Time To Jump?

[skywalker]

Hi all,

Admitted lurker here, asking the question that many have asked before…is it time? Seriously considering January 2020 exit. Reason: The job has evolved into an unpleasant experience.
I’ve run the numbers through all the calculators, have diligently tracked expenses for the last five years and all indicators look green. That said, the decision feels a little like base jumping and hoping the parachute opens. Just a little apprehension.

Me: Age 57, GF age 54.

Adding to the apprehension: Leaving a 200k salary.

Current nest egg: 2.2m (60/40) + a home valued at 1M (HCOL). I view the home as an insurance policy to pay for LTC if the need arises. No heirs but do have a LTGF. Financially speaking, she has a NW equal or greater than mine. We track our finances separately.

Preferred budget: 75k after tax. Arrived at this number based on wants, spending habits and expected added retirement expenses. BTW, this number is just my budget, LTGF tracks her expenses separately.

What do you think?
• Numbers look good.
• Numbers look tight but reasonable.
• I’d stick it out another year or two, add some pad.

More info...

1. What are your expected expenses? Approx. 75k. Of that, about 25k is discretionary so my "get by" budget is around 50k.
2. 2. Are you sure those are your expected expenses in retirement? How will you pay for health care? Yes. 15.5k per year budgeted for health and Wellness.
3. Other expenses accounted for? No heirs but expect home/auto capital expenses at some point.
4. Lifestyle changes? Yes. More travel, more ski days.
5. What are your sources of income in retirement? If need be, I could freelance in the same profession.
6. Do you know what your pension really will be or are you just guessing? No Pension :-(
7. Have you gone to the Social Security Administration website to calculate how much you will get from social security? Yes.
8. Have you included taxes in your retirement income calculation? Yes.
9. What is your nest egg? See above (if needed liquidated to cover LTC)
10. Is there some reason to believe that you will not live to be at least 85? Cancer survivor, who knows?
11. Once you know the answers to all these questions, did you run your numbers through FIRECalc? Yes, and other calculators… 100% success to age 90

 

[Aerides]

Hah, I love your FAQ at the bottom (someone's read a few of these intro threads I see!)

You sound about ready - assuming DGF has her own budget and you share her lifestyle, so it's not like she's planning on a retirement on $30k per year, or $150k per year, and you are a good match financially.

Given your high income, you probably want to plot out where your comp peaks are each year and then pick one that leaves the least cash on the table - IE, after bonuses are paid for a year or quarter, after any other profit shares or 401k matches are made (my MC always required employment on the last day of the Q for the match, so when I was ER'ing early in the year I boosted my contribution that year to load up and complete in 1Q. Stuff like that, sometimes a couple of months or even weeks can make a massive difference.

 

[REWahoo]

100% success to age 90

What success rate do you get at 95? 100?

 

[Franklin]

Welcome skywalker! I like how you have answered the necessary questions! I sit here in an airport lounge and smile because it’s a pleasure trip rather than biz. Regarding your numbers you are ready to jump. I understand the hesitation because most of us have been in your shoes and taking the leap and giving up a good salary is something any sane person would ponder. But you seem to have enough assets and have run the numbers and asked the right questions. Tell the office goodbye and take the leap! This site and members will give you great advice so listen to them and make the call. Glad to have you with us .

 

[joeea]

Me: Age 57, GF age 54.

Current nest egg: 2.2m

Preferred budget: 75k after tax

You can easily generate $75k/year from $2.2m of assets with a reasonable asset allocation. Presumably at some point you'll have social security benefits coming which will make funding your budget trivial.

 

[MBAustin]

Looks like you are plenty ready to jump. You are not the only one here who was well and truly FI but hesitant to ER (me included). It was the good folks here who gave me the confidence to actually do it and I am ever grateful.

 

[euro]

good to go!

 

[Dtail]

You are good to go. Enjoy the best part of your life coming up.

 

[VanWinkle]

Pull the ripcord and enjoy the scenery- You appear to be good to go at any time.

 

[street]

Jump >> there should be no way you should drown.

 

[LakeRat1]

Stop with the procrastination and DO IT !!!!! Life is Gooder when Retired

 

[dtbach]

I retired at 58 with about the same assets (though without the GF with good assets also) and it's the best thing I've done in life (except the birth of my twin daughters!). Why not enjoy your good health for the next 15-20 years doing what YOU want to do. Looks like a very doable retirement. JUMP!!!

