FIRE at 55 or earn the extra $$$$$$

[lwp2017]

I told my company's leadership in January that I was retiring at 55 this summer. So they could plan for my succession.

They asked me to delay retiring and negotiated with me. Delaying would result in over $250,000 increase into retirement assets if I keep working until Feb 2018.

I wish my depression-era dad was still alive to talk it through, He retired at 61. He balanced money and quality of life rather well.

So I'm asking this forum for your advice.
I've read the stickies, posts, and other links.

After 30+ years of working hard being my family's sole provider it's very hard to walk away from that much money. We don't really need it though. I tell myself only nine more months, we could gift to the grandkids 529s, donate to our church building fund, start Roth IRAs for our kids, etc, etc.

My job is high stress, high pressure, often 6 days a week, well compensated at mid 6 figures. Quality of life is very poor. I work at a 7/24/365 business -for the past 30 years.

I would much rather be retired working on the small farm we live on. Finally spend time enjoying life which kinda feels selfish.

Also wanted quality time to rebuild my health and lose 40 pounds. No other health issues other than being too fat.

We have a frugal lifestyle, DW's favorite meal is still home cooked pinto beans, LOL.
No debt for over 20 years. If we want something expensive, we plan and save for it. Did a complete remodel on home, along with new roof, and all new fences on farm in past 2 years prior to retirement so no major expenses on the 20 year horizon other than autos and appliances.

Retirement in May would be over $11,000 per month from a defined benefit pension, before taxes. Also will receive $1200/month health care purchase supplement. We have saved $2.5M in 401K & brokerage investments.

So we have been blessed, money should be okay, I don't plan on cutting dryer sheets in half.

Both kids are launched, with jobs and also live modestly, debt free, in their own small homes.

DW taught school for about 10 years total but was mostly a stay at home mom. She truly loves her community volunteer work and is encouraging me to retire.

I do appreciate insight from any of of you that had a similar situation.
Just writing this question is somewhat cathartic.

Thanks!

 

[Blue Collar Guy]

i stayed 5 years too long

i was the "i might not have enough" guy. guess what i got enough for 2 life times, 11k a month pension before taxes, sir you aint ever going to hit ur savings, im at 8592.75 a month , if i live to a 110 im not hitting my savings, let alone worry about a safe withdrawal rate. my dad died at 57, yours at 61, leave now, buy ur own gold watch, live long, enjoy the grand kids. ps i saw u consulted the bride, she gave you her blessing, go now while ur healthy

 

[MRG]

People smarter than me showed me this.

 

[Starsky]

Only you can decide, but...

There are no guarantees. Would you work 6 more months if you only had 5 years left? It may not be a certainty, but it is certainly a possibility.

(Full disclosure: I had a heart attack I never expected, and wasn't supposed to survive, 2 years after FIREing at 53. It happens; and heart attacks did take three of my younger friends in recent years.)

With an $11K monthly pension + healthcare +..., what does $250K more allow you to do that you can't already do? How much extra time can you buy for $250K?

If I were you, I'd run like heck. It sounds like you have a blessed situation; enjoy it as much as you can. You've clearly earned it. Happy retirement either way!

 

[Lcountz]

lwp..there are only so many springs and summers.....

Springtime now....take a walk on your farm today and think to yourself how WONDERFUL it would be to get up early each day, take your mug of coffee and just listen to birds or wind in the trees. Even rain.

Forget traffic, stress, endless mindnumbing meetings, corporate buzzwords, the awful feeling of how 40 extra pounds makes you feel......

Just do it. In Feb 2018 you'll just find another excuse.

 

[BeachOrCity]

You already won.....why keep playing?

 

[ivinsfan]

I don't know if it matters, but why are they asking you to delay? Did they start looking immediately for your replacement...are they just asking you so they can kick the can(you)a little farther down the road.

Do they want the exact same work schedule as now, or do they want you to mentor your replacement? It that's the case you should be able to cut your stress and hours as the new person gets up to speed.You don't need the money so think about why you might be considering do this "favor" for your company.

 

[euro]

You have obviously come to a somewhat biased place here, but yes, I agree with the others: don't trade time for more money. Go now

 

[mpeirce]

I told my company's leadership in January that I was retiring at 55 this summer. So they could plan for my succession.

They asked me to delay retiring and negotiated with me. Delaying would result in over $250,000 increase into retirement assets if I keep working until Feb 2018.

I'd consider waiting the extra six(+/-) months - it's not really that long. You said you let them know so they could plan your succession, so you seem to want to take into account the companies needs to some extent.

When I left my old job, I did something a little similar. I was planning my exit and about six month before I was planning to go there was a reorganization. I decided to let my boss know my plans at that point so they wouldn't end up depending on my long term. We decided on the following January as a good exit date for both of us.

What I did was take the extra options and restricted stock that would vest for me and set them aside in a special fund. I didn't really need them as retirement funds, but they've provided a special family vacation, a car, and a kitchen remodel. This made it more "worth it" to me and the extra six months went by quickly.

