...hopeful for getting out 2022

[JeffyD]

Hi to all FIREd and FIRE hopefuls!
I am a 57yo engineer, hoping to pull the trigger very soon. Like others, I'd like to wait until covid and the covid economy plays out before I do so. The BS pail is full, and the tolerance pail is rather empty at w*rk. I REALLY need to get out from behind the desk, and get outside...

My details: I have been the saver/planner in our family. My 55yo DW is the spender. Somehow over the last few decades, we've struck a balance and have been lucky enough to reach some significant milestones. Staying healthy has been at the top of that list. Accumulation of a nest egg also seemed to happen over the years, I had doubts whether I could ever get there. I thought I'd join this forum after lurking for a while and both get some nagging questions answered by others while maybe giving some back to aspiring early savers that might be needing encouragement. I've learned some stuff over this long journey.

My financial details:
The bad: No pensions, no real estate investments outside of our home.
The good:

• Just hit $2.5M invested, $3.0M net worth (My targets)
• No debt outside of a winding down car payment, free and clear on the house.
• 70% stocks, 25% bonds, and 5% cash
• $1.7M in deferred 401Ks, $415K after-tax, long- term capital gain eligible, $390K in tax free ROTHs, HSAs, or cash

Expectations for annual retirement spending is $90K ish, but we're still trying to clarify/negotiate this. Firecalc says go for it, I-ORP says go for it, and my own tweaked Monte Carlo says go for it. I think it is time.

Our pre-medicare health care will be fairly low expense, as I will get a company-subsidized plan until we are 65. Very lucky there...
My DW will continue contract work for several years, helping to ensure making sure our two boys make it out of college. (most all of this is already accounted for thankfully) SS will assist when the time comes.

In my thirties, I was seriously nervous that I would never have a big nest egg. As some encouragement to the more younger FIRE hopefuls, I offer my investment curve here, covering the last 25 years. The flat spots are those times when I couldn't bear looking at it. At 33, I had <$100K NW. I saved, it grew, and compounding made it grow fast. After every raise, I increased saving, putting most bonuses back into my egg. It happens...trust me.

Anyhoo, thanks to the many posters here, and I look forward to more conversations from you good people.

[disneysteve]

Welcome!

Quote:

Originally Posted by JeffyD I am a 57yo engineer, hoping to pull the trigger very soon.

I'm a 57 yo doctor, same story.

Quote:

The BS pail is full, and the tolerance pail is rather empty at w*rk.

I love this! I can so relate to it on every level.


Your numbers look good (and quite similar to ours), especially since you'll have healthcare (which we will not).



Keep us posted.


Personally, I gave notice last month to drop to part time which will become effective by December 1. My plan is to see how that goes and see if it helps refill the "tolerance pail". If not, I may drop to just per diem by early next year and pretty much be done unless I choose to pick up a shift here and there.


Good luck to you.

[Dtail]

Good job. Sounds like the numbers are fine and assuming some social security added in.
I retired at 57 and haven't looked back. Not in contact with any former work folks and I liked my job.

[JeffyD]

Quote:

Originally Posted by disneysteve I gave notice last month to drop to part time which will become effective by December 1. My plan is to see how that goes and see if it helps refill the "tolerance pail".

I briefly considered offering some sort of 1/2 time arrangement to help out with a transition at least. However, without giving an actual retirement date, I have been telegraphing my retirement for two years now...They have done little to download my job knowledge, and I am feeling less and less sorrowful about any predicament they might find themselves in.

Thanks for the well wishes. The same back to you.

[CSdot]

You had a great start those first 4 years.

With the level of growth, I am imagining a tech heavy stock portfolio for most of those 25 years. Is the current 70% stocks, 25% bonds, and 5% cash being a more recent reallocation?

Also, what graphing program are you using?

[JeffyD]

Quote:

Originally Posted by CSdot You had a great start those first 4 years. With the level of growth, I am imagining a tech heavy stock portfolio for most of those 25 years. Is the current 70% stocks, 25% bonds, and 5% cash being a more recent reallocation? Also, what graphing program are you using?

I never invested in tech. My after-tax portfolio has been almost exclusively large cap (Berkshire, Disney, J&J, Pepsi, etc), and my 401Ks was closely equal weights of S&P500, small-cap, mid-cap, and foreign stocks, all index funds.



You're right about the recent re-allocation. Retirement investments as a whole WAS probably 95% stocks until last year, when I decided that I really wanted to pull the trigger, and needed to relax the investment strategy a little.



The graph is just a capture from Excel.

[JeffyD]

I take that back. Way back in the late 90s, I did work for a tech company, and had a small number of stock options that added up nice for those first years. I have been out of that position for 20 years. It slipped my mind...

