Offered a Package at 57

[raven1]

Will you keep your 2 houses, or sell one? What's the plan - keeping 2 mortgages ?

Planning to sell our primary and moving to our much smaller (but on the water) second house. Need to put some money into it to get top dollar but we should net $700K after the mortgage is paid off. This will reduce spending by $4K a month not even counting the expenses for everything that goes wrong in a 30 year old decently sized house.

 

[euro]

Well, I left without a package a year younger than you with about the same assets. So you know my answer.

Yup, exactly the same here.... turns out I would have had to hang in there another 5 years to get that package, so I'm sure glad I left when I did.

 

[RAE]

I would take the package, without hesitation. The 4-5 years you will have to wait, if you don't take it now, is time you can never get back. I retired with far less assets than you at age 55, and have zero regrets (I am 68 now).

 

[FLJim]

Thanks so much for all of the comments! Like many have said $75K annual expenses in retirement is too probably too conservative. I am at about $125K now with 2 houses. If I sell my primary house, I will have about $1M to go through before I have to start cashing in retirement money. I think we will take SS beginning at age 62 instead of waiting. One other issue I am dealing with is an older sibling who did not save for retirement and now can't work because of health issues. Not sure how much I may need to help money and time-wise.

I am definitely leaning toward taking the deal. Even-though the job isn't too bad, I am locked in front of a computer all day instead of experiencing life. I will probably never spend the money I make next week. Can't wait for every day to be Saturday.

Please, BOTH of you take your packages! Years from now you will wonder why you even had to THINK about whether or not to "grab it and go"! I started 'waiting' for a package at 59 and got tired of waiting, and just went at 62 with no package. Never looked back; should have gone at 60! In 13 years of ER I have never regretted leaving at 62. Cannot spend 100% of the passive income, despite owning 2 houses free & clear. A part-time job could earn you a few extra bucks; there is no way to earn a few extra YEARS. Time is precious now; will be even moreso later. Go for it.

 

[WorkIsOverrated]

Take it and don't look back! I took a package at 57 2 years ago. Had fewer assets accumulated. I regret nothing. You'll love it.

 

[steady saver]

I think being razor clear on your finances both current and estimated future is super important (health insurance comes to mind). Clearly you'd have a year to figure out the latter but I think being clear on numbers can give you peace of mind which is invaluable. Another major issue I just can't gloss over is spending some time asking yourself if you are emotionally ready for it. My DH has been retired 3 years now. We spent much of our marriage dreaming about early retirement, planning for it, delaying gratification, etc. He had lots of interests, didn't particularly love his job, etc. When it was time to retire, the pandemic hit. Luckily for us he was able to stay on another 6 months and they offered him a package! We couldn't believe our great fortune!!! We also couldn't believe what an incredibly difficult transition it would end up being for him. Three years out and he is happy he retired but it was a surprisingly tough road for him. His story is not your story, but I say this just to remind you that your sense of purpose is part of the big picture too.

 

[Dhickman57]

Go for it

Retired at 56. Now 66. Found that expenses were greatly reduced in retirement, still travel multiple times per year with 401k and savings still growing with Social Security income.
Wife took package at 56 also, not as good as you describe. I recommend all to retire early based upon our findings after retirement. We are very conservative but cannot see ever worrying about money.

 

[brett]

I took a package at 58/59. It is a fabulous way to walk. I had just short of two years. I could not believe my good fortune.

My perspective is that the financial decision is the easiest. You can consult experts, do fancy spreadsheets, etc. however it simply comes down to basic math, common sense, investing carefully, and making allowances for inflation and for error.


If you know your living costs a simple back of the envelope tally might start you off in the right decision. Don't make it more complicated than it needs to be. Add in some room for dollars spent on travel, etc. Ball park the number.

The more challenging part may be what is you future post package. Another job, a change in lifestyle, a move, travel, etc.

 

[Buckeye]

Without hesitation.



+1 I left without a package at 56 with less assets. You have all you will ever need given your described spending.

You'll have more time to help and appreciate your parents for whatever more time they have left and less stress in your life.

+1 This time with them is more valuable than you can imagine, IMO.

 

[Cayman]

I'd take it in a heartbeat.

To clarify - if you pass on this package there is NO guarantee of another package in 4 or 5 years, right? Striking health and life changes happen all of the time. If spending family & personal time is a priority for you then think hard about waiting....

 

[Budatx]

With the assets you and DW have accumulated, and given your expected yearly spending, financially, there's really no need to continue working.

Remember, if you retire early you can always recover, but if you retire late, there is no recovery.

Best Wishes!

 

[brett]

Take the money and run.

