WWYD...year of "retirement"

[RetireBy90]

I know the original question has been debated to death, but wanted to add one comment. To me the more I think bout it, FI is what I really want. FWIW

 

[superdave]

As it is tax time up her in Canada, I perhaps have a unique view on this.

From a tax perspective, when you are in a 40% or so marginal tax bracket, there is something to be said for working part time to say, support hobbies and travel, when the marginal tax rate is , say 20%. This logic assumes that you can demand the same hourly rate part time, which could be difficult.

 

[superdave]

oh, another thought. Most early retirees I know that worked part time only did it for a couple to three years or so, then packed it in.

 

[Katsmeow]

I semi-retired almost 2 years ago and DH retired fully. I was able to keep working for my prior employer on a very part time basis. At the time I wasn't sure how long I would continue but, so far, it has been fine and I plan to continue indefinitely. DH, on the other hand, could have done contract work for his former employer but has not.

I don't think I would have wanted to retire if success materially depending upon working part time until 70. Working part time has materially helped us -- we had some negative house sale/purchase things that happened and part time work was helpful. But -- while I am OK right now doing this indefinitely -- I wouldn't like to feel that I had to do it until 70. I wouldn't mind feeling committed for few years but not for that length of time.

 

[palomalou]

Thank you for all the food for thought. I'm now looking at the scenario of waiting until 2013, and only doing the part time work to 65. Lowering our expenses a bit (I had been using the high end, now using the middle) I have 95%, not working at all 84%. We will re-evaluate in a year. I hate my job and the town, to the extent of crossing the street without looking, thinking, "oh, just hit me, see if I care." Not a great state of mind. Spouse a lot happier.
Oh, and yes, we have retiree health care.

 

[Chuckanut]

This logic assumes that you can demand the same hourly rate part time, which could be difficult.

A very good point! I had thought I would substitute teach to pay my insurance premiums but..... Substitute teacher pay is very low, about 30% of what I earned working full time. My neice who is a server in a local burger restaurant often makes more in one good 4 hour night shift than a substitute teacher makes all day - without the need to earn and keep a teaching credential current. Anyway, my point is that by retiring at the very end of the school year rather than when first eligible, I will earn the equivalent of over two years of substitute pay. Actually, add in the health insurance benefit, and a few extra months of service credit and it is close to three years. So my decision to not request getting out of my contract early amounts to about six months more full time work and 3 years less part-time work (ie. three years of true freedom and not wondering if the phone will ring at 5 AM!!).

 

[palomalou]

Yes, prof here. I make about $56/hour where we now are (that includes benefits as well as salary). Adjuncting around NYC will pay between the same and twice as much. But the obtaining of that work scares me--why would anybody hire me? This is not a state of mind that encourages taking the risk.

 

[Finance Dave]

Firecalc is giving me a 92% if we retire this year and work pt (earn about 10K/year each), 58% if we don't work. If we wait till 2013, 98% if we work, 74% if we don't. Work is of course somewhat adjustable, not only 20K or 0$, but only if we can find work at our mid-50s ages. What are your free associations to this decision? I've calculated this part-time work to continue until I'm 70.
On days I hear about someone retiring and dying right away, I'm gung-ho for this year; on other days, patience seems to be a virtue...

I'm in this situation too. Currently 50. If I *orked until 53, I'd never have to work another day in my life. However, I don't like the *ob anymore, and want a change, something lighter, refreshing, where I can help others, even if 1/3 of the salary I'm making today. According to my calculations, I'd have to work about 5 years PT at 1/3 salary to make up for 3 years at full salary. I know that doesn't sound right...but consider the taxes....sometimes being in the top 3% has it's disadvantages.

 

[Aeowyn]

I hate my job and the town, to the extent of crossing the street without looking, thinking, "oh, just hit me, see if I care." Not a great state of mind. Spouse a lot happier.
Oh, and yes, we have retiree health care.

At the very least you don't need to be working in your current position.

It sounds like you might have enough to retire now, but it certainly seems you are FI enough to find something to do with your life that you enjoy. If you hate your current position that much, it is at least time to look for another job that you can live with.

What do you want to be when you grow up? You are still young - don't know what all this doom and gloom is about not being able to find a part time j.o.b. You really don't need another job anyway - you need to do something that fills you up instead of drains you.

I'm not saying to be irresponsible, but it sounds like you already have a decent chance at a successful retirement even if you don't have any other income. Even if it takes you a few years to get your next career going - it sounds like you are financially sound enough to make a career change. There are no guarantees in life - go for it (in a responsible way).

You said you were a professor - what is it you like about your job and what is it you don't like? Do you like teaching the students? If so, you could probably pick up some tutoring gigs that might be fulfilling. Is it the research? Maybe you could pick up some consulting work.

Or maybe you are like me and completely go another direction than your current position.

It is of course a very personal decision, but you asked WWYD - and this is exactly what I did do. We are in our mid 40's. I've had many jobs both in the military (10 years active + 12 year reserve) and civilian side but they were all in the engineering/database/programming/program management areas. I used to love engineering but my MegaCorp job (had for last 7 years) cured me of that.

I have always loved to be outside and work with the ground and animals. I decided that I wanted to be a farmer when I grew up so that is exactly what I did. My husband is also self-employed and his business (this particular business started ~3 years ago) is just starting to turn a profit. It makes enough to pay for business overhead (including health insurance) and bring home ~$1,000 to $2000/month which isn't much but basically meets are current living expense. We have decent savings, but certainly less than 100% chance of success if both our businesses fail. I feel comfortable taking a draw of $2,000/month from our savings which is primarily used to build the farm.

FI gives you freedom. Don't let your j.o.b pull you under.

 

[Chuckanut]

Unless I had a profession that was very high demand and lent itselt to part time work, I could not retire knowing I still had to go earn some money to get by. It would just make me feel uneasy. I would rather work the extra years and then feel that my time and life was now mine.

Bingo! This is what I did and I am glad of it. An extra year made all the difference between a more risky retirement and a more assured one. An extra six months, means no part-time work.

 

[ducky911]

I think for border line fire calc ...look at your biggest areas of costs ...number one is health care...it as big now as housing and may go up and up, if you have health covered than i would feel safer being border line.