How did you decide to FIRE?

[rk911]

If you FIREd, how did you time quitting work with your desired asset level? Right away?
Wait a year for security?
Worked a few more years for some economic benefit such as a pension?

All options are on the table for me, not sure how to handle it.
THanks

we decided to RE...actually retire as soon as possible...many, many years before we did. being young and naieve we did not set specific goals just a desire to be FI asap. we didn't know how or when but we were confident we'd get it done in our 50's. at that point in life...early 30's...we were somewhat debt free. still had a mortgage and a car loan but no CC debt. started paying cash for cars in '95 and paid off the house in '03. we had been investing since '82 but we kicked that into high gear in '84 or '85 thru 2010.

starting in '00 i wrote a spread sheet that tracked our expenses over a rolling 3-yr period as well as projected revenue from our retirement plans. i assumed an annual 3% rate of inflation and a 0% annual increase in revenue...IMO worst case scenarios. and our revenue streamorojevtions did not include any withdrawls from investment accounts. i was seeing positive cash flows and it was looking more and more like this FIRE thing could actually happen.

but what really sealed the deal in terms of when was our retirement systems. we were both working for govt and the earliest we could pull a monthly benefit was age 55 so that was the when. we both walked into the sunshine one day after our 55th birthdays in 2005 and 2006. we are still living a LBYM lifestyle with zero debt and living day-day on pension and SS. the nestegg is still growing and is back above where it was when the decline started.

my only regrets...we didn't start investing a lot sooner than we did, we should've been paying cash for cars a lot sooner and not paying off the mortgage a lot sooner. had we done those things the nestegg would most likely be a lot larger but since it's fir a rainy day and not a part of our monthly revenue stream those are not big regrets.

 

[Souschef]

Sadly, I did not find this site until after I retired or i probably would have done it sooner.
My wife passed away in 2005, and i worked until that time to help with her medical expenses. After she passed away, I continued working because I had nothing better to do. Shortly after a year passed, I met a lady who was also widowed that I had met on line at a grief recovery site.

I had some traveling planned that I was sure she was not interested in; China, Trans Siberian Railroad, Scotland and Wales. I used up a lot of vacation time that way.
We started traveling together shortly after I got back from my last trip. and working helped pay for it.
I retired a year later, working just long enough to get my profit sharing.
Life is good.

 

[rodi]

TL: DR - my bs bucket had one too many turds dumped in it.

Longer version -
I'd hit my number and knew we had enough. Hubby had retired (he's older). At a staff meeting was told that I would be spending a full week away from home every third week. The reasons for this were more marketing/political than technical (Wanted to *look* like we were super involved in getting a project out by having a rotating crew of engineers at the customer's site... but the tools to be productive were at OUR site.) As the mom of middle schoolers at the time - this was a LOT of time away from the kiddos.
Talked it over with hubby that night, thought about it over the weekend, gave notice on Monday. Never looked back.

 

[2017ish]

We hit our conservatively revised "enough" number and were saving a lot. DW then gave two years notice so that her small group would be able to replace her with an OBG coming out of residency.... (I gave about 12 months notice to my partners for same reason.)

The delay caused us to end up with a healthier portfolio than we believed necessary, but DW is working at making it "just right."

 

[travelover]

TL: DR - my bs bucket had one too many turds dumped in it.........

Yes, best explanation I've seen is that when you are working, you have a bucket in each hand, a money bucket and a BS bucket. When both are full, time to go.

 

[CoolRich59]

If you FIREd, how did you time quitting work with your desired asset level? Right away?
Wait a year for security?

My quitting was unplanned.

We had reached our FIRE number in Nov. 2017 and the DW and I were going to sit down, map out of plans for the year (2018), and figure out a retirement date, probably at the end of June.

At the time I was working as a consultant and had a "challenging" client; working with this firm was often difficult and always frustrating. A couple of weeks after we'd reached our FIRE number, the principal client asked me for a meeting and started telling me about the latest mess they'd gotten themselves into that they wanted me to clean up. It was going to be a major effort, taking several months, with lots of long hours and the usual lack of client cooperation, but plenty of second guessing.

Suddenly, as if someone else were speaking, I heard the words "Sorry. You'll have to find someone else for this. I'm retiring in one month."

The client was surprised - but, not as surprised as I was! The first thing I did was get to my office to call the DW and break the news. She was surprised too, but what a tremendous feeling of relief!

 

[martyp]

My work situation had taken a turn for the worse and I was miserable. I checked my pension benefit and it seemed like a enough. I created a financial spreadsheet to examine my expenses and needs. After 30 days of working on the spreadsheet I decided to FIRE. I continued to work for a couple of months to let the decision to sink in. Four months later I left work forever on my 55th birthday (more or less). 10 years later I have no regrets

 

[W2R]

When I was 50, and newly divorced, I took a job working for the federal government. I did this for job security and benefits (pension and retiree health insurance).

