Help me get over my ER anxiety!

[cbslc]

I'm 45 yo, my wife 47. We live pretty frugally - $15k/yr (not including income tax or employer paid healthcare). We've been contributing to 401k's, 403b's, 457 and Roth IRA's for sometime. We have $1.95M in retirement accts. About 400k of that is in Roths and 457's that is accessible before 59.5. Then we have another $880k in liquid(ish) assests (CD's, muni bonds, I series bonds). My wife has a lifetime tort annuity of $550/mo (compounding @2.5%/yr) that is tax free. Our muni bond pays a 3% tax free dividend of $600/mo. So that's $13k in non-taxable +$11k in taxable interest/yr.
My job has gone from good to horrible. So we are contemplating options.
We own our home, have no debt and no kids.
My wife retired last year - she was hit by a drunk driver while biking and has some memory issues, that make work not fun, and I figured we didn't need her income.
So should I stay or should I go?
If I stay, I make just over 100k/yr, have healthcare, gym and can work from home most days. Oh ya, and a really cool coffee machine at work. But the job is terrible.

 

[RunningBum]

You were pretty set 6 years ago http://www.early-retirement.org/forums/f26/39-and-mulling-options-59056.html and look a lot stronger financially now. I don't know why you would hesitate for even a minute.

 

[bloom2708]

Why not put a spending plan that includes actual spending, taxes, healthcare and lumpy spending needs?

$15k/year is crazy low. With health insurance and lumpy spending, probably look at $40k to $50k as realistic.

If you have reasonable hobbies and have thought about health insurance, then you are probably good to go. Try it for 5 years. You could always go part time or find a lower stress job if your investments are dropping faster than you thought.

Good luck!

 

[pb4uski]

.... My job has gone from good to horrible. ... But the job is terrible.

What purpose would there be to continuing to work other than dying richer? You have more than enough to quit. Just quit and spend more time with your DW and do what you want.

 

[cbslc]

15k is the average over the past 9 years. I have added some lumpy type expenses - new car, roof... So I do figure we need about $40k.
Healthcare is something I cannot wrap my head around.
To get a quote (assuming the ACA is still around), i need to now my income, which I really don't know!

 

[pb4uski]

Start with your 2017 projected tax return (or your 2016 tax return if yu don't have a projection). Take out any wages since you won't be working. Add in any taxable with withdrawals that you plan to make (f any) and then make any other appropriate adjustments.

You can start with healthsherpa.com to get an idea what will be available to you and cost.

 

[Ready2Go]

Good God! $15k per year! My real estate taxes are $12k!


Does seem like you have the LBYM mindset and the cash. If you needed/wanted to go back in 5 years, could you that? If so, I'd say, give it a shot.

 

[Souschef]

My heart goes out to you. My wife was also brain injured. Retire and relish every moment that you spend with your wife.

 

[cbslc]

Good God! $15k per year! My real estate taxes are $12k!

Ha, ya I just paid my UT property taxes - that was $2k. Another $1k for auto/home insurance. Those are my 2 biggest "fixed" expenses, right now.
We keep food expenses low by shopping frequently and buying more "raw" ingredients that are on sale and cooking at home.

I work in Healthcare IT, I'm afraid if I quit now, going back would be tough. Skills are lost so quickly, its hard to keep up when not dealing with it daily.

 

[Ready2Go]

I work in Healthcare IT, I'm afraid if I quit now, going back would be tough. Skills are lost so quickly, its hard to keep up when not dealing with it daily.

How about just going back and doing something else that you enjoy? I always thought that if I needed/wanted to I could get work doing something that I didn't hate. Not gonna pay the same but I wouldn't need that. For example, I know a retired guy that picks up new cars at car dealerships and drives them to others. Or a Starter at a golf course.

 

[CoolRich59]

Leave yesterday. Sooner if possible.

Good luck to you both. Enjoy!

 

[mistermike40]

First off, very sorry about your wife... hopefully she continues to improve.

Given your assets you can live on a lot more than $15K/year. I know it's difficult to leave a six-figure job with benefits... I had to do the same thing this year (for different reasons).

You are in a position to do whatever you want for the rest of your life. If your job is now "terrible" then it seems like a no-brainer to leave and do something else... at 45 you have decades of healthy retirement to look forward to. There are millions of working people who would give anything to be in your situation.

 

[RunningBum]

You won't need to go back to work. You've got over $2.5M in assets plus that annuity income stream. $50K is 20% over your $40K budget, and over 3X your average yearly spend, and that's a very safe 2% WR. You're set unless you totally change your spending habits.

 

[Aerides]

You could for sure go financially, and then some.

And while IT/HC skills might wane faster than most, you have an excellent justification for a year gap in your resume if you change your mind. You won't, but that should be enough to get over the worry.

What I hope is that a year from now you're both long retired, relaxed, and upping that spending a little to enjoy some travel together.

