When to leave; Dec 2011 or Jan 2012?

[old woman]

7.65 not 5.65% in 2012 unless they renew the tax holiday.

[obgyn65]

To the OP - based on all the information you have shared so far above, I would wait until early 2012.

[pb4uski]

Quote:

Originally Posted by old woman 7.65 not 5.65% in 2012 unless they renew the tax holiday.

Oops - you're right - I forgot about the scheduled increase in SS in 2012. Thanks for the reminder.

It doesn't change the decision since it is a choice between over 29.45% if I take it in 2011 (1.45% SS + 28% marginal federal tax + state income taxes) or 7.65% if I take in in 2012 (7.65% SS + 0% income tax). Just makes the 2012 slightly less favorable.

[l2ridehd]

I chose to wait until 2012 and work just enough to complete 401K catch up of $5500 and max 401K contribution (only 50% allowed) during that time. By placing $2000 per paycheck (paid twice a month), 50% contribution to 401K which comes off of gross before catch up, I work until 2-15-2012 and will have contributed 100% of catch up, plus as much as possible to my 401K, while minimizing W2 income for 2012. Just what seemed to work best for me. 6 weeks more work for a big plus in the 401K. And I had 4 weeks vacation which I will take during that 6 weeks vs getting paid for it at the end. So really only two weeks working. Again to minimize 2012 W2 income.

You have to do what works best for you and maximize all potential advantages.

[chinaco]

Congratulations.

I am one who would be inclined to wait a few weeks if there was some real benefit to doing it.

[Tree-dweller]

I have the same flexibility, and similar considerations. I ran numbers (pension based on SS integration level), vacation cashout, etc etc. Then it dawned on me: I just wanted not to deal with any more Mondays than need be, and that meant "See Ya" at the end of November. Three more Mondays I can deal with, but no more. I wish you the best as you come to your own conclusion.

[Koolau]

I probably made a mistake in leaving when I did (before year's end), but I couldn't stand it anymore, so... I left some goodies on the table, so to speak.

But, I'm wondering if you already have travel (escape) plans in mind or if you will be stuck at home (either December OR January) looking out at snow for a couple of months. Personally, if I didn't despise my j*b, I'd wait until April or May when the weather turns nice(er) to make my escape. That way, you fatten your ER stash, pick up some benefits, maybe fatten future SS checks, etc., etc.

I'd be the last one to suggest you stay a minute longer than you need to if you hate your j*b. But, since you don't, you have a lot of flexibility. You could sort of "milk" the benefits for a few months while you make your final ER plans.

Just a thought. Congrats on at least pulling the hammer back. Be sure to let us all know when you pull the trigger. We love to party here.

[East Texas]

I took terminal leave instead of cashing out on the leave. This allowed me to get three months of salary every two weeks, employer paid health insurance, contributions to my 401K (including 6% employer), and access to other employee benefits. During those three months I was enjoying country life instead of working in the Megacity. Another benefit of being on terminal leave was not having the expenses associated with working - gas, clothes, etc.

Not all companies offer terminal leave. I'm just glad mine did as I was getting ready to retire. I had the best of all worlds for those three months.

I do like retirement. Wouldn't change anything at all.

[pb4uski]

Quote:

Originally Posted by Koolau ..... But, I'm wondering if you already have travel (escape) plans in mind or if you will be stuck at home (either December OR January) looking out at snow for a couple of months. .....

The snow doesn't bother us a bit. Plans for Jan/Feb/Mar are to get some things done around the house, get in some skiing, snowshoeing and snowmobiling, and go to a lot of college hockey games. We'll probably plan a get away in April after hockey and skiing is over and avoid "mud" season as we are about a mile in from the paved road.

[lowflyer]

I think the idea of pushing some of your income into 2012 sounds good to me.

From a purely non-financial standpoint, I don’t know what work is like around your place in December, but I seem to remember a lot of holiday events, potluck lunch things, a bunch of paid holidays and a general backing-off in the otherwise normal work routine. That made the holiday season not a bad time to work. If that is how it is for you, I’d opt for staying on (officially) till January and try to skate through the holidays without too much stress. Gives you something exciting to look forward to in January.

[pb4uski]

Quote:

Originally Posted by lowflyer I think the idea of pushing some of your income into 2012 sounds good to me. From a purely non-financial standpoint, I don’t know what work is like around your place in December, but I seem to remember a lot of holiday events, potluck lunch things, a bunch of paid holidays and a general backing-off in the otherwise normal work routine. That made the holiday season not a bad time to work. If that is how it is for you, I’d opt for staying on (officially) till January and try to skate through the holidays without too much stress. Gives you something exciting to look forward to in January.

Yup, exactly what I have in mind - just running laps at this point - not trying to win the race. (Though my boss might claim that I've just been running laps for a while now).

[mountaintosea]

I would suggest January 2012. I quit at the end of the year because I was fed up. If I had really thought about it I would have waited for tax reasons. But in the fury of the moment I retired quick. But it only hurt due to taxes and not much at that.