I worked until the first day when I qualified for retiree health insurance. This was back in 2009, before ACA insurance was available.

If I had had good, affordable, reliable health insurance lined up by 2007, I probably would have retired a couple of years earlier. But, having to work those last couple of years was not so bad after all, since it gave me extra money to spend on "fun stuff" after retirement.

 

[Kwirk]

I retired the first day I could begin collecting a CSRS pension, as I had been planning for more than 25 years.

 

[DrRoy]

I was subject to a particular pension calculation that had a sliding penalty until I was 58, when it hit a permanent max. I had enough NW to retire a year or so before, but did not like leaving $ on the table, plus DW was antsy about loosing the paycheck. I went at 57 3/4 in March the next year. That was close enough, and we had some outdoor projects to do that I did not want to let wait for the hot summer.

 

[Toocold]

I was 5 years into FI. I stayed because I got along with the CEO and I strongly believed that I could play a role in growing the business and have a positive impact on society. He eventually left and another person who I got along with became CEO. During this time, I seriously started thinking about RE and built up our portfolio to pull the trigger if I wanted. I put a tentative target date of 3/2020.

Last year, we merged with another company and a new CEO was hired. We agreed that I should leave the organization with a healthy severance package.

I am not technically RE because I would still consider positions that fit a very high bar, but I doubt it exists and I'm not actively pursuing and have turned down dozens of inquiries.

 

[donheff]

I decided to FIRE when I started working for the Federal government. I liked my work but aspired to pull the cord when eligible for a pension (age 56, assuming I stayed with the government) unless I was thrilled with work at that time. In the event, I was still with the government and OK with the work but not thrilled so I left. I gave about 4 months notice.

 

[DayDreaming]

My employer outsourced my department.

After really looking at my finances, I decided to call it FIRE, rather than looking for a new j*b.

 

[Markola]

Yes, best explanation I've seen is that when you are working, you have a bucket in each hand, a money bucket and a BS bucket. When both are full, time to go.

I like this. I’m in this situation right now where both are full enough and had a comical conversation with my boss yesterday. The organization is looking for cuts to revenue and administrators, so a couple weeks ago I said, meh, take me. She said, “Ok, and I will eliminate your position.” Fine.

Now, however, she wants me to resign, I think because she can’t stomach laying me off. I said, “But you’re cutting expenses and administrators and eliminating my position. If you lay me off, I can qualify for severance and unemployment I’ve been paying into my whole career.” She dug in her heels and said, “There’s no way I’m laying you off!” I said, “Fine, then I’m not resigning until I know in writing what my severance is.”

The comical part is, it doesn’t matter to me if they lay me off or I resign and I can just wait them out. It’s satisfying to have a little bit of leverage over a bumbling organization that seems to go out of its way to top off employees’ BS buckets.

 

[Rocky mtn high]

I still have a spread sheet I created when I was 27 calculating how much I would need to save to retire some day as I knew SSI wouldn’t be enough. 30 years later to much BS at work. Retired at 57. Planning worked out and I have showed that spread sheet to my children to get them thinking the same way. Starting early is the key.

 

[Rianne]

Health and burn out. Both of us were healthy after a cancer and diabetes scare. DH exercised/diet his way out of the diabetes and I'm cancer free so far. And we got tired of schedules and having to mold our lives around others. We wanted less stress, freedom to travel on our own schedule and enjoy lazy stress free days at home. Our advisor at VG said go for it, you're in good shape. Here we are 6 years later.

 

[FREE866]

Interesting question. In hindsight, my decision process was pretty rapid. I worked in sales for 28 years and in August 2016, after turning 50, I was on a conference call and looked out my office window and thought "I don't give a crap about this". Next day I started looking at retirement calculators and was like '"OMG I might be able to do this very soon". My last day of work was January 6, 2017.

 

[Hermit]

I started focused saving in 401k when DD was born. I was 40 and could take out money penalty free for college about the time she would start. It turned out we could afford college for both kids out of current income when the time came. DW died when DD was starting her second year and DS his first. Shortly after DW's passing I made plans to retire when DS graduated and then move back to Colorado. About the time DS should have graduated and after about 5 weeks on vacation in Colorado and 3 weeks on day shift it was my turn to do a midnight shift. I could not stay awake. At 63 it was time to go. I put in my papers and retired a month later. Having saved a lot of money since the kids came along, FI was achieved and not a major part of the retirement equation. I withdrew enough from 401k each year in early retirement to bring my income up to what I would get with my SS when turned 70 (this year). Now living on pension and SS and not looking forward to the tax torpedo.

 

[brett]

I was ready to go two years prior to going. I was however indifferent My employer had been downsizing for years so I decided to wait for a package.

