Another lurker...ready to contribute.

[ThunderFIRE]

Hello, I have followed this forum for quite some time but never signed up (I also started getting involved in the Reddit FIRE communities and on Bogleheads after reading them for a long time).

My wife and I are both 53. I've worked a professional career for 31 years and my wife was a stay at home mom and then has worked part time for the last 15 years. Kids are through college (we paid their way) and starting their lives. We are the classic "millionaire next door" family. We've lived in the same house for 25 years, drive our cars 10+ years, and don't have any "toys" (boats, RV's, etc.). We didn't deprive our kids of anything and took at least one vacation a year to another state. No one would ever know that we are debt free and have a net worth over $5 million.

I've run every calculator on the internet (and hired a fee only financial planner last year). Our "survival" expenses are $40k per year, at $80k per year we'd be spending far more than we do now, and I used $100k per year in all of the models. We have a 100% success rate with all of the calculators for a 40 year retirement (should we be lucky to live that long).

Our only secret was that we live pretty simply and never had a desire for lifestyle creep (bigger house, newer cars, etc.). The possibility of early retirement kind of snuck up on me. I had been nearly 100% invested in the market since college but our financial advisor said "you've won the game, now don't play so hard" so we are at a 60/40 allocation now with about 5 years of expenses in cash and bonds in case of a market slump in early retirement.

I'm burned out on the corporate life and starting to see "age discrimination" at my company. All of the promotions above my level have been to people in their late 30's or early 40's who have MBA's and spent a lot of time in the corporate office giving PowerPoint presentations, but have very little actual operations experience. I have spent most of my career "where the rubber meets the road" and found my time in the corporate HQ to be distasteful, so I made my bed and I accept where I am.

I'm stuck in the "One More Year" syndrome and that is my biggest hurdle. My wife is pretty happy with her job, but it only represents 10% of our earnings and there is little reason for her to keep doing it if I retire. It is really hard to walk away when I am at the peak earnings of my career.

I also suffer from the fact that I have no hobbies. My life has been totally dedicated to my career and activities with the kids. I have no regrets about spending every non-work hour on family stuff, but we've been emty nesters for four years and I realize that I really don't have any social contact outside of work (my wife has a good friend network, though).

I had a friend from high school die of cancer last weekend and my wife and I have started having some typical medical issues for our age and I really want to do more travel once the world gets past this latest COVID surge.

I'm wrapping up a multi-year project in September and that seems like a good point for a clean break, but then I'm also at the point where I'm not paying social security for the rest of the year so I think maybe I should work unti January. Then I get a new allocation of PTO (which I get to keep) and working even a couple of months will knock out my lowest year of social security contributions in my top 35 years. Any way I look at it, I think I'll probably pull the plug by early next year.

I have a whole other set of anxieties about what to tell my employer and friends, but I'll save that for another post.

Sorry about the novel. I'm hoping over the next year to give back to this community by sharing my journey of wrapping up a career and making the big transition to early retirement.

 

[Yoheadden]

Hey Thunder,
Even though you have been following “For some Time” welcome to the forum.
It sounds like you played the game well and now are well prepared, at least financial, to begin your next chapter.
It’s a scary transition to stop the accumulation/working years and begin ER.
One thing I can recommend is the book How to Retire, Happy, Wild and Free. I picked it up on a recommendation from a post here and have found it very helpful when thinking about “What to do next”.
Congrats on your success and look forward to hearing more.

 

[Closet_Gamer]

Congrats on a life well lived.

Great job on getting to the starting gate for the next stage of that life.

Sounds like it time to pull the ejector handle and move to the next step. If there is a nice clean point to do it, so much the better. I'm a few years behind you and careening headlong into OMY syndome. Maybe by the time I'm 53 I will actually be ready!

Good luck and welcome to the forum. As you've probably observed, its one of the best corners of the Internet.

 

[Montecfo]

Hi, Thunder and welcome!

Congrats on getting to this point. I'm looking forward to learning more about your journey.

On being at peak earnings years, yes, many of us faced the same. But you can't retire early without leaving money on the table. You just want to be careful not to leave too much *time* on the table.

It sounds like you have a good strategy. Now you just need to be thinking about developing interests outside of work. You have them, they just need to be developed.

I think working the friends angle is a bit challenging for FIREers: Let's face it, people we know are working all day, and worried about paying the mortgage and other bills. Through your availability you can connect with other retirees. Join clubs that reflect your interests. Also, perhaps recent retirees from your company may be in the same boat. Or your church if that's a focus. I have found that I have friends with flexible work situations who I can do things with. Unless you are a hard core introvert, you will want that right away.

