Hey all, considering retirement in 6 month's but have no idea on what comes next.

[Slim11]

The politicians don't always do their due diligence and many times don't understand the impact of their decisions till it's too late. If things are as bad as you say, I'm guessing the situation will cause your ISO score to drop, then look out for higher insurance rates for everyone and guess who they will try to blame.
By the way if I was you, I would not be so specific as to your location in your profile.

Fixed, didn't see that, thought it was part of the joining up thing.

Yea, ISO ratings , tbh I think the other town just lies about thiers as they do nothing required. No boxes beeing checked, no minimum hrs in what you need. Its pretty much a joke. Atually , the training officer , who gets paid extra, hasn't put anything out. I am the only one saying we have to hit so many hrs in this or that as required, and nothing is being done or recorded. And if something happens, thats on me, as I am responsible for my shift. But they overule me as its how they do things. Its atually the worst run thing I have ever witnessed in my life, almost to the point of being criminal.

 

[DrRoy]

Try Meetup.com to see if you can find a group that you would like to do things with.

 

[FLSUnFIRE]

I don't disagree with people who say that you have to have something to retire to. But, it's not always necessary to know what that thing is at the time you retire. I didn't and I did fine. Sometimes you need to get out of where you're at to know where you want to be.

Totally agree. I think many that "retire to" something don't do that thing or not to the extent they fantasized. We evolve, the future is always uncertain, and when in the fog of work (https://www.early-retirement.org/forums/f30/the-fog-of-work-42328.html) it's even harder to see or fathom how life will play out. Personalities and possibly interests change as well when experiencing freedom for possibly the first time. Personally, I think I have many potential positive paths my future may take. By and large I am doing more of what I want to do and enjoyed before FIRE but I didn't plan to be a bike tour guide or try to learn guitar but that's my current "retired to."



My career as a cog in the bureaucracy was not very fulfilling and the only thing for me to miss was the pay and security but at what cost? For someone with their identity tied to "what they do," it may be different and they possibly could be rudderless and need a focus. Growign/evolving, contributing to something along with some struggle (maybe just improving your pickleball game) is important IMO for long-term happiness and while work may provide that there are so many other options.

 

[SJhawkins]

Totally agree. I think many that "retire to" something don't do that thing or not to the extent they fantasized. We evolve, the future is always uncertain, and when in the fog of work (https://www.early-retirement.org/forums/f30/the-fog-of-work-42328.html) it's even harder to see or fathom how life will play out. Personalities and possibly interests change as well when experiencing freedom for possibly the first time. Personally, I think I have many potential positive paths my future may take. By and large I am doing more of what I want to do and enjoyed before FIRE but I didn't plan to be a bike tour guide or try to learn guitar but that's my current "retired to."



My career as a cog in the bureaucracy was not very fulfilling and the only thing for me to miss was the pay and security but at what cost? For someone with their identity tied to "what they do," it may be different and they possibly could be rudderless and need a focus. Growign/evolving, contributing to something along with some struggle (maybe just improving your pickleball game) is important IMO for long-term happiness and while work may provide that there are so many other options.

Not to derail the thread but the above is well said.

A few years out yet, but when I think about our past retirement plans/ideas they are much different now from our 30s, 40s, etc. Now being mid 50s they are fair bit different from 50. I fully expect the "plan" to continually change.

One example, when in my 40s, reading about all the people in the go go years taking 2 one month trips overseas a year and 3 cruises a year sounded fantastic and was the dream. Today I have zero interest in a cruise or doing much of anything overseas. Will this change, it could, all part of lifes adventures.

 

[Gumby]

Ill look onto it, obviously I will not turn it down if I qualify. I am feeling better about this decision. At least no one said, what are you crazy. Or I'm too young and dont have enough money. My biggest fear is running out of $$$.

I was in the airport in Chicago when I last posted and unable to check my regular sources, so I thought I would follow up. In 2022, the maximum reduction in social security (Primary Insurance Amount) due to the WEP is $512 or 1/2 of your pension from your non-social security job, whichever is
a smaller reduction. The reduction goes down as your earnings and years in a social security contributing job go up. See https://www.ssa.gov/benefits/retirement/planner/wep.html.

The earnings amount to earn one Social Security credit in 2023 is $1640, and you can get a max of four credits per year. https://www.ssa.gov/oact/cola/QC.ht...of earnings required,"credit") used elsewhere. So, if you earned $6560 in a part time job (that pays into social security) in 2023, you would get four credits. The credit amount usually rises every year, so you'd have to earn a little more in 2024. You say you already have 30 credits, so by 2025, you'd have enough credit to receive social security, which as an inflation adjusted annuity is hard to beat.

 

[Slim11]

I will have to look into it more. I will likely get a part time job doing something eventually.

