Would you retire early if . . .

[coltsfan53]

You are 42 and your wife is 32. You have a high stress job (which you would love to discard) and your wife enjoys her $35k per year and 40 hours per week. You currently have no children but may have one child in the very near future.

Collectively, you have saved and invested to the tune of $1.55 MM and have a small pension many years down the road. Your home is worth $550k and has $340k left on the mortgage.

FIRE Calc shows an 88% chance of being able to spend $80k per year (but this figure can be cut drastically if the home is downsized, which is likely). With your wife keeping her day job for many more years, the withdrawal rate will be under the $80k need. If social security actually exists down the road then the picture is rosier.

I am wrestling with this scenario. The pragmatist in me says "relax, you have nothing to worry about. Do it." The part of me with the herd mentality says "keep marching," you have a "good (paying) job, so keep at it." Thanks for any input you might have.

 

[Walt34]

What are the chances of simply downsizing your job to one that you would enjoy more? You're "almost there" but it looks at this point finding a job - any job - that you would enjoy regardless of pay might be the best route to go.

The high stress job may kill you so that needs to go soon.

 

[coltsfan53]

Walt -- I am currently pondering a position within my brother's company which would come with much less stress. I figure if I can plug away and make $50k a year for the next 10 years, then that may be wisest for the long haul.

 

[rodi]

I wouldn't be really comfortable with 88%... especially at your age. How many years did you put in firecalc. Do you know that the longer the run, the more cycles it drops... so it's useful to run it for your actual planned retirement (50 years?) as well as for some shorter runs (30 or 25)...

There are a couple of members here who did retire with similar numbers... not sure if they had mortgages, though.

Does your wife's job provide health insurance? Do you have a plan if she decides to join you in retirement?

I started obsessing about ER when I was your age - but had less saved than you... It took me another decade to get to where I was comfortable to pull the cord, financially.

Good luck in your decision process.

 

[Derslickmeister]

42 and 32? Nope, not a chance I'm quitting with that mortgage and a young wife with a ticking biological clock. Find another, less stressful job, and keep on keeping on for another decade at least.

 

[Sea Kayaker]

Looking at your numbers, and having just ER'ed at 42 myself, I would say no, probably not prudent at this time.

That debt....

 

[brewer12345]

I pulled the plug in January with numbers and whatnot not too far from yours (albeit with 2 kids already here). I did so knowing that I was probably OK dollar-wise, but that due to my relatively young age I needed to be open to the right opportunity. So I had 9 months off and now I am about to start a 1 year contract job that was pretty much dropped into my lap by a buddy. I get to work from home 100%, travel minimally and negotiated a generous rate of pay (hey, I don't need the job so meet my price). When the year is up, it will be playtime again, at least until the next plum comes along.

 

[David1961]

42 and 32? Nope, not a chance I'm quitting with that mortgage and a young wife with a ticking biological clock.

+1

 

[FIREd]

I think that you are in a position to quit the high stress job but perhaps not retire completely. I think that you two should try to make enough money to cover your expenses and let the untouched nest egg compound for a few more years.

 

[nash031]

We have much in common: first, we're Colts fans; second, we appear to be the primary breadwinners intent on retiring early (around 42 for me); third, we're probably close to the same financial boat (at least when I hit 42) including mortgage remaining (our home value will be a bit higher) and total saved. Big difference is that I should have a sizable pension at that age. That's what would prevent me from retiring in your exact situation with those numbers - a lot of my income will be as "guaranteed" as it gets, whereas you'll be open to a lot more risk right after retirement.

Does your wife want to continue working? Have you thought about "downsizing" your job?

My wife may keep working and I may ER. She loves her job for the most part and makes healthy money. We could easily manage on her income and my pension without touching savings, but the goal would be to have more time together so not sure how long that would last.

Maybe part time as others suggested?

 

[coltsfan53]

Thanks for all of the thoughtful replies. Downsizing job/stress and home to the point of no mortgage/debt at all appears to be the winner. Plug away for the next 10 years and ER.

 

[Golden sunsets]

Coltsfan; Despite Firecalc's 88%, a withdrawal of more than 3%, at your age would be considered very risky. That would give you $46,500 plus your wife's salary. Are you suggesting that she would have a child and continue to work, while you stay home? I can't imagine the wife would go for that, but different strokes for different folks.

 

[coltsfan53]

She will continue to work; I will have money coming in from a couple of side projects. The aim for 10 years would be to minimize (preferably zero) withdrawals from the portfolio.