Now that you have set a date mentally, your new job is reimagining a post-FIRE life.

I wish you the best.

 

[finnski1]

Welcome. At 53 with a 5 million NW and living modestly(50-60k spending?) you need to really consider why you are still working. It goes beyond the money at this point.

Lots of people work until 65 or so, most because they have to. I wrestled with all the stigmas of being young and not working, the self identity issues etc. and I can tell you they will go away.

Not a day goes by now where I don't wake up and think how great it is to just leisurely drink the morning coffee and decide what I will do for the day. It's a great luxury.

 

[steady saver]

Congratulations on being so close to pulling the plug. DH and I were in your shoes about a year ago. For us it had gone from OMY to a couple more months and it kept getting pushed up. Finally made the decision, had a date of last May and Covid hit. Market took that deep hit and needless to say we were blindsided. Luckily we are not reactive in the stock market (ha, meaning we may respond with horror but we don't do anything...just always ride it out). Another huge luck is that DH's boss welcomed him to stay on, shortly after packages were offered, the market started recovering slowly and he retired 5 months later than planned. (I was already retired for the most part.)

I'll second the book How To Retire Happy Wild and Free and offer a second one. It's called The Joy of Retirement. I grabbed it off the library shelf when I picked up the first book and, wow, let me say it's been the most helpful book. I even sent a copy of it to my BIL who has a few years before retirement. I wish we'd had this book before we retired. The author's name is David Borchard.

We thought retiring was going to be a breeze. Lots of hobbies, friends, etc. Easy breezy, right? But our travel plans were thwarted by the pandemic and an aging dog. DH struggled with next steps though anyone would've thought he was made for retirement. I think for lots of folks, retirement is a time of reckoning, of working through regrets, etc before one can move on. For us, it's been 9 months and I think that baby has been birthed, ha. We've always used the term graduated rather than retired. It just seemed to fit better for us...hard to break the old stereotypes in our heads of what retirement was (something "old" people do...) and helps us look at it simply as our next chapter that we get to write.
Good luck! It's gonna be GREAT!!!!!

 

[Dtail]

Hi Thunder
It sounds like you are ready to go, definitely from a financial perspective.
Remember that time is more valuable than money at this point.
You would be hard pressed to find posts here that indicate that they regret not working longer.

 

[MBAustin]

Welcome, Thunder. As others have said, you are more than FI so you just need to be ready mentally. I retired at 53 fed up with corporate BS and not needing to w*rk for the $$. Like you, I was worried about what my friends would think but I found that I just kept doing all the things I had been doing with them and not making a big deal about being retired and all was well. Some of them recently had no idea I'd been retired for 10 years!

The book recommendations are good ones. I tried some consulting gigs early on - enjoyed the projects but not the prospecting, so gave up on it pretty quickly. I do a lot of different volunteer activities, cook pretty awesome dinners nearly every night, and took up knitting as a hobby.

The good folks here were the ones who convinced me to go for it, so hopefully we'll help you get over OMY as well.

 

[Irishgirlyc58]

Hi Thunder,
I’m not retired yet but I can relate to the decision regarding maxing out on FICA for the year and wanting to take advantage of that and then if you work until December why not wait until January when I’m eligible for more hours worth about $9,000!
Ack!
But I’m almost 63 not 53 like you.

I will say that my work satisfaction started to really wane around age 57. Not sure why but it did. A change in jobs helped somewhat for a few years but now I just want out!
I suspect you are close to that feeling since you are seriously considering retirement.
Since your wife enjoys her job could you retire and she continue to work?

Good luck with your decision. I’ll be interested to hear what you decide.

 

[mystang52]

Use the time between now and your actual retirement date to researching interests and activities you want to consider. There are a few non-financial retirement books that cover this important aspect. One thing I did: maintain a very open mind about what I would want to do. As I pursued these interests, most frankly did not pan out for me.
But one sort-of did: Bird Watching. I write "sort-of" because I only do it occasionally, but never would I have thought that such an activity would interest me at all. So, be open minded, you never know what you might enoy..

 

[bizlady]

If you found out you had a terminal disease- would work be a priority?

Financially you are there- just do it! Too many wait. A friend of ours died last year unexpectedly, and wife worked, just another couple years for insurance. They could have and she sure wishes she did.

My DH was diagnosed with cancer last year (now in remission) and one of the first things we said is that we were so grateful to have had 10 years in retirement together, going out at 55.

You mention that she likes her job. She can work for a bit- personally we found that retiring at slightly different times was a win. It IS an adjustment. But so worth it.

