Saved and...now what?

[EuropeOrBust]

I knew I was going to need to retire soon at the age of 53 due to health issues. It took me two years to process the whole thing and work through it. Going from a paycheck to using your hard-earned savings is a difficult adjustment especially when you've spent a good part of your life putting money in, not taking it out. I found it scary in the beginning of the process, but I knew it was inevitable. I decided to make a slow transition by cutting back my full-time hours from 40 to 32. Six months later, I stepped down to part-time. I had enough to pay the bills for most part, taking some out of savings occasionally. So, I was slowly weaning myself off of my paycheck and slowly using some savings. In the meantime, my investments grew in value and I had a more comfortable cushion. After two years of part time work, I had pushed myself as far as I could go and had reached a point where I knew I had more than enough. It was time. Time to tell the boss man to take me off the payroll. I had just turned 56.

During the process, the biggest thing I considered was how long was I really expecting to live? My mom lived to almost 80, my dad to 64 so I thought maybe 72 or 75? That was only 20 years. I had no desire to spend any day more than I had to working just to make a dollar I did not need. Of course, I kept wondering do I have enough, will this be enough? Fortunately, my house was paid off the year I retired. What if the market goes down 40% again? I live on very little so I knew that even if it did, my withdrawals would be low until the market came back. And I thought, too, what if I don't have as much time as I think? Then my oldest brother passed away at the age of 64. One month later, I pretty much retired, staying on a the payroll three more months and then, let it all go. I had come thru the process and enough was enough. Time to go enjoy the fruits of my labor and sacrifice.

I really get this. The amount of worrying we can do never changes the outcome. Best to take the leap. Congrats!

 

[pacergal]

Welcome!
I get the anxiety of stopping the paycheck--it's pretty normal. If you have done your homework well, and firecalc results work to you satisfaction, you seem good to go.

What about DH retiring now, while you continue consulting for a bit? It would ease you both into "turning off the spigot". With him being a cancer survivor, and you needing to convince him not to "lose it" at work, he just does not need that stress! And his stress probably causes you more stress, too.

Some folks here report setting up a monthly payment to themselves from their portfolio--that might feel more comfortable to you.

Best of Luck--really retirement is wonderful and the anxiety eases rather quickly.

 

[EuropeOrBust]

Welcome!
I get the anxiety of stopping the paycheck--it's pretty normal. If you have done your homework well, and firecalc results work to you satisfaction, you seem good to go.

What about DH retiring now, while you continue consulting for a bit? It would ease you both into "turning off the spigot". With him being a cancer survivor, and you needing to convince him not to "lose it" at work, he just does not need that stress! And his stress probably causes you more stress, too.

Some folks here report setting up a monthly payment to themselves from their portfolio--that might feel more comfortable to you.

Best of Luck--really retirement is wonderful and the anxiety eases rather quickly.

Thanks very much. We've thought about this scenario, too. The thing is we're one of those super-annoying, still-crazy-in-love couples—we're each other's best friends. He said he'd get bummed out if I was working and he wasn't. So, what we're loosely planning is to take a year off and then, at the end of that year, if we're feeling like we miss work, we'd develop a consulting offering together (we have similar backgrounds and have worked together before at a couple companies). Our chosen European spot is Portugal, for a number of reasons, not the least of which is the potential to work with the many companies that are setting up shop in Lisbon. We love Italy and know it very well, but it doesn't offer the digital/energetic vibe that Portugal does so it will remain our vacation spot (just easier to get to. Yay!)

As for the stress, we discuss with regularity that it is, indeed, a killer. He/we balance that with really healthy eating, daily workouts, meditation, etc. Essentially "all the things." It's a process, as you might imagine. I heard someone once refer to disease as dis-ease as a way to describe how emotions can make us physically ill, even lead to cancer. I don't think it's too far off the mark.

For now, we've got a timeline and I'm hoping that this hopeful beacon will downshift the work stress. And then I can replace that stress with No Paycheck stress LOL But, yes, I love the idea of a monthly payment.

Thanks!

 

[Finance Dave]

Welcome to the forum!

I'm not sure what you mean by getting used to less money...sounds like you won't have to!

Think of it this way...your savings goal is to create a pile of money that will create an income sufficient to support ________________ lifestyle.

Fill in the blank with any of the following:
1) a meager

2) our current

3) a better

4) a luxurious

So long as you meet your goal, you are not doing with less money.

 

[UnrealizedPotential]

For myself just getting away from a boss I didn't like very much, and all the BS that went along with that, over rode any doubts I had about leaving the job. To be honest, the first month was sort of scary, after all, no more paycheck, but then the money started rolling in from my investments and after that, it got easier.


