Retired Labor Day 2006

[OkieTexan]

Greetings!

I have been looking for a forum on early retirement; so here goes! I am 54 years old and ended a 27 year career with one company. I worked my way through high school and college and was fortunate to have a good long run with one company. We parted on good terms.

This company had no pension and had just started teir 401k plan when I went to work there. So, I started a 2 part savings plan, one is tax deferred; the other is not. Therefore, I have been investing and preparing for early retirement for over 25 years. As a result, I have a $1.35 M nest egg. It is in 70% stocks & funds, 25% bonds, & 5% cash. My home is paid off. My credit cards are paid off each month. Most are at zero balance. We have no children at home or to put through college.
I hope to draw somewhere between 2% and 3% to live on until I qualify for SS benefits at age 66. My wife is supportive of my decision to retire. She wants to continue to work for a few more years. She provides our health insurance coverage. We both enjoy good health and lead active lives.

I am active in volunteer work, a professional association, and have been offered some consulting opportunities if I want them. So far retirement has been fun most of the time. Out of a seven day week, I wake up on four of them thinking that I have truly arrived at my goal with a good plan for success. On two of those days I might think I need to go back to work especially if someone runs a guilt trip on me! On one of those days I think that I may have made a terrible mistake and need to rethink this whole thing! Most of my friends tell me this will get better with time.

For now though, I am enjoying freedom from the bondage of a job that was no longer rewarding. I am looking forward to a dialogue on this forum.

 

[TromboneAl]

Sounds like you're golden. Note that you qualify for SS at age 62 -- you can check threads here on the pros and cons of starting then or later.

 

[excellent]

Welcome to the forums Texan, and I'm glad to hear that your current situation in life sounds dandy. I wish you the best in finding rewarding things to do with your newfound freetime! (Have fun with the volunteer work!)

 

[Scout]

Now that you're retired are you going to decrease your risk by eliminating some of your stock exposure...or are you going to allow it to continue growing somewhat aggressively since your wife continues to work?
Do you enjoy traveling? Have you considered working part-time (very little) simply to fund some prodigal traveling without eating into your retirement dollars?
Congratulations!!! Sounds like you have tons of options.

 

[astromeria]

Congratulations and welcome, OkieTexan! I look forward to learning more about your investing style, retirement attitudes and activities, and your participation in our discussions. So--are you an Okie in Texas or vice versa?!

 

[Cut-Throat]

You've only been retired for 2 months. - I did not fully adjust for about 1 year. - Then the thought of a job was truly repulsive.

Think about delaying S.S. to age 70. It was pointed out to me, that I get to spend an extra $350K- $400K from age 62-70 and still be in the same portfolio position, if I had taken it at age 62. You are planning on age 66, so less for that age, but still more spendable money, if you don't plan on leaving it to somebody. A 'reverse' way of thinking about it I know. Delaying money, so you get to spend more! Although if you are only planning on taking 2 or 3%, you will probably die with a big Pile anyway.

 

[OkieTexan]

Sounds like you're golden. Note that you qualify for SS at age 62 -- you can check threads here on the pros and cons of starting then or later.

It does look pretty good right now. However, this is going to be an evolving process. SS is so far in the future, I have not even put it on a front burner. I have plenty of time to make that decision. I plan to study it carefully.

 

[OkieTexan]

Now that you're retired are you going to decrease your risk by eliminating some of your stock exposure...or are you going to allow it to continue growing somewhat aggressively since your wife continues to work?
Do you enjoy traveling? Have you considered working part-time (very little) simply to fund some prodigal traveling without eating into your retirement dollars?
Congratulations!!! Sounds like you have tons of options.

So far, the plan is to continue to grow the portfolio keeping a close eye on the beta and r2 numbers. I have taken some lumps over the years especially with technology issues; but some of those made a lot of money, too. Anyway, to answer your question, I am not planning to reduce my exposure to stocks right now.

 

[OkieTexan]

Congratulations and welcome, OkieTexan! I look forward to learning more about your investing style, retirement attitudes and activities, and your participation in our discussions. So--are you an Okie in Texas or vice versa?!

I grew up in Oklahoma and got to Texas as quickly as I could .

 

[OkieTexan]

You've only been retired for 2 months. - I did not fully adjust for about 1 year. - Then the thought of a job was truly repulsive.

Think about delaying S.S. to age 70. It was pointed out to me, that I get to spend an extra $350K- $400K from age 62-70 and still be in the same portfolio position, if I had taken it at age 62. You are planning on age 66, so less for that age, but still more spendable money, if you don't plan on leaving it to somebody. A 'reverse' way of thinking about it I know. Delaying money, so you get to spend more! Although if you are only planning on taking 2 or 3%, you will probably die with a big Pile anyway.

My dad didn't accept any SS checks until he had to. He was over 70. So your suggestion may be a good one. I spent the last 2 years whittling down expenses and paying off as much debt as possible. Part-time work is an option for later if I have problems filling up a day. So far, I wonder how I found time to work! We plan to take our annual trip to Cancun. We have a timeshare down there. I included our four annual travel excursions into my expense figures. We like to take driving trips; so they are not usually costly adventures.

 

[OkieTexan]

You've only been retired for 2 months. - I did not fully adjust for about 1 year. - Then the thought of a job was truly repulsive.

Think about delaying S.S. to age 70. It was pointed out to me, that I get to spend an extra $350K- $400K from age 62-70 and still be in the same portfolio position, if I had taken it at age 62. You are planning on age 66, so less for that age, but still more spendable money, if you don't plan on leaving it to somebody. A 'reverse' way of thinking about it I know. Delaying money, so you get to spend more! Although if you are only planning on taking 2 or 3%, you will probably die with a big Pile anyway.

I certainly don't consider myself "adjusted" for sure. The last book I read on retirement issues was by Lee Eisenberg; it's called "The Number". It set off an avalanche of internal dialogue about what retirement means to a man who has worked since he was in high school, worked his way through an undergraduate degree, and worked in a corporate culture prepared to send you out to pasture early. The book starts by noting the way we obsess on reaching that magic number that may spell out a financially independent future. Gradually, he gets into the things we will probably think about more. For example: our self image, our emotional security could be tied to our jobs, our marriages will change, and the decisions we make about how to accept our new roles in retirement will stay around for the rest of our lives. It was funny; yet insightful. (it was) Serious; but not frightening. In short, it was a good read.

I have noticed that it is difficult to talk to a lot of folks about retirement issues. Perhaps that will improve with exposure to forums like this one. One neighbor across the street seems to be very jealous since I retired. He moans about being overworked and says he "will never be able to retire". He probably thinks I am going to fix his house up for him, too! Friendships change; some go away. Co-workers I saw every day for many years have dropped out of sight. Fortunately, I have a well-balanced compliment of friends I met in other areas of interest. I am sure that "adjustment" will take some time!

 

[Cut-Throat]

Co-workers I saw every day for many years have dropped out of sight.

Actually, they probably say the same thing about you! - Have you called any of them for lunch? - I do on a regular basis.

 

[OkieTexan]

Yes, indeed. I have lunched with several of them. I am still on their email joke lists, too. There are only a couple of co-workers who seem to be stuck in sour grapes for some reason. Most of us will probably remain friendly since I retired.

 

[Martha]

I am afraid I might stay on some people's joke lists after I retire. New email address may be in order.

 

[Nords]

I am afraid I might stay on some people's joke lists after I retire.

One of my less-favorite shipmates tells me the only way he knows I'm alive is when I complain to him about his spam lame jokes urban legends chain letters witty, thoughtful e-mails.

He's 20 years older than me and still working, so I've been able to put up with it.