Maybe just need a push?

[Cantwaitanylonger]

Turning 62 this year. No debt, house 1.2 M, Duplex 300K (12K/year cash flow), 400K cash, 1.6M 401K. NW=3.5M. Survived job loss and cancer battle (hopefully that continues) in the past several years. Making 125K at a corporate job presently....tired of the grind. Wife doesn't work. SS at 62 is 24K. Wifes SS in 5 years is 12K. Major expense is RE taxes at 13K/year.

Expected income need is 80K. Firecalc gives me 100% success at an income of 100K.

Naturally cheep person. Want to retire can't get comfortable with the loss of income and great health insurance. Also have a desire to make more $$ to leave to my kids.

Can Cobra for 1.5 years, then ACA. Worried about ACA coverage with the ongoing cancer screens and possibility of return.

AM I being unreasonable or even stupid about this?

 

[Jim59]

Every day worked is a day off your retirement. Time is greater than money.

 

[FLSUnFIRE]

We humans adapt well, you'll get used to it relatively quickly. Still feels weird to me but I have NO desire to get a job (still would like a fun gig but my criteria makes me virtually unemployable ).



I won't push you but will, as many did to me, encourage you to make the leap... the water is indeed fine. I'm the happiest and most content I have ever been.

 

[pacergal]

Which is stronger, the desire to retire or the desire to make more money for your kids?

You can retire and still make money via your investments--that's what a good plan is all about!

If Firecalc gives you 100%, I say you are good to go. However, it is your decision.
Only you know when you have had enough of "work".

 

[Cantwaitanylonger]

Thanks for your replies. I do have a new appreciation for time, given my recent health battles. I know that I may continue to make money with my investments but I feel like the great ride may be over and scary times may be ahead. I probably should reduce my equity exposure (100% of 401K).

 

[Lucie]

I can appreciate your struggle with deciding when to pull the plug. I struggle as well, but I love my job. Given your recent health scare, I would encourage you to retire sooner rather than later. I understand that you want to build your legacy for your kids, but from someone who experienced the loss of both parents at an early age, I can tell you this with great certainty: I would have preferred more time with my parents (travel together, dinner, picnics etc) than any inheritance. Just another view point.

 

[casole]

Hi,

So your real estate is worth $1.5 mm with no mortgages? I think there will be plenty for the kids even if the RE market were to "crash" the day you die and/or you both have an extended nursing home stay and you spend the last 401k dollars.

Proper health coverage given your history is definitely top priority, I don't know enough about ACA coverage and permanence in various plans around pre existing but surely there is a plan available that will provide peace of mind around this.

So I really do think the ultimate question as another poster referenced, which desire is stronger.. retirement or legacy? You may be surprised if you talked it over with them if you are open to that they may say "omg retire! after all you've been through, we are good"!!

How tired of the grind are you? Is it sapping the joy out of you? Taking time from other things you want to do or accomplish, people you want to enjoy. Do any of your children have special needs (financial or otherwise) or are they pretty stable financially?

Good luck with your decision!!

 

[skyking1]

Are your kids gainfully employed? Unless they are not capable of making their own way, your desire to leave more to them makes little sense.

 

[euro]

I understand that you want to build your legacy for your kids, but from someone who experienced the loss of both parents at an early age, I can tell you this with great certainty: I would have preferred more time with my parents (travel together, dinner, picnics etc) than any inheritance. Just another view point.

This is an excellent point that tends to get forgotten. We seem to have a basic instinct to provide an inheritance for our offspring. I can't count the number of times I encouraged my dad to spend his money on himself while he still could but he always wanted to be able to leave an inheritance to my sister and me. So, he kept pinching pennies to the bitter end. Both my sister and I would have much preferred "time over money"

 

[Cantwaitanylonger]

I can appreciate your struggle with deciding when to pull the plug. I struggle as well, but I love my job. Given your recent health scare, I would encourage you to retire sooner rather than later. I understand that you want to build your legacy for your kids, but from someone who experienced the loss of both parents at an early age, I can tell you this with great certainty: I would have preferred more time with my parents (travel together, dinner, picnics etc) than any inheritance. Just another view point.

Awesome point. Thanks for the perspective.