To comment on less money, there is an added benefit to being retired, is that I no longer have to contribute to SS and all the other stuff, so as a result the percentages of my taxes are less. I was paying a lot of money every week out of my paycheck paying all that stuff I no longer have to pay. That cushions the blow of less money somewhat, if indeed one is in that situation.

 

[momoftwo]

At 62, I left a career I loved. The work itself was still engaging and I had a great group of longtime co-workers.
I would have stayed a few more years

But the work environment had morphed and administrative changes added oppressive stress.
When my chronic health condition worsened dramatically, I pulled the plug.

With a lump sum pension, and "enough" in a 403b, and SS coming, we would be fine. We have a paid off home and no debt.
Hope to have a few years with DH who is 5 yrs older.

Just need to decide how you want to spend the years you have left.

 

[RetireBy90]

I recently read Adam Smith “The Money Game” as I read it was recommended by Warren Buffet. It really put things in perspective for me, made me realize we were going to leave behind a bunch more than kids need and that it is all a game we play, or at least I do. I highly recommend it.

Edited to add
I had to separate the FI and RE. We were first FI then went about did I want to RE. DW did the RE and I did 2 years later. They are separate decisions for me.

 

[daylatedollarshort]

I think I was ready to be retired since I was 4 and used look out the window and watch the grade school kids walk to and from school in blizzards. I knew then I'd rather stay home or at least not have to get up early and get to work or school in snowstorms.

We got serious about retirement over DH's stress levels which just weren't healthy. We hadn't reached any particular number or savings goal. One day I just added up what we'd have with pensions, SS and savings. We compared that to the Consumer Expenditure Survey and realized it was more than enough to retire the next day. If it wasn't with our current lifestyle, we'd just downsize or move to a lower cost of living area or make some other changes. We also thought seriously about moving to Europe, partly for family reasons and partly for cheaper health care costs, but after the ACA came along decided to stay put.

I realized at one point that even if we worked another year and saved $100K between us, optimizing our spending on recurring costs over 40 years into the future would have more of an impact. Like if you can figure out how to live a $200K lifestyle on $100k, over 40 years that is $4M of after tax money you don't need for retirement. Or spend $50K for a $100K lifestyle, that is $2M in after tax money less you need to fund a 40 year retirement. Being FIREd we no longer needed life and disability insurance, we no longer have work related costs like train fares and lunches out, we pay less in taxes, we no longer have to pay into Social Security, our kids were on still on the payroll for awhile but are now employed and on their own, we have more time to cook from scratch, price shop, make the house energy and water efficient and hundreds of other small changes that all really added up.

 

[EuropeOrBust]

Welcome to the forum!

I'm not sure what you mean by getting used to less money...sounds like you won't have to!

Think of it this way...your savings goal is to create a pile of money that will create an income sufficient to support ________________ lifestyle.

Fill in the blank with any of the following:
1) a meager

2) our current

3) a better

4) a luxurious

So long as you meet your goal, you are not doing with less money.

Thanks for this. If the past year has taught us anything it's that we need a lot less (of everything) than we thought.

 

[EuropeOrBust]

For myself just getting away from a boss I didn't like very much, and all the BS that went along with that, over rode any doubts I had about leaving the job. To be honest, the first month was sort of scary, after all, no more paycheck, but then the money started rolling in from my investments and after that, it got easier.


To comment on less money, there is an added benefit to being retired, is that I no longer have to contribute to SS and all the other stuff, so as a result the percentages of my taxes are less. I was paying a lot of money every week out of my paycheck paying all that stuff I no longer have to pay. That cushions the blow of less money somewhat, if indeed one is in that situation.

Saving is definitely a hard habit to break. It seems like it will feel really unnatural! Also, I LOVE this: The first rule of compounding: Never interrupt it unnecessarily

 

[EuropeOrBust]

At 62, I left a career I loved. The work itself was still engaging and I had a great group of longtime co-workers.
I would have stayed a few more years

But the work environment had morphed and administrative changes added oppressive stress.
When my chronic health condition worsened dramatically, I pulled the plug.

With a lump sum pension, and "enough" in a 403b, and SS coming, we would be fine. We have a paid off home and no debt.
Hope to have a few years with DH who is 5 yrs older.

Just need to decide how you want to spend the years you have left.

Thank you. It IS hard when the work is good, colleagues great, but the environment (and/or the boss) creates unnecessary stress. And my DH is 7 years my senior so time, and time with him in particular, is something I weigh quite a bit.

