Ducks in a row?

[DenverCraig]

We had a target RE date of August 2021, but I'm not sure I can last that long. If I do pull this in by a year, I want to make sure I've got all my ducks in a row.

I'm 58 1/2, we have enough in our 401K's, everything is nicely diversified, 3+ years of cash, I have plenty of hobbies, some retired friends, I pretty much have health insurance figured out (it's not pretty but it is what it is), . . . and I don't really like my job anymore.

I'm in tech, but due to a few re-orgs, I'm not really doing anything that I'm particularly passionate about. I've been with my current company for about 20 years and it's been a good run. Certainly not going out on top, but I never really aspired to be a VP. I'll probably even noodle in my home lab post-retirement because I enjoy it. (I do that now, just not getting paid for it).

Our arbitrary date of August 2021 would capture one last batch of RSUs (40K or so after taxes, assuming the stock hangs on). Some days are good, but other days August 2021 seems like a million years from now.

So what's stopping me? My wife is a contractor (also in tech) so we've been living off my insurance. The thought of losing income and having to pay our own insurance is stressing her out.

So before I pull a "take this job and shove it" (that's a joke, I wouldn't do that) are there any final considerations I should be aware of?

Thanks!

 

[MBAustin]

If you've run FIREcalc and/or another calculator with a success rate you're comfortable with, you have a good handle on your spending (including allowance for infrequent large expenses such as new roof, new vehicle, etc.), then you seem to be in OMY mode,

If it's just nervousness on your DW's part that's holding you back, and since she's in tech and thus probably pretty analytical, perhaps try something like a 5-year projection of what your finances look like assuming you retire next month and what it looks like if you w*rk another year. See if the difference is enough to convince both of you it makes sense to go OMY.

You might also consider doing a one-time visit with a fee-only financial planner who could confirm you are good to go now (or not, in which case it's still worth it).

Good luck!

 

[pb4uski]

.....The thought of losing income and having to pay our own insurance is stressing her out. ...

When I was preparing to retire (in 2010) I planned on paying $900/month for high-deductible health insurance for the two of us which was my employer's COBRA cost at the time.

I viewed health insurance as really "wealth" insurance (protecting our wealth for any major health insurance needs beyond the deductible) and giving us access to health insurer negotiated rates for any health services that we needed.

I viewed the then $900/month as part of the cost of freedom to do what I wanted.

It has actually worked out a lot better than I expected. For the first couple years we bought small group high deductible coverage through the state chamber of commerce and that program ended once Obamacare started... but then we were able to buy high deductible catastrophic health insurance. So as it turned out our costs were substantially less than we planned.

DW went to Medicare in March and I will later this year.

I think the major decision for you is whether the cost of your retirement health inurance over what you would pay for health insurance if you continued to work for another year is worth a year of being able to do what you want rather than what "the man" wants. That is your cost of freedom.

Another way to view your success factor under each scenario... retire now or retire in Auguast 2021... and I suspect that you will find that the difference is negligible.

 

[Bryan Barnfellow]

Could you negotiate a part-time or even a quit-then-consult contract? You could make it on condition of health insurance continuation for the year.

 

[BigMoneyJim]

I have a hard time believing a year is going to make or break any retirement. It might be easier to exit now while there is no passion. And really especially mid- or post-reorg.

 

[FREE866]

Do it this Monday. You sound like you're totally set financially. Shelling out for insurance for a year in the grand scheme of it all isn't significant. Not going to work is simply wonderful!

 

[treeofpain]

Don't let health insurance keep you from retirement. It is a bill that must be paid one way or another. You're just used to getting it free or cheap through your company.

 

[MRG]

I left a year early for my sanity. I'm not sure if it shows but I did. You can too.