stepford
Thinks s/he gets paid by the post
I've been planning to retire at 55 for some time and at 53 am close enough to have a pretty good idea of what my resources will be at that time:
Assets: $2M (evenly split between 401K/IRA and taxable accounts)
Pension: $30K/yr (no COLA)
Home Equity: $500K (fully paid mortgage)
While I'm on track to achieve that I've just been "offered" an offramp at work (translation, given a layoff notice). The question is whether to take the layoff (and a significant severance benefit of ~$100K) or attempt to find additional work at my firm, avoid the layoff and continue for the remaining 2 years.
If I were to stop now both my assets and pension would be about 10% less than my estimates for age 55 given above. In addition, since the pension doesn't commence until age 55 I will have to live very frugally for the next two years or else partially drain the nest egg for living expenses. The question is whether the financial impact of leaving work early is worth more or less than 2 extra years of relatively youthful retirement.
More info:
My spouse still works at a secure job with compensation sufficient to cover all household expenses (and healthcare benefits for both of us). She expects to remain there for the next 5+ years.
As an aggressive saver my whole life I've kept my expenses low and rarely spend more than $50K/yr.
All my calculations say that I should be able to take my $100K parting gift and run for the hills, but I also know that I'd be leaving a very well paying job at the peak of my earnings and this decision will impact my quality of life for (potentially) the next 40-50 years (both parents lived well into their 90s).
So I'm in a bit of quandary. I've planned to retire early my whole working life and have as good an opportunity as I'm likely to get, but part of my frugal mindset has always been not to leave money sitting on the table. So it's a bit hard to just walk away.
Encouragement and/or cautions welcome.
Assets: $2M (evenly split between 401K/IRA and taxable accounts)
Pension: $30K/yr (no COLA)
Home Equity: $500K (fully paid mortgage)
While I'm on track to achieve that I've just been "offered" an offramp at work (translation, given a layoff notice). The question is whether to take the layoff (and a significant severance benefit of ~$100K) or attempt to find additional work at my firm, avoid the layoff and continue for the remaining 2 years.
If I were to stop now both my assets and pension would be about 10% less than my estimates for age 55 given above. In addition, since the pension doesn't commence until age 55 I will have to live very frugally for the next two years or else partially drain the nest egg for living expenses. The question is whether the financial impact of leaving work early is worth more or less than 2 extra years of relatively youthful retirement.
More info:
My spouse still works at a secure job with compensation sufficient to cover all household expenses (and healthcare benefits for both of us). She expects to remain there for the next 5+ years.
As an aggressive saver my whole life I've kept my expenses low and rarely spend more than $50K/yr.
All my calculations say that I should be able to take my $100K parting gift and run for the hills, but I also know that I'd be leaving a very well paying job at the peak of my earnings and this decision will impact my quality of life for (potentially) the next 40-50 years (both parents lived well into their 90s).
So I'm in a bit of quandary. I've planned to retire early my whole working life and have as good an opportunity as I'm likely to get, but part of my frugal mindset has always been not to leave money sitting on the table. So it's a bit hard to just walk away.
Encouragement and/or cautions welcome.