Can we FIRE with less than a MILLION???

[HI Bill]

Is there a difference if I tell them I am retiring verse just quitting?

So jump off the cliff in two weeks... end of year...or wait till next year? Any thoughts and suggestions appreciated.....

I used COBRA for 18 months, and when I signed up for ACA insurance, I kept a nearly identical plan, but it had lower overall deductibles, and the subsidized cost was about the same as under COBRA with the company paying part. You can check the marketplace for your state, but you should be able to have continuous coverage.

If you retire on or before the end of the year, your PTO payout may end up as part of your 2022 income, or 2023, depending on when they cut the check. I'd suggest you contact payroll with a 'hypothetical' end dates. If it's in November, it will likely be 2022 income.

If you're getting a company match on a 401(k), you may need to work through the end of the year to get the match.

I'd check with your company to see when your insurance ends. At my former company, if I worked even one day in the last month of employment, insurance was covered for the entire month. I retired on March 5 (early in the month), mostly to get the extra month of subsidized insurance. I also worked until I had maxed out the 401(k) and spousal IRA contributions for 2021.

Probably not much difference between retiring and resigning. Mostly coworker's and client's perceptions. My clients couldn't understand how I could RE.

Best wishes!

 

[TripleLindy]

That's true as long as he goes straight to the ACA but if he accepts Cobra for any period of time even a month and then tries to move to the ACA then he will not be able to until the next open enrollment period. Last year they extended open enrollment for many months due to the ARP. It went all the way to August 15th which allowed a lot of folks including friends of mine to drop Cobra and jump onto ACA. I don't think that will happen this year though.

Just to clarify, I think you’re referring to trying to leave COBRA and move to the ACA while COBRA is still offered. I suspect that’s true. But you can move to the ACA outside of open enrollment after the 18 months of COBRA because once COBRA ends it qualifies as a loss of insurance event. That’s what we did.

 

[2HOTinPHX]

So just thought I would share some updates on this thread. Still on the fence on calling it quits.
Since I started this thread about 6 months ago there have unfortunately been three fellow employees pass on before they even got the chance to enjoy any retirement. The most recent was just last week. It's a medium size company with many locations and it's always very sad and a shock when you read one of those emails about a fellow employee passing. It's a harsh reminder that tomorrow is not a given for anyone and our time is limited. Will be turning 60 in January and really feeling like I want out ASAP.

So I have been keeping an eye on things and I don't see any real signs of the economy or world improving? Maybe middle of next year thing's start looking up?
I see the layoffs continuing and probably more to come as the economy continues to cool? Last all hands on deck conference call from CEO we are looking good and no layoffs coming but who knows what next year could bring. It would be nice to get some sort of early retirement offer but I don't see that happening. We did have a reduction in 2008.

Not to concerned if things got worse in 2023 as we have enough cash to ride out for many years I think. A lot of our cash is now getting better than nothing interest rates in CDs and stuff. Like most our investments down about 15% or so at this time. Not pretty but not unexpected. Take the good with the bad.

We did just replace our 1998 HVAC system so hopefully that will be one less surprise in retirement. Hopefully save some money on monthly heating cooling bills too. Paid cash.

We replaced our only car with a more practical 2023 Bolt EUV that could hopefully be our last vehicle. Much easier to get in and out of as we get older. Small but practical with heated and cooled seats with tons of safety features that our last car did not have. No gas and hopefully lower maintenance cost but we shall see. Chevy installed a free 220 outlet and supplied a charger so that will help when charging in our garage. We traded in our sedan and paid the balance with cash. No car payments....

Still debating retiring end of this year or maybe after the first quarter of next year. A little more time for research and see where economy may be at that point. If I stick it out would get 1500.00 added from my employer into HSA account for first half of year and probably about 1500.00 added profit sharing into my retirement account on top of the usual pay ect.

COIN TOSS??

OMQ? One more quarter?

 

[cnocmmz]

So just thought I'd update where we are at in this situation. Been waiting to see if things calmed down some. Seems crazy is winning out to me. Not sure if trying to keep track of what's going on in the world today or going off grid and sticking head in the sand is a better plan?
Getting close to the end of year now and debating retiring now or continue to wait and see if things look more hopeful in 2023. I have enough vacation time accrued that if I put in two weeks notice on Monday it would be like getting paid thru the end of year. Wonder if this would be the best thing to do or wait till towards the end of the year and give two weeks notice then. Or continue to work in 2023 and wait and see if things start looking up for the world? I could probably do another 3 to 6 months at work next year but....... Knowing that every day at work is one less fun day for retirement.
Yes accounts are down but not that worried as still working so getting sale prices right?
Have been moving some cash around taking advantage of slightly higher rates.

Some questions come to mind.
How quickly can you get on ACA health insurance? If I gave two weeks notice next week. Would I be able to sign up right away?
If I wait and retire at the end of the year the accrued vacation payout would count towards 2022 income correct? So it would not be counted towards 2023 income which could affect ACA coverage cost. I have a lump sum pension payout from the frozen part of pension 30K plus 300.00 new plan monthly payment I was planning on as income for next year ACA income qualifications.

