An update on my ER situation.
I decided to wait until 55. I'm now getting fairly close. So I waited OMY. My plan is to leave at end of March 2017. I can use vacation to finish me out until my actual 55th birthday in June.
My financial picture has changed only a little. Instead of a $3.5 million nest egg it is now around $3.7. Expenses of $125-130 are still expected fully loaded. With some discretionary flexibility if needed. This year we have completed significant home remodeling which is nice to also get off our radar.
There will be no OMY for me. I'm leaving. I've already told my boss.
I know this is not as conservative as many folks here. I wish my plan was. I wish I had a nice pension rather than solely relying on distributions from the egg. But it's where I'm at.
I'm happy to listen to any further advice offered. Or just well wishes.
Thanks.
Muir
Muir-
Congrats!
Sounds like a well thought out decision. I wish I had seen this thread last year but, I will go ahead and add my thoughts, hoping some of them are useful. I think our situation is similar enough to yours for these to be worth considering.
1. For context, we use a variable WDR approach (Guyton-Klinger) with the option to partially annuitize if absolutely necessary (using Otar's zone concept). So, we have two adjustment mechanisms to exercise if required.
2. Develop a
written backup plan which includes adjustment mechanisms like those above (or whatever you feel comfortable with), as well as budget adjustments along the lines described below, in case things don't go well financially.
A. Planned (current) budget, which includes all essential & discretionary spending.
B. 'Plan B' budget if you have to cut back, which includes all essential and some discretionary spending.
C. 'Bare Bones' budget if necessary, which includes only essential spending.
3. Consider holding a 'cash' buffer. We hold 3-4 yrs in a CD/Bond ladder.
4. Set things up so that you can do some part time w*rk if necessary; perhaps with your former company or in that industry. I'm only 2 yrs FIREd and am still doing ~300hrs/yr of consulting work.
5. Complete (or set aside the $ for) all the standard $-eating things before you FIRE (house repairs, medical checkups/procedures, automobiles, tuition, etc.)
FWIW, we've followed our plan for 2 yrs and are doing well; NW > than on FIRE day. Best of luck (from someone who lives 10 mins from Muir Woods), and let us know how it goes for you after March 2017.