For me, I look back and am glad things happened that way - of course I'm healthy and still around to enjoy FIRE!

Just my experience.

 

[iloveyoga]

You have obviously come to a somewhat biased place here, but yes, I agree with the others: don't trade time for more money. Go now

+1 go now, you won't be sorry. Congrats on the great job you have done!

 

[steveark]

I retired at sixty from a similar job with similar pay. Now I work at several side gigs averaging two or three days a week work and make low six figures versus my previous mid. I enjoy it like you expect to enjoy your farm. After one year lie could not be better. And though I enjoyed my old job, or thought I did, I feel lighter than air with that 24x7x365 job lifted from my shoulders. Not one single day have I missed it. Mondays are awesome! Do it!

 

[gerntz]

Well, a 10% increase in next egg for 9 months is nothing to sneeze at - you're quite young.

Net, I'd require strict limits on my time such at 9-10 hours 5 days/week, no weekend calls/work. If they agree & then violate it, just ignore them till they understand you mean it or ask you to leave anyway. Also, they'd know you're serious about leaving & not likely to approach you again before Feb for another time extension. I'd also require a couple of 2 week vacations before Christmas arrives so they can't put you off. JMO

 

[Mo Money]

Run! My career was high-stress. For every year I would have stayed (law) my net worth would have gone up roughly $200K-$250K. But the career that paid so well also had some significant negative effects on my health, which I am still treating (and will treat for the rest of my life). The cartoon that MRG posted is the gist of it. You will not regret bolting at 55. (I bolted at 53 and am 55 now; I have had a great two years....)

 

[Whisper66]

Delaying retirement gets you 250,000 little green pieces of paper we call dollar bills. Unless you have something you need / strongly want to do with it, that's all it is, just paper. Sounds like you have no need for it. If you can't come up with a great reason to collect that paper, it's time to work on your health and happiness.

Many of us went through the same thought processes you are having to go through now. In my case, I retired 3 yrs earlier than my plan. Working to the plan would have added 25-40% (depending on bonuses and stock market returns) more to my retirement savings. I jumped anyway and never regreted it. Good luck and good health to you.

 

[tn3sport]

Little different reason to quit...
You say you want to lose 40 pounds. I'm assuming you are overweight by at least that much.
Do your loved ones a favor and make your new job a passion to change your lifestyle and lose the weight. Don't go for the lose it quick quackery. Make a commitment to truly change your lifestyle. It might mean instead of driving to the office 6 days a week, you drive to the gym. Or, you drive to the park and ride your bike. Or you drive to the park and walk.

Forget that job, you are financially sound. Focus on your health. Spend some money on a nutritionist. And don't lose it too fast or it will come back faster than the consumption of a bucket of fried chicken in front of Oprah. (The symbol for seesaw weight loss/gain.) Set a goal of losing about a pound a week until you hit your target and then maintain.

 

[Aerides]

You have a pension of $11k per month, and an egg that supports a conservative 3% swr of $75k per year.

You don't mention expenses, but I'm going to guess it's less than either of those alone. Combined? You've won.

Were I you, I would go back to my boss on Monday, and say "I've reconsidered, please accept my 2 weeks notice!"

ETA: In January you gave them a generous 6 months notice. They've already squandered 3 months of it. (or they wouldn't be asking you to stay). There are a lot of threads about people who did the same as you, and got down to their last month or week realizing their Company still hadn't replaced them or planned properly. They are not asking you to stay to do you any favors, only to cover their lack of action. If you stay, I guarantee you won't see your replacement walk in the door until 2018. Clearly they didn't even consider your position. If they were serious about your value they would have negotiated flexibility, less hours, balance...but doesn't sound like it.

 

[24601NoMore]

Holy cow - you get $11K a month in pension PLUS $1,200 toward HC and are even THINKING about not RE? Really?!! WHY?

Run for the hills. Seriously. If I had that kind of cash flow to count on, I'd be gone yesterday.

I'm really envious of all the people here that have pensions. Seems to be a surprisingly high percentage. Maybe that's because most people that can RE can do so BECAUSE they have pensions (neither wife or I do). I don't know a single person in my social circle with a pension, but then again I'm 53 and in high tech vs .GOV, teaching or other union gig.

 

[Amethyst]

I retired, then came back part-time because the work was easy and something I liked to do. I would never have come back for something that was high-stress.

OTOH, just to fan your fears, we ran into a period of unexpectedly high expenses just around the time I retired (we are still in it, in fact). So the extra earnings have been handy. Nevertheless: I still would not continue working, if high stress were involved. I'd rather dip into principal than endure work stress.

 

[mystang52]

You have obviously come to a somewhat biased place here, but yes, I agree with the others: don't trade time for more money. Go now

Yes, you won't get too many votes to continue w*rking. After the first few sentences of your post I was leaning to you toughing it out to February, a mere 1/2 year or so after the summer. But then you described the intensity of your job, and your assets/pension.
So, I too vote that you stick with your original ER date. Keep in mind that regardless of one's income level, continuing to w*rk always results in more money than ER. But the point is to accumulate enough that you can afford your lifestyle ER. You're already there, so no need to stay 'til February.

