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05-20-2021, 03:15 PM
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#41
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Recycles dryer sheets
Join Date: Feb 2014
Posts: 330
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Go ahead and pull the trigger.
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05-21-2021, 03:29 PM
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#42
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Dryer sheet aficionado
Join Date: Sep 2019
Location: Enola
Posts: 46
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Congratulations on your success this far. I’d suggest a discussion with a CFP and tax accountant before making a firm decision. If your kids are still dependents and you plan to support their college expenses, pay for weddings, etc. you may want to continue to work. Your ability to earn is a huge safety net for the unexpected twists and turns of sending children into the world.
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05-21-2021, 04:32 PM
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#43
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Recycles dryer sheets
Join Date: May 2005
Location: In the fog of San Francisco
Posts: 261
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You can always stay on a year to year basis. Stay a year, then evaluate how things look/how you feel. If you want to leave then, do so, you've not invested too much extra time and you did get some financial benefit. If it looks like it might be best to stay another year, then do that, and re-evaluate at the end of it.
Actually, you might want to do the evaluations quarterly rather than committing to an extra year.
Our CSRS pensions were reduced for taking an early out/RIF opportunity. We've never regretted our decision to leave those 3 years early even if it did make a noticeable difference on our retirement income. Enough money is enough money, but that's a decision that everyone needs to make for themselves.
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05-21-2021, 05:01 PM
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#44
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Full time employment: Posting here.
Join Date: Mar 2019
Posts: 749
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Quote:
Originally Posted by Michael Moore
You can always stay on a year to year basis. Stay a year, then evaluate how things look/how you feel. If you want to leave then, do so, you've not invested too much extra time and you did get some financial benefit. If it looks like it might be best to stay another year, then do that, and re-evaluate at the end of it.
Actually, you might want to do the evaluations quarterly rather than committing to an extra year.
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+1
If this is purely a financial decision, just leave. If not, see above. You have plenty. You have 1.5M in after tax mutual funds and a 24K/year pension. Let's say you were to withdraw 4% per year from the mutual funds and let the 401/403/457 money grow. That's 60K per year which would give you 84K per year to spend or a $24K contingency above your current 60K/year living expenses. You are not going to outlive your assets given your lifestyle.
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05-21-2021, 06:47 PM
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#45
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,671
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Quote:
Retire now or in 6 years time.
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If you are not sure, why would you accept the advice of some folks you do not even know?
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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05-22-2021, 10:15 AM
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#46
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gone traveling
Join Date: May 2021
Posts: 85
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Because there are lots of really smart and experienced people on these forums and their collective advice is very valuable input.
I think your comment says more about your opinion of yourself than others :-)
Quote:
Originally Posted by mickeyd
If you are not sure, why would you accept the advice of some folks you do not even know?
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05-22-2021, 12:15 PM
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#47
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,927
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I think you know when you know. If you’re agonizing, keep working until you know.
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05-22-2021, 04:30 PM
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#48
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Recycles dryer sheets
Join Date: Jun 2011
Posts: 297
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Quick Answer: You have enough to retire. Quit if you don't like your job
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05-22-2021, 04:36 PM
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#49
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Moderator
Join Date: Jul 2017
Posts: 5,664
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Quote:
Originally Posted by ivinsfan
You use the word my, does this mean you are single? If so this means you don't have the first to die, what happens to the partner after worry to contend with. But then you say we will travel..?
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I also noted mention of "we" and "our" but no plan for the partner/ spouse.
__________________
Use it up, wear it out, make it do or do without.
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05-22-2021, 05:08 PM
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#50
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,135
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Quote:
Originally Posted by KingOfTheCheapos
Thanks. It's a job I've enjoyed a lot. It involves lots of travel and I set my own agenda and in principle I cannot get fired.
The problem is that certain expectations are required which I'm finding more and more trouble meeting and I would feel bad not meeting them. To be clear no else has to pick up my slack.
