When would you retire?

[corn18]

Based on the below graph, when would you retire?

Lean FIRE @ 54 = base budget covered, no blow that dough (BTD)
FIRE @ 55 = comfy budget with 10% BTD
Fat FIRE @ 56 = roomy budget with 20% BTD
Obese FIRE @ 57 = kids get a lot of money

For ref, I am 53, turn 54 Mar 2020.

 

[f35phixer]

FIRE, retire and live life!!!!

 

[RxMan]

I think it would be determined by how much I could tolerate my job as much as what the graph would tell me.

 

[Dtail]

I picked Fat Fire. I retired at 57 y.o.
So retiring at 56 with a nice budget would have worked for me as well.

 

[pb4uski]

Probably FIRE or Fat FIRE depending on how much I liked my job. If I really hated my job then perhaps would roll the dice on Lean FIRE.

 

[Aerides]

If the difference between Fire and Fat-fire is only one year, I'd go that extra year. But for most of us 1 year doesn't make that much difference, not 10%-annual-budget-difference.

For me as well I'd have to factor in how much that is from now - did I double my remaining working time or tack on 20%? And health/family/life circumstances would be involved too - like if I planned to ER and move, or something else significant.

 

[davebarnes]

Given that I retired at 70, and I am fat; I picked obese.

 

[RioIndy]

Sounds like you are quite close to your threshold, congrats!

I agree that if we are talking about 1-3 years in my 50's, then I would be asking myself what work is like. A 10% difference in retirement budget for one year of work? That's a pretty significant swing. I would have to really hate my job or have health concerns.

Otherwise I would choose `FIRE @ 55 = comfy budget with 10% BTD`, but more information would be needed to say more. How old are you now? What are those actual spending numbers that are missing from the graph? Any big purchases planned? Anything else happening in your life that could impact the decision?

 

[HI Bill]

This is not purely a financial / work question. It's about one's health, one's spouses health, and what one wants to do in RE. If I thought I could accomplish what I wanted in RE, and didn't really hate my j#b, then I'd choose Fat FIRE @ 56 = roomy budget with 20% BTD. If the j#b stressed me out too much, and I wanted to do a lot of travel or things requring better health (like scuba diving), I'd consider 55. Having $ = having options. What's the point of FIRE if it's lean, and you can't afford to do/buy/travel in ways that give you satisfaction?

 

[Callitaday2022]

If healthy...I'd go for a long fat FIRE

 

[rodi]

Based on your text - I'd do it at fire or fat fire.

But I'm trying to figure out your blue line on the graph... Is that your budget? Your projected nest egg?

If it's budget - why does it change in the two big leaps a feb 22 and mar 23? If it's nest egg - what are those big changes... do you get them whether you retire or not - or are they bonuses or some such...



Is that the amount you plan to spend? The size of your nest egg? Does your spending change when you retire - or stay steady... Does the spending when you're still wo

 

[rodi]

ok just read closer that the blue line is retirement spend... but it implies you don't start spending that till you retire... Still not sure about the big jumps.

 

[corn18]

ok just read closer that the blue line is retirement spend... but it implies you don't start spending that till you retire... Still not sure about the big jumps.

Big jumps are bonus and RSU's vesting. I also added a note that I am 53 and will turn 54 in Mar 2020. So I am on the blue line now, climbing each year. I left off the scale as it usually results in judgement being passed on how much I plan to spend.

 

[badatmath]

I said 55 bc I hate my job. But also I was thinking about a sick coworker who probably won't live to see 60. But you never know. And you always leave money on the table somehow.

 

[FI_RElater]

...I might be the outlier

Based upon your graph, I'd have chosen APR 2022 or APR 2023, depending upon how your health and job aspects were. You didn't precondition that you hated your job, and with significant jumps that you later indicated were from RSU's etc, the slightly longer period of w@rk would give you definite benefits in that you likely wouldn't have to be concerned about SOR with the extra stash.
It also depends on whether you have health insurance (employer plan?) as the extra time gets you both closer to Medicare. You would still have many years before required IRA distributions, or time for Roth conversions, so the extra giving you a Fat FIRE gives you options without having to do absolute optimal to both give you a good retirement and possibly provide good options for your heirs.
(didn't vote)

 

[socca]

This is not purely a financial / work question.

How highly correlated is retirement satisfaction with BTD? Different people answer this question in different ways. For me, the correlation is rather low (although I'm only semi-R), but other folks are wired differently. I didn't vote in the poll because it seems to imply that BTD is the retirement degree of freedom that matters, a viewpoint I don't share. To each their own.

 

[corn18]

How highly correlated is retirement satisfaction with BTD? Different people answer this question in different ways. For me, the correlation is rather low (although I'm only semi-R), but other folks are wired differently. I didn't vote in the poll because it seems to imply that BTD is the retirement degree of freedom that matters, a viewpoint I don't share. To each their own.

This is a great observation that I had not considered. I am stuck in the more is better mode right now. FWIW, my plan is Fat Fire @ 56. Fat = $34k of BTD. What is an alternative way of looking at it? I would love to retire this year if I could finagle a severance package (and I think I could).

I like my job, but I'm ready to move on to the next phase. I do have something to retire to, but want a year completely off to evaluate our priorities.

We did figure out what is important to us: family. We want to be near or have regular access to our kids and family. So we have chosen our initial retirement location and are moving there this summer. I can work from anywhere, so this is a big step for us. Cars are new. No big expenses planned other than possibly a small camper. House will be new, so we put aside a big chunk for furnishing that.

 

[pj.mask]

I would probably go after that first big vest. If you have enough.... but I wouldn’t go with bare bones retirement budget (can vary considering your SWR?)

If stocks gain ~10%/yr then most people here should be able to increase spending by 10% in 1-2 years.

 

[racy]

I was happy in my mega corp job till 60. Then China-related extra responsibilities made me realize "I don't need to do this anymore"... So, I retired with a company pension plus a 401k.

 

[RetireBy90]

I retired at 62. Having a whole 2 years into retirement, I’d plan for FI with a goos buffer, then RE when ready to quit working. I was fine working, just planned and worked to be able to retire financially that hades to pull the pin.

 

[RxMan]

Another factor is the economy. What if we hit a recession within the next couple of years? I’d be more inclined to hang on a little longer and try to ride out the downturn before retirement.

 

[DogGone]

What are your savings withdrawal rates for each of these?

 

[Mdlerth]

"Reliable" is a euphemism for "Boring"

How highly correlated is retirement satisfaction with BTD? Different people answer this question in different ways. For me, the correlation is rather low (although I'm only semi-R), but other folks are wired differently. I didn't vote in the poll because it seems to imply that BTD is the retirement degree of freedom that matters, a viewpoint I don't share. To each their own.

I'm with socca on this. I can't remember many BTD moments in my life that made me any happier. I guess it was cuz most of them were new roofs, replacement HVACs and appliances, etc.

But I'd hold out past "lean FIRE" if possible because I'm a worry wart. I would want the BTD allowance as insurance against some unforeseen circumstances rather than for pulse-pounding discretionary spends.

DW knows I'm not so much "exciting" as "reliable".

 

[MRG]

I said 55 bc I hate my job. But also I was thinking about a sick coworker who probably won't live to see 60. But you never know. And you always leave money on the table somehow.

+1
Nobody's ever left time on the table.

 

[jollystomper]

If healthy...I'd go for a long fat FIRE

+1

Fat FIRE was my decision as a balance of health and money that the health would have fun with.