kite_rider
Recycles dryer sheets
- Joined
- Apr 4, 2013
- Messages
- 127
Long time lurker here; studied the forums intensely just over 3 years ago when facing a layoff and considering ER as an option. Great advice, insight, and attitude here.
In a weird twist of fate, DW (same age as me) was also laid off from her job within a week of my layoff. Both of us had worked in the technology industry and had good prospects for finding jobs if needed. We liked our jobs, but were getting tired of the long hours and frequent stress that came from it. I had long wanted to go to a 'part time' status, but in my field that is almost unheard of.
We had always been savers and deep believers in living below your means. Our two children (now 13 and 15) were just getting to a good age where they could travel with us and participate in the outdoor sports we love. So we decided to 'pull the plug'; at least for a year or two to see if it would work for us.
Now 3 and a half years into it, I can't imagine going back to my old life. I can't say that every day is awesome and that I don't get bored some times. Plus, I do occasionally wonder if I'm wasting my potential to do something great (whatever that is...).
We travel a lot as a family and when DW allows it; I do even more travel on my own. There is a limit on how much travel we can do while the kids are in school, but we managed to do a road trip across the US in the summer of 2014. We enrolled the boys in on-line school for the 2015-2016 school year and traveled to S. America, Mexico, and Europe. It really was a once in a lifetime experience and having ample time to go slowly from place to place is the best way to travel in my opinion.
The Finances: Even though I've gone through the FireCalc a couple of times and found that we have enough money to ER, I worry about finances more than I probably should. It's always been a concern for me, and the idea of living the rest of our lives on our existing savings is scary.
Looking back at our expenses, we are going through about $110K per year after ER. My original estimate had us spending less and I think we could make some adjustments to reduce expenses. But, we enjoy this lifestyle and don't feel like we are on an un-sustainable path financially.
401K account: ~$1.2M
Stocks and Land contracts: Around $3M
Rental Income: Approx $2,500/mo after expenses
No pensions. No Megacorp funded health insurance. No subsidy on our ACA plan.
DW and I had predictions of hefty SS checks, but those assumed that we would continue to be high earners. Currently our SS income is $0, so I'm not expecting much from SS in the future; especially if it changes to become means based. Maybe we will be pleasantly surprised, I've been meaning to find a SS calculator that will make a better prediction on this.
We also had several rental houses before ER. In an effort to make more time for the recreational side of our lives; I sold some of them on land contracts to the former tenants. The idea was to create a regular income stream and remove the burden of maintenance, property taxes, and other owner headaches that I didn't want to deal with in retirement. So far it's worked out OK, with the un-expected side effect of creating too much income for us. You wouldn't think this is a bad problem to have, but it results in paying more in state and federal income tax than I expected. Plus, we have to pay 'full fare' on health care which is becoming a major expense item. If I had it all in stocks I could have adjusted our income by selling only when we needed the cash flow and controlling gains (and income) through selective selling. Well, that's the theory anyway. Something to bring up in the forums...
In a weird twist of fate, DW (same age as me) was also laid off from her job within a week of my layoff. Both of us had worked in the technology industry and had good prospects for finding jobs if needed. We liked our jobs, but were getting tired of the long hours and frequent stress that came from it. I had long wanted to go to a 'part time' status, but in my field that is almost unheard of.
We had always been savers and deep believers in living below your means. Our two children (now 13 and 15) were just getting to a good age where they could travel with us and participate in the outdoor sports we love. So we decided to 'pull the plug'; at least for a year or two to see if it would work for us.
Now 3 and a half years into it, I can't imagine going back to my old life. I can't say that every day is awesome and that I don't get bored some times. Plus, I do occasionally wonder if I'm wasting my potential to do something great (whatever that is...).
We travel a lot as a family and when DW allows it; I do even more travel on my own. There is a limit on how much travel we can do while the kids are in school, but we managed to do a road trip across the US in the summer of 2014. We enrolled the boys in on-line school for the 2015-2016 school year and traveled to S. America, Mexico, and Europe. It really was a once in a lifetime experience and having ample time to go slowly from place to place is the best way to travel in my opinion.
The Finances: Even though I've gone through the FireCalc a couple of times and found that we have enough money to ER, I worry about finances more than I probably should. It's always been a concern for me, and the idea of living the rest of our lives on our existing savings is scary.
Looking back at our expenses, we are going through about $110K per year after ER. My original estimate had us spending less and I think we could make some adjustments to reduce expenses. But, we enjoy this lifestyle and don't feel like we are on an un-sustainable path financially.
401K account: ~$1.2M
Stocks and Land contracts: Around $3M
Rental Income: Approx $2,500/mo after expenses
No pensions. No Megacorp funded health insurance. No subsidy on our ACA plan.
DW and I had predictions of hefty SS checks, but those assumed that we would continue to be high earners. Currently our SS income is $0, so I'm not expecting much from SS in the future; especially if it changes to become means based. Maybe we will be pleasantly surprised, I've been meaning to find a SS calculator that will make a better prediction on this.
We also had several rental houses before ER. In an effort to make more time for the recreational side of our lives; I sold some of them on land contracts to the former tenants. The idea was to create a regular income stream and remove the burden of maintenance, property taxes, and other owner headaches that I didn't want to deal with in retirement. So far it's worked out OK, with the un-expected side effect of creating too much income for us. You wouldn't think this is a bad problem to have, but it results in paying more in state and federal income tax than I expected. Plus, we have to pay 'full fare' on health care which is becoming a major expense item. If I had it all in stocks I could have adjusted our income by selling only when we needed the cash flow and controlling gains (and income) through selective selling. Well, that's the theory anyway. Something to bring up in the forums...