I Want To Semi-Retire ASAP

[Kempotrader]

Hello - I am so grateful to have found this site!

I am 60 years old. I have approx $580K in savings and portfolio (dropping like a rock, as I write this post). The majority of the portfolio is in taxable accounts The portfolio is setup to maximize income not capital appreciation and currently produces about $29,000 annually, regardless (for now) of portfolio value.

I have a live-with girlfriend who owns her home outright. We share expenses. She has about $700K + house, however, we are keeping the finances separate.

Expenses (for me) are about $3000/mo (if I jettison work and need to buy health insurance).

I am working in a toxic work environment and I just want out (yesterday). This feeling led me to this site and opened my eyes. Why not just quit and take some part time work and do a slooooow burn of my savings?

I have been looking at FIREcalc and a lot of the scenarios say GO For IT! I surely can't be using it correctly.

Any guidance would be greatly appreciated

David

 

[street]

Here is the site for ACA and you can see if you qualify for subsidies.
https://www.healthcare.gov/

As far as the FIREcalc I can't help much there but you can use different scenarios and information you enter to fit your portfolio.

Good luck and if you can swing it, I'm sure you will enjoy having more time for you.

 

[REWahoo]

Kempotrader, here is some of the best guidance this forum has to offer: http://www.early-retirement.org/for...-answer-before-asking-can-i-retire-69999.html

 

[daylatedollarshort]

I find the Fidelity Retirement Calculator helpful. If your relationship ended, your partner passed away unexpectedly or even just passed first, would your retirement plan still hold up without the live in GF with her own home?

 

[footenote]

Here's another ACA calculator: https://www.kff.org/interactive/subsidy-calculator/

I find it easier to use if you're just trying to ballpark subsidy numbers. Note that you'll be projecting 2019 income. Also, you cannot have insurance available any other way. So your PT work would need to be without benefits. (Luckily, most are!)

+1 for daylatedollarshort's comment: project your retirement spending with at least a proxy for housing expense should your current arrangement not last.

 

[joeea]

I am 60 years old. I have approx $580K in savings and portfolio (dropping like a rock, as I write this post). The majority of the portfolio is in taxable accounts The portfolio is setup to maximize income not capital appreciation and currently produces about $29,000 annually, regardless (for now) of portfolio value.

Expenses (for me) are about $3000/mo (if I jettison work and need to buy health insurance).

Why not just quit and take some part time work and do a slooooow burn of my savings?

Any guidance would be greatly appreciated

It's not clear how a $580k portfolio could spin off $29k/year without regard to the size of the remaining value. Can you explain how that happens?

If you are sure about your $36,000/year expenses and confident that it will stay steady for the long run, then you just need to find a part-time job to make up the difference.

It wasn't clear if you are living in your girlfriends home or are paying for your own housing. That might factor into the potential variability of your expenses. And if you are currently getting your health insurance through your employer, you'll need to find another source until you get on Medicare.

Make sure you have nailed down exactly how much income you'll need before you do anything.

Then, find your new job before you quit your current job.

 

[Kempotrader]

It's not clear how a $580k portfolio could spin off $29k/year without regard to the size of the remaining value. Can you explain how that happens?

If you are sure about your $36,000/year expenses and confident that it will stay steady for the long run, then you just need to find a part-time job to make up the difference.

It wasn't clear if you are living in your girlfriends home or are paying for your own housing. That might factor into the potential variability of your expenses. And if you are currently getting your health insurance through your employer, you'll need to find another source until you get on Medicare.

Make sure you have nailed down exactly how much income you'll need before you do anything.

Then, find your new job before you quit your current job.

Firstly, thanks to everyone for their responses.

joeea - My stock portfolio is 100% dividend paying stocks. I take the dividends and reinvest them back into the company(DRIP). As long as the company doesn't cut it's dividend the income grows through owning more shares.

Paradoxically, if the stock price goes down, my DRIP can now by even more shares when the company pays its dividend, growing the income number more quickly. The risk of course, is that your company cuts its dividend. Then not only will your income drop, but the stock price will probably tumble. So the key is to stick with companies known as Dividend Champions and Aristocrats.