[CSdot]

Quote:

Originally Posted by JeffyD I never invested in tech. My after-tax portfolio has been almost exclusively large cap (Berkshire, Disney, J&J, Pepsi, etc), and my 401Ks was closely equal weights of S&P500, small-cap, mid-cap, and foreign stocks, all index funds. You're right about the recent re-allocation. Retirement investments as a whole WAS probably 95% stocks until last year, when I decided that I really wanted to pull the trigger, and needed to relax the investment strategy a little. The graph is just a capture from Excel.

You inspired me to created my own graph (using my 401k/IRA and ROTH numbers) and the line on my graph looks very similar. My tax sheltered retirement investing was similarly divided four ways into mutual funds.

[HI Bill]

Quote:

Originally Posted by JeffyD ...I'd like to wait until covid and the covid economy plays out before I do so. The BS pail is full, and the tolerance pail is rather empty at w*rk. I REALLY need to get out from behind the desk, and get outside...

Welcome! If you've nailed down your ER expenses [this concerns me: "Expectations for annual retirement spending is $90K ish, but we're still trying to clarify/negotiate this"], and FIRECALC says you're good to go, just go! I waited a year after the first COVID shut down hit my state. I'm enjoying just being on a new island (for me), working around the house, going to the beach, volunteering, and scuba diving. Couldn't be much happier. I'm making unplanned upgrades to the home theater.... Go for it, now, not later. You can never get those healthiest lost years back!

[monte1022]

Hello

I think your numbers look fine especially if you both have decent SS numbers. We are 55/52 with both leaving our careers Dec 22. Currently at 3225k (50/40/10) invested with a goal of 3500k and a target NET spend of 90k/yr. No pensions or real estate besides primary home either. You have three things that we do not.

1. You are both older meaning fewer years to fund.
2. You have company health insurance and we will be using the ACA.
3. Your spouse will continue to earn income.

Our base just getting by budget is ~50k/yr. The other 40k will be for ACA, travel, etc. Just make sure that YOUR 90k/yr has some wiggle room.

Our numbers come from spending habits per MINT, ACA costs per healthcare.gov, and a rough guess on travel expenses. Some of the 40k is allocated to things like car replacement, home maintenance, etc.

Good luck. I am excited for you.

[rodi]

If it gives you more confidence - I retired younger with less. Our spend (inclusive of taxes/healthcare) was about $90k. But we had hubbies SS and some rental income and <$500/mo pension.

My point is - you are sitting pretty. Especially since your wife will continue to do contract work till the kids graduate college.

I fully understand the BS bucket overflowing - that's what triggered my retirement a few years earlier than I planned.

Congrats on getting to the point you have the option (savings) to pull the plug when that last cupful of BS pours into the BS bucket and tilts you all the way to retirement.

Welcome to the forum.

[Jim59]

I’m not “hopeful” of getting out in 2022, I am getting out. Last working day will be April sometime with official retirement in Early May.

3 days a week until end January then 2 days. As others have said re BS, I’m coping at the moment by effectively deflecting or ignoring it. What can they do ?

I want to leave with good memories I have over a 45 year career. However, I know I can leave when I want to, on my terms.

[Koolau]

Quote:

Originally Posted by Jim59 I’m not “hopeful” of getting out in 2022, I am getting out. Last working day will be April sometime with official retirement in Early May. 3 days a week until end January then 2 days. As others have said re BS, I’m coping at the moment by effectively deflecting or ignoring it. What can they do ? I want to leave with good memories I have over a 45 year career. However, I know I can leave when I want to, on my terms.

That's the best feeling. I was financially independent several years before pulling the plug. When I (suddenly) decided, there were no more questions of "IF" - only when (when my saved vacation ran out was the final answer.)

[RetireeRobert]

Quote:

Originally Posted by JeffyD Hi to all FIREd and FIRE hopefuls! I am a 57yo engineer, hoping to pull the trigger very soon. Like others, I'd like to wait until covid and the covid economy plays out before I do so. The BS pail is full, and the tolerance pail is rather empty at w*rk. I REALLY need to get out from behind the desk, and get outside... Expectations for annual retirement spending is $90K ish, but we're still trying to clarify/negotiate this. Firecalc says go for it, I-ORP says go for it, and my own tweaked Monte Carlo says go for it. I think it is time.

Congratulations! Go for it!

[brydanger]

Quote:

Originally Posted by JeffyD Hi to all FIREd and FIRE hopefuls! I am a 57yo engineer, hoping to pull the trigger very soon. Like others, I'd like to wait until covid and the covid economy plays out before I do so. The BS pail is full, and the tolerance pail is rather empty at w*rk. I REALLY need to get out from behind the desk, and get outside...

Sorry... but what are you still doing there??

You aren't happy, the BS pail is full/tolerance pail empty - meaning youre likely high stress and taking years off your life... and if anything Covid should be the writing on the wall to ALL of us that life is short, things are out of our control and it can all be taken away in an instant.

What if covid lingers on for another decade... will you keep watching/waiting to see how it all plays out?
What if you or someone you love gets it or some other illness in the same time? Will it make you wish you had gone and spent every day doing something different than watching/tending the retirement account?

You can always make more money... but you cant make or buy more time.