Is there a difference if I tell them I am retiring verse just quitting?
Don't want any kind of going away party or that sort of stuff. Working from home many many years now I barely know anyone in my team. No work friends to be missed. I am more of a just go quietly off into the sunset kinda guy....
So jump off the cliff in two weeks... end of year...or wait till next year? Any thoughts and suggestions appreciated.....

Sometimes it feels like my little video I posted on YouTube 5 years ago is getting too close for comfort.

2HOTinPHX
Hi and welcome
Okay, not sure what you’re asking? If you’re asking if you can retire with having a net worth of $1M maybe I missed it in a prior submission??
So many variables, I.e. life style., if you have pension that pays your monthly outflow, when you will take SS?
Have you used fire Calc and were you honest with it?
-You mention you may not need a new vehicle? Well, I’m my opinion you cannot base retirement on that formula. You have to have functional plan. that is real and can pass several common sense numbers test. To me that is the what if happens test. Take a realistic look what it would do to your standard of living and be honest. We see plenty of folks come on the platform and think they can live on a minimal expense plan with no real plan except they want to retire with 1M in cash and investments . I believe Rodi said it best. So, not to beat you up but specifics are very important and I wish all the luck

 

[Alex The Great]

2HOTinPHX, do you have an idea how much you will pay for ACA insurance? With your income after retirement, and a plan which cover all doctors you currently use? I would start with it.

 

[Koolau]

So just thought I would share some updates on this thread. Still on the fence on calling it quits.
Since I started this thread about 6 months ago there have unfortunately been three fellow employees pass on before they even got the chance to enjoy any retirement. The most recent was just last week. It's a medium size company with many locations and it's always very sad and a shock when you read one of those emails about a fellow employee passing. It's a harsh reminder that tomorrow is not a given for anyone and our time is limited. Will be turning 60 in January and really feeling like I want out ASAP.

So I have been keeping an eye on things and I don't see any real signs of the economy or world improving? Maybe middle of next year thing's start looking up?
I see the layoffs continuing and probably more to come as the economy continues to cool? Last all hands on deck conference call from CEO we are looking good and no layoffs coming but who knows what next year could bring. It would be nice to get some sort of early retirement offer but I don't see that happening. We did have a reduction in 2008.

Not to concerned if things got worse in 2023 as we have enough cash to ride out for many years I think. A lot of our cash is now getting better than nothing interest rates in CDs and stuff. Like most our investments down about 15% or so at this time. Not pretty but not unexpected. Take the good with the bad.

We did just replace our 1998 HVAC system so hopefully that will be one less surprise in retirement. Hopefully save some money on monthly heating cooling bills too. Paid cash.

We replaced our only car with a more practical 2023 Bolt EUV that could hopefully be our last vehicle. Much easier to get in and out of as we get older. Small but practical with heated and cooled seats with tons of safety features that our last car did not have. No gas and hopefully lower maintenance cost but we shall see. Chevy installed a free 220 outlet and supplied a charger so that will help when charging in our garage. We traded in our sedan and paid the balance with cash. No car payments....

Still debating retiring end of this year or maybe after the first quarter of next year. A little more time for research and see where economy may be at that point. If I stick it out would get 1500.00 added from my employer into HSA account for first half of year and probably about 1500.00 added profit sharing into my retirement account on top of the usual pay ect.

COIN TOSS??

OMQ? One more quarter?

I think you've made a good case for being able to go. My question would be whether you would be satisfied with the life style at your spend level. Right now, w*rk takes up a lot of time, keeps you busy and means you have less time to spend money on "fun" things and experiences. We spent quite a bit more post-retirement for a while - all in the plan, of course.

Right now, the numbers you have shown seem to w*rk. I guess you'll just have to "know thyself" and decide. Best of luck on whatever decision. Check back often which ever way you go. Aloha

 

[2HOTinPHX]

OP here, dusting off this old thread.

Update I have moved the goalpost more than a few times now but think its time...target DEC 1st 2023. I may actually submit my notice today or tomorrow...so scary yet exciting..I think we can do this.

Spent the last 1.5 years getting our ducks in a row. The paid off home is in great shape now with new AC/heat unit and attic insulation in place. New energy efficient windows and doors. New insulated garage door and opener. Major appliances replace in the last couple of years. The tile roof was redone about 7 years ago. Fresh paint on exterior and even replaced crappy stamped concrete pathways patios in from and back yard with pavers. Place feels like new and hopefully no majors home expenses in the near future. Thought it was a good idea to keep working while paying for these large ticket items. Zero debt with one paid for 2023 Bolt EUV to get us around.

