Blow the dough before pulling the plug?

[DeFreeMan]

A year past by since my last post on my retirement moving target. Just turned the big 50, NW reached $6M by end of 2020 no debts - BUT still got cold feet pulling the plug now.

My mega corp offered a volunteer separated package at the end of 2020 with 1.5 years pay AND I am eligible for retiree medical plan. I was seriously considering taking the package and call the day (NW was at $6M by year end). I was very close to press the button but after I talked to a few close coworkers I DIDN'T TAKE IT!

Thought that there would be still something in there for me to hang on for a little bit longer until my youngest one attends college (2024). I got a promotion with a new position. However, the new organization is a mess PLUS I am going to report to the same guy I worked for a few years back who I hated from my gut and told myself never worked under that guy again!! . Never say never right...

So, here I am, continue working for 3-4 more years and hope for another golden handshake OR maybe the guy I report to will make my decision easier!!

At this point, I am thinking of treating myself a couple toys I always want but never have: a proper convertible sport car and a day-to-day truck. This could easily blow $100K BUT cannot break my saving habit... What do you think?

 

[pacergal]

Not sure what your yearly spending is, but at 6 million saved, I would think you could retire now and enjoy life. Why undergo the stress of working with someone you do not like or get along with?

 

[DeFreeMan]

Thanks @pacergal! My monthly expense is about $10K/mo. Deep down I know I am ready to retire financially but still!! what's wrong with me?

 

[davebarnes]

I wouldn't call it "blowing that dough", but a few dollars (out of $6M) spent with a therapist might be useful.
You really need to ask yourself: why am I working?

 

[euro]

Thanks @pacergal! My monthly expense is about $10K/mo.

In that case you made a SERIOUS mistake not taking the golden handshake! Those don't tend to come around too often - in fact, I was hoping for one of those for several years, but every one around me got the opportunity and I never did.... Sounds like yours was PARTICULARLY lucrative and based on the numbers you provided, you have more than enough to retire AND buy both toys.

 

[DeFreeMan]

Thanks davebarnes. My DW is my therapist. She will spend $$$ for me as she always said, you need to enjoy it. I promise myself I will take it easy the next couple years and phase to our retirement BUT want to enjoy a few toys before pulling the plug.

 

[DeFreeMan]

I know!!! In hind sight, I kinda regret it and envy others taking the deal... My friend, 46 YO took it and he is doing fine so far!

 

[pacergal]

Thanks @pacergal! My monthly expense is about $10K/mo. Deep down I know I am ready to retire financially but still!! what's wrong with me?

Nothing is wrong with you, you seem to have the usual concerns about going from saving to spending mode. One of my favorite reminders is a quote from a member here, whom I am unable to recall, but s/he wrote regarding retirement: "You are no longer in a savings mode, you are now in a slow spend down mode."

At $120,000 year, you can afford to retire and buy yourself a new toy to enjoy.

If you have-not already answered these in the FAQ section, I would encourage you too review:
Some Important Questions to Answer Before Asking - Can I Retire?

They really helped me when I was nervous, even though I had a date to retire set.

Best of luck to you. This Forum is a great place to learn and ask questions.

 

[socca]

... At this point, I am thinking of treating myself a couple toys I always want but never have: a proper convertible sport car and a day-to-day truck. This could easily blow $100K BUT cannot break my saving habit... What do you think?

How much are you currently saving per year? If it's substantially more than $100k / year then buying your toys now just reduces the amount going to savings in 2021. Given the size of your nest egg this doesn't seem too bad.

Compare: buying the toys after RE. You may then be spending capital, which might seem more painful.

Compare: never buying the toys. I can't comment on this since I don't share your taste in discretionary spending. I like old, reliable vehicles that run forever.

 

[DeFreeMan]

One of my favorite reminders is a quote from a member here, whom I am unable to recall, but s/he wrote regarding retirement: "You are no longer in a savings mode, you are now in a slow spend down mode."