 

[cyber888]

Your mortgage is $2,400/month ?

I will have a pension of say 100k a year, no cola. Medical costs of say 700 a month. Lower morgage of 2400 ( for NJ thats with taxes and insurance so low ) , I

 

[Slim11]

Your mortgage is $2,400/month ?

Yes, thats what I said?

 

[cyber888]

Yes, thats what I said?

Oh ok. Looks like your pension covers that chunk of about $29K a year. I wish you the best.

 

[Slim11]

Oh ok. Looks like your pension covers that chunk of about $29K a year. I wish you the best.

Ah, lol. Thought I did something wrong. Lol. I keep crunching numbers everyday. It looks doable. Only big thing is the rise in medical plans this year. I still think it will be fine..stocks are slowly creaping back up, so some hope their. And the intrest rate on the home is pretty low at like 2.4 percent. The taxes are like 1k of that figure. I also am looking at moving to a cheaper state, but that may be in the future, like 10 years. I like the school district where I am and the taxes may be worth it just to take advantage of that.

 

[zl55lz]

Ok, so hello. I'm 49 and considering retirement in 6 months, as the title says. This is more of what I refer to as forced fire. I really dont want to retire but they merged my job and in one word, its awful now. So, staying isn't an option. Retirement at say 50 wasn't my plan. Fortunately, I think I can make due , even without working. I will have a pension of say 100k a year, no cola. Medical costs of say 700 a month. Lower morgage of 2400 ( for NJ thats with taxes and insurance so low ) , I have one wife who works part time and a 14 year old. I will not get SS. My money saved isnt bad and should last if I am smart. I have never budgeted, nor can I . Just something I never did. I have no other debts. Basically I am the last one that still carries and pays cash for stuff, if I dont have it in my pocket, I dont buy it. My questions, are , I am afraid of not working. And doing it so early is frightening. My skill set isnt a ton of use outside of my feild, and tbh my body is too beat up to do say physical stuff like I used to. And thats pretty much the only stuff I enjoy for work. My options are limited, staying at work will run me to an early grave, but retirement may bore my to death. Any insite, or advise. Or scolding is appreciated.

Many have responded about the financial aspects, and it sounds like you have done well and are doing a great job of thinking this through. I can't speak to anyone else's experience, but when I retired in my mid-50s I went from managing at high speed--everyday was feet hitting the floor at high speed--I'm sure you know this process. When I retired it did take about 6 months to "come down" from that decades long pace. I guess for me it was a normal process of my body physically adjusting. I have read of similar accounts elsewhere. I did not feel adjusted to retirement until about 1 year in. I felt it was important to be gentle on myself, to give myself time to adjust. I came from a very specific work skillset too, and have come to realize that people who can effectively manage employees in a caring manner are in my opinion rare and very valuable, so those of us who came from highly specialized skillsets and knowledge might still be desirable additions to other fields of work.

 

[Gotadimple]

I want to focus on your comment about what you would do in retirement. And recommend a book to read (probably available at your local library): How to Retire Happy, Wild, and Free by Ernie J. Zelinski. It does not focus on finance but does help you consider what you like to do, have an interest in, or might want to explore further.

You have to be happy with the path you will choose for yourself, and this book may give insight (it certainly did for me). Like you I was in a job that was changing and making the work I did meaningless. When I looked at my finances I realized I didn't need any more money, but I did need a less stressful life.

So explore other options. Leave on your terms - which also means set a date you are comfortable with, and at the APPROPRIATE time give notice. Give yourself about 6-months down-time afterward to decompress, and then start adding activities you know you will enjoy for yourself, and/or with your family.

- Rita

 

[pb4uski]

The SS thing is basicly a no go, its like a railroad retirement. So, even if I put my quarters in I will only get a fraction back, 40 percent maybe? I think I have 30 quarters in. I will get the medical at 65, just not the $$.

Will your wife be getting SS when the time comes?

 

[pb4uski]

Ah, lol. Thought I did something wrong. Lol. I keep crunching numbers everyday. It looks doable. Only big thing is the rise in medical plans this year. I still think it will be fine..stocks are slowly creaping back up, so some hope their. And the intrest rate on the home is pretty low at like 2.4 percent. The taxes are like 1k of that figure. I also am looking at moving to a cheaper state, but that may be in the future, like 10 years. I like the school district where I am and the taxes may be worth it just to take advantage of that.

Sounds like you might be using FIRECalc to crunch your numbers, if not, I would reccomend using it.