Thus, as stock prices have been cratering, my income remains the same (for now). This book gives a very detailed blueprint - Get Rich with Dividends...Lichtenfeld.

With this $29,000 annual income, I'm not taking any principal out. So, my hope is to figure the right combination of using the income, slow principal drawdown and part-time work to have the time to enjoy life.

Though the mechanism is different, I also do this with corporate bonds. The value of this part of the portfolio has held rock solid through the market drop.

Kempo

 

[joeea]

With this $29,000 annual income, I'm not taking any principal out. So, my hope is to figure the right combination of using the income, slow principal drawdown and part-time work to have the time to enjoy life.

Terrific!

So obviously, a minimal part-time job, plus this $29k in dividends can get you to your $36 in expenses without drawing down any of the principal.

 

[38Chevy454]

I agree, if your dividend yields remain at current levels, and you have confidence in the budget you state of $3K/month; that with some part time work you can make it. Of course it requires you to continue working at a part-time level. Mentally quitting the current full-time job may offset more than any financial hit.



The potential issues are of course housing if your girlfriend's housing arrangement changes, and if you get any major medical expenses. You can probably get an ACA subsidy if you go that route for health insurance. How does your girlfriend feel about your proposed plan? Is she working full-time and would you being part-time create a problem? Or if she is retired and now you are home more, will that work out? Just some thoughts and coinsiderations that are not all financially related.

 

[Kempotrader]

I agree, if your dividend yields remain at current levels, and you have confidence in the budget you state of $3K/month; that with some part time work you can make it. Of course it requires you to continue working at a part-time level. Mentally quitting the current full-time job may offset more than any financial hit.



The potential issues are of course housing if your girlfriend's housing arrangement changes, and if you get any major medical expenses. You can probably get an ACA subsidy if you go that route for health insurance. How does your girlfriend feel about your proposed plan? Is she working full-time and would you being part-time create a problem? Or if she is retired and now you are home more, will that work out? Just some thoughts and coinsiderations that are not all financially related.

Hi 38-

I agree with all that you wrote. The quitting the full time world will hopefully be a huge relief to have "time". The market is getting me a bit nervous and I'm going to switch more stock to corporate bonds, counting on a rise in interest rates.

The housing issue is a bit of a conundrum, should things not work out. In firecalc, I took a $100,000 hit in case I need to buy something, somewhere cheap and everything still seems to work. But, I'm not sure if I'm using it correctly as it seems too good to be true.

Even if things do work out relationship wise we'll probably buy something in a warmer climate for snowbirding purposes (live in Anchorage now)

The GF is still working and is supportive at this point, as I will be paying my portion and will do whatever I need to not become a leech. I'm an RN, so it's at least for now, not too hard to get work.

 

[Elbata]

As an RN, couldn't you get a job part-time? And perhaps even with medical?

A friend works at Starbucks part-time and they cover her medical, she's really just working there for the medical.

It seems to me, just at 2 days/week, you'd have enough to cover living expenses, or close to it.

 

[Kempotrader]

Hi Elbata -

Yes, I have options that maybe make this idea not too crazy. I hope that you're correct on the 2 days/week for work.

 

[aaronc879]

You might be an example of when it makes sense to collect SS at 62. If you start collecting at 62 then you will have more than enough to live on without touching principle. Continue working at least part time until you are 62 then you are set IMO.

 

[Kempotrader]

Thanks, Aaron - That's the theory I hope to figure out! At 62, I could then start a slow burn of the principal, pray I don't have an accident or get sick and finally become a really good drummer!

 

[MarieIG]

You are an RN, they are golden. I am not sure what your expenses would be without DGF, and I don't see a consideration for the lumpy expenses, including the emergencies and such.

If I were you, I would look around for a part time job, as an RN, in an area that you prefer, with medical and dental. (Not all RNs do the same amount of work. A former co-worker's wife was a school nurse, and she loved it.)

You may be able to cover a bit more of your expenses than you think working part time, and let those dividends reinvest for a bit longer (giving you a bigger payout upon full retirement).