 

[EuropeOrBust]

I recently read Adam Smith “The Money Game” as I read it was recommended by Warren Buffet. It really put things in perspective for me, made me realize we were going to leave behind a bunch more than kids need and that it is all a game we play, or at least I do. I highly recommend it.

Edited to add
I had to separate the FI and RE. We were first FI then went about did I want to RE. DW did the RE and I did 2 years later. They are separate decisions for me.

Thanks for the recommendation—total book nerd here. Interesting to think about FI v. RE. I'll have to marinate on that a bit.

 

[EuropeOrBust]

I think I was ready to be retired since I was 4 and used look out the window and watch the grade school kids walk to and from school in blizzards. I knew then I'd rather stay home or at least not have to get up early and get to work or school in snowstorms.

We got serious about retirement over DH's stress levels which just weren't healthy. We hadn't reached any particular number or savings goal. One day I just added up what we'd have with pensions, SS and savings. We compared that to the Consumer Expenditure Survey and realized it was more than enough to retire the next day. If it wasn't with our current lifestyle, we'd just downsize or move to a lower cost of living area or make some other changes. We also thought seriously about moving to Europe, partly for family reasons and partly for cheaper health care costs, but after the ACA came along decided to stay put.

I realized at one point that even if we worked another year and saved $100K between us, optimizing our spending on recurring costs over 40 years into the future would have more of an impact. Like if you can figure out how to live a $200K lifestyle on $100k, over 40 years that is $4M of after tax money you don't need for retirement. Or spend $50K for a $100K lifestyle, that is $2M in after tax money less you need to fund a 40 year retirement. Being FIREd we no longer needed life and disability insurance, we no longer have work related costs like train fares and lunches out, we pay less in taxes, we no longer have to pay into Social Security, our kids were on still on the payroll for awhile but are now employed and on their own, we have more time to cook from scratch, price shop, make the house energy and water efficient and hundreds of other small changes that all really added up.

Thanks for such a great perspective. Funny you mention life insurance. We have it for my husband as he's convinced I'll outlive him (also, my father died young and left my mother penniless with kids; it's left a mark!). I've often wondered if we should hang onto it once we FIRE. We've put so much in over the years it feels so wasteful.

 

[ArmchairMillionaire23]

I'm curious as to how people have gotten past the emotional (and sometimes spending) hurdle of less money, and how more free time was/is, indeed, priceless.

For me, I'm planning on retiring in 2025 at age 54. I'm waiting until after January 1st, 2025 so I can access my 401(k) savings without penalty after I "separate from service" from my current employer as I will turn 55 in 2025.

I've heard talk about the 4% rule not being perfect. Some say 5% would still be okay, while others claim 3% would be a safer bet. I've decided to split the difference between 3% and 4% and shoot for a 3.5% annual withdrawal rate. So if we want to have a (pre-tax) income of $1,000 a week or $52,000 a year, I'm hoping my retirement savings are at least $1.5M by the beginning of 2025. ($1.5M * 3.5% = $52,500)

And a pre-tax income of $1000 a week should actually be a pay raise for us. Currently we're living quite nicely on about $400 (take-home) a week. If, after taxes we end up with $800 that should still be plenty. Hopefully the ACA will still be around in some form in 2025.

So that's how I look at pulling the plug and being able to enjoy my free time.
The BS bucket at my Megacorp is starting to fill up as well. As long as I have $1.5M in savings I'm definitely feeling pretty firm about the first week of January, 2025.

 

[meleana]

Honestly I try not to think about it because if I do I get nervous. We are following a fee only FP’s advice and hoping for the best.

We spend over our budget a bit as we are only retired a little over a year and adjusting and I just hope the cash we have lasts. No monthly pension and not taking SS until age 70. Hubby is only 67 and I will be 65 in another month.

I guess with COVID at least we are not taking any big, expensive vacations cause we won’t fly wearing masks and won’t go overseas for fear of getting stuck there if something happens with the virus.

 

[Live Large]

Oohhh. I like this LIfe Math. Thanks

*Bits electronic on a computer screen*

I’ve long thought about this aforementioned idea shaped my thoughts about large sums of money when I was a customer service agent@ WFB. Remember those jobs? Before outsourcing and robo calls? Someone else mentioned a key ingredient having enough $$$. I had enough of working !

ER at 51, enough $ to Live Large oh I ate gov cheese
it came in big blocks...now I buy cheese sticks

Real ER imo is not the 30-40yr sponsored college expenses and hit digital $ in high tech world. Naw, will have too much time (life) on their hands. 50’s is just about right given averages in forum > 65.