 

[Meadbh]

This was a red flag for me.

"My job is high stress, high pressure, often 6 days a week, well compensated at mid 6 figures. Quality of life is very poor. I work at a 7/24/365 business -for the past 30 years."

Your job may be killing you. You have plenty of money to retire. What are you waiting for?

 

[lwp2017]

Overall very good advice, thank you. I slept for a few hours, got up before sunrise as usual and sat on the terrace with my coffee & dogs. Avoided reading work email for a few hours.
Instead I watched a storm blow in across the woods and lake. Songbirds were amazing, saw a Baltimore oriole, an exciting first for me on this farm. Wife came out, sat next to me, we held hands and talked about retirement. Decided we would bake some trout fillets I caught for our supper. Also agreed on where to plant the yellow zinnias. Life is good.

Coming to grips that churn is emotional not financial. Figuring out how to deal with 50 years of getting up early, working hard and exceeding on commitments - always putting family, God and work first, before me. I committed to provide for my family- that is a big part of who I am. A legacy of parents born in the 1920s, they grew up in the Great Depression and spent their youth in WWII.

Got to rewire my brain it is okay to do something for me. Family will be thrilled if I lose the weight, they do lovingly worry.

Reading some great threads and a book how to deal with it.
Thanks again to all of you, this is helping and cathartic.

I don't know if it matters, but why are they asking you to delay? Did they start looking immediately for your replacement...are they just asking you so they can kick the can(you)a little farther down the road.

Do they want the exact same work schedule as now, or do they want you to mentor your replacement? It that's the case you should be able to cut your stress and hours as the new person gets up to speed.You don't need the money so think about why you might be considering do this "favor" for your company.

Perspective:
I'm responsible for about 20% of our company's spend, its common to have up to 1000 full time and temporary employees in my chain of command.
We are able to consistently deliver large 8 figure projects ahead of schedule and under budget. Our safety record is at the top of the charts and morale is very high. We deal with 30 vendors and sub vendors and have developed strong partnerships.

To stay ahead of competition, we work very hard to achieve strong results.

The executive officers of the company know that when I leave they will have to pay more attention to my respective divisions to get the same results. It's in their personal interest to negotiate and avoid leadership transition risk. Right now my respective departments run smoothly, typically stay off the radar other than routine updates.

I have two direct reports I have groomed for two years as part of this transition to retirement. I'm confident they have the skills and capacity to maintain the legacy, thus my six month notice.
Unfortunately for my directs, ( and also their directs reports ) we all work the same killer hours to stay competitive and achieve our results

 

[lwp2017]

This post by Ready was personally insightful :

---------------------

I suspect that the majority of members in this forum will die with substantial fortunes, in spite of the comments many of us have made about wanting our final check to bounce on our way to the funeral.


I think it's a combination of several things:


1) We enjoy accumulating wealth, and resist seeing it being spent and watching the balance decline after so many years of seeing it grow.


2) We overanalyze the SWR rules in spite of the studies demonstrating that 4% easily survived over many years of stock market booms and busts. We think 3% is the new 4%, and then we reduce the 3% to 2.5% just to be safe.


3) We are so worried about needing end of life care that we are willing to sacrifice enjoying the money today just in case we need extensive care down the road.


4) We have become so accustomed to LBYM that even though we have plenty of money we can't bring ourselves to spend it.

http://www.early-retirement.org/forums/showthread.php?p=1874110

 

[Fedup]

Most likely not from reading your post.

 

[Amethyst]

A little editing, with your indulgence:

4) We [-]have become so accustomed[/-] are so disinterested in luxuries, an attitude that enabled us to LBYM, that even though we have plenty of money we can't bring ourselves to spend it.

Withdrawal Rate Too Low? - Early Retirement & Financial Independence Community

 

[Sojourner]

1) We enjoy accumulating wealth, and resist seeing it being spent and watching the balance decline after so many years of seeing it grow.

2) We overanalyze the SWR rules in spite of the studies demonstrating that 4% easily survived over many years of stock market booms and busts. We think 3% is the new 4%, and then we reduce the 3% to 2.5% just to be safe.

3) We are so worried about needing end of life care that we are willing to sacrifice enjoying the money today just in case we need extensive care down the road.

4) We have become so accustomed to LBYM that even though we have plenty of money we can't bring ourselves to spend it.

Withdrawal Rate Too Low? - Early Retirement & Financial Independence Community

Points 1, 2, and 4 definitely apply to me and I suspect to many others on this forum, with #4 ringing especially true for me.

Regarding your original question, I am in the "retire now" camp considering your very generous pension and health care premium support. I was in a 24/7 high stress job when I finally walked away several years ago, and I think the trade-off of foregoing all the big bucks for lower stress was a no brainer. I haven't regretted it, and I'm pretty sure you won't either. Life is way too short to live with unhealthy, constant stress when you don't have to.