52yo - Returning now that I'm recently FIRE'd

[CO-guy]

Hi everyone and thanks for reading as well as for your candid feedback.

I originally posted here in Aug. 2021 with a planned FIRE date of May 2022. Based on feedback at the time, and my risk averse tendencies, I delayed retirement until May of 2023 and could not be happier with that decision. I resigned from my position because my work environment was toxic in 2021 and it only got worse. In spite of that, I did agree to return this year in a (remote) part-time role. It's a bit weird hearing about the dumpster-fire that was my former department, but I am completely removed from it....and still getting healthcare and retirement benefits.

As a quick update to the original post:
• Home in 2021= $925k (remaining mortgage = $137k) / in 2023 = $1.65M (remaining mortgage = $109k @3.5%)
• TIAA in 2021= $412k / in 2023 = $455k
• IRAs in 2021 = $96k / in 2023 = $104k
• Money market, cash, bonds… saving in 2021s = $110k / in 2023 = $88k
• Other investment accounts in 2021 = $34k / in 2023 $29k
• Pension = My partner will be pension eligible in 7 years (50% salary) and plans to work until then

Also an update to income:

• Salary in 2021 = $65k/yr / working part-time in 2023 = $23k/yr
• Spouse (43yo) salary in 2021 = $45k/yr / in 2023 = $58k/yr
• Online business in 2021 ~$55k/yr / in 2023 = ~$65k/yr
• Rental income in 2021 = ~$25k/yr / in 2023 = ~$30k/yr

Expenses continue to remain stable at about $4k/month.

The reason I delayed retirement for a year was to build up a larger cash reserve. From 11/2022-2/2023 we incurred several unexpected large expenses that wiped out our cash reserve. Had I not delayed retirement, we would have had to delay some work and perhaps finance at least one needed expense. Instead, we're building back our cash reserves with an income surplus of around $5k/month.

Biggest change for me is quitting my "jobby job" (as my partner calls it). It felt so good to quit and even better when they asked me to come back. It was 40+ hours a week of mostly misery at work that ended this past May. Since then, it's been about 10h/wk (at most) and it's entirely with students.

While the hours per week vary greatly, I've been able to increase my consulting income and work fewer hours overall with two large bumps to my hourly rate. The total bump has been 30-50% to both my top and bottom line rates working 10-15 hours per week. In addition, my better half has received over 25% in salary increases in the past 2 years.

Our home value is absurd. I get it. Our long-time neighbors sold in 2021, and our new neighbors just sold the same home this summer for twice what they paid. For insurance, the replacement value of our home is $2.4M. On the upside, the property pays for itself in an area where we wouldn't be able to afford to live otherwise.

The plan is to continue working part-time and continue consulting until my partner is pension eligible. With 7 more years of continued saving and growth, and a partner with a full-time job and healthcare, I feel great about where we'll be financially in 2030. At that point, we'll sell the house and she'll join me in retirement. Until then, I'm outdoors biking, hiking, and ('tis the season) skiing almost every day. That combined with charity work has made me a much happier person.

So glad that I waited an extra year to FIRE and glad that I've now made it to this point!

 

[DrRoy]

So, you are pulling the plug now?

 

[38Chevy454]

I think I follow, you retired in May of this year (2023) and then returned as part-time to your old work, where you plan to continue part-time until 2030 when your partner retires. It seems you have plenty of income between your various sources compared to your expenses. My only concern is retirement accounts are a bit light, but continue saving what you can and then in 7 years you should be great shape. Almost all of your total net worth is tied up in your house. Great for the number total, but most of that is non-investment income producing. Unless you plan to cash out and move. Have fun enjoying part-time.

 

[pacergal]

It sounds like you have 3 jobs? Your online business, your consulting, and on call/part time with previous employer?
Are you planning to continue with your rental or will you sell when your partner retires?

Retirement is all about what you want to do, so enjoy!
Have you run firecalc? What does it say for the next 30 years?
It is important to know your expenses.

Best wishes to you, sounds like you are in a better emotional space.
Hope to hear more from you moving forward.

 

[Bigdawg]

Congratulations on your transition from full time, in person work to ...?? Congratulations on your increased home value. That is quite a jump in one year.

In my opinion you are neither FI or RE. But my opinion doesn't matter. It seems to me that you have basically four jobs. Managing rental, online business, consulting and your on call with previous employer. To each his own. I called myself FI when my monthly income (pension) was higher than my monthly expenses. I didn't really call myself RE until February(2023) when I walked away from a full time W-2 job. Technically I am still not RE as I officiate sports. "Retirement" has been discussed on here numerous times. No strict definition. You may or may not be FI. Only you truly know. Many people in your employment situation consider themselves RE. Enjoy.

 

[CO-guy]

Thanks all, and apologies for the long post. I did indeed resign from full-time employment (my "jobby job") this past May (May 2023). I'm staying on this year in a part time role (half-pay w/benefits for ~10h/wk of work), but I'll continue to reevaluate.

My business is the work I do as a consultant (consulting business?). Previously, that was occupying 25-40h/wk of my time, but I've been able to trim that down to 10-15h/wk while increasing the overall income from that business. As far as rentals, I've been managing properties since I was 15, so having a short-term and long-term rental on our property doesn't feel like work.

