chris2008
Thinks s/he gets paid by the post
Congrats to you both, enjoy one step at a time.
Hi all, OP here, coming up on one year anniversary of my post on this topic. As a reminder, my wife retired at the end of last year (2021) when she was let go. I, however, am still working, BUT the work itself here at Megacorp has become pretty terrible (not just the usual bureaucracy and politics, but ugly changes to the "core" actual work). I am in that "one more really bad day and I pull the trigger" mindset, and honestly I likely would have already if it weren't for the market crash (which may have a lot more drop ahead!).
Given the market conditions, we have been analyzing our expenses closely and are seriously considering going much leaner for the next couple of years (i.e.$100K spend vs. the $148K) by shaving travel, the planned new car, and a few other key areas) to live off of our cash savings ($200K) while we keep our fingers crossed and hope market bottoms and starts to recover in that window (darn you "Sequence of Returns" risk!).
Anyway, that's my update for now...I hate when people post these questions and you never know what happens!
Oh, and once again, I appreciate all the thoughtful replies.
What does firecalc say about the updated change in spending? If the numbers work, and you are comfortable about it, go for it!
If needed, are you willing to do some sort of part time job to make it happen.
To me, time is more important than money. I would do what I could to make the budget work long term.
What about putting feelers out for a position with another employer? You don't have to take anything you don't want, but you may find something . . . Personally, I had planned on retiring from one employer, but took another job (which was a big improvement until Covid hit).
My real value is in my very specific industry knowledge...and I have a pesky one year non-compete agreement now. Is it truly "enforceable"...who knows? I'm not really keen to test it, but it might come to that. Of course, nothing says it couldn't be after that first year, but as I noted in my reply immediately prior to this, I am a bit loathe to continue on in the corporate world. I know, I know...can't have cake and eat it too!
My real value is in my very specific industry knowledge...and I have a pesky one year non-compete agreement now. Is it truly "enforceable"...who knows? I'm not really keen to test it, but it might come to that. Of course, nothing says it couldn't be after that first year, but as I noted in my reply immediately prior to this, I am a bit loathe to continue on in the corporate world. I know, I know...can't have cake and eat it too!
Yeah, if you really thing you need to w*rk to make FIRE a reality, then stay and slack off. What are they gonna do? Fire you??
A good point but - personally, I was utterly incapable of slacking off.
Yeah, that was my problem too. So I just left when I got an assignment that would have been drudgery. For, literally, a couple of minutes, I pictured myself taking the assignment, slacking off, enduring the "negative feedback" and eventually retiring with a bigger nest egg. I couldn't do it. Not for a year, not for a month - probably not for a week. I just couldn't do it even though I (sort of) felt justified. YMMV
Late to OPs original question, but it's a good one that I think many face. There is no right answer, but it's definitely a good idea to look at the value of your time and health as an equation that takes into consideration both you and your partner.
My wife and I are a similar age gap, but the other way (she's younger), and we both LOVE to travel, and explore. We are not quite there yet, but we've had a lot of discussions about maximizing our ability to see the world once kids are grown up and we're financially able to (mid to late 50s is our target). It wasn't until my 40's that I suddenly realized I'm not super human, and although I envision myself being fit enough to climb mountains in my 70s, reality is I may not be able to - and 50's is when we would want to do most of that kind of shared passion. I'm certainly reassessing the "taking more time off to do that stuff, but working longer than I would have liked..." as a part of the equation. That is, getting to retirement at 55 vs. 62 isn't as ideal, if it means I only get to do those physically active things for 8 years instead of 15. If rearranging my work situation to have 2-3 months off a year to do that stuff, but working 5-7 years longer is the trade off... maybe that or meeting half way is better than retiring at 55 and not traveling so much. So we're weighing this as well as a part of the equation.
Cancer and health is a curve ball that can devastate any well thought out plan. I haven't yet read your messages since OP, but I sincerely hope your DW is doing ok! I would err on the side of doing the things you know you'd regret later without her, now, while you can. Obviously within reason, to protect your ability to not work till you're 80. But sounds like you won't have that problem.
OP Here for a quick update on my 14 month old post.
- Financially, we've taken a healthy hit in our 401ks/IRAs (down 24% or so)
- As noted in previous post, DW got a package in January of this year and retired....her severance pay ran out in August.
- Market is still poopy, and I suspect the Fed's rate raises are about to have the desired effect and layoffs will begin en masse soon...this will in turn lead to worse earnings reports as demand wanes across most industries...and an even bigger stock market plunge.
The wild card in all of this is that I was just offered a package at work. If I were to pull the trigger, a few tidbits:
- The income from the package would cover our planned $148K/annual expenses through 2023.
- We would receive subsidized Cobra for 9 months and full price Cobra for the next 9 months
- DW actually turns 65 in the spring...and would switch to Medicare at that point
- As a reminder, I am 56, but wouldn't likely start on ACA until January of 2024 (would be on Cobra all next year).
- Since DW hits 65 next year we will get an additional property tax exemption.
- If I plug in every dime we have into Firecalc and assume I am basically "retired" in late 2023 (when my package payout ends) I get a 99.2% success rate (1 scenario fails).
- Work at Megacorp has become even more intolerable since my last post (impressively so)
So, I have a couple of weeks to decide if I roll the dice and go for it or chicken out (almost exclusively due to SOR fears in what is still a falling bear market). My "package" gives me a year buffer before I have to tap savings (which my Firecalc assumes), but my magic 8 ball keeps saying "Ask me again later...".
Decisions, Decisions!
Ironically, my "package" is almost identical to our standard severance package (which is based on years of service - and I have been there forever). However, I am fairly unlikely to be let go...BUT I am much more likely to get fed up and quit (w/o any severance)...indeed, I wrote my resignation letter in August and it has been "sitting there waiting" ever since.
As to the healthcare, I was always "aware" of ACA plans, but went on a crash course over the last few weeks. Basically, my annual budget allocates $18K for "healthcare" (premiums and all care) for my wife and I. I know the ACA subsidies were extended for 3 years, but no guarantee beyond that of course....regardless, I know the $18K number will be way too low in later years when a full price gold ACA plan for just me could be $15K in premiums alone (and I have to add my wife's medicare premiums too)! Beyond that, my big disappointment with the ACA plans in our area was the lack of participating providers. Of course ANY pre-65 retirement means relying on ACA for me so it is what it is there...
I agree on the "slop" giving us some decent wiggle room...some big "one" time expenses this year does give me pause of course.