Approaching FIRE date - How do I look?

[youbet]

You are good to go.

At $45K/year your withdrawal is <2.5%. This is not just a safe withdrawal rate but rather a perpetual withdrawal rate.

It's also a rather "do nothing" spending level. At OP's age, and since he apparently has put himself through "work hell" for many years, I'd want to be living a bit higher than that. Still, since his self-induced horrible work situation has put him through such misery for so long, I guess just getting by while cutting those ties is going to be a big upgrade.

I'm always saddened to read about situations where individuals spent years and years of their lives in "work hell" instead of upgrading their situations so that not only are their FIRE years enjoyable but their work years were "OK" as well. That's the real goal IMHO.

 

[teej1985]

It's also a rather "do nothing" spending level. At OP's age, and since he apparently has put himself through "work hell" for many years, I'd want to be living a bit higher than that. Still, since his self-induced horrible work situation has put him through such misery for so long, I guess just getting by while cutting those ties is going to be a big upgrade.

$45k/yr is "do nothing" to you?!? Yikes. I would have said a barebones life is closer to half of that.

 

[Bigdawg]

What's a MC?

Mega Corp. Large corporation.

 

[youbet]

$45k/yr is "do nothing" to you?!? Yikes. I would have said a barebones life is closer to half of that.

Depends on where you live and what you enjoy. Here in the Chicago burbs, that would just be enough for a single person living in his/her own home to lead a "normal" life with limited travel and entertainment expenses. On "half of that" you'd pretty much be busted after paying property taxes, utilities, the other usual household expenses, etc. Then when buddies called and suggested you join them for a Cubs game followed by dinner and a little bar hopping, you'd have to decline.........

 

[USGrant1962]

Congrats on taking the leap, the water's fine!

 

[FLSUnFIRE]

So after my last update, my A/C went on the fritz the day before Memorial Day weekend. My A/C people (fortunately have a company I trust) were able to come out within hours. There is a leak in the system. I elected for "fix a flat" and charge rather than a long weekend with no A/C while they pressure tested it. Hoping it will hold till winter. So far, so good!



The day after that I lost my fun job that also acted as a crutch in helping me make the leap (that cushion of a little bonus money). The owners sold the taphouse and the new owners didn't want to take me on. I feel a bit of a loss and miss the regulars, I really had fun there. I'll look for another but having "fun" as the first criteria makes the hunt difficult.



There is a lingering HOA special assessment hanging over my head and one of the buildings just reported termites in two units that could bump that up more.


Today I noticed water damage in my garage under my upstairs toilet... hoping I noticed it quickly and no structural damage and it will only cost me some time and a new ring. I turned the water off and will remove the toilet and inspect/repair after my FIRE date when I have the energy to deal with it.


There have been a few other of life's headaches all hitting at this time too that just add to the stress.


I still feel good about the decision (especially when I am at w*rk) but it is very stressful making such a big life change. I don't feel "worried" but have been having a lot of poor sleep and feel very burned out. At w*rk I am pretty much coasting and waiting for the date to arrive. Knowing I'm almost out makes it even more intolerable! Not doing much other than trying to spin up those taking over my duties when they actually show up in the office. The few that get it (most think I'm off to w*rk somewhere else) are supportive. I'm not confirming that I've reached FI but just tell people that I've worked to build in flexibility into my life and I'm only going to do w*rk that is fun now.



I still "know" I made the right decision but it seems that when it rains in pours and I hate having all these "lumpy" expenses popping up between giving notice and my date. At least the market is still up!


Hopefully next update will be riding the euphoria wave again. I'm still in a very good mood relative to the last few years as I'm realizing this goal. I can't wait for that first Monday... not quite free as I have bowling league that night but it will still be an awesome day. Might just take the hammock to the bay and watch the sun rise from between two palm trees if the weather is cooperative.


FLSunFIRE

 

[thefist]

FLSunFIRE,
Just found your post here. Congrats on the decision to pull the trigger! Sounds like the right move.

I had some comments on your spending plan.
- to qualify for ACA subsidies you need to meet minimum (and max) income threshold. Spending from cash won’t get you there.
- one line of thinking says to spend from equities in a rising or flat market, and from cash or bonds in down market. You don’t want to sell equities as they are down. When your cash is gone after a couple years, you have no idea where equities will be.
- your TSP balance at RMD age could be massive! You realize this, but try to quantify it more. SEPP will obviously help to reduce it, but at what rate? With 1.14M, a 7% return is 79k. That’s more than your annual expenses. Growth will keep this acct rising pretty quickly in spite of the SEPP. Consider Roth conversions.
- all this stuff above? Ya got time to figure it out. Ages prior to 63 (first year of IRMAA calculations) are really valuable for FIRE types. You can use that age for planning purposes to get your asset location set in the best way.

Good Luck!

 

[FLSUnFIRE]

FLSunFIRE,
Just found your post here. Congrats on the decision to pull the trigger! Sounds like the right move.

I had some comments on your spending plan.
- to qualify for ACA subsidies you need to meet minimum (and max) income threshold. Spending from cash won’t get you there.
- one line of thinking says to spend from equities in a rising or flat market, and from cash or bonds in down market. You don’t want to sell equities as they are down. When your cash is gone after a couple years, you have no idea where equities will be.
- your TSP balance at RMD age could be massive! You realize this, but try to quantify it more. SEPP will obviously help to reduce it, but at what rate? With 1.14M, a 7% return is 79k. That’s more than your annual expenses. Growth will keep this acct rising pretty quickly in spite of the SEPP. Consider Roth conversions.
- all this stuff above? Ya got time to figure it out. Ages prior to 63 (first year of IRMAA calculations) are really valuable for FIRE types. You can use that age for planning purposes to get your asset location set in the best way.

