Thinking of retiring with high school aged kids

[Mrjoeyzasa]

I am 60 and DW isn57. We have about $2M in 401K and Lump Sum pensions (depending on tweet of the day). Figure between SS and an Annuity we'll have another $65K coming in in 2015. Only debt is $60 K loan and figure we'll need $100K pre-tax to live on. Both kids will be in college by 2023. To paraphrase the Clash, should I wait or should I go?

 

[WyomingLife]

Thank you for posting, and welcome here.

It might be helpful to read this post before we go much further: https://www.early-retirement.org/forums/f26/read-this-before-you-introduce-yourself-65548.html.

We need a lot more information to offer any suggestions. And I didn't understand much of the financial details that you provided.

 

[Mrjoeyzasa]

Thank you for posting, and welcome here.

It might be helpful to read this post before we go much further: https://www.early-retirement.org/forums/f26/read-this-before-you-introduce-yourself-65548.html.

We need a lot more information to offer any suggestions. And I didn't understand much of the financial details that you provided.

Not sure how much more I can provide. I probably should've said I'll have $65K annually between SS and an annuity for DW and I. The $60K is a mortgage at a very low interest rate. 401Ks are invested in 60/40 stocks/bonds. Hopefully that clears it up.

 

[SecondCor521]

What does Firecalc tell you about your historical chances of success?

http://www.firecalc.com

(If kids' colleges are funded to your satisfaction, you have a plan for healthcare for the next 5-8 years, and that "$100K pre-tax" means your budget of $100K includes taxes, then you're probably OK. But everyone has to evaluate the risk/reward tradeoffs for themselves.)

 

[USGrant1962]

Key questions I see:

-How are you planning to pay for college? This is the $half-million question that makes or breaks your decision. By inspection, meaning $35-40K draw on a $2M 60/40 you are good to go (i.e., 2% withdrawal rate) if college is covered or included in your spending estimate. The rest is on the margins. But if 8+ years of private college is still paid from your portfolio it is a much closer call.

-Does your annuity have any inflation adjustment? SS does and if your annuity does not you should not lump them together.

-Assume you meant 2025, not 2015.

-Does your $100K include health insurance?

-To be clear, when you say $100K pre-tax, you mean the $100K includes an estimate for taxes?

If you have not, try building a model in FIRECalc at www.firecalc.com

Make sure you take a look at the various tabs where you can enter SS, pensions, lump sum expenditures like college.

 

[RobbieB]

Go now.

 

[Mrjoeyzasa]

I have use Firecalc and it came back 100%. I did mean i would be taking $100K then pay taxes. Healthcare is included in my estimate and if I pay for college it will be 5 or 6 years down the road. Someone told me it's easier to give money for college when you have it than to ask for it back when you need it.

 

[Mrjoeyzasa]

Actually my concern isn't the funding of the retirement. I'm pretty confident I'm fine there. My question was really around walking away now knowing I really can't feasibly fully retire until 2023 when my youngest leaves for college.

 

[Mrjoeyzasa]

My question was more around waiting until kids leave for college (both gone in 2023). Does it make sense to walk away now, when we can't have the full "retirement experience" BTW, Firecalc results show 100% success for 2021.

 

[Toocold]

My kids are both in high school, and I had no qualms about pulling the trigger. I am more active in helping teach math due to distant learning. They haven't recently seen the non-working (not stressed?) side of me, so it's been great. I couched FI as an accomplishment and continue to set the bar of what DW and I expect from them in school and beyond.

If you are at 100% and comfortable pulling the trigger, pull it.

 

[SecondCor521]

I retired in 2016 when my kids were DS21, DS16, and DD14. Probably the best part of my retirement experience was spending a lot more time with my kids. I have better and deeper relationships with them than I did before, and that's, in my view, much better than seeing some old castles in Europe or whatever (although I've seen old castles in Europe too).

My kids are a blessing to me and probably my biggest legacy to this world. They're gone away to college and adult life too soon.

 

[Sunset]

Retire now and sit in your home watching tv is not much retirement experience.

I'd prefer to wait until the world starts traveling, eating in restaurants, concerts, plays, movie theaters, casino's, horse racing, car races.

Might as well stay working.

 

[MuirWannabe]

Retire now and sit in your home watching tv is not much retirement experience.

I'd prefer to wait until the world starts traveling, eating in restaurants, concerts, plays, movie theaters, casino's, horse racing, car races.

Might as well stay working.

I couldn’t agree more. I’ve thought about this a lot. If I’d known 3 years ago what was coming I’m not sure if I would have retired. Life has got to return to normal soon. Going stir crazy with Groundhog Day

 

[street]

I'm no expert by no means but even I can see that you should be fine financially. As for your question when is really what comfort level you have with events and what future holds.
I think at times we over think and make a problem that really isn't there.

I wish you the best in your choice.

 

[FlaGator]

My question was more around waiting until kids leave for college (both gone in 2023). Does it make sense to walk away now, when we can't have the full "retirement experience" BTW, Firecalc results show 100% success for 2021.

My kids are both in high school, and I had no qualms about pulling the trigger. I am more active in helping teach math due to distant learning. They haven't recently seen the non-working (not stressed?) side of me, so it's been great. I couched FI as an accomplishment and continue to set the bar of what DW and I expect from them in school and beyond.

If you are at 100% and comfortable pulling the trigger, pull it.

I retired in 2016 when my kids were DS21, DS16, and DD14. Probably the best part of my retirement experience was spending a lot more time with my kids. I have better and deeper relationships with them than I did before, and that's, in my view, much better than seeing some old castles in Europe or whatever (although I've seen old castles in Europe too).

My kids are a blessing to me and probably my biggest legacy to this world. They're gone away to college and adult life too soon.