 

[Kook]

Hi Thunder,

I can totally relate to your post. In fact, I just posted a similar post, although not nearly so eloquent. I wish I would have seen yours before posting my own.

Nothing much to add, other than you have totally won the game. You are young enough that you can explore different potential hobbies and see if anything sticks. I have recently gotten heavily into woodworking.

You only live once and might as well make it count. That said, I haven't pulled the trigger yet, either... and am struggling to do so. You also have a higher net worth than I. Nobody on their deathbed said, I wish I would have worked one more year".

Thanks for your post. It helped me with my own OMY sickness.

 

[pacergal]

Welcome to the Forum, great place to be.
Financially, you are ready to retire, only need the emotions to catch up!
Once you start to wind down after retirement, you will be amazed at how quickly you find things to fill up your days. Even something you never thought would be of interest may become a hobby.

 

[ThunderFIRE]

Thank you all for the replies. Although I already knew it from reading this forum for a long time, the members here are the most genuine and helpful people on the internet (as compared to my involvement on Reddit FIRE and Bogleheads forums).

I have been overcome with emotion on how positive and supportive all of the replies have been. In less than 24 hours after joining this site, I've tried to engage in other threads where I think I can contribute.

Part of my reason for mabye working another 6 months is that I have an opportunity to mentor some less experienced people in my company that are starting up a major project. It gives me some level of satisfaction and closure on a 30+ year career to be able to share my knowledge.

I hope to give my perspective to this forum in the future as I navigate my path forward to early retirement in the next year.

Thank you all for the gracious welcome and good perspectives. We can all learn so much from each other.

 

[REWahoo]

I have a whole other set of anxieties about what to tell my employer and friends, but I'll save that for another post.

Absolutely no reason to have any anxiety whatsoever regarding this particular subject.

I suggest you tell them something along the lines of "I think I'll take the rest of my life off", which is essentially what I told them, and so far (16 years and counting) I've been true to my word.

 

[NW-Bound]

... My wife and I are both 53. I've worked a professional career for 31 years and my wife was a stay at home mom and then has worked part time for the last 15 years. Kids are through college (we paid their way) and starting their lives. We are the classic "millionaire next door" family. We've lived in the same house for 25 years, drive our cars 10+ years, and don't have any "toys" (boats, RV's, etc.). We didn't deprive our kids of anything and took at least one vacation a year to another state. No one would ever know that we are debt free and have a net worth over $5 million...

Congrats. With the kids successfully launched, your megacorp job no longer as enjoyable as it was (yes, it's not a sin to enjoy your work), and you don't need more money, you can punch out any time you want, on your own terms.

It is really hard to walk away when I am at the peak earnings of my career...

It's hard to walk away from money, but then I have had more money from investment gains than from work. Maybe it's the job satisfaction aspect? I guess it could be another reason I got to be a more active investor, so that I can say "hey, I work for it".

I also suffer from the fact that I have no hobbies. My life has been totally dedicated to my career and activities with the kids. I have no regrets about spending every non-work hour on family stuff, but we've been emty nesters for four years and I realize that I really don't have any social contact outside of work (my wife has a good friend network, though)...

We don't have many friends either. However, my children are still in town, and my siblings and their children. With the extended family, we do not need friends as much.

I had a friend from high school die of cancer last weekend and my wife and I have started having some typical medical issues for our age ...

Just 6 months after quitting work for real - I had been working contracting work on/off for 9 years prior - I was diagnosed with a potentially fatal disease. I was 56 at the time, and had no prior chronic illness, other than borderline hypertension. It would piss me off if I would croak so early, even before getting to 60.

Thanks to my lucky star, and modern medicine, I am still sitting here surfing the forum and shooting the breeze. Woot, that was close! Got scary surgical scars to show for it.

So, you will never know.

 

[springnr]

Thunder, about social security, my guess is you are past the second bend point. (15% conversion point) I would be skeptical of letting SS drive when to walk away. Enjoy either way.


https://www.covisum.com/knowledge-base/what-are-social-security-bend-points

 

[ThunderFIRE]

Springer,
You are correct. I've played with the calculators. Even working until 67 has a very small effect on my SSN payout since I've been fortunate to hit the max for many years.

This is one of the OMY issues I struggle with. I've always been a saver and not a spender. Working a few months into 2022 might increase my SSN by $5 a month.

I admit I have issues! This transition is hard to wrap my head around. Part of the reason I finally signed up for this forum was to give myself a little accountability to finally pull the trigger and admit that it is OK to leave the game.

 

[oiseux]

Congratulations. You are ready to launch into your next adventure. I feel for you, however -- we are in similar situations -- OMY is a real thing. Is your wife aligned on the plan?