It came, almost two years to the day. It provided just under the equivilent of two years worth or salary and bonus. We lived and traveled on it extensively for four years! Well worth waiting for. Plus a DB pension.

Much better than walking away with a thank you or a retirement event of some sort! Never looked back.

 

[Pscott2019]

We had hit our numbers in 2018 but the positions similar to mine at Megacorp were being outsourced so I held on until mid 2019 when I received a relatively sweet severance package. We were able to get some traveling in before the Corona situation but we cancelled 4 trips this spring and early summer due to it. We are healthy and safe. Loving life. Best of luck to all.

 

[pacergal]

Been a while, but since you asked...

I told my boss I had to retire due to an acute medical condition known as "Anal Glaucoma" - I could no longer see my @ss showing up for work.

I qualified for pension at age 54 (30 years), but wasn't ready. It was a signal to start investigating. I attended several retirement seminars by the pension fund through work, met with def comp financial person for free, eventually found this site and really started digging in. Planned exit at age 60 due to specific retiree health insurance benefit.
Luckily, retirement time came a couple years after the BS bucket was overfilling. Knowing I was leaving made the last 2 years much, much easier.

 

[nvestysly]

DW and I had been tracking our expenses for well over 10 years as well as paying down our mortgage, saving/investing... the general LBYM approach to life.

We felt like we could retire but wanted some reinforcement. We went for a visit to a fee-only financial planner who had provided some coaching over the years - they said go for it.

FIRECalc indicated a high degree of success for any of the several scenarios we entered. I know FIRECalc provides insight to historical data but DW and I think history has a way of repeating itself based on our situation.

We were sort of a OMY situation but not exactly. DW had "downsized" to a 3 day a week job so we were definitely on an early retirement plan. Then mega-corp offered a carrot we couldn't refuse - one year of medical insurance, several months of severance and a date by which you had to decide.

We knew we'd take the offer in a minute! But we held our cards close to the vest and laid out a plan over a 3-month period leading up to the "end date" mega-corp defined. On the last day to announce retirement I filled out the paperwork and two weeks later I was gone.

DW says the transition for me going from work to retirement was "like a light switch!" On day one of retirement we were ready to go. Haven't looked back and that was nearly 9 years ago.

A few suggestions:

1) Retire to something, not from something.

2) Have one thing to do every day - some sort of hobby, project, etc. Sometimes my one thing to do takes several days or a significant part of a day spread over a period of several days.

3) Consider a schedule/routine that creates a w*rk week and weekend framework. Most of us have w*rked for so long it's quite a change to switch to every day is Saturday. For DW and I we do our projects around the house during the week and have more downtime on the weekend. That makes a schedule that we're comfortable with and keeps us in a groove.

 

[ExFlyBoy5]

I was lucky in that the Air Force assigned me to my hometown. It was an awesome j*b, but of limited duration. When time came around for assignments, I knew that it would be a cold day in hell before I went ANYWHERE. For a few years, I had been saving about 50% of my paycheck, so it was pretty obvious that my pension would pay for our normal living expenses (we were a DINK household) so I retired.

That was almost 6 years ago and I have never been happier in life.

looked out my office window and thought "I don't give a crap about this".

I can relate. I knew that the AF was great for me, but at the point I bailed, I was quite over it all. I just didn't care anymore, and it wouldn't be fair to my fly buds to hang around while I was hating life.

 

[jollystomper]

If you FIREd, how did you time quitting work with your desired asset level? Right away?
Wait a year for security?
Worked a few more years for some economic benefit such as a pension?

All options are on the table for me, not sure how to handle it.
THanks

I did all three. Having a job that I enjoyed made it easier.

Though I reached "Megacorp retirement eligibility" at 51, I had a "number" that I wanted my assets to get to, that all the various calculators/planners/financial advisors I used indicated was "safe" for our desired level of spending (that level was well above our required spending level).

Once the "number" was reached, I kept going until I had built a "buffer" beyond it. It was to both reduce my SWR to under 2.5% and to build up cash to avoid being forced to sell equities during market downturns. It was also to assume that I would not be forced to seek any type of work.

In concert with this, I also worked so that my pension (non-COLA) grew to a desired level. Its fastest growth was in the first years after I turned 51. It gradually slowed down. The expected annual amount grew a total of $20K from age 51-60. But from age 60 to 65 it would only grow to another $3K. With my assets it was not worth the wait.

However, since Megacorp was doing annual (and in some years semi-annual layoffs), I did not assume I could control the timing. I would have been fine from age 56 on, but I did OMY until age 58, at which time I established a 2 year "glide path to retirement" plan that amazingly worked out better than I expected.

 

[Montecfo]

I liked my job but had been FI for a few years.

For me, it came down to the simple fact that life on earth is finite. Every additional year I chose to work is one less year of not working.

It just came down to that simple math.