GalaxyBoy
Thinks s/he gets paid by the post
I need a push to get me to break out of my [-]bondage[/-] j*b and pull the trigger on FIRE. I'm fighting the "one more year" syndrome as well as just being too darn nervous about the uncertainty of taking the plunge. I've posted about this once or twice before, but I just can't make myself do it.
I'm 53, DW is 57 and FIREcalc gives us >95% probability of success spending what we live on now ($75k) for 40 years and assuming that SS is available to each of us at age 62 (we'll delay SS if it makes sense at that time but this seemed to be the more conservative assumption - if one believes in SS at all that is ). That spending level doesn't consider that our taxes will go down significantly without earned income, but does include the effect of no longer contributing to a 401k and tIRA.
I stand to inherit several hundred k from Dear Old Dad maybe within 10 years (longer, we hope!) but that's not included in the calculus - but maybe it shouldn't be ignored, either? I won't assume he won't have to run through his savings late in life, or just decide I don't need it.
DW RE'd a couple of years ago and gets a small pension that currently covers her healthcare premium with a pittance left over; I can be added to her policy for $6k/year at today's rates. I have no pension but we've always put the IRS maximum into 401k accounts which we've rolled over into IRAs when changing jobs.
But it's become clear that my engineering j*b is not what I want to do with the rest of my life - not with this company for sure. In fact, I've decided I just can't live like this. Too much travel, impossible government clients that refuse to be pleased, insane deadlines and corporate bean counters who watch every cent. Raises this year were around 1% and no bonuses were given, while the CEO's compensation went from $7M last year to $10M. They've now taken to scheduling meetings and deadlines on weekend days without even an "um, yeah, I'm going to need you to come in on Sunday too...that would be great..."
OTOH, for each year I delay FIREcalc says I can spend another $4k. A function of fewer years in retirement and fewer years without SS, I believe. But each year I delay is another year in bondage, another year closer to death - more like 1.5 years closer.
I think just typing this has helped me see what my course of action should be. But what have others who agonized in the same way done to get over this hump?
Perhaps as importantly, what should I be doing to prepare, especially financially? As it happens I'm sitting on some cash that should be invested and I'm wondering how much people generally keep liquid to cover expenses? One year of expenses? I've read the FAQ on preparing for RE, but Nord's great post is from 2006 and I'm not sure there's not something else I need to consider. I like the advice on maxing out healthcare benefits - I should get on the phone and make a bunch of appointments while I still can with reasonable co-pays.
There's really no such thing as "retirement" here - no counseling, no pensions, no filing retirement request forms - one just quits as usual. Part of me wants to finish this rather amazing project I'm working on, but it (and the insane PM and client) are the source of much of my stress. Another part tells me I should give a long notice as I'm somewhat specialized and may be hard to replace quickly (I really like my immediate boss and don't really want to screw him), but another part says the company doesn't give long notices when layoff time comes or asks if it's good timing, so why should I? Besides, I'm convinced they would work me like a dog as long as they have me.
Thanks to all. Sorry for rambling a bit.
I'm 53, DW is 57 and FIREcalc gives us >95% probability of success spending what we live on now ($75k) for 40 years and assuming that SS is available to each of us at age 62 (we'll delay SS if it makes sense at that time but this seemed to be the more conservative assumption - if one believes in SS at all that is ). That spending level doesn't consider that our taxes will go down significantly without earned income, but does include the effect of no longer contributing to a 401k and tIRA.
I stand to inherit several hundred k from Dear Old Dad maybe within 10 years (longer, we hope!) but that's not included in the calculus - but maybe it shouldn't be ignored, either? I won't assume he won't have to run through his savings late in life, or just decide I don't need it.
DW RE'd a couple of years ago and gets a small pension that currently covers her healthcare premium with a pittance left over; I can be added to her policy for $6k/year at today's rates. I have no pension but we've always put the IRS maximum into 401k accounts which we've rolled over into IRAs when changing jobs.
But it's become clear that my engineering j*b is not what I want to do with the rest of my life - not with this company for sure. In fact, I've decided I just can't live like this. Too much travel, impossible government clients that refuse to be pleased, insane deadlines and corporate bean counters who watch every cent. Raises this year were around 1% and no bonuses were given, while the CEO's compensation went from $7M last year to $10M. They've now taken to scheduling meetings and deadlines on weekend days without even an "um, yeah, I'm going to need you to come in on Sunday too...that would be great..."
OTOH, for each year I delay FIREcalc says I can spend another $4k. A function of fewer years in retirement and fewer years without SS, I believe. But each year I delay is another year in bondage, another year closer to death - more like 1.5 years closer.
I think just typing this has helped me see what my course of action should be. But what have others who agonized in the same way done to get over this hump?
Perhaps as importantly, what should I be doing to prepare, especially financially? As it happens I'm sitting on some cash that should be invested and I'm wondering how much people generally keep liquid to cover expenses? One year of expenses? I've read the FAQ on preparing for RE, but Nord's great post is from 2006 and I'm not sure there's not something else I need to consider. I like the advice on maxing out healthcare benefits - I should get on the phone and make a bunch of appointments while I still can with reasonable co-pays.
There's really no such thing as "retirement" here - no counseling, no pensions, no filing retirement request forms - one just quits as usual. Part of me wants to finish this rather amazing project I'm working on, but it (and the insane PM and client) are the source of much of my stress. Another part tells me I should give a long notice as I'm somewhat specialized and may be hard to replace quickly (I really like my immediate boss and don't really want to screw him), but another part says the company doesn't give long notices when layoff time comes or asks if it's good timing, so why should I? Besides, I'm convinced they would work me like a dog as long as they have me.
Thanks to all. Sorry for rambling a bit.