Markola
Thinks s/he gets paid by the post
I don’t see any discussions, lately at least, dedicated to folks planning to do some paid work after they quit the full time rat race, so I thought I’d start one. I’m not one to espouse the glories of “w*rk”, believe me, but DW and I aren’t quite rich enough to quit earning while also maintaining our preferred lifestyle. However, we are in a financial position to cut back on the stresses of full bore professional careers and are, in fact, actively doing so. Here’s what it looks like to us and I’d be very curious about others’ experiences:
Me: 54, managing 11 people in a revenue line profession, getting tired of working in bureaucracies and their ever increasing goals met with ever decreasing resources. ‘Nuff said, bucket full, want a change.
DW: 56, Quit her management job in 2017 out of total frustration and burnout, took a year off to detox then picked up some completely different, intermittent, solo-contributor work doing survey research at about 20 hours per week average, mostly from home in her PJs, earns about $25K/year. She is really, really good at it and is far happier and healthier.
No kids, only mortgage debt, fairly low cost of living Midwestern city.
Basics of our formal financial plan: We understand DIY financial planning but have evolved to happily work with a Vanguard Flagship Personal Advisor for personal reasons I could go into later, because I know it’s a controversial topic here on the Forum. That plan is very detailed and calls for:
- Me to leave my job in mid/late 2020 (May I say “YAY!”?)
- I turn 55 this year, so will deploy the Rule of 55, which I’ve verified with HR Benefits. DW is already using the Rule of 55.
- We both take a sabbatical for 2021 focused on pent-up travel desires.
- In 2022 we start a 7-year semi-retirement with a goal of earning $85,000 gross for our household in addition to portfolio draw. Since DW earns about $25K, I need to earn about $60K.
- Plan assumes we pay out of pocket for health insurance during the years until DW and then I reach Medicare at 65. For the numbers to input, our Vanguard planner had us complete their health cost projection tool.
- Plan projects us taking SS at 70.
- Plan shows we should keep the mortgage.
- Plan includes $15K year for travel.
- Includes 80K/ year living expenses, increasing with inflation.
- All of Vanguard’s sophisticated software projects 98% success rate. Replicating our plan in Personal Capital Retirement Planner backs that up. Both have inflation projections that are much greater than our experience has been year to year based on my several years of diligent tracking of all expenses in YNAB.
The plan only tries to look out in detailed fashion about 5 years, recognizing that conditions change. There remain lots of levers to pull to keep the plan on track:
- We could earn more than $85K and decrease 7 years to 5 or so.
- I could get a j*b with health insurance, further decreasing portfolio pressure.
- We could change our lifestyle, sell or rent out our house, move to a different location or even country.
- etc. etc. etc. Lots of levers.
Even though our continued management career tracks have become unappealing, we are still interested to earn and be engaged, albeit it on our terms. I could see staying on in my field, as many people like me do, in consulting or solo-contributor roles. My field is such that the problem is not finding jobs or consulting gigs, it’s finding the more rare situations that are actually positioned for success. DW is already finding her semi-FIRE niche outside of her traditional profession.
So, that’s our current situation, which seems different than most of the posters’ here who have achieved or are aiming for “full stop.” Actually, we too are aiming for full stop, but in a gradual manner. Is anyone else on a semi-FIRE track? What are others’ experiences and plans, please?
Me: 54, managing 11 people in a revenue line profession, getting tired of working in bureaucracies and their ever increasing goals met with ever decreasing resources. ‘Nuff said, bucket full, want a change.
DW: 56, Quit her management job in 2017 out of total frustration and burnout, took a year off to detox then picked up some completely different, intermittent, solo-contributor work doing survey research at about 20 hours per week average, mostly from home in her PJs, earns about $25K/year. She is really, really good at it and is far happier and healthier.
No kids, only mortgage debt, fairly low cost of living Midwestern city.
Basics of our formal financial plan: We understand DIY financial planning but have evolved to happily work with a Vanguard Flagship Personal Advisor for personal reasons I could go into later, because I know it’s a controversial topic here on the Forum. That plan is very detailed and calls for:
- Me to leave my job in mid/late 2020 (May I say “YAY!”?)
- I turn 55 this year, so will deploy the Rule of 55, which I’ve verified with HR Benefits. DW is already using the Rule of 55.
- We both take a sabbatical for 2021 focused on pent-up travel desires.
- In 2022 we start a 7-year semi-retirement with a goal of earning $85,000 gross for our household in addition to portfolio draw. Since DW earns about $25K, I need to earn about $60K.
- Plan assumes we pay out of pocket for health insurance during the years until DW and then I reach Medicare at 65. For the numbers to input, our Vanguard planner had us complete their health cost projection tool.
- Plan projects us taking SS at 70.
- Plan shows we should keep the mortgage.
- Plan includes $15K year for travel.
- Includes 80K/ year living expenses, increasing with inflation.
- All of Vanguard’s sophisticated software projects 98% success rate. Replicating our plan in Personal Capital Retirement Planner backs that up. Both have inflation projections that are much greater than our experience has been year to year based on my several years of diligent tracking of all expenses in YNAB.
The plan only tries to look out in detailed fashion about 5 years, recognizing that conditions change. There remain lots of levers to pull to keep the plan on track:
- We could earn more than $85K and decrease 7 years to 5 or so.
- I could get a j*b with health insurance, further decreasing portfolio pressure.
- We could change our lifestyle, sell or rent out our house, move to a different location or even country.
- etc. etc. etc. Lots of levers.
Even though our continued management career tracks have become unappealing, we are still interested to earn and be engaged, albeit it on our terms. I could see staying on in my field, as many people like me do, in consulting or solo-contributor roles. My field is such that the problem is not finding jobs or consulting gigs, it’s finding the more rare situations that are actually positioned for success. DW is already finding her semi-FIRE niche outside of her traditional profession.
So, that’s our current situation, which seems different than most of the posters’ here who have achieved or are aiming for “full stop.” Actually, we too are aiming for full stop, but in a gradual manner. Is anyone else on a semi-FIRE track? What are others’ experiences and plans, please?
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