Have reached FI, can't bring myself to RE

[meridiver]

For about a year, I've been debating RE, so I feel right at home here.

Thanks to some luck, some skill, and LBYM we are in the enviable position of being FI while still in our early 40's. We started with nothing. Now, our net worth is currently around $2M with about $1M tied up in an income producing property that covers most of our basic living expenses and $1M in our portfolio ($800K taxable thanks mainly to my company's IPO, and $200K in various retirement accounts). I've run Firecalc and it gives me a 100% chance of success at our current spending level. We do have a very expensive travel habit but otherwise we are pretty frugal.

DH has already pretty much retired, although he takes a small contract now and then if he wants to buy a new lens for his camera. My problem is that I've always had that fear of being 80 years old, alone, and living on cat food. Apparently this is a (mainly irrational) fear that is relatively common in women. DH is working hard to get me over this, and reading the posts on this board is also really helping.

I hate my job and I'd love to quit, but I'm not quite there yet mentally. Hopefully I'll get over that hump soon and just do it.

 

[Ed_The_Gypsy]

Welcome, kid!

Would it help you to think about your own personal financial situation independently? Just as an exercise in self-esteem? I mean your 401k, etc. I am sure everything is OK, but consider setting up your own personal accounts, separate from DH. It all works out to be the same, but you might feel better.

As to leaving the workplace, you might consider taking extended time off from your job. Consider it practice. I'll bet it has been a while since you took two weeks in a row off. Sneak up on it. Go beyond your annual 2-weeks. Take 2+2 without pay. Come back with a tan. Speaking Spanish. Or Danish (without the tan).

Cheers,

Gypsy,
One who still wears the ball and chain.

 

[HobbyDave]

Well, you mentioned your assets, but you didn't mention your expenses. What do you consider your basic expenses, and how much is your expensive travel habit costing you?

If the 1M property covers your basic expenses, is it only the travel that is left over? Or when you say basic, do you mean food/water/shelter? The 30-35k you could pull from the other 1M would be a pretty large travel budget for anyone.

Take a look at your expenses, and check to see what percentage your expenses are compared to your assets.

 

[dex]

You're on the road and have taken the first steps.
One step at a time.

 

[Nords]

I hate my job and I'd love to quit, but I'm not quite there yet mentally. Hopefully I'll get over that hump soon and just do it.

Welcome to the board, meridiver.

Have you read this thread?

Does the hatred for your job fuel you with enough motivation to check your expenses, run a couple more FIRECalc scenarios, and test out the ER lifestyle with a month or two of extended vacation?

Or would you rather wait for your job-induced stress to give you a medical nudge toward the exit?

 

[cute fuzzy bunny]

You're basically a jumper that just asked a bunch of crazy people if he should take the dive or not.

JUMP! JUMP! JUMP!

Try it for 3 months, six months. Take a sabbatical. Travel the world. You can always get your old job back, or something just like it.

I took a separation package of a years pay, bonuses and bennies with a rider that in a year I could apply for my old job back. Seemed like a no-brainer. Free years paid vacation at worst.

Never went back.

Ten bucks says you dont go back either.

 

[haha]

Welcome to the board, meridiver.

Or would you rather wait for your job-induced stress to give you a medical nudge toward the exit?

This is a nothing but a scare tactic. There is absolutely no evidence that supports the idea that not working leads to a longer life- unless perhaps you are a dope dealer or tree faller or Alaskan crab fisherman.

What evidence that does exists points in the other direction --working prolongs life.

Ha

 

[cute fuzzy bunny]

Actually Ha, those studies were all hooey. The boeing and sandia studies...

One turned out to be a pitch to aerospace engineers years ago to not retire early, and the data backing it was created from air.

The other major "study" that covered this was done by a guy who later admitted to making up much of the data, getting some from the above mentioned aerospace study, and some from a couple of companies who derived the data from HR records from the late 1800's and anecdotally passed it forward six decades.

So maybe, but no evidence that i'm aware of that working prolongs ones life. The only concrete connection I found was that sick people often retire early and die shortly after their retirement from the same illness.

http://www.early-retirement.org/forums/f27/retire-early-live-longer-14402.html

 

[Dawg52]

This is a nothing but a scare tactic. There is absolutely no evidence that supports the idea that not working leads to a longer life- unless perhaps you are a dope dealer or tree faller or Alaskan crab fisherman.

What evidence that does exists points in the other direction --working prolongs life.

Ha

You still working?

 

[haha]

You still working?

No, but it is because I got tired of work, not because I think it will preserve my health.

If you want to do what I did, retire without enough money, with 2 little kids and a non-working wife. Then make it; then get divorced and experience an emotional blow and financial harcut.

It was great fun, but once is enough and maybe someone else might prefer a more judicious approach.

I think sometimes one is better off retiring, sometimes better off continuing to work. Depends on the person, and the circumstance. OTOH, it is always good to be FI.

Ha

 

[haha]

Actually So maybe, but no evidence that i'm aware of that working prolongs ones life. The only concrete connection I found was that sick people often retire early and die shortly after their retirement from the same illness.

http://www.early-retirement.org/forums/f27/retire-early-live-longer-14402.html

I agree, there is not much evidence either way. Not enough to sway one's decision to work or retire.
ha

 

[Ed_The_Gypsy]

JUMP! JUMP! JUMP!

Like CFB said.

 

[Dawg52]

I think sometimes one is better off retiring, sometimes better off continuing to work. Depends on the person, and the circumstance. OTOH, it is always good to be FI.

Ha

I can't argue with that.

 

[landover]

Have you read this thread?

I had the same problem, one more year, although it was for a different reason. I finally manged to move back to my original country and things are getting out OK. I had a lot of fear of unknown before moving but things turned out fine. One thing I have learned from this experience, prepare well and try to execute best, set reasonable expectation, rest is just luck. I know my situation is not directly comparable and my steps are somewhat reversible. But every day you loose by trading money for your time, is never coming back.

 

[meridiver]

Welcome to the board, meridiver.

Have you read this thread?

Thanks, that was very helpful.

Although I dislike my job, it does give me lots of flexibility. I work for large companies on a contract basis for anywhere from 3-12 months at a time, so for the last two years I've been experimenting with taking a month or two off in between contracts. Each time I do this, it is harder to go back, yet something keeps pushing me to take one more contract. After being off since May, I've just done it again and signed up for a new 3 month gig. However, I'm planning to wrap up in November and take the rest of the year off. Maybe this time I will make a New Years resolution to just say no to another contract.

 

[kcowan]

You are facing the common fear of living off your savings IMHO. Try it for two years. Consider portfolio earnings as your income and see it you can LYBM even with your travel expenses.

If that is successful, the next contract will take the form of a hobby. You will face it with a much different attitude.

 

[chinaco]

Welcome meridiver! It is a difficult decision. Study it carefully, make a decision when, plan, then execute your plan.

I think sometimes one is better off retiring, sometimes better off continuing to work. Depends on the person, and the circumstance. OTOH, it is always good to be FI.

Ha

Ha - I agree. It is a personal choice.

 

[Meadbh]

Although I dislike my job, it does give me lots of flexibility. I work for large companies on a contract basis for anywhere from 3-12 months at a time.

Do these contracts involve travel to the places you want to go when retired? If so, and if some of your travel is currently expensed, you'll need to budget for increased travel costs in RE. And remember, you won't be getting the corporate rate at the Hilton.

I am in this position. I go to lots of meetings and conferences, and if it's somewhere interesting, I may add on a couple of vacation days. I pay for accommodation, but the flight is a business expense. But if I didn't have to attend the conference, I probably would not spend my own money to visit.