FI and ER on the Horizon

[freedomatlast]

Hello to all. What a great forum! I've been an observer since I found this site in October 2013, during an exceptionally stressful time at MegaCorp. I've been at Megacorp 30 years and an additional 3 years before that at another Megacorp. The first night I discovered this site I was up till about 3 AM reading many various topics and almost in disbelief that I finally found a site with so many like-minded individuals. I've been hooked ever since.
About me...53 years old married to DW for 30 years, with two DDs, the youngest who just finished college and is off to grad school for her masters and Phd which the college is paying her to attend. The oldest is well established in a good paying career and engaged to be married in 2015. So, no more tuition payments, however, there are two weddings to partially fund in the future. Household income is currently about $200,000/yr; about 3/4 of that is my contribution. I currently invest at least $50,000/yr (usually more) between the 401K and taxable accounts. Investible assets currently are in the 2.1MM range with about 1MM in the 401K and the rest in after tax accounts. Presently, approximately 70% invested in equites. Also have a rental property worth about $150,000 which produces positive cash flow of about $8,500/yr. I'm ready to pull the plug at any time, depending on how unfulfilling the job at Megacorp continues to decline. DW, presently 52, loves her job, and gets a lot of personal satisfaction from her job and luckily, also has a great medical plan, which I can join when I jump the Megacorp ship. She plans to continue to work until 65, at which time she'll be entitled to a pension of about $36,000/yr. My pension starts at 60 years old at $12,000/yr with no COLA adjustments. We'll both be eligible for SS, with mine being worth about $22,000/yr at 62, 30,000/yr at 66 and ten months, or about $40,000/yr at 70.
We can live quite comfortably on $80,000/yr and Firecalc and most of the other financial calculators agree I can jump ship now and safely live on about $100,000/yr, and that doesn't include DW continuing to work till 65 or the rental income. The 27.5 year straight line depreciation is just about done on the rental, so I may sell it in the next few years. My situation at Megacorp, while not as bad as is was in October, is still very stressful and unstable, although the company is presently doing very well. At this point, I will stay at Megacorp at least through the first few months of 2015 for the big bonus and vacation days, but not sure how long thereafter. A severance package would make the decision easy, but that isn't even on the horizon at this point since no layoffs are planned since financially the company is doing very well. I have a great staff and great coworkers, but the unrealistic expectations, and constantly changing directives and goals are not sustainable. Anyway, does it sound like I can safely jump ship if I can resist OMY syndrome? Thanks in advance for your thoughts, assessment, critique and advice.

 

[retire2020]

Welcome freedomatlast. I discovered the same last year and it feels great to know that there is a light at end of the tunnel. I still have 4-5 years to be FI. Since you've 30 years at MegaCorp, I would try to manufacture a layoff(severance package) if possible by first going on LOA and then asking for one and cross your fingers. In the process, it can save someone's job.

 

[heeyy_joe]

Only retire when you have saved enough (you have) and when you have had enough (of the work stuff -you decide).

 

[38Chevy454]

Financially you seem fine to do it now. The wedding expenses are a one-time deal (x2 daughters) and you have enough savings to cover that easily.

whether you still work, which would be nice for the extra vacation and bonus is really your choice. If it gets too bad, then you can say bye and retire. Otherwise stick it out until early next year. Either way you are in good shape, it is not a financial issue.

 

[freedomatlast]

Thank you for the replies and encouragement. I'll see how it goes over the next several months and decide when the time seems right to pull the plug.

 

[Ronstar]

Welcome freedomatlast! To me, your financial situation looks more than sufficient to retire. I think it's safe for you to jump ship at any time.

A couple of concerns. Do you have hobbies, interests that will keep you occupied during retirement? Another - it looks like your DW plans on working another 12 years. This can be a hurdle if you plan to travel during your early years of retirement. But your DW should benefit from you picking up some of her home tasks while she's at work and you're retired.