 

[HI Bill]

Asked and anwered! Welcome!

My only question is what would one or two more years give you that you want? Assuming you'd save and appreciate another $400K, would that improve your standard of living, or allow you to make a purchase of something that you've always been wanting, or allow you to do more travel? If the answer is that you'd be totally satisfied with your $75K budget, and lack nothing, and have a plan for emergencies, then go for it! At your earnings, SS should eventually pay a large percentage of your needs, even if it takes a 25% haircut!

 

[skywalker]

Thank you all very much, appreciate your responses. Will follow up when the decision is official.

• Response to Aerides. The timing does accommodate bonus and vesting.
• Response to REWahoo. 100%
• Response to HNL Bill. You are hitting a key point of apprehension. So hard to balance time vs security or the ability to afford a few extras. I guess that time and peace of mind are weighing heavier these days.

Mind blowing how fast life goes by.

-LS

 

[FreeBear]

What are you going to do all day? Sounds like you enjoy travel and skiing. I'd be gone yesterday with your $$. I wouldn't want to take my health for granted, especially for more physically demanding activity.

Is DGF planning to retire with you? Does it matter?

 

[HI Bill]

So hard to balance time vs security or the ability to afford a few extras.

Let's say the difference is $400K. If you wanted to buy a Lamborghini, would that purchase be worth two years of your life? For me, $400K would mean that my wife and I could take an additional 2 liveaboard dive trips annually. If I stay healthy enough to do 20 more years of diving after working to 55, the extra two years might be worth it (20 years x 2 trips = 40 trips). I now think about how much something costs in terms of my life span. Now, things like a Ferarri don't seem so important. What I'm personally struggling with is how much house we want to have, and how much additional work is required to buy the house, vs. a condo (Hawaii real estate prices).

 

[skywalker]

Hey FreeBear. DGF is considering retiring as well. I believe she is just waiting for to me to jump first.

 

[GalaxyBoy]

I suffered from OMY (one more year) syndrome for years. It IS much like jumping out of a perfectly good airplane, but DO IT!

 

[HarveyS]

my concern is $75k is after tax. Tax is not going away, though rate will go down as income drops. Factoring in federal and state taxes may make this closer than you would like.

 

[skywalker]

Hi HarveyS. You are correct that 75k after tax does not afford much pad. Do I wish I had another mil...yep. But at what cost? In my post you'll see that there is a reasonable delta between my nice-to-have budget and my getting-by budget. That and the ability to freelance gives me a bit more security. Hey look at me, defending my plan to retire. Was leaning on this forum to do that .

 

[trumpeting_angel]

I have OMY'd myself to age 66, this coming July. While I've been w*rking part-time the last few years, and left the fast-paced w*rk I used to do in favor of rural living and a somewhat gentler employment, I have put it off out of fear.

With rural life comes a long commute, and this year when it snowed, my commute became untenable. I can drive in the snow just fine, but an hour and forty minutes to get home was unacceptable. The other event propelling my decision was the birth of a granddaughter last May, who is growing up so fast I can hardly believe it. I'm not missing this one due to long hours at the office!

Warning: Making this decision makes the last few months incredibly difficult!

But truly, I can't wait.

 

[skywalker]

Awesome Trumpeting_angel. Sounds like you are already there. Best of luck with your somewhat-early retirement.

 

[Jerry1]

My situation is very similar to yours. I was able to work part time for a couple years which helped. I was at $200K and part time went to $125K and now, two years into retirement and my budget is $80K. The main thing that makes me feel good (secure) is that, like you, my necessities budget is about $50K. I say, jump in. The water’s warm. There’s a lot of help here as you learn to swim.

 

[trumpeting_angel]

I probably wouldn’t do it without the consulting. I’ll be able to keep padding for a couple of years, though it’s probably unnecessary.

But I have read so many posts here from folks who say they wish they had quit sooner! Time to get out. I’m officially on Medicare, that started 5/1. Funny, I don’t feel that old. Except Sunday and Monday, when we rebuilt a 10-foot stretch of stone wall. That hurt.

 

[skywalker]

Thanks Jerry1. Good to hear from folks in a similar situation. -LS