Great one! I need to practice this!

 

[DeFreeMan]

How much are you currently saving per year? If it's substantially more than $100k / year then buying your toys now just reduces the amount going to savings in 2021. Given the size of your nest egg this doesn't seem too bad.

Compare: buying the toys after RE. You may then be spending capital, which might seem more painful.

Compare: never buying the toys. I can't comment on this since I don't share your taste in discretionary spending. I like old, reliable vehicles that run forever.

That's exactly what I am thinking. I will probably reduce my my saving rate $150K/yr but not cutting into the capital. About toys, thinking between EV or combustion engine. I love the sound of it and the muscle it produce!

 

[ut2sua]

I know!!! In hind sight, I kinda regret it and envy others taking the deal... My friend, 46 YO took it and he is doing fine so far!

OP, don't regret made decisions. Recall why you made your decision and visit that again to see if those reasons are still valid. Not having a great working environment could be a blessing in disguise since it will be easier for you to pull the plug in the future. Cheers.

 

[DeFreeMan]

If you have-not already answered these in the FAQ section, I would encourage you too review:
Some Important Questions to Answer Before Asking - Can I Retire?

They really helped me when I was nervous, even though I had a date to retire set.

Best of luck to you. This Forum is a great place to learn and ask questions.

Thank you pacergal! I did and start staging for it. Just recently repainted and remodeled the house, changed the roof, got the house in good shape... Buy some new cars for DW and DD just not for me yet.. I want to pay for all these big ticket items out before pulling the plug and starting drawing down the capital. This might take me a couple years so this was one of the reasons why I continue to work... Maybe not wise BUT it eases my worries.

 

[DeFreeMan]

OP, don't regret made decisions. Recall why you made your decision and visit that again to see if those reasons are still valid. Not having a great working environment could be a blessing in disguise since it will be easier for you to pull the plug in the future. Cheers.

Thanks for your kind words ut2sua! Yes, definitely if future working environment is not what I expect, that makes my decision easier. Will try to see how it turns out...

 

[MarieIG]

At this point, I am thinking of treating myself a couple toys I always want but never have: a proper convertible sport car and a day-to-day truck. This could easily blow $100K BUT cannot break my saving habit... What do you think?

I think that couple of toys when you are working full-time for a boss you don't like is not going to relieve your stress.

If you feel that you would have the time to really enjoy a toy - I would pick ONE, and pay cash (so that your toy does not leave you staring at a monthly bill long after the thrill of the initial purchase wears off.)

Furthermore, I would spend some time "looking" at the toy you particularly want to purchase, prior to any purchase, as part of the enjoyment is the plan.

Finally, I would not be looking in particular to spend down your nest egg before you retire. Part of the reason for working full time - is to keep from depleting it. You are going to want toys after you retire and have the time to play with them.

With all that said; yes, take some time de-stress and enjoy yourself with your family while you are still employed (i.e. activities / day trips / affordable vacations w/n your budget which is probably healthier than most people) - and at the same time, cementing your FI platform (which is already impressive).

Don't beat yourself over not taking the package/ something you can't change. You have done a great job building a nest egg and eliminating your debt. Hopefully another golden handshake will come your way before you pull the plug - but either way, you will be good to go when you are ready.

 

[RobbieB]

Six mill and a year and a half pay for nothing?

I'da blown the job and then blown the dough. But that's just me, I could be wrong -

 

[Nick12]

Retire now while you are still in good health. Tomorrow is not guaranteed.

 

[DrRoy]

What do you think?

My situation is very similar to yours financially, and I pulled the plug four years ago. I could really have done it earlier, but DW was not ready emotionally for me to do it. Now we both are so glad that I did. As long as you have things to do with your time, I would say you should pull the band-aid off and enjoy yourself.

 

[Bamaman]

1.5 years' severance pay and the ability to get healthcare though the company is The Golden Goose. Termination packages are getting worse and worse as the years go on, and I'm not seeing anyone being offered such good packages.