 

[Vacation4us]

What is your specialty in nursing?

Have you looked for part time work in your specialty?

I am also a RN. So I definitely think you can go part time and give it a shot. You can always get another full time job if you need one.

Have you ever done travel nursing? I know several nurses who complete a contract 13 weeks, then take months off. In the Bay Area you could work 1 contract a year and make all you need for the year.

You definitely have options as a RN.

Wouldn't PT work in Anchorage cover all your expenses? Not sure of the pay up there but I can't imagine it would be as low as the Midwest.

 

[Vacation4us]

Since your a male nurse I am guessing ,ER, ICU, or OR. You definitely have $$$ travel options.

 

[street]

As an RN you should be in great shape for PT work. You are in great shape and in a wanting profession.

 

[Kempotrader]

Thanks for all the encouragement! It's true, nursing gives me a lot of leeway. The truth is that I'm not really enjoying it all right now. I went to nursing school at age 50 and I have let my skills diminish a bit over the years

I actually put in my resignation today and I am planning on taking several months off to travel a bit and recharge. I can do this for a while without having to turn off the dividend reinvestment. After this period, I will want to look for an easy low stress PT position. Thinking about Case Management. And travel nursing does hold some allure, but as I said, my skills are not up to snuff

Excited, but afraid.

 

[Teacher Terry]

Part time and then SS seems to be the answer.

 

[friar1610]

I may have incorrectly inferred something from one of your posts above. To clarify, does your 100% dividend-paying stock portfolio consist of just one stock or more than one? If more, how many? I only ask to get a sense of diversified you are.

 

[Kempotrader]

I may have incorrectly inferred something from one of your posts above. To clarify, does your 100% dividend-paying stock portfolio consist of just one stock or more than one? If more, how many? I only ask to get a sense of diversified you are.

Hi friar- I am pretty well diversified. The stock portfolio is comprised of 21 individual companies across a variety of industries. The corporate bond portfolio holds bonds in 32 different companies, again well diversified, but probably too much in energy.

I appreciate your asking for clarification. Because all assets in one company would probably be a disaster in waiting!

 

[Vacation4us]

Have you been working as a RN? I am confused how an RN of 10 years says they have let their skills slide.

Getting trained in a new specialty at 60 might be hard. I guess it depends on the demand.

My last job was in a clinic as an ex labor and Delivery RN it was difficult to get rehired in a specialty I have 25 years plus experience in. It meant relocating and going back to night shift. Not an easy task at 52.

Well less than 6 months at the new job and a pm shift opened up. I can't wait to sleep at night again.

Do you have any training in Case Management? Contacts that will help?

 

[Kempotrader]

Have you been working as a RN? I am confused how an RN of 10 years says they have let their skills slide.

Getting trained in a new specialty at 60 might be hard. I guess it depends on the demand.

My last job was in a clinic as an ex labor and Delivery RN it was difficult to get rehired in a specialty I have 25 years plus experience in. It meant relocating and going back to night shift. Not an easy task at 52.

Well less than 6 months at the new job and a pm shift opened up. I can't wait to sleep at night again.

Do you have any training in Case Management? Contacts that will help?

Hi Vacation- I'm glad you're getting off of the night shift and I understand your confusion about my skill set definition.

To make this not too long.... I have relocated twice and each time took lesser challenging positions. On my last relocation, I took a "case management" position that required no hands on skills and amazingly very little medical knowledge. I left for a primary care position after 8 months and now in this position, I have run into the most abusive, bullying and toxic workplace that I have ever experienced.

So, in a nutshell my 5 years since nursing school (started age 50, graduated 5/2013) have been a down hill spiral of not using or developing my nursing skills. So, now that I have just up and quit that toxic workplace and I'm not feeling confident or competent.

My whole plan will be to take some time off to get in shape for a trip with my son and then hopefully semi-retire with a part time position.

 

[Vacation4us]

I am sure you are competent. In my experience only nurses who bully and exaggerate their skills while degrading others are the truly incompetent. A future position in Case Management part time sounds like a winner.

I wish you the best on your journey!