 

[Cantwaitanylonger]

So I really do think the ultimate question as another poster referenced, which desire is stronger.. retirement or legacy? You may be surprised if you talked it over with them if you are open to that they may say "omg retire! after all you've been through, we are good"!!

How tired of the grind are you? Is it sapping the joy out of you? Taking time from other things you want to do or accomplish, people you want to enjoy. Do any of your children have special needs (financial or otherwise) or are they pretty stable financially?

Good luck with your decision!!

Good point. I have never discussed this with them.

I have a love/hate job situation. I love the actual work but hate the politics/empowered millennials/reviews/timelines etc. Everything is a Teams meeting with 30 invitees. No one can use the phone anymore. The world has changed but I haven't.

My children are all launched and doing fine.

 

[Dash man]

I totally get the concern about the cancer returning. DW had cancer back in 2004, and a kind that has a poor 5-year survival rate. Thank the Lord she is still with me and healthy, but the fear never leaves.
See what ACA plans are available in your area and be prepared to buy the best of them. You have enough to not worry about subsidies and can get a great plan. With your Cobra coverage, you’ll only have about 18 months on ACA before Medicare and your costs should go down with your projected income. If you can find a satisfactory ACA plan that will likely be available after Cobra ends, then go for it.
You may want to consider holding off on social security for a while and live off your tax deferred funds to allow your social security to grow for your wife’s benefit as a survivor if needed.
You might also consider Roth conversions to reduce future RMDs.

 

[finnski1]

Turning 62 this year. No debt, house 1.2 M, Duplex 300K (12K/year cash flow), 400K cash, 1.6M 401K. NW=3.5M. Survived job loss and cancer battle (hopefully that continues) in the past several years. Making 125K at a corporate job presently....tired of the grind. Wife doesn't work. SS at 62 is 24K. Wifes SS in 5 years is 12K. Major expense is RE taxes at 13K/year.

Expected income need is 80K. Firecalc gives me 100% success at an income of 100K.

Naturally cheep person. Want to retire can't get comfortable with the loss of income and great health insurance. Also have a desire to make more $$ to leave to my kids.

Can Cobra for 1.5 years, then ACA. Worried about ACA coverage with the ongoing cancer screens and possibility of return.

AM I being unreasonable or even stupid about this?

No you're not being unreasonable or stupid. From my point of view however I think you should retire soon! You have 2mm liquid net worth. Take you're $80k spending target then subtract the 12 k rental income. You would be left with 3.2 % WR. You also however have a ss backup plan coming on line within 0-5 years or so and medicare in 3 years. No to mention a high value house that could be downsized, leveraged etc to give you even more buffer. Enjoy the go go years now while you still can. Time goes by fast the older we get.
Also, Cobra tends to be expensive. You should explore plan costs on healthcare.gov for the 80k income. You might be surprised. Also they can't exclude you with preexisting conditions.
I think your kids will still end up with enough since you are a self described "cheap" person and will most certainly not blow all your money. We are the same, although the word is frugal not cheap, and don't even have any children.

 

[Aerides]

You should not have any worries about ACA coverage wrt your prior health conditions. That is now protected under the law, and with only 18 months even less a worry for you than others who need the ACA to survive for 10+ years. Still COBRA is a known entity, since you'll continue your current providers, and for the short term it might not always be the cheapest, but the safest/simplest option.

 

[38Chevy454]

No you're not being unreasonable or stupid. From my point of view however I think you should retire soon! You have 2mm liquid net worth. Take you're $80k spending target then subtract the 12 k rental income. You would be left with 3.2 % WR. You also however have a ss backup plan coming on line within 0-5 years or so and medicare in 3 years. No to mention a high value house that could be downsized, leveraged etc to give you even more buffer. Enjoy the go go years now while you still can. Time goes by fast the older we get.
Also, Cobra tends to be expensive. You should explore plan costs on healthcare.gov for the 80k income. You might be surprised. Also they can't exclude you with preexisting conditions.
I think your kids will still end up with enough since you are a self described "cheap" person and will most certainly not blow all your money. We are the same, although the word is frugal not cheap, and don't even have any children.