My spouse never thought I would retire at 58/59. I was a workaholic.

I walked and never looked back. Highly recommend it from a physical and mental health perspective.

We used the opportunity to change our lifestyle.

The only regret.....I wish the package had come along two or three years earlier. I had a great employer and was compensated very well. But...the clock was ticking.

 

[raven1]

Update: Both my wife and accepted the retirement package but they are requiring me to work until December of this year due to business needs. If I don't accept, the incentive package is revoked. I am okay with it as I can increase my savings/pension and i will be getting 60 weeks of pay starting then (2 weeks of pay for each year of service). My wife will also be free now to help with parent care while I finish the last 10 months. The decision and informing my management/my staff was stressful but no looking back now. Looking forward to the future.

 

[Dtail]

Excellent news. Now just relax through it.

 

[MarieIG]

Sounds like a great outcome.

 

[steady saver]

Congratulations!
It’s going to be great!!!

 

[TickTock]

Update: Both my wife and accepted the retirement package but they are requiring me to work until December of this year due to business needs. If I don't accept, the incentive package is revoked. I am okay with it as I can increase my savings/pension and i will be getting 60 weeks of pay starting then (2 weeks of pay for each year of service). My wife will also be free now to help with parent care while I finish the last 10 months. The decision and informing my management/my staff was stressful but no looking back now. Looking forward to the future.

Congratulations! Based on your posts, I think you made the right choice.

• Do check your past spending, and track how it changes with retirement.
• Be aware of health care costs after COBRA runs out.
• Managing taxes in retirement is different than while working. You mentioned not having to draw from tax-deferred acounts until taxable is depleted - it may be better to pull some at low rates (10/12%) to minimize taxes over time.
• Roth conversions may also make sense.

 

[Jerry1]

Good luck with 2024. There's no doubt you were right to take the offer, but you're going to have to keep your wits about you. Imagine the struggle as you come to the end of the year and the project is not done. You'll be looking at the door, per your agreement, and your employer will be expecting you to get it done. Given that I've seen very few corporate projects come in on time, this is bound to happen. Does your agreement call for them to hire a replacement for you? Or, is it a project that, once complete, the staffing gets reassigned/no longer needed.

Whatever, take this year and make sure your agreement is tight and that you can work within it. Wishing you the best. An exit package is a great thing.

 

[HI Bill]

...I am locked in front of a computer all day instead of experiencing life. I will probably never spend the money I make next week. Can't wait for every day to be Saturday.

Well, there's your answer, right there. With your financial situation, you don't need to ponder further. No need to sell the primary house as far as I can tell, unless you really want to downsize and simplify. To try to encourage you:

I ER'd at 55, missed out on two years of travel due to COVID and two more years due to my wife's health issues. Now, I'm 58 and just found out I have moderate built-up in my arteries and am about to have a lung CT to assess as tumor, and a treadmill EKG. My statins dose was quadrupled yesterday. You'll likely never be as healthy as you are now, and you definitely won't have any more time on this planet than you do today. Go for it. Don't wait. It just isn't worth it!

 

[Cayman]

Congrats Raven1!!! You've made a great decision. Very excited for you and your family!

 

[Enuff2Eat]

Don't be shy. Don't be greedy. You can buy almost anything except time and health.

The more you work and more you make... but why? Leave it for the kids? Leave it for the kid's spouse to spend? If you worry and pessimistic ... like me then work forever. I have always said "1 more year" and I am still working ..

Sorry for being rude but honestly... I can't retire because I am always worry about some imaginary market crash or some major crisis happened. Good luck

Enuff

 

[raven1]

Well plans don’t always work out the way you expect. As my wife and I are getting ready to retire my brother had an aneurysm and is on life support. He has 2 young girls ages 11 and 17. Their mother also passed away 2 years ago. We will be taking the kids. I don’t think I would have retired if I knew I had 2 more college educations, weddings etc to pay for. I have no idea if my brother has any money or life insurance but I know it’s not much. We will make it work though. Please get a living will if you don’t have it. My brother doesn’t have one and it’s making this process even more difficult for me.

 

[Exchme]

Terrible news about your brother. It's great that you are able to pick up the pieces and help his kids out. It must be a terrifying time for them.

Your retirement will work out financially and with a pre-teen in the house, you certainly won't lack for things to do. If your brother passes, there may be various aid programs that they are eligible for, so make sure to investigate.

 

[Healthy Lifestyle]

Sorry to read your sad news and feel for the kids. You are stepping up to help family and believe the lord will guide and shine on you. I also was offered a package due to cost reductions. Now I realize it all works out for the best.