Anyway, I know this isn't 'FI' or 'RE' for some, but I've gone from working 60-80h/wk to working 20-25h/wk. For me, that's 'RE' and I'm spending that extra time outdoors and giving back to the community. I agree that my retirement accounts are a bit light, but I have 7 more years to keep contributing and the home has been a windfall (~300% total appreciation in 10 years, nearly all since 2018).

My plan is to taper off my consulting work over the next few years, and sell the house as soon as my better-half is pension eligible (2030) so we can both be fully FI and RE. For me, quitting my "9-5" in May was the start of my retirement 'glide-path,' and after six months, I have no regrets.

 

[CO-guy]

Almost forgot: Firecalc says I'm good to go, but it's hard to tell how my consulting business will taper off. If I quit in 2022 instead of 2023, not so much.

Also, regarding property values, we live in a tiny town in the mountains. When we moved here, it was hippies and dirtbags living in "slanty shanties." The housing inspectors were delighted when someone wanted to try and fix some DIY disaster in town.

Now our town is full of remote workers and second homeowners, there's a half dozen (poorly staffed) coffee shops and tapas bars on main street, permits and tap fees are now five figures per, and those slanty shanties are selling for $600k-900k. With help, my better-half fully renovated our home for under $100/sf in 2012 (down to the studs, all new utilities, roof, siding, insulation). Now it's a minimum of $450/sf and years long waiting lists to find a builder.

 

[cyber888]

wow - 650K-700K increase in real estate? Are you planning to sell and downsize?

 

[TickTock]

Anyway, I know this isn't 'FI' or 'RE' for some, but I've gone from working 60-80h/wk to working 20-25h/wk. For me, that's 'RE' and I'm spending that extra time outdoors and giving back to the community

^^^^^^
This!

I'd be more than happy to quibble over FI and RE definitions , but you are doing what makes you happy and more power to you for that!

 

[CO-guy]

wow - 650K-700K increase in real estate? Are you planning to sell and downsize?

We're planning to sell and leave the country in a few years. For now, we're just living in our (income producing) nest egg.

 

[CO-guy]

^^^^^^
This!

I'd be more than happy to quibble over FI and RE definitions , but you are doing what makes you happy and more power to you for that!

Thanks! I had a parent that worked 100+ hour weeks until they got sick and died. So cutting back to being a remote part-timer with my own online biz is RE for me.

 

[LateToFIRE]

Congrats on getting to a better, happier lifestyle. Perhaps you might be called CoastFIRE or BarristaFIRE, not that labels matter all that much.

 

[CO-guy]

Congrats on getting to a better, happier lifestyle. Perhaps you might be called CoastFIRE or BarristaFIRE, not that labels matter all that much.

I'm calling it my glide path, but given the fact that roughly half of all Americans plan to work in retirement, it's just FIRE.

A few days ago I reminded my better-half that our financial plan includes income from my business dropping to zero in the next five years. Her response was, "That's never going to happen." She's just thrilled that I was able to cut back my consulting hours as much as I have.......and that I left the dumpster fire of a workplace last year.

 

[brydanger]

I'm calling it my glide path, but given the fact that roughly half of all Americans plan to work in retirement, it's just FIRE.

A few days ago I reminded my better-half that our financial plan includes income from my business dropping to zero in the next five years. Her response was, "That's never going to happen." She's just thrilled that I was able to cut back my consulting hours as much as I have.......and that I left the dumpster fire of a workplace last year.

Call it whatever you like. As long as you and DW are happy, who cares?!

I remember my introduction post here years ago- which turned into a weeklong battle of labels and accusations. I wasn't really RE, I wasn't really lean enough, I wasn't... whatever everyone else had decided the "rules" of success were to them.

Meanwhile DW and I left the jobs we hated in our 30s and have been traveling full time between van and boat for 12yrs now living our absolute best life (while young enough to fully enjoy it).

I see your goal is to move internationally... you'll be pleasantly surprised that most of the world is far cheaper than the US (AND you'll get better services in return).

 

[CO-guy]

wow - 650K-700K increase in real estate? Are you planning to sell and downsize?

For anyone curious how the real estate / economic landscape had changed for us since 2020.
https://www.nbcnews.com/politics/ec...t-afford-home-faces-housing-battle-rcna140429

 

[CO-guy]

I see your goal is to move internationally... you'll be pleasantly surprised that most of the world is far cheaper than the US (AND you'll get better services in return).

We travel internationally often. My better half is fluent in multiple European languages and we enjoy spending time in Spain, France and Italy. We live in a resort area here in Colorado, so even the touristy destinations in Europe are a bargain by comparison. Even cities like Paris are less expensive by comparison, but we tend to prefer smaller towns and less touristy regions. As far as service, it's almost non-existent here compared to the attention given to every aspect of service in most other countries.

 

[brydanger]

We travel internationally often. My better half is fluent in multiple European languages and we enjoy spending time in Spain, France and Italy. We live in a resort area here in Colorado, so even the touristy destinations in Europe are a bargain by comparison. Even cities like Paris are less expensive by comparison, but we tend to prefer smaller towns and less touristy regions. As far as service, it's almost non-existent here compared to the attention given to every aspect of service in most other countries.

Generally what we find as well (even though we tend to frequent the less busy (or completely uninhabited). Crazy what we pay for in the states that seem barely adequate compared to what most of the world gets for free (especially in terms of health care).