OP(mrjoey) raises an interesting point.

I bailed nearly 6 years ago when my kids were 13 and 10. My wife/their mother had died the year before and I didn't want someone else raising them. My life has since been tied to the school and extra-curricular calendars. Until the youngest recently got his driver's license, an overnight trip on my own took a few weeks planning. Even a day trip that had me returning after dinner time needed advance planning for transportation and food.

But, I knew all of that going in. I have able to spend substantial time with them, as well as their friends by chaperoning school activities. It has been a lot of fun, and occasionally a lonely grind. I would make the same decision today.

 

[Born2BRetd]

OP(mrjoey) raises an interesting point.

I bailed nearly 6 years ago when my kids were 13 and 10. My wife/their mother had died the year before and I didn't want someone else raising them. My life has since been tied to the school and extra-curricular calendars. Until the youngest recently got his driver's license, an overnight trip on my own took a few weeks planning. Even a day trip that had me returning after dinner time needed advance planning for transportation and food.

But, I knew all of that going in. I have able to spend substantial time with them, as well as their friends by chaperoning school activities. It has been a lot of fun, and occasionally a lonely grind. I would make the same decision today.

Flagator,

I'm sorry about you losing your wife. You have given your children the gift of being present in their lives and have done a wonderful job of putting them first.

 

[ocean view]

Does it make sense to walk away now, when we can't have the full "retirement experience"

It depends. How much do you love your job vs loathe it? Does it cause you significant stress? I ask because if you loathe your job and you leave now you have time to de-stress from work (it could take a few months), get more involved with your kids activities, have time to take care of the home project list, develop hobbies, exercise, etc. Then when the kids are off to college you can have the full experience which I assume means significant travel.

I retired when our son was in eighth grade. I enjoyed my work but my job had a fair amount of stress. DH was the stay-at-home parent. DS is now in his second year of college. During his HS years we did all of the things I mentioned above and traveled a little during school breaks. Once DS was safely entrenched at college we took our first trip (just about a year ago). Then all hell broke loose and we, like everyone, have been home since. Our “full experience” is on hold. We don’t regret the last 5 years of partial retirement at all. Being in control of all of your time can be very satisfying.

My point is, no one can predict what the future holds, if you can afford to go now, just do it. It may not be the perfect but perhaps it’s better than your current situation. And would it be so bad to be able to spend more time with your family?

 

[Mrjoeyzasa]

Thanks. Great input from everyone.

 

[Bob_Walter]

I plan on having our kids attend the same college I attended, a public college. I got a great education from it, lots a of value. IMO we get out of school what we put in it.

 

[Koolau]

Sorry, I haven't read everything. I retired 2 years before last kid went to University. You just need to run the numbers and you probably won't know all the numbers until you submit the FAFSA form. YMMV

 

[cnocmmz]

I couldn’t agree more. I’ve thought about this a lot. If I’d known 3 years ago what was coming I’m not sure if I would have retired. Life has got to return to normal soon. Going stir crazy with Groundhog Day

Yep, this is why I am still doing the grind, hopefully by mid 2021 I can pull the plug?

 

[lhamo]

I retired in 2016 when my kids were DS21, DS16, and DD14. Probably the best part of my retirement experience was spending a lot more time with my kids. I have better and deeper relationships with them than I did before, and that's, in my view, much better than seeing some old castles in Europe or whatever (although I've seen old castles in Europe too).

My kids are a blessing to me and probably my biggest legacy to this world. They're gone away to college and adult life too soon.

I also retired at 46. DS was 14 and in a special/intense "bootcamp" type academic program that made it possible for him to start university at 15. DD was 12 and finishing up elementary school. She stayed with her dad in China while DS and I moved back to the states for his program. Everybody moved back the next year once DS was officially admitted to university.

Being retired while they are teenagers has absolutely been a good thing for our family. We are very close to both kids. DS moved out for a year last year to have that college experience -- but that kind of got messed up by Covid. He'll be off to a Ph.D. program, most likely in another state, next fall. In the meantime he has moved back home. Both kids are very low key, easy to get along with teenagers. I am so glad to have this time with them. I hope it will mean they want to stay close -- both physically and emotionally -- as adults. Time will tell. But I am sure glad I had this time to focus on having fun/making good memories with them. We have more than enough money. Time is the precious resource.

 

[FI_by_2023]

This thread is really helpful on providing aspects on retiring when kids are in school. My spouse and I both have plans to early retire - with oldest just starting high school and others being in middle and elementary. The comments are suggesting a positive experience, which I have wondered would be the case or not. Thanks for the insight!

 

[daylatedollarshort]

My question was more around waiting until kids leave for college (both gone in 2023). Does it make sense to walk away now, when we can't have the full "retirement experience" BTW, Firecalc results show 100% success for 2021.

We really enjoyed being retired, even when the kids were still at home. It was nice having the free pet sitting. We still really enjoy being retired, even with Covid. Maybe it depends where you live, but we can be outside most of the year here. Today it was sunny and around 70 degrees. Our hiking and walking groups are starting up again with masks and social distancing. We still visit with friends in each other's backyards, also with masks and social distancing. We can work on house projects, our hobbies and visit outdoor places like lakes, gardens, the beach, and explore new hiking trails and gardens.

 

[Music Lover]

Retire now and sit in your home watching tv is not much retirement experience.

I'd prefer to wait until the world starts traveling, eating in restaurants, concerts, plays, movie theaters, casino's, horse racing, car races.

Might as well stay working.

We occasionally go to restaurants, and a 65" TV with a good sound system is better than going to the movies (for us). The other things won't be happening whether you're working or retired but given the choice I'd still rather be retired. I was bored at work...I'm less bored at home even with limited options and we still have plenty of things to do.