flybynight
Dryer sheet aficionado
- Joined
- Dec 28, 2018
- Messages
- 48
Hi all. I’ve been lurking here for over a year and I always learn something new reading this forum. Thank you all for your contributions. Now I need a pep talk and would love to hear your thoughts or concerns about my plans. I’m 57 and wife is 55. We’ve already paid for college for our kids who are out of the house. We have zero debt in Mid-West LCOL area. I’m a C-level exec and my wife is in education. Combined income is $430K including bonus but only $80K from wife. We’ve only enjoyed this level of income for the past few years. I’ve been C-level for past 6 years but income did not really rise dramatically until last 2-3. Since my mid 30’s I have been planning to retire at 55. As my career has taken off, I’m enjoying my work more than at any other time in my career, so I’ve obviously chosen to work past 55. I was going to pull the plug last year but chickened out and decided on OMY to pad the portfolio. So here is my dilemma:
1) I have worked my entire career to reach this pinnacle
2) I really enjoy most aspects of my job and the people that I work with.
3) I do enjoy the prestige of being at the top rung but I do not think that my entire identity is linked to my career.
4) If I walk I’m leaving approx. $500K-$1MM in unvested equity. This is not liquid as it pays out upon a transaction which I estimate will happen in the next 1-3 years.
5) However, after 30+ years in the corporate world I’m feeling burned out and tiring of the pressure and stress.
6) Here is the kicker…I work out of state and fly out every Monday and back on Friday. Been doing this for years and I’m sick of being away from home so much.
7) I’m feeling ready for my second act, but a little afraid of the unknown and walking away from the money.
Here’s the finances: ~$3MM NW including $325K paid off home and $530K company equity which I value at 50% of current value to account for any future drops in valuations. $2.1MM in financial assets allocated 79% equities and 21% cash & ST bond funds. 43% taxable and 57% IRA/401K.
Here is the plan: Household spending last 2 years ~77K. Wife enjoys her work and plans to work until at least 60. If she works until 60 we will be able to continue her employer health benefits to age 65. Wife take home is about $4K/month. We can withdraw $3K per month from portfolio (1.7% withdrawal rate) and live what I consider to be Fat fire retirement. This does not include approx.. $30K in SS if I take at 65 and another $17K if she takes at 65. At this age I think that our SS is fairly safe.
This looks rock solid to me but I would love to hear any feedback. I believe in a bucket approach to cushion the market swings and that’s why I have the $450K in cash. This provides 5 years of expenses even if the wife quit. Let’s me ride out the market swings with ease. Currently down over $250K with this correction but I haven’t lost a moment of sleep. The thought of hopping on that plane on Jan 2nd is not appealing. Think I’m 90% ready to pull plug in March. Am I crazy to walk?
1) I have worked my entire career to reach this pinnacle
2) I really enjoy most aspects of my job and the people that I work with.
3) I do enjoy the prestige of being at the top rung but I do not think that my entire identity is linked to my career.
4) If I walk I’m leaving approx. $500K-$1MM in unvested equity. This is not liquid as it pays out upon a transaction which I estimate will happen in the next 1-3 years.
5) However, after 30+ years in the corporate world I’m feeling burned out and tiring of the pressure and stress.
6) Here is the kicker…I work out of state and fly out every Monday and back on Friday. Been doing this for years and I’m sick of being away from home so much.
7) I’m feeling ready for my second act, but a little afraid of the unknown and walking away from the money.
Here’s the finances: ~$3MM NW including $325K paid off home and $530K company equity which I value at 50% of current value to account for any future drops in valuations. $2.1MM in financial assets allocated 79% equities and 21% cash & ST bond funds. 43% taxable and 57% IRA/401K.
Here is the plan: Household spending last 2 years ~77K. Wife enjoys her work and plans to work until at least 60. If she works until 60 we will be able to continue her employer health benefits to age 65. Wife take home is about $4K/month. We can withdraw $3K per month from portfolio (1.7% withdrawal rate) and live what I consider to be Fat fire retirement. This does not include approx.. $30K in SS if I take at 65 and another $17K if she takes at 65. At this age I think that our SS is fairly safe.
This looks rock solid to me but I would love to hear any feedback. I believe in a bucket approach to cushion the market swings and that’s why I have the $450K in cash. This provides 5 years of expenses even if the wife quit. Let’s me ride out the market swings with ease. Currently down over $250K with this correction but I haven’t lost a moment of sleep. The thought of hopping on that plane on Jan 2nd is not appealing. Think I’m 90% ready to pull plug in March. Am I crazy to walk?