Katsmeow
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 11, 2009
- Messages
- 5,308
I posted way back in January that I had given notice to my boss that I was leaving around April. Since then he has convinced me to continue to work 1 day a week (assuming a couple of factors that I think will work out). DH plans to retire this summer.
Well the last week or so has made it all very real. My boss finally (!) told the rest of management that I'm leaving at the end of next week, or rather, moving to a 1 day a week schedule. DH gave formal notice at Megacorp and has a retirement date set in July.
Yet, I am suddenly full of butterflies and wondering if we are crazy.
Back last November I posted about expenses. Then I gave project retirement expenses based upon moving to a 2500 SF house:
Well things have developed since then. On a positive note we bought a 1900 sf house in March. We paid cash so there is no mortgage. The guesstimates for house insurance is fairly accurate. So far the electricity is lower as is garbage. Real estate taxes are a little less. I anticipate clothing/cleaning to be less, phone to be less, gifts to be less - we've cut that to about $100 month, expect auto to be less. Discretionary spending is, well, discretionary and can be less or more as we choose.
The only negative is that we still own our old house which is a huge financial drain. It is now on market and we hope to sell soon (we are in a mild seller's market but our house has features that will appeal to the right buyer but to others won't appeal at all so it could take awhile to sell).
I ran FireCalc and Financial Engines over and over again.
Last November, I projected a lump sum retirement for my DH at about $991,000 if he retired in November of this year. As it turns out he will get about $1,020,000 retiring this summer.
One question I was unsure about a few months ago was what would happen to my healthcare coverage when he turns 65 (he is 62). Would I still have a right to subsidized retiree healthcare coverage? Turns out that I will have the right until I am 65. So that was something else that worked out OK.
When I first posted here last August we had $345k in 401(k)s. Today it is $275k. However, we took some money out to pay cash for the house and we will owe about $30k in taxes on that money (no penalty since DH is 62).
So when the dust clears this summer after accounting for the taxes we should have roughly $1,270,000 assuming no drastic change in the 401k.
DH will get SS at about $1700 a month and our 2 children under age 18 will get about $1100 a month each which be used for their needs/college.
If I do choose to work 1 day a week that is worth about $4000 to $4500 a month (before taxes).
So it all looks good. The only debt is the mortgage on the house we are selling and I've run the numbers on that and Firecalc says we're fine so long as we sell the house in the next couple of years which seems highly likely.
Yet...as I was talking to the office administrator today (whose reaction on hearing of my semi-retirement was to congratulate me)...I had a sudden feeling of panic and wondered what I was doing and whether I was totally crazy to be doing this....
Anyone else get ER butterflies?
Apparently Not since there have been 67 views and no replies...I think I'm the only one to get butterflies....
Well the last week or so has made it all very real. My boss finally (!) told the rest of management that I'm leaving at the end of next week, or rather, moving to a 1 day a week schedule. DH gave formal notice at Megacorp and has a retirement date set in July.
Yet, I am suddenly full of butterflies and wondering if we are crazy.
Back last November I posted about expenses. Then I gave project retirement expenses based upon moving to a 2500 SF house:
Overall projected expenses if we moved to a 2500 square foot house near DH's work - 2 adults, 2 teenagers in house - per month
Auto Fuel - $150
Auto Main/Repair - $250
Toll Road - $50
Children/school related - $1600
Property Tax - $350
Dining out - $200
Groceries - $600
Healthcare - $550
Household supplies/repairs/maintenance/yard - $300 (total guesstimate)
Ins Auto - $400
Ins House - $100 (guesstimate)
Ins Umbrella - $100 (guesstimate)
Computers/electronic/software - $200 (computers are getting long in tooth)
Entertainment - $200 (Leisure activities)
Internet/Cable - $150
Travel - $100
mortgage - $1500 (will likely pay off at some point)
Clothing/cleaning - $100
Gifts - $250 - In addition to our 3 children, DH has 3 adult children, 9 grandchildren and 3 greatgrandchildren
Personal care - $50
Pets - $350 (this expense I understand - we have several large dogs and 2 cats)
Electricity - $300 (Guesstimate)
Garbage - $37
Phone - $200
Well things have developed since then. On a positive note we bought a 1900 sf house in March. We paid cash so there is no mortgage. The guesstimates for house insurance is fairly accurate. So far the electricity is lower as is garbage. Real estate taxes are a little less. I anticipate clothing/cleaning to be less, phone to be less, gifts to be less - we've cut that to about $100 month, expect auto to be less. Discretionary spending is, well, discretionary and can be less or more as we choose.
The only negative is that we still own our old house which is a huge financial drain. It is now on market and we hope to sell soon (we are in a mild seller's market but our house has features that will appeal to the right buyer but to others won't appeal at all so it could take awhile to sell).
I ran FireCalc and Financial Engines over and over again.
Last November, I projected a lump sum retirement for my DH at about $991,000 if he retired in November of this year. As it turns out he will get about $1,020,000 retiring this summer.
One question I was unsure about a few months ago was what would happen to my healthcare coverage when he turns 65 (he is 62). Would I still have a right to subsidized retiree healthcare coverage? Turns out that I will have the right until I am 65. So that was something else that worked out OK.
When I first posted here last August we had $345k in 401(k)s. Today it is $275k. However, we took some money out to pay cash for the house and we will owe about $30k in taxes on that money (no penalty since DH is 62).
So when the dust clears this summer after accounting for the taxes we should have roughly $1,270,000 assuming no drastic change in the 401k.
DH will get SS at about $1700 a month and our 2 children under age 18 will get about $1100 a month each which be used for their needs/college.
If I do choose to work 1 day a week that is worth about $4000 to $4500 a month (before taxes).
So it all looks good. The only debt is the mortgage on the house we are selling and I've run the numbers on that and Firecalc says we're fine so long as we sell the house in the next couple of years which seems highly likely.
Yet...as I was talking to the office administrator today (whose reaction on hearing of my semi-retirement was to congratulate me)...I had a sudden feeling of panic and wondered what I was doing and whether I was totally crazy to be doing this....
Anyone else get ER butterflies?
Apparently Not since there have been 67 views and no replies...I think I'm the only one to get butterflies....
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