 

[Hermit]

You could for sure go financially, and then some.

And while IT/HC skills might wane faster than most, you have an excellent justification for a year gap in your resume if you change your mind. You won't, but that should be enough to get over the worry.

What I hope is that a year from now you're both long retired, relaxed, and upping that spending a little to enjoy some travel together.

+1

I had a wife. She passed away very suddenly before I retired. It sure would have been nice to have had some time with her in retirement. You only get one chance in life, so I say make the most of it.

Utah has some great hiking and out doors activities available. If I were in your shoes, I would get a smallish camper trailer and enjoy your surrounding areas. So if you do retire, what will you do??

Check out the http://www.early-retirement.org/for...-answer-before-asking-can-i-retire-69999.html thread.

 

[Texas Proud]

My health insurance is over $15K per year before credit...

My costs of DS in college is more than $15K per year..

My cost of vacations is more than $15K per year.... (DW spends way too much)

My property tax + house insurance + car insurance is more than $15K per year...

Heck, my grocery bill is close to $10K per year... and this does not include eating out....

I do not see how someone can live on $15K a year without living in poverty....

 

[flintnational]

What purpose would there be to continuing to work other than dying richer? You have more than enough to quit. Just quit and spend more time with your DW and do what you want.

+1

There are risks on both sides of the decision. Most people just ignore the risks associated with continuing to work. Its what they are use to.

 

[RobbieB]

C'mon in the waters fine -

 

[Souschef]

+1

I had a wife. She passed away very suddenly before I retired. It sure would have been nice to have had some time with her in retirement. You only get one chance in life, so I say make the most of it.

Exactly. My wife also passed away before I retired.

 

[cbslc]

My health insurance is over $15K per year before credit...

My costs of DS in college is more than $15K per year..

My cost of vacations is more than $15K per year.... (DW spends way too much)

My property tax + house insurance + car insurance is more than $15K per year...

Heck, my grocery bill is close to $10K per year... and this does not include eating out....

I do not see how someone can live on $15K a year without living in poverty....

Its easy, no kids - so no college $$. Cheap house (380K), cheap car (2016 CX5 16k) mean only 3k in taxes/insurance. Cheap vacations - we mostly drive, camp and hike. Cheap eats - I cook most meals from scratch and base what we eat on what is on sale.
Health Insurance is number one on my list of problems and not included in my $15k.
I definitely want more time with loved ones. Working from home does assist in that endeavor.
I guess healthcare and future uncertainty (market crashes, interest rates going lower) are what are really slowing down my decision. Assuring I can keep 30 years of solid income is keeping from taking the plunge.

 

[Red Badger]

Leave yesterday. Sooner if possible.

Good luck to you both. Enjoy!

++++1. Leave in 2016 if you can!

In 2014, it looked like we were set for FI. I continued to OMY mostly because it was the shroud I was used to. Late 2016, my DW had some (prior) health issues that scared us. That got me thinking about heading for the exits. When a guy four cubes over died at his desk, I took that as the last hint that God was gonna give me. I put my notice in that week.

We start every day with a breakfast prayer that begins with thanks for that day, whatever it may hold.

 

[RunningBum]

The future will always be uncertain. Continuing to work doesn't even guarantee your future. We've all faced it, and most of us were able to let go. How many more years are you going to put yourself through this?


Stock market crash shouldn't be that big of an issue. Just ride it out until it rebounds. Even if it doesn't come back you have a big buffer. How much lower can interest rates go?


The healthcare concern is legit. You should qualify for a subsidy, but those may not last. If you have to pull full fare on these rates, it's going to hurt, but you can still afford it. The bigger concern is if we go back to the pre-ACA days as your wife may not qualify. I don't put the odds of returning to that very high but who knows. Can you go part-time and keep your health insurance at work?

 

[Breedlove]

What are you waiting for

 

[Hermit]

...
I guess healthcare and future uncertainty (market crashes, interest rates going lower) are what are really slowing down my decision. Assuring I can keep 30 years of solid income is keeping from taking the plunge.

Have you run FireCalc? That will give you a good idea of how your investments would have fared in the historic cycles of the markets. It does not guarantee what will happen in the future, but should give you a warm and fuzzy when comparing the performance of your stash in those prior times. You need to put a stake in the ground on how much you think you will spend while in retirement. The better your spending estimate, the better the Firecalc results. You can also run FireCalc with different spending (say, double your best guess) and see how things look. If you are still 95% successful, you should feel very confident to retire.

 

[Bryan Barnfellow]

Picture this: it's a Tuesday, 2:00 in the afternoon. I'm on the couch reading and my wife snuggles up next to me, just because she can...at 2 pm on a Tuesday. We are both so happy about that. That's an example of what our retirement funds are paying for. Each day you wait is one more that you won't get back from your company. Ever.

Do it now!!! You have done the hard work. Claim your reward.

-BB