Waiting for things to improve but does not feel like world wise they have unfortunately... so maybe not the best time to retire but then when is it? I'm going to be 61 next year so I feel like time is short now.
At least we avoided 1st year SORR risk by pushing through 2022 and me continuing to work. We have about 900K total investments now with 235k of it in safer CDs and I-bonds earning a decent rate we could use to avoid SORR risk if needed. 10K in HSA account. Still debating when to take SS but still have at least a year for me to figure that one out. Still a little worried about giving up employer health care and switching to ACA insurance. I would grade our health at about a C+ right now. Looking to spend time in retirement to improve that to a B+.
If I do this I have enough vacation time to cover the rest of the year and then some. Next year could be covered by using the cash balance of a small pension at 36K and 3.3K traditional yearly benefit for the most part.
Tracking monthly expenses including ACA health coverage comes in at around 44k with 27K of that being essentials and 17K being discretionary for hobbies, vacations, restaurants.
Firecalc seems to say we are good to go. NewRetirment software seems to be good to go at 95% to 99%.

Thoughts Should we take the leap?

 

[2HOTinPHX]

Here is a sneak peak at our planned budget.

 

[Dtail]

Here is a sneak peak at our planned budget.

Your other post appears to have a higher expense budget. Is 44k or 55k correct?

 

[2HOTinPHX]

Your other post appears to have a higher expense budget. Is 44k or 55k correct?

It's actually 44k now. The 55K was just me running an example if things get more expensive down the road or we want to spend more on somethings. 55K was more of a worse case example...

 

[Koolau]

OP here, dusting off this old thread.


Thoughts Should we take the leap?

It seems you're in even better shape now.


Also (not to be morbid) at age 60, your 30 year time line puts you at 90. With a C+ health, what is the likelihood you will need the whole 30 years. With everything you've mentioned, I'm saying you can probably go for it. Keep in mind also that you can also make cut-back if absolutely needed.



Let us know what you decided! We are pulling for you.

 

[2HOTinPHX]

It seems you're in even better shape now.


Also (not to be morbid) at age 60, your 30 year time line puts you at 90. With a C+ health, what is the likelihood you will need the whole 30 years. With everything you've mentioned, I'm saying you can probably go for it. Keep in mind also that you can also make cut-back if absolutely needed.



Let us know what you decided! We are pulling for you.

Thank you Koolau for your kind thoughts.

This timely video on fear of retirement was just posted today. It's definitely a battle between the excitement of doing what you want to whenever you want to versus fear of the unknown.

https://youtu.be/pGu_NYgjNu0?si=XR594kERvezdrBv6

 

[2HOTinPHX]

Wohooo...

Its official gave notice this AM, Dec 1st will be my last day.

Thanks to all here who have inspired us!!!!!!!!!!!!!!!!!

https://youtu.be/9jK-NcRmVcw

 

[latexman]

The final countdown!

Congrats!

 

[pb4uski]

Wohooo...

Its official gave notice this AM, Dec 1st will be my last day.

Thanks to all here who have inspired us!!!!!!!!!!!!!!!!!

https://youtu.be/9jK-NcRmVcw

2HOTinPHX's employer sent me this a few mnutes ago.

https://youtu.be/rY0WxgSXdEE

 

[2HOTinPHX]

2hotinphx's employer sent me this a few mnutes ago.

https://youtu.be/ry0wxgsxdee

lol

 

[Alex The Great]

Its official gave notice this AM, Dec 1st will be my last day.

Great to hear that! Do you still plan to move somewhere from Phoenix?

 

[Cassius King]

Congrats!! Wow, two weeks away. Enjoy!

 

[Koolau]

Wohooo...

Its official gave notice this AM, Dec 1st will be my last day.

Thanks to all here who have inspired us!!!!!!!!!!!!!!!!!

https://youtu.be/9jK-NcRmVcw

Let us know if we can help in the future. We're here to help.

 

[ShokWaveRider]

In answer to OP's question. We would not consider it in this day and age. We would want at least $2m. JOHO, we could be wrong.

 

[pb4uski]

^^^ It all depends on how much you need to live the lifestyle that you want in retirement.

I have a good friend who has a lot, lot less than $1 million. He retired recently with SS, a paid-off duplex that he lives in one unit and rents out the smaller unit at a bargain price to a solid tenant that pays like clockwork.

He has some money in a taxable brokerage account and traditional IRA but he is still banking money since he is so frugal. He's happy as a clam.

 

[2HOTinPHX]

Great to hear that! Do you still plan to move somewhere from Phoenix?

No immediate plans to relocate but always dreaming especially after this last scorched earth summer. Love to search on Redfin and Zillow from time to time. Not sure if I would rather be too hot or too cold. We have never lived where it snowed so not sure how that would go. Temperatures in Phoenix are now great for about the next 6 months which is just enough time to forget about this last summer. Then up we go again...rinse and repeat.
Mother in law is near by so we wouldn't leave her here all alone so we have to take that into consideration too.
I do like our semi-low 2K a year property taxes. I see other places where taxes on a 500k house are easily double or triple what we pay. That's not very appealing.