As we worked our way through our careers in the Southeast Michigan auto industry, DW and I had long looked forward to retiring at the only somewhat arbitrary age of 62. In recent years, both of our employers contracted, both were sold, another cycle of contractions hit, etc. etc. Finally, about five years short of "the plan", DW (along with about 1000 co-workers) was offered the choice of a somewhat enhanced early retirement package, or taking a different job with the company. When we talked to a CPA and took a good look at our situation, we found that we were actually in much better shape than we had thought. DW took the package.
That was last year. For the first time, we spent the last twelve months really focussed on how we spent money; what were necessities, what weren't. what costs would be reduced or disappear if we were both retired, what would increase, etc. I have run several simulations (Fidelity, Vanguard, T Rowe Price) and they all confirm what the CPA told us... that we are FI. I've ordered the new Scott Burns collaboration "Spend til the End", will invest $150 in their simulation software and I am sure that it will say the same thing.
My pension calculator at work tells me that working two more years would increase my pension about 20%. Two more years would increase our 401k withdrawal potential about 10%. However, the net impact on our ultimate total retirement income (SS included), after tax, would only be about 7-8%. The cost would be at the price of losing two years on the healthy end of retirement.
So while age 58 is not early compared to most people on these forums (FIRE at 43?...wow!!), from my perspective, the thought of retiring in six months (my target) instead of thirty or fifty-four months is incredible.
I have not yet explored all of the forums, but I find a number of them really interesting. The "what if I work one more year syndrome" is not a rare affliction. The application for social security at 62, re-payment of 8 years, and re-application at 70 is intriguing. Hope it's not closed down or means-tested any time soon.
That was last year. For the first time, we spent the last twelve months really focussed on how we spent money; what were necessities, what weren't. what costs would be reduced or disappear if we were both retired, what would increase, etc. I have run several simulations (Fidelity, Vanguard, T Rowe Price) and they all confirm what the CPA told us... that we are FI. I've ordered the new Scott Burns collaboration "Spend til the End", will invest $150 in their simulation software and I am sure that it will say the same thing.
My pension calculator at work tells me that working two more years would increase my pension about 20%. Two more years would increase our 401k withdrawal potential about 10%. However, the net impact on our ultimate total retirement income (SS included), after tax, would only be about 7-8%. The cost would be at the price of losing two years on the healthy end of retirement.
So while age 58 is not early compared to most people on these forums (FIRE at 43?...wow!!), from my perspective, the thought of retiring in six months (my target) instead of thirty or fifty-four months is incredible.
I have not yet explored all of the forums, but I find a number of them really interesting. The "what if I work one more year syndrome" is not a rare affliction. The application for social security at 62, re-payment of 8 years, and re-application at 70 is intriguing. Hope it's not closed down or means-tested any time soon.