With your net worth, take the package and head for the house. You have the financial resources to take some time off and look for another career that you will enjoy. Life is not worth working for any tyrant.

And if you decide you're through working, go find a hobby to take your time. We all just have "X" days on this earth, and we're not in charge or have no idea what "X" means.
Grab all the gusto you can now.

 

[Ronstar]

At this point, I am thinking of treating myself a couple toys I always want but never have: a proper convertible sport car and a day-to-day truck. This could easily blow $100K BUT cannot break my saving habit... What do you think?

Definitely! Buy the toys ASAP! And retire ASAPer!

 

[finnski1]

1.5 years' severance pay and the ability to get healthcare though the company is The Golden Goose. Termination packages are getting worse and worse as the years go on, and I'm not seeing anyone being offered such good packages.

With your net worth, take the package and head for the house. You have the financial resources to take some time off and look for another career that you will enjoy. Life is not worth working for any tyrant.

And if you decide you're through working, go find a hobby to take your time. We all just have "X" days on this earth, and we're not in charge or have no idea what "X" means.
Grab all the gusto you can now.

Unfortunately I believe the offer is already gone.
I would have grabbed that in a heartbeat but we are all wired differently and it is not easy to take the big leap.

 

[DeFreeMan]

1.5 years' severance pay and the ability to get healthcare though the company is The Golden Goose. Termination packages are getting worse and worse as the years go on, and I'm not seeing anyone being offered such good packages.

With your net worth, take the package and head for the house. You have the financial resources to take some time off and look for another career that you will enjoy. Life is not worth working for any tyrant.

And if you decide you're through working, go find a hobby to take your time. We all just have "X" days on this earth, and we're not in charge or have no idea what "X" means.
Grab all the gusto you can now.

Yes, you are right! It will get worst in the future for sure. I blew it didn't I? However, the inner me said about what I liked the work I did and wanted to continue for a couple more years until my DD goes to college. At the same time, I could have time to figure out what I want to do with the time I will have. Definitely, if I don't like future work I always call it off. That's the price I have to pay to see it - just like the poker game!!!

 

[DeFreeMan]

Definitely! Buy the toys ASAP! And retire ASAPer!

I like it and I like it ER... We will take real time off to taste the water. Fortunately, we have been travelled around the world a lot - being as expat helped a bit. Now, going back home in the US we will see where we would like to settle and these couple years will eventually ease our transitions.

 

[DeFreeMan]

My situation is very similar to yours financially, and I pulled the plug four years ago. I could really have done it earlier, but DW was not ready emotionally for me to do it. Now we both are so glad that I did. As long as you have things to do with your time, I would say you should pull the band-aid off and enjoy yourself.

Thanks DrRoy! I have talked to several of my friends who retired earlier and they said the same. I think I freaked out thinking about how I would fill in my time when retire. This is what I need to work on for the next couple years.

 

[LarryMelman]

DeFreeMan, I will chime in because you and I don't really fit the profile of this site, which IMO is (for the most part) people who really hated their jobs (and suggest that anyone who really enjoys their work should seek therapy!) and have lavish pension/benefits to back them up.

My situation is much like yours. I took a small package to get out of a toxic work mess in Sept 2019. My NW was about 3.3m at age 55. Almost right away I realized that I enjoyed my work and wanted to keep contributing, and could not end my career on such a bad note. The terrible mess in the last job being a classic "boss gone insane" situation.

After 3 months I was recruited by a new employer and went back to work in Jan 2020 (working at home since last March which has been fantastic). During that time, my NW bottomed out near $2M and is now topping $4M.

Should you up your spending, "blow that dough", etc? Could you? I mean, do you really have it in you to do that? I have considered it too since I don't need to save any more. I just don't think I could start spending wildly on things I don't really need. I am comfortable living the way I do.

None of my employers had or have any retiree medical coverage. This will probably keep me in the harness until Medicare. So at least you have that option if you decide to pull the plug at some point.