I’ve lurked around a long time myself enjoying the vast knowledge wisdom posted here via life experiences. Different for all of us but also similar in uncommon ways. Savers LBYM and many once in your similar position ~ Just Do It! Father Time does Not go in reverse. More Money won’t ever be the answer when you really do have “enough”.

Some refer to it as our 1st world problem boy am I glad l can do what I want! Like post this comment at 3:15am Pacific Standard Time go to bed shortly sleep in, sit at my round in the backyard in the morning with a cup of ‘joe’ watch the blue birds land on the fence & chip...it’s a nice thing - Free Time!

Oh, DW and I will be back on a jet soon speaking of birds - lots of traveling ahead post covid

 

[EuropeOrBust]

*Bits electronic on a computer screen*

I’ve long thought about this aforementioned idea shaped my thoughts about large sums of money when I was a customer service agent@ WFB. Remember those jobs? Before outsourcing and robo calls? Someone else mentioned a key ingredient having enough $$$. I had enough of working !

ER at 51, enough $ to Live Large oh I ate gov cheese
it came in big blocks...now I buy cheese sticks

Real ER imo is not the 30-40yr sponsored college expenses and hit digital $ in high tech world. Naw, will have too much time (life) on their hands. 50’s is just about right given averages in forum > 65.

I’ve lurked around a long time myself enjoying the vast knowledge wisdom posted here via life experiences. Different for all of us but also similar in uncommon ways. Savers LBYM and many once in your similar position ~ Just Do It! Father Time does Not go in reverse. More Money won’t ever be the answer when you really do have “enough”.

Some refer to it as our 1st world problem boy am I glad l can do what I want! Like post this comment at 3:15am Pacific Standard Time go to bed shortly sleep in, sit at my round in the backyard in the morning with a cup of ‘joe’ watch the blue birds land on the fence & chip...it’s a nice thing - Free Time!

Oh, DW and I will be back on a jet soon speaking of birds - lots of traveling ahead post covid

Love it! And a post at 3am? No sweat! The Circadian rhythm style of sleeping/waking is the husband's dream

 

[teetee]

Hello!

I've been a lurker for a long time and I love learning about people's lives/stories/strategies (we actually started a retirement blog about 18 years ago, but there wasn't really an audience for it back then). I'm so appreciative of how generous everyone is on these boards.

Getting to it, during Covid, we realized that although we were good savers (go DINKs!) and had a loose idea about living some or all of our time in Europe eventually, we really didn't have a plan. We were just simply "too busy" to focus on it; living in our home 24/7 freed up some time! We started working with a financial planner for the first time—given a potential move to Europe we know *we* needed some help to plot out the next, few years of moving money, taxes, etc. And when we did the math, we realized that we could, in fact, FIRE. Although at 54 (me) and 61 (DH), I don't know that we're necessarily "early."

BUT, although we're tired of working like crazy (both started work at 11 yrs. old), we're sort of addicted to it—and the money it's brought us. Growing up poor (like government cheese-level poor) will do that to you. We've had all the lessons in our lives (cancer, tragic family deaths, etc.) that have shown us, in no uncertain terms, that life is SHORT—and yet, we're both really hesitant to shut off the money spigot.

I'm curious as to how people have gotten past the emotional (and sometimes spending) hurdle of less money, and how more free time was/is, indeed, priceless.

I am tired (not holding grudge, just stressed out) of my work but this was only my second job since I started my so called career 8yrs ago.

Before my career, I wasted so much time not working but just being unproductive to the society that in every way I think you are more qualified (like 30 to 40 yrs more) to choose your own time to wake up and call a 2pm meal your breakfast.

My current plan is to survive the next 10 years of my full time job(s) and then call it quit. I have imagined that moment in my head over and over especially since the pandemic started and my work load for some reason doubled.

Because of that, I wonder if I sort of, at some level, understand what you mean about the emotional response with the retirement transition. Going retirement is a huge change alright.

However the emotion only takes root if you have the time nuturing it and keeping focusing on the change part.

Anyone transitioning from 50 constant working, saving, and routine years is bound to have the tendency to get a shock when they stop doing that one day.

I don't have such mind-locking pre-existing condition (yet), and I likely will find it easier if I could start my retirement tomorrow. Perhaps instead of sinking into that emotional shock for a long time, which almost certainly will lead to misery, I would focus on one or two new things that I am curious or interested about doing once my retirement starts.

If you have used certain methods to relax your mind after work in the past few years, you likely have something you already have some interest in which can be used to develope your retirement goal.

Me as an example, I am a loyal subscriber of the Dodo YouTube channel and that makes me wonder if it is that rewarding experience to forster a pet before they find their forever home.