 

[haha]

Coltsfan; Despite Firecalc's 88%, a withdrawal of more than 3%, at your age would be considered very risky. That would give you $46,500 plus your wife's salary. Are you suggesting that she would have a child and continue to work, while you stay home? I can't imagine the wife would go for that, but different strokes for different folks.

At least and stay in the marriage very long. And what will op feel as a man, when his wife goes off to work with her breast pump and teary eyes and the baby screams?

Ha

 

[coltsfan53]

Hilarity ensues

 

[meekie]

Find a new job/career. I think you need a few more years of income to be safe, and I think you're more stressed from your job than ready to retire.

I recently read through What Color is your Parachute so I could rethink my job and what I want to do in life. (I'm 39). It really made it clear that I like helping people, and I like making things, neither of which I'm doing in my current job. I used to help people, but my job changed a lot in the last year, which has increased my dislike for it.

I'm going to be starting a home business making food, which will help fill my desire to make things. If it takes off, I can get out of megacorp.

 

[coltsfan53]

Find a new job/career. I think you need a few more years of income to be safe, and I think you're more stressed from your job than ready to retire.

I recently read through What Color is your Parachute so I could rethink my job and what I want to do in life. (I'm 39). It really made it clear that I like helping people, and I like making things, neither of which I'm doing in my current job. I used to help people, but my job changed a lot in the last year, which has increased my dislike for it.

I'm going to be starting a home business making food, which will help fill my desire to make things. If it takes off, I can get out of megacorp.

Meekie - I appreciate your thoughtful reply. I have heard of this book but have never picked it up. Many thanks.

 

[aaronc879]

I would sell the $550K house and take the $200K equity and buy a very nice house for around $175K. Indianapolis has some very reasonable houses in the $150K-$175K range. If you did that then I would say you could retire. Don't rule out doing some contract work or other part time work if it comes available.

 

[coltsfan53]

I would sell the $550K house and take the $200K equity and buy a very nice house for around $175K. Indianapolis has some very reasonable houses in the $150K-$175K range. If you did that then I would say you could retire. Don't rule out doing some contract work or other part time work if it comes available.

Aaron - we are going on the market with the oversized home very soon then looking to put equity into a 200-275k spot. You are correct in saying that Indy has some very affordable homes. I am absolutely doing something new and of my choosing -- when I think "retire" it is from Megacorp not from working in general. I desire freedom and flexibility above all else with those 50-60 hours per week. I guess I could have been clearer up front on that point.

 

[Walt34]

Meekie - I appreciate your thoughtful reply. I have heard of this book but have never picked it up. Many thanks.

I recommend What Color is Your Parachute? too. 25+ years ago I took a page from it and although I did not change employers, I did persuade my employer to create the job I wanted, for which of course I was perfectly and uniquely qualified.

It took three years (this was government after all) but worked like a charm. For almost a decade I was feeling "I can't believe they're actually paying me to do this!"

 

[daylatedollarshort]

I would downsize the house and not quit work 100% but downshift the career to something more enjoyable. It is a lot easier to downshift than completely ER at your age plus you will continue to contribute to Social Security for your later years. I went back to school around your age to update my tech skills to something I could do on contract / or self employment from home. It worked out well with the kids in school. I could do all the car pools, be the team mom and volunteer at school yet still bring in an income. In hindsight I wish we had also downsized and brought our kids up in a neighborhood with more middle class spending habits.

Some good reads on the subject, if you have not read them yet, are Plentitude by Juliet Schor (also author of The Overworked American and The Overspent American) and the classic Your Money or Your Life.

 

[MooreBonds]

I am wrestling with this scenario. The pragmatist in me says "relax, you have nothing to worry about. Do it." The part of me with the herd mentality says "keep marching," you have a "good (paying) job, so keep at it." Thanks for any input you might have.

Have you actually taken an inventory on what is so stressful about your job?

Realize that every job is imperfect - if it's not your clients, it's your boss. If not your boss, it's 3 co-workers you have. If not them, it's the commute. Or the horrible 40 year old building it's in. Etc.

If you take a long, soul-searching reflection on your job and just what exactly is stressful, you might come up with ways to reduce or even deflect that stress, and make it more palatable. Also, realize that even if you do get a different, lower-paying job.....would you be happier in having to work twice as long with a different set of aggrivators/stressors? The old "the devil you know is sometimes better than the devil you don't know".

Or, is it possible to get transferred or re-assigned to a different task/department? Might have a slight drop in salary, but if you make up some reason about your future child, wanting to have more time to spend with them, less stress, yada yada, they might go for it. Just be careful in how you word it.