Agree with all of this. OP Cantwaitanylonger you should seriously consider retiring now or in near future. Maybe wait out crappy winter and retire in early summer. Max out any medical benefits while working. Depending on your corp policy, may want to max out the pre-tax 401k/403b type investments. For sure get the max company match. Or if you think you will need the after tax cash, just do the amount of pretax to maximize company match. Then just save after tax cash this year while working.

 

[Cantwaitanylonger]

Thanks everyone for the great perspective. I value your collective experience. I think the general consensus is that my kids will be fine, I can get affordable health care, and I have the resources to retire now. I just re-ran firecalc with conservative inputs and get 100% success up and to 131K withdraw rate. I also have a few avenues of inheritance that may surface but I am not counting them in. I'm thinking that it it a good idea to grind it out until spring. The weather here is nasty anyway.

 

[oiseux]

Coming from someone who would like a push, I think in your case you should go now, even with the health care coverage (non) concern. You are at your healthiest now and you can focus on enjoying life and maximizing your health practices, and spend time with family and pursuing what life has to offer.

 

[Romer]

You said SS for you at 62 $24K and for your wife in 5 years is $12K. Just wondering if you are modeling her benefit alone or as spousal benefit which at 67 (her) is 50% what you are making

By retiring now will you be able to spend more times with kids and any grandkids? I wish my parents had more time to spend with us before they passed. Never wished for a bigger inheritance

And who is to say your money wont grow more than expected. The 100% Firecalc says you have a conservative plan.

 

[Cantwaitanylonger]

You said SS for you at 62 $24K and for your wife in 5 years is $12K. Just wondering if you are modeling her benefit alone or as spousal benefit which at 67 (her) is 50% what you are making

Thanks. The 12K is based on her earnings history and not spousal benefit. It is coincidental that it is about 1/2 mine. She is 5 years younger, so I modeled hers accordingly. Also, I do have grandkids (that I adore) nearby and would love to spend more time with them.

 

[RetiredHappy]

Thanks. The 12K is based on her earnings history and not spousal benefit. It is coincidental that it is about 1/2 mine. She is 5 years younger, so I modeled hers accordingly. Also, I do have grandkids (that I adore) nearby and would love to spend more time with them.

I think she will get more in spousal benefit instead of on her own record. She should get 1/2 your PIA (at your FRA) when she takes it at her FRA. Since you take yours early, which is $24K, it means that your PIA/FRA amount is quite a bit more, and she will get half that that PIA amount by claiming spousal benefits at her FRA. Your taking SS early does not affect spousal benefits.
https://www.nolo.com/legal-encyclop...ts-spousal-dependents-survivors-benefits.html

 

[Cantwaitanylonger]

I think she will get more in spousal benefit instead of on her own record. She should get 1/2 your PIA (at your FRA) when she takes it at her FRA. Since you take yours early, which is $24K, it means that your PIA/FRA amount is quite a bit more, and she will get half that that PIA amount by claiming spousal benefits at her FRA. Your taking SS early does not affect spousal benefits.
https://www.nolo.com/legal-encyclop...ts-spousal-dependents-survivors-benefits.html

I understand what you are saying. I was just trying to be ultra-conservative with my inputs. I was considering for her to retire at 62 also.

 

[Romer]

Your taking SS early does not affect spousal benefits.
https://www.nolo.com/legal-encyclop...ts-spousal-dependents-survivors-benefits.html

I was not aware of this subtly. Going back and rereading the SSA site it does say based on Full retirement benefit but never really said what would happen if I retired early

I continue to learn on this site

 

[matjung]

In your opinion, what is the big difference between retiring now, and in 3/5 years time?
If it is not a big difference, I retired rather sooner than later.
You need to develop something like a hobby that keeps you busy once you stopped working for your employer.
Your wife may appreciate that you are not around 24 hours a day.

 

[street]

Here is a push you will be fine.

 

[pacergal]

Another thought about legacy--it sounds like you can w/d more than your spending/budget needs per firecalc, think about sharing with your kids now, in retirement, when you can enjoy with them.
We have given kids smaller amounts in gifting each year, and helped them pay for things (house down payment/remodel/other unplanned expenses that cropped up, along with more family experiences. It is a way to enjoy our time and money with them while we are here.

We are very blessed to be able to do this. Both of our kids are appreciative and also tell us to spend on ourselves and not worry about them.