I was learning about the "Great Resignation" this week. It seems companies and the HR departments are beginning to prepare more incentives to keep workers in place (although it is the younger ones that are even more at risk of flight, but the early retirement crowd is another force).

 

[freedomatlast]

Given your situation, I'd wrap that project up in the September / October timeframe as planned. Then, coast through November and December, and all the end of year holidays. Use that time to coach and mentor less senior employees. At the start of the new year, use up your vacation and personal days and pull the plug in early spring. A simple resignation letter stating you are moving on to other opportunities is all that is needed. No further explanations are required.

Spring is a great time of the year to retire, being outdoors, getting exercise and feeling the sun on your skin instead of fluorescent lights. Even though you may not have any/many hobbies, make it a point to bike, walk or hike most days, get exercise, improve your health and fitness, enjoy the lack of stress and live longer.

Your invested assets most likely produce income many times larger than you yearly salary, so the significance of the job in terms of monetary benefit is now very small. Any increase in SS will also be insignificant in the big picture.

I was in a similar situation two years ago, and was glad to take a voluntary package and leave on a high note. Turned out to be a great decision. I wish you the best on your decision.

 

[Surewhitey]

Your invested assets most likely produce income many times larger than you yearly salary, so the significance of the job in terms of monetary benefit is now very small. Any increase in SS will also be insignificant in the big picture.

We're 50&56...

This has been our experience for the past 4-5 years (except the couple of months after Covid started). I decided to "coast" as DW likes her job enough to stay going. She's not convinced yet of our situation, so I conceded by coasting, doing something I enjoy. 2.5 years later, all is working out well.

I've also encouraged her to spend some of the dough since she wants to continue working. Give her the idea that we can pull the chute anytime she wants.

Definitely look for what you want to do. Watch lots of YouTube videos and explore interesting ideas.

 

[Romer]

Springer,
You are correct. I've played with the calculators. Even working until 67 has a very small effect on my SSN payout since I've been fortunate to hit the max for many years.

This is one of the OMY issues I struggle with. I've always been a saver and not a spender. Working a few months into 2022 might increase my SSN by $5 a month.

I admit I have issues! This transition is hard to wrap my head around. Part of the reason I finally signed up for this forum was to give myself a little accountability to finally pull the trigger and admit that it is OK to leave the game.

First congrats to someone retiring err Graduating at the end of the year. I was planning on going in the first week of January to check out and then use rather than get paid for my vacation so I can get 10 weeks of matching 401K plus 10%. I would also use the 10 weeks to max out my HSA account

I was curious what impact that had on social security at age 67 (60 now)

In their generic model they assumed I would be working until age 67. I modified the field to state what I expected my future earning to be as zero. It had no effect on my benefit. Looking back (google is your friend) I have maxed the social security limit the past 31 years so likely why working another 7 years has no effect on my social security benefit

Maybe I made a mistake and someone please correct me if I did, but that is how I read the results of the model on the government web site.

I am assuming there is a bend where your benefits dont change once you qualify. Have you used the model on the SSA web site and plugged in a number for next year?

 

[ThunderFIRE]

Romer,
You've maxed out the social security limit more years than I have, but if 31 of your 35 top years are maxed out, then you must be very, very close to or at the max social security payout.

Remember that social security benefits are a hockey stick. Most of the benefit is acrued by your lowest earnings. Once your Averaged Index Monthly Earnings over 35 years reaches a certain level (I think around $8500 right now), you accrue no further social security benefits. You must be there, or very close.

In my case, I'm "close enough" that with all other things considered (savings, pension, my desire to retire early) there is no point in me working just for a small increase in social security.

 

[MRG]

Welcome to the forum and the next phases of your life. Looking back over the last 8 years I've been blessed to have I realize retirement is a process not an event. Take that free advice from a stranger on the internet for what it's worth.

 

[Exchme]

I feel like a past version of me could have written parts of the story about burnout but the lure of the next little batch of money was always just a few months in the future.

If you are setting aside money for a big financial goal like a 2nd home, ski cottage, being filthy rich, etc., then you may have a reason to keep working, but if your intention is to spend only a little out of a very big pile, you should ask yourself why you are still working.

As far as projects go, you will alway be at the start of a project - which is a terrible time to leave, the middle of a project - which is a terrible time to leave, or the end of a project - which is a terrible time to leave. So forget all that and set your own schedule.

My wife felt loyal to her boss and didn't want to leave, but after working on her for several months, finally one day her bucket for catching work BS got full and she agreed. Glad we retired at the same time, it's fun just putting around the house, taking little trips or just going for a walk.