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03-06-2014, 11:21 AM
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#21
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Recycles dryer sheets
Join Date: May 2011
Location: Austin
Posts: 375
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My planned last day will be June 2, 2023, when my younger kid graduating from HS.
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03-06-2014, 11:45 AM
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#22
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,375
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I also think spring is a good time. After the cold and winter have broke, the trees are budding out, bushes and flowers growing, it just seems like a good coincidence with starting a new phase of life.
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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03-06-2014, 11:59 AM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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I did it in summer. Perfect in the Midwest!
http://youtu.be/9LdIL5WCso8
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03-06-2014, 12:02 PM
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#24
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Dryer sheet wannabe
Join Date: Feb 2008
Posts: 15
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We only have some many Summers in our lives! I was not willing to give one more Summer to my employer. When to retire was a easy decision.
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03-06-2014, 12:11 PM
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#25
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,729
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Quote:
Originally Posted by Ready
It sounds logical, but does one every "achieve" FI that precisely? Even if I think I need $1M to be FI and I hit that number, the market could correct and go down 30% next month. So is FI your minimal number + 30%?
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Each of us defines financial independence in our own way. For me, it was having a reasonably good understanding of our current and projected spending needs and figuring that our portfolio was enough to fund it for the time we have remaining.
At least in my case, it was neither overly specific not a precise number but it was a threshold that i reached.
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03-06-2014, 12:13 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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I am planning on ~3/31/2016.
My long term incentive bonus will be paid 2/15/16. My performance bonus will be paid, if I get one, 2/28/16. I should have my 401K maxed out, currently $23,500, as I do 75% of my salary. I will be eligible for the company match that will equal 4% of my salary, but I will not get the match until the following January. So, the highest paid months of the year are the first two, and I may need a month longer to max out the 401K
In MN, it will be getting warmer, and it will be time to start doing ‘stuff’. Like buy a travel trailer of RV.
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03-06-2014, 12:19 PM
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#27
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,729
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Quote:
Originally Posted by steelyman
I did it in summer. Perfect in the Midwest!
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Summertime is always great.
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03-06-2014, 12:26 PM
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#28
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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Quote:
Originally Posted by MichaelB
Summertime is always great.
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What a great band - not much else to say!
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03-06-2014, 12:30 PM
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#29
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,698
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I thought about this as I was accelerating my ER plans in 2007 into 2008. Some of the issues raised by others here applied to me, some others did not but I saw other retirees handle them well.
I did not want to retire just before my annual (April) bonus, as others have mentioned. I also did not want to retire just before 12/31 because I would miss out on my annual company stock allocation. However, when I in 2007 reduced my weekly hours worked from 20 to 12 (and annual hours below 1,000 as a result), I became ineligible for additional company stock allcation. This removed the incentive to be employed on 12/31 and sticking around 3 more months after that for the April bonus.
So, as the pieces were falling into place in the middle of 2008, I had already received my April bonus and did not want to stick around until the April 2009 bonus. Furthermore, the markets were tumbling throughout that frightful year, so I wanted to leave before a big drop in the all-important company stock price (which at the time was evaluated quarterly, not daily). So I left in late October, a month after the third quarter stock price was announced (and it did not fall very much).
That weekly hour reduction from 20 to 12 happened to take effect on June 2, 2007, so I was able to remain in the company's group health plan (20 hours worked per week minimum) for that entire month before going on COBRA.
Two people I know made sure their last day worked was not on the first day of a new quarter because they would not receive their first pension check until the following quarter. My dad did this in 1994 when he retired, moving his termination date from July 1 to June 30. A coworker of mine did a similar thing in 2003 when he moved his termination date from October 1 to September 30. My dad was also just a hair under 18 months from going on Medicare (he was 63 1/2) so he went on COBRA for 18 months to preserve uninterrupted group health coverage or its equivalent. That was vital because my mom was being treated for cancer at the time.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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03-06-2014, 01:07 PM
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#30
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Recycles dryer sheets
Join Date: Jul 2013
Location: Villa Grande
Posts: 275
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For me, the precise timing (last July) was more about circumstances particular to my employment, and I would guess that is true for a lot of people. I wanted to leave on good terms with my former employer (where many of my close friends still work) and thus I did not want to leave the company in the lurch. So, starting in around April 2013 - when I had made the decision to RE - I looked for the right timing to do it. For me, the timing came with a rare break in the action at work. Nearly all my cases (I am a lawyer) were either wrapping up, or just getting started. I then could leave with a clear conscience that I was not dumping a case in anyone's lap that was going to trial in a month. Looking back now, I am glad that I had a few months of 2013 employment for the reasons already given -- IRA contribution and another year of SS payment. (I am 51).
