut-backs, even longer with more drastic action (like selling the house and moving into a family-owned home rent free).
Here are the pros and cons as I see them:
PROS
Spending significant time with kids (currently ages 12 and 9) while they are still at home and making memories to last the rest of my life. DH is a SAHD and homeschools the girls so we'd all be together.
CONS
Returning to the workforce after significant time off may be a challenge.
It seems unwise to voluntarily leave a job that pays well and has good benefits.
Spending our savings would mean we would no longer have an emergency fund.
I haven't figured health insurance into it yet so this cost could significantly impact how much time off I'd have.
What else should I be thinking about? I've been day-dreaming about the possibility of being laid off, which would negate CON #2 and add about 21-weeks of full pay (severance and vacation hours) to our savings.
This is my first post to these forums, although I've read them off and on over the last couple of years. I welcome any thoughts/input.
While early-50s does not sound bad to me as an early retirement age, my children will be grown by then and I'd really rather have some time NOW, or soon, while they still want to spend time with me. We currently have about a year and a half (at current spending levels) in savings outside of retirement accounts. I believe we could make it last 2-3 years with reasonable spending cut-backs, even longer with more drastic action (like selling the house and moving into a family-owned home rent free).
Here are the pros and cons as I see them:
PROS
Spending significant time with kids (currently ages 12 and 9) while they are still at home and making memories to last the rest of my life. DH is a SAHD and homeschools the girls so we'd all be together.
CONS
Returning to the workforce after significant time off may be a challenge.
It seems unwise to voluntarily leave a job that pays well and has good benefits.
Spending our savings would mean we would no longer have an emergency fund.
I haven't figured health insurance into it yet so this cost could significantly impact how much time off I'd have.
What else should I be thinking about? I've been day-dreaming about the possibility of being laid off, which would negate CON #2 and add about 21-weeks of full pay (severance and vacation hours) to our savings.
This is my first post to these forums, although I've read them off and on over the last couple of years. I welcome any thoughts/input.