|
Thinkin of retiring next month
06-28-2011, 03:35 PM
|
#1
|
Confused about dryer sheets
Join Date: Jun 2011
Location: Cocoa, Fl.
Posts: 1
|
Thinkin of retiring next month
I am gainfully employed at a large aerospace company with great job security. They turned down my voluntary layoff application two years ago, and even created a new position for me recently. But corporate has just announced another voluntary layoff program again. They are offering me a bonus of 6 1/2 months pay to accept a layoff and have stated that they probably will not turn me down again, although they want me to stay. I have a 5 year old son, a 41 year old wife who is going to junior college to find out what she wants to be when she grows up. She sold her business 5 years ago and has not worked since. I am not sure the colledge will help her in the job market with all the space shuttle workers with advanced degrees around here that have just been laid off. I have around $650K in my 401 with most in bonds, mid cap, and foreigh investments. Retirement pay is around 40% of current pay. At 59 it will be 3 years till I can draw SSI. Not sure I should retire now or slug it out for three more years or wait until health forces me out. I am a diabetic and recovered (16 years) alcoholic. No life insurance to speak of with little chance of getting some. I do have health insurance from work but it will be around $1200 a month. I would like some dfferent points of view from retireees out there.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-28-2011, 03:43 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 5,596
|
One of the critical pieces of information you need to analyze is your expense analysis - both pre and post retirement. I would also suggest you try the FireCalc link at the bottom of this page.
Good luck and welcome!
__________________
I purr therefore I am.
|
|
|
06-28-2011, 05:16 PM
|
#3
|
Full time employment: Posting here.
Join Date: Apr 2008
Posts: 702
|
Welcome,
I see that you have a son and a wife that are younger than the norm for a person of your age that appear to completely depend on you financially. You have to plan for that fact and realize some of the traditional rules might not apply in your case as your wife has 20 + years before she can begin to collect SS.
Your health seems to be a factor in this decision.
Don't let the buyout try to influence your decision too heavily. Aerospace jobs with stability are hard to come by.
Are you a candidate for disability?
|
|
|
06-28-2011, 05:20 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,693
|
Sounds to me that when you take SS at 62 your child and wife will also be able to collect.
This should give you about 4K a month which should make things a lot easier.
__________________
Work is something you do to get enough $ so you don't have to....Me.
|
|
|
06-28-2011, 05:53 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,340
|
Quote:
Originally Posted by 73ss454
Sounds to me that when you take SS at 62 your child and wife will also be able to collect.
This should give you about 4K a month which should make things a lot easier.
|
Why would the wife and kid get SS? Don't they only get it if he dies?
|
|
|
06-28-2011, 06:03 PM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Mar 2011
Location: North TX
Posts: 1,788
|
You didn't mention how much 40% of your pay is...we'll assume it's $40k. If you take out the $1200 monthly for insurance (you may want to look into a high-deductible plan for you and the wife...), you are left with $26k.
If you have expenses of $60k, you'll have to draw the additional $34k from $650k for 3 or so years. Once on SS, you should be fine unless you get deathly ill or something.
Unfortunately, your fam is quite young and susceptible to your future health probs. This is a tough one for me to give an opinion...
|
|
|
06-28-2011, 08:39 PM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
|
I would recommend you also enter your numbers here : Merrill Edge| See Where You Stand
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
|
|
|
06-28-2011, 08:46 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,693
|
Quote:
Originally Posted by aaronc879
Why would the wife and kid get SS? Don't they only get it if he dies?
|
It seems that if you are eligible for SS and have a child under 18 the child can receive SS. They then will pay your DW to take care of your child as long as she doesn't make more than 15K a year. I think that # is about right.'
I learned this when my neighbor took his SS at 62 2 years ago. He was amazed that he received SS money for his wife and underage child.
This country is crazy! Make children over the age of 45 and when you become 62 everyone else gets to pay to take care of the spouse and child.
If you're dumb enough to make children over the age of 45 you should take care of them, not your neighbors.
__________________
Work is something you do to get enough $ so you don't have to....Me.
|
|
|
06-28-2011, 08:59 PM
|
#9
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,693
|
Quote:
Originally Posted by obgyn65
|
Yeah, and if you're using Merrill make sure to save 50% more so you can afford to pay your advisor.
__________________
Work is something you do to get enough $ so you don't have to....Me.
|
|
|
06-29-2011, 02:45 AM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
|
Hello 73ss454 - the online tool is free.
Quote:
Originally Posted by 73ss454
Yeah, and if you're using Merrill make sure to save 50% more so you can afford to pay your advisor.
|
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
|
|
|
06-29-2011, 05:08 AM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
|
Don't make any decisions until you have created a comprehensive financial plan!
If you need to make a decision in the near-term (soon) and do not have the back ground to do it (i.e., educate yourself on the topic)... You may need some help.
Does your Mega Corp provide you with access to a financial planner as a company benefit?
If not, you might consider finding a fee based financial planner for some advice and to help you. Make sure you do your due diligence effort in selecting a financial planner. As you know from your professional experience (in your job) there is a range if skills, knowledge, and capability. You want to ensure that you selected the most capable (and honest) person available to you... yes, as in all fields, there are some number of incompetent to mediocre people in it... and a few dishonest ones!
|
|
|
06-29-2011, 06:18 AM
|
#12
|
Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,936
|
I'm not a retiree, yet. But as you are apparently doing,you should think long and hard about retiring now. With a non-working (i.e., no earnings currently coming in) spouse, a young child, and your health issues it would appear you need more than $650,000, and I say that without even knowing your current annual expenses.
Children are expensive to raise, and especially in your case you need to consider your health and how that might impact family finances.
|
|
|
06-29-2011, 06:33 AM
|
#13
|
gone traveling
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
|
Quote:
Originally Posted by chinaco
Don't make any decisions until you have created a comprehensive financial plan!
|
I agree.
Also, it might be a good idea to "measure yourself" (physiologically speaking) to see if your "number" will tempt you (or more specifically your young family) to just "have fun" in the early years of your retirement.
I only bring this up due to discussions I've had recently with my DW, concerning folks she are aware of who did not participate (other than have a 401(k) plan at work, with little knowledge of investing) who, upon retirement, saw this "pot of money" - for the first time available to them, and often the largest single asset, to be used for "immediate needs", in the first few years of retirement.
For many folks who approach retirement as a long-term exercise in money/investment management (rather than have it done "on automatic") the temptation to spend in the early years of retirement are great; especially when you have this "pent up desire" of not only having the freedom to do what you want, but also have a bit of money to live out your dreams. I believe this is especially a consideration since you have a young family, which may have desires/needs differenent than a typical "old couple" (such as DW/me ) are, and have fulfilled many of our desires along the way, as we grew older.
There are financial and physiological attributes to be considered in retirement, regardless of your age. Both are important to your (and your families) ongoing success - when you no longer have a paycheck.
Good luck to you.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|