Convincing myself that I have enough money to retire

[audreyh1]

What about that book that folks sometimes recommend around here:

How to Retire Happy Wild and Free: Retirement Wisdom That You Won't Get from Your Financial Advisor https://www.amazon.com/How-Retire-Happy-Wild-Free/dp/096941949X

I think that can help with the non-financial preparation for retirement. Looking at personal priorities, etc., including what you want to retire "to". Some folks here have really needed it to get started off on the right foot.

Even reading the Amazon reviews might be helpful as folks tend to tell their story.

Oh funny - I see HNL Bill beat me to it.

 

[NW-Bound]

It seems like from this thread and similar threads it is a lot harder to walk away from a $500K or $1M a year kind of jobs than it is from jobs that pay $30k - $100K a year, which makes sense.

It would be nice to be making $500K-$1M a year, so I would not know for sure.

But I suspect a job like that is very special, and someone with that fortune and in-demand skill would find it hard to stop.

And of course CEOs and entertainers who make $10M-100M a year would not want to quit. The limelight and the power would be hard to give up, and they do not work hard like us peons do anyway.

 

[audreyh1]

It seems like from this thread and similar threads it is a lot harder to walk away from a $500K or $1M a year kind of jobs than it is from jobs that pay $30k - $100K a year, which makes sense.

I certainly get that impression!!!

 

[Perryinva]

I would definitely agree with that as well. Even though I am making more than I ever made, and actually more than I ever thought I would not too many years ago, its still under $200k/yr and I find it very hard to “want” to walk away from it. $500 k-$1M would be terrible pressure....but I’d still like to try!!

 

[bloom2708]

Is the advisor getting 1% AUM?

You could have 25% more (1% of 4% withdrawal) by doing it without the fees. Hopefully this is a "pay per use" advisor and your expense ratios are low and not AUM fees. Those give me more confidence that you have enough. Can't buy back time.

 

[pb4uski]

Just turned 55. I know a decent number of people who died in their 50s. So I agree with you.

I have not really scrimped or denied myself; I have lived pretty well. But long work hours and work stress have had a big impact on me and imposed a heavy cost.

Why don't you just go part-time for while? 3 or 4 days a week so you'll have more medved time.

If your employer balks, tell them that 60% or 80% of medved is better than 0% of medved.

 

[NoiseBoy]

....Then, I looked at my parents - and considered how long they lived, when their declines began (less travel, less active, etc.), then applied those numbers to my current place in life. Turns out, if I use them as a yardstick, I had about 20 years of active retirement left, followed by another 5-10 years of decline.

I could've written this post. I really believe that my physical abilities are declining bit by bit, year by year, even though I usually get in some form of exercise every day. The other thing that is driving my desire to RE is the time I burn each day commuting to/from work. My drive is pretty easy, rural interstate for the most part, but I am just tried of the grind.

I have one more year to work to maximize my soon to be frozen DB pension and then I will enter OMM (one more month) mode. Ironically, like many here, I've reached a very high level of compensation at the end of my career, at least for flyover country, so I find myself starting to get a case of the nerves as the long planned for event approaches. Do I have enough? With it being only a year away I have a gained a new perspective on these threads where folks are struggling with the decision to retire or not!

 

[jcfradio]

I recently went through the exact same mental calculus as you, Medved. Every financial model, advisor, etc. all told me I was “good to go” at a rate MUCH higher spending rate than I planned to spend. What pushed me out was looking at the issue from another perspective. I don’t know how old you are, but I was 56 when I was in the throwes of my decision. Then, I looked at my parents - and considered how long they lived, when their declines began (less travel, less active, etc.), then applied those numbers to my current place in life. Turns out, if I use them as a yardstick, I had about 20 years of active retirement left, followed by another 5-10 years of decline. I had worked since the age of 16, so I figured I’d put in 40 years work for 20 years reward. And, the reward part was shrinking every year. So I retired at age 57 (after OMY) and am now busy reaping the rewards of those 40 years working, saving, and de)nying myself. I made the right decision and have no regrets. I hope this shift in perspective helps...

I did the same analysis. Even my very health in-laws are now slowing down in their late 70's, so when I look at the calendar and see that 61 summers have already passed, so I hope to have about 15 to 20 good years left. I also read a study that said that for an average 65 year old male, they will on average have about 8 years before some health issue forces a change in their life. hat convinced me to get out this year (oh yeah, having MegaCorp wave some $$$ in front of me to go away didnt hurt either!). My withdrawl rate will be in the 4% range, but that is the fun money part of te portfolio as we have healthy work and Gov't pensions. It was a great job, but it is definitely time to now pass the baton to the next generation to give them their chance.

Just finished my last customer meeting with my successor today, so I am starting to feeling the stress start to exit from my pores. 2 weeks to go and then I graduate as part of the class of 2019!

 

[Spanky]

an average 65 year old male, they will on average have about 8 years before some health issue forces a change in their life.

Definitely not spending my time working during these years.

 

[Spanky]

Why don't you just go part-time for while? 3 or 4 days a week so you'll have more medved time.