 

[freedomatlast]

Hi Ronstar,
Yes. I have quite a few hobbies. Like 38Chevy454, I'm a car guy and I have a few antique cars I tinker with and I also regularly buy, fix up and and resell used vehicles for extra income which I didn't include in my numbers above.
Fortunately DW's job allows her many weeks of vacation each year, especially in the summertime, which we use for travel. She fully supports my ER now, and we've had numerous discussions about my concerns that she would become resentful in time. She assures me that won't be a problem, especially if I pick up some of the household duties, which I will be glad to do. I read the other thread on when one spouse retires ahead of the other which was very informative. Thanks again for your thoughts.

 

[freedomatlast]

Updated: FI and ER on the Horizon

I've always enjoyed other's posts about how they are progressing toward ER, so here's my update: Still at MegaCorp waiting for the right time (?) to turn in the resignation notice. In the last three years, the weddings of both DDs are done and paid for, we've moved from our house of 30 years to the (more expensive) house we've always wanted, and the 401K has grown from 1 to 1.4MM with total invested assets now over 3MM. Pensions and SS are still projected to be the same as documented in the original post but my rental income has more than doubled since I added another (paid off) unit to the portfolio. FireCalc says leave now and spend $130,000/yr and it would be unusual for us to spend $100,000/yr. I guess I just need encouragement that I'm set in order to make the leap.

 

[2017ish]

...Still at MegaCorp waiting for the right time (?) to turn in the resignation notice. ... Firecalc says leave now and spend $130,0000K/yr and it would be tough for us to spend $100,000/yr. I guess I just need encouragement that I'm set in order to make the leap.

You were in good shape three years ago; now at great. At this point, you are working at MegaCorp because of a) the fun of it; b) inertia; or c) the benefit of your daughters!

Time to start putting some more quality time into your classic vehicles.

 

[Bigdawg]

"I guess I just need encouragement that I'm set in order to make the leap."--You don't need encouragement that you are set. YOU ARE SET financially. Sounds like maybe not ready mentally. I am in the same boat. My reasons are: DW needs to be comfortable with my decision, building a new house, DD just graduated college and is off to Australia for an internship, we are going with for the first 10 days, waiting on 401K vesting, job is easy and pays well, cleaning up a few other $ details-selling property, etc... I am now thinking about Feb of 2020 to get into my 55 yr so I can touch 401K. Don't need it prior to 59.5 but like having the back up. Schedule always had every other Friday off. Now I will work that Friday from home. Eventually dropping to 30 hours/wk. Basically I can't find a good reason to quit.


Back to you. U r ready financially. Go for it.

 

[evilanne]

Looks like you overcome all your prior objections...seems like you just need to close the deal. What are you and wife planning to do once you retire?

 

[jollystomper]

I guess I just need encouragement that I'm set in order to make the leap.

Welcome to the club! You are definitely set. I have less assets that your family, also have major expenditures like college behind me, but all the analysis shows DW and I are in great shape. Now the issue is more mental than financial, and I am experiencing the same feelings right now.

A couple of folks more in the "know" at my Megacorp are telling me of a retirement incentive that may happen in mid-July - that will make it easier for me . However, even without that, my group just reorganized and I might be placed on different projects come July, so that alone might be the push I need.

 

[freedomatlast]

Looks like you overcome all your prior objections...seems like you just need to close the deal. What are you and wife planning to do once you retire?

DW loves her job and gets a lot of personal satisfaction from doing it, so she wants to work until at least 62 or at most 65, which works out well with her being able to provide inexpensive medical coverage for both of us. She does get a lot of time off in the summer when we can travel together. I have a bunch of hobbies including tinkering with cars and anything else mechanical, to take up my time in addition to home renovations and could easily pick up side jobs if I would choose to.

 

[freedomatlast]

Welcome to the club! You are definitely set. I have less assets that your family, also have major expenditures like college behind me, but all the analysis shows DW and I are in great shape. Now the issue is more mental than financial, and I am experiencing the same feelings right now.

A couple of folks more in the "know" at my Megacorp are telling me of a retirement incentive that may happen in mid-July - that will make it easier for me . However, even without that, my group just reorganized and I might be placed on different projects come July, so that alone might be the push I need.

Jolly....I hope things work out with the retirement incentive for you. That makes the decision easier and with icing on the cake. I would take such an incentive in a heartbeat if offered. Sounds like we could both use that final little push.