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I may have been in a similar situation back in 2012, when I first joined this forum (almost exactly 9 years ago, wow!) and started a "should I retire now?" thread. My Megacorp had put on the table an early-retirement offer that I was eligible for. I was 54 at the time. Most of the folks here said I could retire from the numbers. That was also in agreement with the Megacorp-provided financial planner. But... beyond the numbers, I still liked my job. Like yours, it required a lot of travel, but I had a good team, good management, skills that, in Megacorp's view, would be difficult to find in a single person, a lot of control, and "ridiculously" good (in my mind) compensation. But, I did not assume any of that would last. in my job, I would evaluate every 6 months my contribution, how I was perceived by others, and my "odds" of getting fired. For retirement, I continued to save and plan in case Megacorp did fire me (as they were doing regular rounds a couple of times a year). I also watched my health to ensure the job was not impacting it.
I retired six years later, in 2018. The job had changed enough so that, while the technical side was still fun, my team was smaller (down to 2 still expected to do the work of many more), the administrative side was getting sillier. There also seemed to be more project calls where there would be a "cast of thousands" to say they participated, but only a few of us actually doing the work. This actually was more boring than stressful to me . Over that time my pension payment increased by about 38 percent (to where it would cover our basic regular expenses), and our savings and investments almost doubled (positioning us into what many would deem "Fat FIRE"). At that point, it felt right to retire.
Two major-non work impacts were also a factor: in 2012 we still had one more child to go through college (payments ended in 2018), and my mother was still alive (in my culture you sacrifice to take care of your parents if needed - she died in 2014).
For, me and my circumstances, the additional years were worth it. I'm actually healthier now than I was in 2012. But these are my circumstances and not yours. Just sharing them to show you my thought process. Good luck in whatever you decide!
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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05-22-2021, 05:40 PM
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#51
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,809
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Quote:
Originally Posted by jollystomper
I may have been in a similar situation back in 2012, when I first joined this forum (almost exactly 9 years ago, wow!) and started a "should I retire now?" thread. My Megacorp had put on the table an early-retirement offer that I was eligible for.
<SNIP>
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My good buddy from w*rk had to make that decision - to stay or go with a "package." I wasn't old enough to be in the mix. My buddy (the one who is NOW half a million in debt at age 76!) didn't really want to go because they were paying him an almost obscene amount of money for the w*rk they demanded of him. It was enough to meet his life-style and even build up (IIRC) almost $20K in his 401(k) (don't know whether to laugh or cry at that! ). His pension would be "sweetened" a bit, he'd get some "cash" as well. He could also "borrow" some pension (lower his pension when SS kicked in at 62.) I think they called it something like "pension smoothing."
So Megacorp sent some "big boys" down to the plant site to sit in a room with the couple hundred eligible "packagees." Buddy described the dire warnings of management. "We don't know WHAT will happen to the company of you guys don't take the package. For certain, it WON'T be offered later if the decision comes down that we didn't get enough folks to take it. So you can leave now WITH the package or HOPE you don't have to leave - but definitely with OUT a package in 6 months. It's YOUR choice."
Stuff always leaks out and we knew that over 90% of eligible took the package - the "boys" were good at their scare tactics. What leaked out 6 months later - and we already knew it by experience, was that the "boys" were hoping for 75% participation. Because so many folks "rabbited" we were left critically SHORT of w*rkers in critical technical positions. Those of us who knew the science had to learn how to actually "do" the w*rk and fill in for years to come - Good news to the company was: WE were on salary, not hourly. The extra w*rk was "free" to Megacorp. Of course, nothing is truly free and Megacorp lost the loyalty of a lot of folks who used to sing the company song (you know what I mean) whenever someone whined about w*rking there. Nothing was ever the same again. YMMV
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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05-23-2021, 08:45 AM
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#52
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gone traveling
Join Date: May 2021
Posts: 85
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Quote:
Originally Posted by MarieIG
I also noted mention of "we" and "our" but no plan for the partner/ spouse.
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Fair point. I didn't want to complicate it but if we add my spouse into the mix then:
Retire Now: No pension and $1000 a month SS for them.
Retire in Six years: $2K a month pension and $1500 a month SS.
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05-23-2021, 08:56 AM
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#53
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gone traveling
Join Date: Sep 2003
Location: DFW
Posts: 7,586
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It looks to me like it's a no brainer for you to go now, but I would just advise making sure you know how you will spend your time in early retirement compared against how much you still enjoy your job.
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05-23-2021, 09:12 AM
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#54
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,953
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Quote:
Originally Posted by KingOfTheCheapos
Fair point. I didn't want to complicate it but if we add my spouse into the mix then:
Retire Now: No pension and $1000 a month SS for them.