You will want to be careful entering your mortgage. Don't include your $2,400/month mortgage payment in your spending.. if the $2,400 includes escrow for property taxes and insurance then include those in your spending but exclude your monthly payment for principa and interest (P&I) because that payment is fixed and does not increase with with and it also ultimately ends when you mortgage payments end. If you include your mortgage P&I in your spending then FIRECalc will increase it for inflation eahc year and it will never end. So if the entire $2,400 is P&I, then under the Other Spending/Income tab enter a $28,800/year off-chart spending item beginning in 2023 that is NOT inflation adjusted. Also, enter a corresponding pension item beginning in the year that your mortgage ends of the same amount. This will include in outflows your annual mortgage payments with no inflation and they will stop when you mortgage stops.

Also, enter any SS that your DW is entitled to.

Finally, after you have run FIRECalc to see your success ratio, play with the Investigate tab, especially the last tiem to calculate your maximum spending with a 95% success rate.

Good luck.

 

[Slim11]

Thanks, I did have on in my spending perpetually . So that helps also. Yes, didnt count on the SS from the one wife ( lol). I do plan to take a year off, maybe take the camper and kid on extended trips this summer. It costs money, I know, but a lot less then a other activites. Camper and truck are paid off. Food is normal food cost. Just a bit of fuel and some money for campgrounds, state ones are a bit cheaper. So, it will not effect the bottem line. My retirement date is fixed in my mind, but each day I go onto work I tell myself, maybe I can trudge through this for another year. About 60 minutes into work, I say I am leaving on the date I set as this is not something I care to do anymore. I tried to stay, want to still work. But not like this. I can trully say I am not up to making this work for people that dont care about it, and take credit for what I do. Only thing I do care about is the other workers who will suffer when I leave. Because I will not be holding the place together with last minute saves. But that may be a good thing, as then others may catch on they made a mistake. Ok rant over. I will survive, may even get a less stressful job down the line, or maybe sit on my but and tinker with some hobbies. I do have things I like to do that will not cost me $$$. And I may find other things I enjoy. I dont need a lot to keep occupied. And as long as I dont start rebuilding the house, I should be ok. And thanks to all that gave me some reassurance. It was needed.

 

[Slim11]

Sounds like you might be using FIRECalc to crunch your numbers, if not, I would reccomend using it.

You will want to be careful entering your mortgage. Don't include your $2,400/month mortgage payment in your spending.. if the $2,400 includes escrow for property taxes and insurance then include those in your spending but exclude your monthly payment for principa and interest (P&I) because that payment is fixed and does not increase with with and it also ultimately ends when you mortgage payments end. If you include your mortgage P&I in your spending then FIRECalc will increase it for inflation eahc year and it will never end. So if the entire $2,400 is P&I, then under the Other Spending/Income tab enter a $28,800/year off-chart spending item beginning in 2023 that is NOT inflation adjusted. Also, enter a corresponding pension item beginning in the year that your mortgage ends of the same amount. This will include in outflows your annual mortgage payments with no inflation and they will stop when you mortgage stops.

Also, enter any SS that your DW is entitled to.

Finally, after you have run FIRECalc to see your success ratio, play with the Investigate tab, especially the last tiem to calculate your maximum spending with a 95% success rate.

Good luck.

Thanks for this. I didn't even think og the mortgage ending. Lol. Its so easy to miss a small thing that will have a large impact on the future. So much to consider.

 

[WhenIsItTime]

Probably varies by location, but might there be opportunities to use your skills in a less stressful environment? Maybe there is a smaller fire department within a reasonable commute? Maybe you could do grant writing on a fee basis. Paid training position? Could you qualify for a county hazmat type job? I only know these opportunities through in-laws in the field. I'm certainly not an expert.

It is important to have a plan for your time. There are options, but needs to be stuff you find engaging and worth getting out of bed for.

 

[Slim11]

Ok , so update, retirement is planned for August 1st of this year. Have time accrued to leave the last day of may. Still shacky on it. But , pension looks good and will come in at aprox 108k a year. I am living on 6800 a month now. So add in the discounted health insurance at 800 a month, thats 7600 a month. I pay 600 a month twords my morgage a month, so I'll scrap that. Leaving me with 7000 a month. 108k after taxes will be almost the same, maybe a bit more given no SS or medicare. And I also have 680k saved in accounts that generate 4 percent dividands or intrest. No plan to tap those for at lest 10 to 15 years , after that will be 30 to 30 k in interest only. Plus, house will be paid off in 10 years, so that will be a boost. Thanks to all who helped. And to make me feel better about this.

 

[Bigdawg]

Ok , so update, retirement is planned for August 1st of this year. Have time accrued to leave the last day of may. Still shacky on it. But , pension looks good and will come in at aprox 108k a year. I am living on 6800 a month now. So add in the discounted health insurance at 800 a month, thats 7600 a month. I pay 600 a month twords my morgage a month, so I'll scrap that. Leaving me with 7000 a month. 108k after taxes will be almost the same, maybe a bit more given no SS or medicare. And I also have 680k saved in accounts that generate 4 percent dividands or intrest. No plan to tap those for at lest 10 to 15 years , after that will be 30 to 30 k in interest only. Plus, house will be paid off in 10 years, so that will be a boost. Thanks to all who helped. And to make me feel better about this.