I may also think about checking out the local animal shelters to see if they need any help. I don't know if I am good enough to be a volunteer but honestly comparing to frequently come-and-go high schooler volunteers, I am likely more qualified.

I also figured dealing with animals is likely easier than dealing with people since pets don't usually prejudge you before they even know you.

Another thing I am interested in is a long long road trip. As another member of this forum described, road trips are more like a drastic life style change, which is not like a work life but more of constant new inputs from being on the road, visiting national parks and landmarks 24/7.

Visiting different places, arranging routes and lodging is a good way to keep my mind stimulated. As a new life style durng retirement, you also have total say in it, so it is not like work at all.

I think the easy and fulfilling life depends on how open I can be. I also thought about being a landlord, finding a project vehicle to restore, or starting some artistic venture like creating japanese manga or models like Tamiya ones using 3d printers. I scraped those ideas soon because those are hobbies which I can do right now to help me relax if I can find the time.

The goal is not having to excel in anything during the retirement, it is to try different stuff, see different things, and grow new perspectives that I am afraid because of change. Or another member in the forum described as a journey to become a kid again.

 

[yakers]

Another thing I am interested in is a long long road trip. As another member of this forum described, road trips are more like a drastic life style change, which is not like a work life but more of constant new inputs from being on the road, visiting national parks and landmarks 24/7.

Visiting different places, arranging routes and lodging is a good way to keep my mind stimulated. As a new life style durng retirement, you also have total say in it, so it is not like work at all.
.

Absolutely consider the road trip. When I retired in 2008 DW & I went on a 7 week, 8K mile trip from SoCal up to Inuvik NWT Canada (of Ice Road Trucker 'fame', the ALCAN and the ferry down to BC. It was life changing. Never before had i/we had such an open end explore. I had wanted to do this trip fo 40+ years, I never had even 3 weeks of annual vacation until the end of 35 year career. And there was no schedule other than a hotel reservation a month away to try and meet and absolutely no schedule or route planned for return. I knew I would never be going back to the office. Kept a blog, can send the link if you PM. Not Route 66, two trips to India/Nepal/Bhutan and several to Burning Man compared to setting out on the road with the skimpiest of plans and an open schedule.

 

[Bamaman]

If you're interested in living in Europe, don't forget that getting a Visa is tough if you're not a student. The Schengen Agreement otherwise prohibits you staying in the EU zone longer than 90 days out of 180 days.

But after traveling to Spain last year and a number of Eastern European countries, some places are very affordable. And of course, healthcare is a major issue no matter where you live.

 

[Athermos4u]

Travel once you retire is crazy cheap. We spent three months on the Mediterranean/Iona in Saranda last summer for about $2,500USD per month all in! We are currently living in Cape Town, for the past six months, for about $3,500USD a month. We are not scrimping at all. A 5 bedroom house with pool and hot tub over looking table MTN and the ocean. Game drives, excursions, diving with seals, weekend winery trips, etc. Slow travel is much better, and less expensive.

 

[Music Lover]

I realized at one point that even if we worked another year and saved $100K between us, optimizing our spending on recurring costs over 40 years into the future would have more of an impact. Like if you can figure out how to live a $200K lifestyle on $100k, over 40 years that is $4M of after tax money you don't need for retirement. Or spend $50K for a $100K lifestyle, that is $2M in after tax money less you need to fund a 40 year retirement. Being FIREd we no longer needed life and disability insurance, we no longer have work related costs like train fares and lunches out, we pay less in taxes, we no longer have to pay into Social Security, our kids were on still on the payroll for awhile but are now employed and on their own, we have more time to cook from scratch, price shop, make the house energy and water efficient and hundreds of other small changes that all really added up.

That's my philosophy. I have a modest pension but can stretch it so that I live as well as many people with twice as much money due to a paid off house, solid DIY skills, inexpensive hobbies (one of them actually pays me more money that it costs), etc.

 

[daylatedollarshort]

That's my philosophy. I have a modest pension but can stretch it so that I live as well as many people with twice as much money due to a paid off house, solid DIY skills, inexpensive hobbies (one of them actually pays me more money that it costs), etc.

I have to say I don't get all the posts here with worries about market drops, inflation, low returns going forward, the almost daily what is a safe withdrawal rate and so few over optimizing expenses and trying to live better for less. In fact, when people do post about optimizing expenses, some of the same posters worried about SWR and inflation will make snarky comments about being so glad they don't have to penny pinch. Yet optimizing expenses are the one factor out of that list that we actually have control over. And with lower expenses there is less need to worry about inflation, SWR, market drops, etc.