Retire in Six years: $2K a month pension and $1500 a month SS.
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How does adding your spouse complicate it? It's important to make sure the last one standing will be OK money wise. For example your pension, it is 100% survivor, no survivor or somewhere in between?
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05-23-2021, 09:24 AM
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#55
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gone traveling
Join Date: May 2021
Posts: 85
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Quote:
Originally Posted by ivinsfan
How does adding your spouse complicate it? It's important to make sure the last one standing will be OK money wise. For example your pension, it is 100% survivor, no survivor or somewhere in between?
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Because you need to consider things like survivor benefits! We are both the same age and in same health (good).
If it helps my pension has a 25% survivor benefit for spouse and for children.
As my first spouse she gets all my SS.
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05-23-2021, 10:36 AM
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#56
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 1,594
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Quote:
Originally Posted by HawkeyeNFO
$2.7M available in funds to spend
$60k expenses, minus the $24k pension, so you need $36k.
Do you like your job? Because you don't need it.
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I think "can I retire" is easier to answer than "should I retire"
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05-23-2021, 10:39 AM
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#57
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gone traveling
Join Date: May 2021
Posts: 85
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Precisely, because retiring early means leaving $30K a year on the table in terms of retirement pension income and probably another $500K plus in disposable income.
I've been thinking what would that extra pension and disposable income get me in terms of really changing my lifestyle.
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05-23-2021, 10:45 AM
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#58
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,953
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Quote:
Originally Posted by KingOfTheCheapos
Because you need to consider things like survivor benefits! We are both the same age and in same health (good).
If it helps my pension has a 25% survivor benefit for spouse and for children.
As my first spouse she gets all my SS.
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That's a really low survivor benefit for someone your age....say you die one SS check goes away and the pension income is cut by 75%..
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05-23-2021, 10:53 AM
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#59
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 1,594
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Quote:
Originally Posted by KingOfTheCheapos
I've been thinking what would that extra pension and disposable income get me in terms of really changing my lifestyle.
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If the work is miserable it makes the decision easier. I stayed on longer than needed because I liked most aspects of working but I don't really have a use for the "extra" money. I probably should have retired and worked as a part time temp.
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05-23-2021, 07:09 PM
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#60
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Moderator
Join Date: Jul 2017
Posts: 5,664
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Quote:
Originally Posted by KingOfTheCheapos
Fair point. I didn't want to complicate it but if we add my spouse into the mix then:
Retire Now: No pension and $1000 a month SS for them.
Retire in Six years: $2K a month pension and $1500 a month SS.
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https://www.early-retirement.org/for...ire-69999.html
Certainly you have done a good job saving, but:
Is you spouse financially savvy, or does she just follow your lead? How would she react with no income if the market takes a big hit?
I have never heard of a benefit below 50%, without the spouse signing a waiver. Is there a higher benefit available?
What happens to the health insurance if you die first. Does your spouse need to take extra from savings to pay for it, or does she loose it altogether?
I suspect 60k a year in expenses is a tad low, with a million in real estate (can we say new roof, AC, boiler, tree needs to be removed, etc.); you do have cars; and you want to travel.
The education of the kiddos appears to be well funded. (There may be costs involved with them outside the scope of education, which at this point you are not considering, however when the time comes, you may wish to fund.)
Just because you both are in good health does not mean something won't happen to cut that short. If she goes first, your financial picture is only very minimally effected; but that does not appear to be the case for your spouse. There was a thread not too long ago about a hubby who fell off a ladder; and his wife who trusted him and signed a pension waiver, didn't have income to support the household. Now, your spouse certainly would not be destitute, but she deserves the same consideration that you would give yourself.
In the event my DH passed and didn't make arrangements for me to receive his pension, I would not be able to continue his health insurance. Now, in our case there is a very good chance that I ]will go first; but DH wanted me to be at ease so bit the bullet with the 100% joint and survivor - not withstanding savings. With my DH - I do have a small annuity (100% joint and survivor). BTW, in light of low interest rates I am not recommending one - but I would not buy (another) one that was not 100% joint and survivor.)
__________________
Use it up, wear it out, make it do or do without.
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