Good Luck!

Thanks for the feedback! Minimum income shouldn't be an issue as I'll have dividend, interest (not much!), and will harvest capital gains up to the threshold (either to max ACA or max rate on the cap gains) at the end of the year.


TSP RMD, There are worse problems than being rich so I hope it is a problem for me to deal with! Current plan will be to start SEPP after a few years of being FIREd when I have some real data on my spending/desires considering the balance at that time while keeping in mind ACA thresholds and anticipated earned income from being paid for fun things.



In other news, I think I can repair the plumbing damage... need to to do a bit more demo but feeling a bit better after tearing out the damp stuff this morning. Will either be ~$100-200 repair or a $1K deductible if there is structural damage to the end of the beam that is beyond my comfort/skill level.


FLSunFIRE

 

[CSdot]

So a week ago I gave notice. I was out of the office until yesterday and the rumor is out. Not many in the office but one person is giddy (miserable and trapped by life decisions and a bit paranoid that everyone is out to get her)... she is enjoying the sh*tshow that is about to follow my departure due to weak management/denial. My 2nd level (who was my 1st) is apparently coming up with all sorts of reasons I am leaving trying to assign blame for losing me! Apparently my final date is conspiratorial too as that is, completely coincidental, when my 1st level leaves for an extended absence. I'm trying not to burn bridges in case I want/need to return but there seems to be some need to grasp for reasons besides my given and honest reason to "explore other opportunities." I have not tipped my hand that I am FI. I don't know if they'll ask for an exit interview or what I'll say. I'd like to be honest but again, bridge burning. I will reiterate that I am moving towards and not from but if I want to be brutally honest, there is a lot of justification for leaving. I think leadership is blind and would hear but not listen anyway! I'm really trying to leave positive to keep doors open.



FLSunFIRE

Just be honest. That way if they call you for part time or consulting work, they will not feel they have the advantage of low balling you on the pay/hourly rate because they will know in the back of their minds that they need you more than you need them.

Also, congrats on your early retirement.

 

[F.I.R.E User]

What about dating?

 

[FLSUnFIRE]

Looks like I'm on about a weekly update schedule as I hit the final few weeks. 4 Calendar weeks, probably about 15 days left in the office (last 5 in the office will be almost exclusively out processing). I'm at a cyclical lull anyway so I'm pretty bored and impatient when I am there. Another coworker is leaving (for another job). Most remaining are not the best of the bunch and I am so happy I'm leaving as I would be the "go-to" to cover for the vacancies! Everyone knows why I wouldn't want to stay but I think minds are blown that I'm leaving so young and before retirement age (huge opportunity cost in $ but the opportunity cost of staying is decades of my life!). My bosses boss said, "I wish him luck, I wish I could do what he's doing!" All about choices, she's a dink making more than me... probably could if she changed her paradigm.



Sequence of expense risk.... my TV died too! Not a huge expense nor a necessity but I ordered one on Amazon as they ramp up Prime Day specials. It will be a pretty significant upgrade from my 13 y/o TV and I finally will mount it on the wall so my LR will be a bit nicer.


I feel like I am somewhere on a continuum between unemployed and retired and I think I like the ambiguity and may use that as my response when people ask (haven't decided yet what my stock response will be). I'd like to find something fun to do that makes money but I don't feel dependent on it. Numbers are great but the market is also pretty frothy and inflation is peaking out behind the curtain so having income potential is sort of important (rule #1, fun first, $ is bonus). My dad asked me last night if I was going to apply for other government jobs. I told him I look everyday (true, I still want to find that dream job driving around a park on an ATV while maintaining pay and benefits).


I took advantage of SW's 50% off sale to buy a RT ticket to visit my family in the fall for $100. It was real nice to book the flight without consideration of w*rk schedule and taking a cheaper but later flight home since I won't have to go w*rk the next day! Still a few weeks out but a taste of the freedom that awaits!


FLSunFIRE (Smiling and laughing more each day)

 

[scrabbler1]

Late to this dance, FLSUnFIRE, but I'd like to chime in with a few things my ER has in common with yours.

I ERed in late 2008 at age 45, around your age now. My ER plan focused mainly on getting from age 45 to age ~60 intact. This was because I would be using only the non-retirement portion of my portfolio (it would end up being about 2/3 of the total). Once I turned ~60, I'd have access to my "reinforcements" which consisted of (1) unfettered access to my Rollover tIRA, (2) my frozen company pension, and (3) Social Security. Those reinforcements would make my financial position much, much better. I am nearly finished with this part of my ER, less than a year away from being able to access my tIRA should I need it (I don't) to help out.

One condition I put on myself when putting together my ER plan was that there would be no changes to my everyday lifestyle or spending habits. My general budget would include enough of a cushion or surplus so that if I went on an occasional spending spree it would simply eat into that cushion and not wreck my budget. Furthermore, I have a larger slush fund to cover me in case I have a larger, unforeseen expense.

Health insurance has been my biggest and most volatile expense in the 13 years I have been retired. It began before the ACA, and premiums rose 50% in the first 2 years. Then the ACA got passed, so I switched to a bare-bones, hospital-only plan just to get me to 2014 when the exchanges came on line. I didn't have any health issues at the time although in 2015 I did (I had obtained broader coverage by then). My better portfolio management got me back on the ACA premium subsidy train in 2020, a train which has been running more quickly in 2021 thanks to changes in the subsidy determination. My HI expense has dropped a lot.

I had already been working part-time for the previous 7 years leading up to my ER so switching to a full retirement wasn't a big shock to the system. Switching from FT to PT work 7 years earlier (in 2001) was a bigger change to my everyday life because of all the freedom it gave me. Working PT made it easier to leave, too.