slowsaver
Recycles dryer sheets
I’ve just completed a 1 month vacation/sabbatical, which I earned by working for 16 years at a tech company. I made a point to use this time to “practice” retirement, by not taking exciting trips — just seeing if I can stand not being as busy. Well, I think I passed with flying colors, and really don’t want to go back to work anymore.
I’d like to tell my boss to lay me off in the next round (good severance package based on my 16 years service), but also tell him I’m not willing to wait more than 7 months for the package. This would put my end-date sometime between now and early March. (March end date would allow me to fill-up my 401k one last time, plus cash-in some RSUs — but I’d rather get the severance package earlier.)
Please review my plans and let me know if I’m missing anything.
I’m 49 and my DH is 59 (already retired 4 years). Both healthy. No children.
Spending: For the last 10 years, we’ve spent an average of $59,552/year. The most recent year was $73,773 though. None of this includes healthcare costs, due to my insurance through work. Through CoveredCA, I found a bronze Kaiser HDHP with HSA with an out of pocket max of $7k (individual) or $14k (family). Our MAGI for 2022 (after deducting W-2 income) would have been $55k, which would give us this plan for $0.00/mo. But if we sell/earn enough to cover our most recent level of spending, then potentially our premium would be as high as $2,500/year.
I’m going to guess only one of us would get very sick in 1 year, so let’s say $9500/yr for health care ($7k OOP max + $2500 premium), worst case. (Whatever we don’t spend could go into the HSA.) So my annual spend with health care is $83,273/yr.
Taxes: I’m guessing an additional $6474/yr federal taxes and $2k/yr state taxes (California), using this calculator: https://www.forbes.com/advisor/income-tax-calculator/california/ (Does anyone have a link to something that would estimate this better? This sounds low to me.). Total spending with tax would be $91,747.
Assets:
Paid-off house worth $1.8M, but let’s ignore that since we aren’t moving (until we go into a CCRC in 20 years).
I have $3.8M liquid assets, with $1.1M of that locked up in 401k/Ira/Roth plans. My target AA is 60% stocks, 40% bonds. In reality, I have 5% cash (CD/MM), 37% bonds, 58% Stocks these days.
Last check, DH has about $2.5M, but I don’t manage his money. Basically, he pays half of our big expenses (taxes, vacation packages, house repairs, etc) and also puts $1500/mo in our joint account for everyday shared expenses. Despite my nagging, he mostly holds cash, CDs and municipal bonds (except for his 401k). He spends almost nothing on himself. He’ll probably inherit $1-2M when his 81 y.o, mom dies. I’m going to ignore his money for the sake of this exercise.
According to firecalc ($91,747 spend, $3,827,917 portfolio, 50 years left, 58% equities (0.08% expense ratio), retire in 2024) = success rate of 100.0%. My Fidelity Retirement Score (FRS) is 136.
Anything else to consider?
I would like to tell my manager my plans next week, so he would have 7 months notice. Most of my friends tell me NOT to tell him that early, and just give 2 weeks notice. Thing is, I would LOVE to leave earlier with a severance package, and might not get “chosen” if people don’t know I plan to quit soon. Thoughts?
I’d like to tell my boss to lay me off in the next round (good severance package based on my 16 years service), but also tell him I’m not willing to wait more than 7 months for the package. This would put my end-date sometime between now and early March. (March end date would allow me to fill-up my 401k one last time, plus cash-in some RSUs — but I’d rather get the severance package earlier.)
Please review my plans and let me know if I’m missing anything.
I’m 49 and my DH is 59 (already retired 4 years). Both healthy. No children.
Spending: For the last 10 years, we’ve spent an average of $59,552/year. The most recent year was $73,773 though. None of this includes healthcare costs, due to my insurance through work. Through CoveredCA, I found a bronze Kaiser HDHP with HSA with an out of pocket max of $7k (individual) or $14k (family). Our MAGI for 2022 (after deducting W-2 income) would have been $55k, which would give us this plan for $0.00/mo. But if we sell/earn enough to cover our most recent level of spending, then potentially our premium would be as high as $2,500/year.
I’m going to guess only one of us would get very sick in 1 year, so let’s say $9500/yr for health care ($7k OOP max + $2500 premium), worst case. (Whatever we don’t spend could go into the HSA.) So my annual spend with health care is $83,273/yr.
Taxes: I’m guessing an additional $6474/yr federal taxes and $2k/yr state taxes (California), using this calculator: https://www.forbes.com/advisor/income-tax-calculator/california/ (Does anyone have a link to something that would estimate this better? This sounds low to me.). Total spending with tax would be $91,747.
Assets:
Paid-off house worth $1.8M, but let’s ignore that since we aren’t moving (until we go into a CCRC in 20 years).
I have $3.8M liquid assets, with $1.1M of that locked up in 401k/Ira/Roth plans. My target AA is 60% stocks, 40% bonds. In reality, I have 5% cash (CD/MM), 37% bonds, 58% Stocks these days.
Last check, DH has about $2.5M, but I don’t manage his money. Basically, he pays half of our big expenses (taxes, vacation packages, house repairs, etc) and also puts $1500/mo in our joint account for everyday shared expenses. Despite my nagging, he mostly holds cash, CDs and municipal bonds (except for his 401k). He spends almost nothing on himself. He’ll probably inherit $1-2M when his 81 y.o, mom dies. I’m going to ignore his money for the sake of this exercise.
According to firecalc ($91,747 spend, $3,827,917 portfolio, 50 years left, 58% equities (0.08% expense ratio), retire in 2024) = success rate of 100.0%. My Fidelity Retirement Score (FRS) is 136.
Anything else to consider?
I would like to tell my manager my plans next week, so he would have 7 months notice. Most of my friends tell me NOT to tell him that early, and just give 2 weeks notice. Thing is, I would LOVE to leave earlier with a severance package, and might not get “chosen” if people don’t know I plan to quit soon. Thoughts?