If your employer balks, tell them that 60% or 80% of medved is better than 0% of medved.

How about asking for a leave of absence for 6 months to clear the mind?

 

[BigNick]

Maybe I should see a psychologist to talk through the issue? It’s like a mental block of some sort, I think. Thoughts?

The psychologist probably has $100K of debts (clinical psychology training ain't cheap). He or she will likely advise you to take your time, while consulting a psychologist regularly.

 

[Aerides]

Maybe I should see a psychologist to talk through the issue? It’s like a mental block of some sort, I think. Thoughts?

You've posted on this topic everal times over the past 3 years (being very much beyond FI yet not mentally ready to RE). So, yes, if you're still feeling stuck, some therapy might be best.

(PS, re your title - you have enough).

 

[medved]

Is the advisor getting 1% AUM?

You could have 25% more (1% of 4% withdrawal) by doing it without the fees. Hopefully this is a "pay per use" advisor and your expense ratios are low and not AUM fees. Those give me more confidence that you have enough. Can't buy back time.

About 55 bps, based on the sliding-scale rate structure that I negotiated with the FA. I know FA's are not very popular on this board. But I am very much convinced that my FA has added value that exceeds what I pay him.

 

[Spanky]

About 55 bps, based on the sliding-scale rate structure that I negotiated with the FA. I know FA's are not very popular on this board. But I am very much convinced that my FA has added value that exceeds what I pay him.

it's music to your FA's ears.

 

[medved]

it's music to your FA's ears.

I assume that is true. After all, any rational professional person would be happy to hear that his client finds the professional’s services to be valuable and worthwhile.

 

[MarieIG]

I don't find it helpful for people to keep telling me I'm likely to drop dead any day now. Depressing yes, helpful no. So, my thoughts are, I think you are smart enough to crunch the numbers; it is getting a handle on your concerns.

I think you should sit down (and write down) what would it take to make you feel secure.

A guaranteed base income of X?

A reduced annual expense/ lower cost of living?

A number of years worth of expenses in cash?

A job covering health care?

 

[Franklin]

I never really loved my job. I was pretty good at it, and it pays quite well, but it was also very stressful and exceptionally time-consuming. Every year, I like it a little bit less. But I am still making very good money, which maybe complicates the decision.

I am certainly unsure what the future will bring. But I do not want the future to involve working forever, or working until I have a health event.

We have connected before and I understand your cross road. You know it aint about the money. You have enough. I had to ask myself this question..."would I go into work each day without pay?". Then I realized the answer. Ive walked away from a lot of $ but realized it was just a scorecard measuring something that did not matter after a certain score. Spike the ball and go after what truly makes u happy. If that is work u should keep that going. If it aint work u know the answer.

 

[daylatedollarshort]

Medved, are you not sure about what you would do or not sure you have enough money? If it is the money part, check out the Consumer Expenditure Report of what average households spend. You have much, much more than the average household so money shouldn't be an issue.

 

[brucethebroker]

The tried and true answer that I have seen on here many times is you not only need the money, which you have, but you also need something to retire to. Maybe you need to work on that more.

What I also was thinking.
OR, can you downsize your job a little over the next year or so-maybe phase out some of your responsibilities? The money won't be a concern, so why not ease into retirement?

 

[Teacher Terry]

Licensed clinical social workers provide therapy. They are cheaper than a psychologist.

 

[Spanky]

. Spike the ball and go after what truly makes u happy. If that is work u should keep that going. If it aint work u know the answer.

+1 Also ask yourself these questions:
What is my passion?
What do I really, really want in life?

 

[Unpaintedhuffhines]

It seems like from this thread and similar threads it is a lot harder to walk away from a $500K or $1M a year kind of jobs than it is from jobs that pay $30k - $100K a year, which makes sense.

This is an excellent point. I'm at the lower end of this, but it is very hard to walk away from this. I will say that once I passed FI, the stresses at work just seemed to automatically diminish... "Good God, man, look at the numbers! We've got to do something immediately!" Makes me think: "yes, if we do something, the numbers could definitely be different, but they will still be numbers."

If you really love what you are doing, and would rather spend your time doing that, then do it. To me, being FI isn't about retiring per se, it's about having the ability to retire, and ultimately doing whatever the hell you want to do.

 

[Fishsticks007]

You know when

You’ll know when you not only have enough, but have had enough of your job. Then you will be ready to FIRE.

 

[YeahNo]

How about just mentally not committing? Tell yourself you are going to try this whole retirement thing for 12 months and then just go from there. If you hate it (unlikely) you can find another job after the months is up.

Life slows WAY down after you stop working 40hrs a week and you'll soon be asking yourself 'how did I have time in my day to work?'

 

[2018]

Having just pulled the trigger last May I can understand how you may feel. It's kind of like jumping out of the plane and having to trust your chute.


Go pay a fee based Financial Planner to model it out. Once you paid and the results are the same, go on and jump.


Life is soooooo good once you do. And yes, I check my numbers weekly just to pinch myself. I can always go back and find a fun part time job at something I want to do.