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03-06-2014, 08:47 PM
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#31
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,301
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I did all the optimizations that other's have mentioned: make sure to get bonus (paid in jan), max out 401k (jan/feb), leave at the start of a month (for healthcare), take advantage of low marginal tax rates for the first part of salary.
Two other considerations we had were: (1) when we could sell our house and what was the optimal time for that and (2) what made sense for work. Actually I didn't really care about 2 but it was a factor for my wife.
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03-06-2014, 09:39 PM
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#32
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Posts: 1,089
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This is a very helpful thread for us who are on OMY.
Originally I plan to give notice as soon as my son leaves for college this summer. Now, I am thinking maybe stay few more month till next year around March: to collect bonus, max out 401K, and Roth, also, exercise the remaining stock options. I believe there is a 30 day limit after resigning before the options expire.
I am falling into the trap of another OMY.
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03-07-2014, 12:20 AM
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#33
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 265
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Don't forget to consider when you earn PTO at work (If you're in a state that requires employers to buy you out)
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03-07-2014, 04:11 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Nov 2008
Posts: 3,410
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When ever it feels right for you. In my case the college didn't have an annual bonus or any other incentives. My decision was to leave once the term ended so I wouldn't leave students with a sub for the remainder of the course. Anatomy and Physiology is difficult enough without "changing horses in mid stream".
Fortunately my retirement plans worked well enough so that I didn't have to sweat the "small stuff". I worried and worked enough during the frugal years so that I didn't have to base my decision on timing my retirement any more than considering market timing with my investments.
Cheers!
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03-07-2014, 04:56 AM
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#35
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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My vote is May, after I pay all my federal and state taxes.
__________________
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.
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03-07-2014, 05:23 AM
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#36
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,603
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April 1. Just in time to enjoy spring and get a head start on the yard work
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03-07-2014, 12:29 PM
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#37
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Thinks s/he gets paid by the post
Join Date: Apr 2013
Location: Ormond Beach
Posts: 1,407
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Towards the end of the year so I can maximize subsidies for ACA insurance in the new year - my plan is to retire around Dec. 1, either this year or next, then when I sign up on the exchange only state the investment income (way less than 200% FPL) I will have for the new year. That way I only have to buy COBRA or full-price exchange insurance for one month (or just don't buy and take a chance), then get heavily subsidized insurance with cost sharing the next year.
Yeah I know I'll probably have to justify the new income level etc., but the ACA changed everything for me.
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03-07-2014, 01:19 PM
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#38
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Posts: 2,288
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Every time there is a pension thread, a bunch of people say "pension? what's a pension?"
As a public employee with a pension let me add to this thread the following:
"Bonus? What's a bonus?"
"Stock options?" "Whats a stock option?"
"401k company match? What the hell is that?"
"Social security?" I thought SS was was the secret Nazi police
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03-07-2014, 01:37 PM
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#39
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2009
Posts: 5,308
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It may depend on what employee benefits are available.
When DH retired it made sense for him to retire in June and no other month was optimal.
Annual bonuses were paid in March for the prior year and he had to be there to receive them, so it made no sense to retire before March.
It might have made sense to retire in April, but in May he gained another year of service which increased his pension/lump sum. We ran the calculator he would receive the highest pension (or lump sum - his choice which) by retiring in June. If he retired after June, he received less money.
So, he retired in June.
Obviously, there can be other employee benefits that come into play depending on the specifics of the situation.
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03-07-2014, 05:47 PM
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#40
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Columbus
Posts: 1,118
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best time of year to ER?
Quote:
Originally Posted by utrecht
Every time there is a pension thread, a bunch of people say "pension? what's a pension?"
As a public employee with a pension let me add to this thread the following:
"Bonus? What's a bonus?"
"Stock options?" "Whats a stock option?"
"401k company match? What the hell is that?"
"Social security?" I thought SS was was the secret Nazi police
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I got a kick out of this! Yes theres two sides to every coin.
__________________
Ohio REFI PE ENG and Investor as of 2016
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