I feel overwhelmed and need advise.

[giovannicaldo]

Can I go part time?
Hi Everyone, I am new to this forum and thought I would get feedback for my current and future situation.
For the last 24 years, I have worked full time for a High School, and around four years ago I started a Handyman business, part time.
I am currently 53, and I would like to quit working full time from the School when I turn 55 but continue to work part time as a handyman, as I really enjoy the freedom of working for myself.
Because of the handyman business, I have been able too fully fund both my 403b and my 457 accounts from the School job and fund my SEP IRA from my handyman business.
Totaling $58k annually (Tax deferred), this brings my AGI low enough to also fund my Roth at $7K a year.
I will be eligible for a Pension at 55 and my income would come from the Pension and Business = $5k a month. I figure I can work until 59 ½ and then go fully retired at which time I can start withdrawing from my retirement accounts at the 4% rule and my Income would then come from my Pension and Retirement accounts, $6k a month.
I just wrote a check and paid off my mortgage, so I now am 100% debt free…So now how do I transition? What should be an exit plan? I feel overwhelmed and need advise.
What questions should I be asking myself, how should I be preparing?

 

[Bamaman]

Sounds as if you've already got a plan and have executed it well. My initial question is at 55 and in ER, can you make it without the income from the handyman job? Will you have ability to get healthcare thru ex-employer?

One good retirement job for someone with your skills and job background would be as a home inspector. I recently had go get one a couple of times @ $450 each time, and he could do a couple of inspections per day. Not bad money.

 

[njhowie]

Awesome!

Of course you can go part-time. Earning some income from a part-time gig is a good "hobby", especially if you enjoy what you're doing. What's best, is that it sounds like your handyman business is on you're own schedule...you decide if/when to work and for how long.

Freedom is what retirement is all about.

 

[ncbill]

Don't forget SS retirement if your (public?) pension "doesn't WEP them out."

 

[The Cosmic Avenger]

Sounds as if you've already got a plan and have executed it well. My initial question is at 55 and in ER, can you make it without the income from the handyman job? Will you have ability to get healthcare thru ex-employer?

One good retirement job for someone with your skills and job background would be as a home inspector. I recently had go get one a couple of times @ $450 each time, and he could do a couple of inspections per day. Not bad money.

Agreed, my two comments were going to be, is the pension enough for you in a pinch, and have you priced out health insurance at healthsherpa.com, or does your employer allow you to keep your insurance when you retire?

Not that I doubt your skills as a handyman! But I think it's prudent to be extra cautious if you're depending on part-time, freelance or contract income, so unless you feel that you have a stable of very reliable clients with very predictable needs, maybe run the numbers to think about what you would do if that business dried up. Could you cut spending and live on the pension alone? Increase your withdrawals for a few years until SS?

 

[Rianne]

Great plan and welcome! The handyman part time gig is self employment. So you will be paying the full boat of SS and medicare+income taxes. My DH has home based consulting and the SS/medicare kicks up our taxes.

 

[street]

It sounds like a great plan and if you are happy that is all that matters. Have fun doing what you like to do.

 

[brewer12345]

What are your expenses?

 

[mickeyd]

Are you married or single? If married, what is wife's retirement fund?


What will you receive from SS?

 

[Walt34]

If you haven't already seen it this is an excellent list of questions that you will want to have solid answers for before you make any irreversible decisions:

http://www.early-retirement.org/for...re-asking-can-i-retire-69999.html#post1399715

One thing to consider besides health insurance, which is no small matter itself, is what happens if your own health puts an end to the handyman income. That can change in a day (don't ask how I know) and you'll want to have at a minimum a solid "Plan B" and preferably a "Plan C" and "Plan D" as well.

 

[jazz4cash]

It sounds like a great plan and if you are happy that is all that matters. Have fun doing what you like to do.

+1
Sure doesn’t seem overwhelmed to me.

 

[redraptor]

Sounds like you have it handled. A good pension and an established business you can work as much or as little as you want. I would be researching health plans and counting the days.