Congrats. All the #'s look good. It's only been 45 days for me but you will find the hardest part being "what do I do all day?" I am finishing up "How to retire wild happy and free" by Ernie Zelinski. Good book talks about mostly the non financial aspects of retirement. Good luck and thank you for your service.

 

[cyber888]

Ok, so hello. I'm 49 and considering retirement in 6 months, as the title says. This is more of what I refer to as forced fire. I really dont want to retire but they merged my job and in one word, its awful now. So, staying isn't an option. Retirement at say 50 wasn't my plan. Fortunately, I think I can make due , even without working. I will have a pension of say 100k a year, no cola. Medical costs of say 700 a month. Lower morgage of 2400 ( for NJ thats with taxes and insurance so low ) , I have one wife who works part time and a 14 year old. I will not get SS. My money saved isnt bad and should last if I am smart. I have never budgeted, nor can I . Just something I never did. I have no other debts. Basically I am the last one that still carries and pays cash for stuff, if I dont have it in my pocket, I dont buy it. My questions, are , I am afraid of not working. And doing it so early is frightening. My skill set isnt a ton of use outside of my feild, and tbh my body is too beat up to do say physical stuff like I used to. And thats pretty much the only stuff I enjoy for work. My options are limited, staying at work will run me to an early grave, but retirement may bore my to death. Any insite, or advise. Or scolding is appreciated.

That's workable. Your $2400/mo mortgage totals to around $29,000/year, so that leaves you with $71,000/year income with no mortgage, based on your $100,000/year pension.

Well, that should work if you can budget and not go beyond $70,000 for all other expenses excluding the mortgage.

 

[hopefullyoneday]

Why is your medical insurance so high? Does your work not cover you after retirement?

 

[captain3d]

I was n a similar situation. Job went away at 50 and I had enough to not work. Five years later I would say I am more bored than I would like.

You seem to suggest that you will not budget. Obviously that will have to change but only for n the simplest way. At least know what is available per month and don’t spend more. No one enjoys running out of money and wishing they had the awful job back.

 

[Slim11]

Why is your medical insurance so high? Does your work not cover you after retirement?

They cover very little.

 

[Slim11]

I was n a similar situation. Job went away at 50 and I had enough to not work. Five years later I would say I am more bored than I would like.

You seem to suggest that you will not budget. Obviously that will have to change but only for n the simplest way. At least know what is available per month and don’t spend more. No one enjoys running out of money and wishing they had the awful job back.

I may get a part time job, if I get really bored. But I will take a year off and do some stuff, hobbies, etc.

As for the buget, I take home only 6800 a month now, and thats fine to live on. This includes an extra 600 to the mortgage every month. I figure if I had too I could forgo the extra payment to the mortgage and its a wash. Granted things will go up, but i shouldn't need to touch my savings for 10 years, then pull 4 percent for the extra $$$.

 

[target2019]

Ok, so hello. I'm 49 and considering retirement in 6 months, as the title says. This is more of what I refer to as forced fire. I really dont want to retire but they merged my job and in one word, its awful now. So, staying isn't an option. Retirement at say 50 wasn't my plan. Fortunately, I think I can make due , even without working. I will have a pension of say 100k a year, no cola. Medical costs of say 700 a month. Lower morgage of 2400 ( for NJ thats with taxes and insurance so low ) , I have one wife who works part time and a 14 year old. I will not get SS. My money saved isnt bad and should last if I am smart. I have never budgeted, nor can I . Just something I never did. I have no other debts. Basically I am the last one that still carries and pays cash for stuff, if I dont have it in my pocket, I dont buy it. My questions, are , I am afraid of not working. And doing it so early is frightening. My skill set isnt a ton of use outside of my feild, and tbh my body is too beat up to do say physical stuff like I used to. And thats pretty much the only stuff I enjoy for work. My options are limited, staying at work will run me to an early grave, but retirement may bore my to death. Any insite, or advise. Or scolding is appreciated.

It's all about investments, accounts, and expenses. So add up and analyze each of the three parts. What you'll find is how much you need to draw from investments, and how long that will last. Obviously you must manage what is going on with the household, and the investments/earnings of each spuse.

You retire, and spouse continues working for awhile. That's a plus, insofar as it means you'll draw less from the total portfolio (both spouses).

If you really don't want to do this analysis, that you can pay a professional, or go into more detail and discussion on a forum like this.