Senator
Thinks s/he gets paid by the post
Everyone has a unique situation for the way they picked their final day of work. If you were laid off, you have little choice. If you actually gave notice, there may have been some science to it.
What went into your calculation on how you determined your final date of work? Or what is going into your calculations if you have yet to FIRE?
In my case, I waited until I was at least 55, I wanted to make sure that any likely social security changes would not affect me. There were no guarantees, but one less unknown. My birthday is in early November.
When I made my plans at 54, I originally was going to leave right after I maxed out my 401K when I turned 56. That would be anywhere between the end of February and the end of April, depending on how large bonuses were. It was nearly two years out. As I started delving into things, I realized there were other things to consider. We receive ~60% of our pay in the first six months of the year. There are many milestones that make it fun to track and worthwhile to stay just a bit longer.
On January 2, I receive a 1.67 days of vacation, a paid holiday (1/1), and a $400 match to my HSA. Pretty good money for one day, almost 5 days’ pay for a single day of work.
Around late January, I have worked enough so that my contributions to my 401K will have exceeded 4% of my salary, so I secure the current years 401K match, to be received the following year.
At the end of January, I receive a 4% 401K match for the prior year’s contributions. It’s a lump sum, and I do not have to be employed to get it.
In mid-February, I receive a long term incentive bonus. It’s a bonus we vest over the next four years, but the past four years are vested and I receive those funds. About 5% of my pay. I needed to stay for that.
At the end of February, I receive a performance bonus that can be as much as ~15% of my pay, depending on the performance of the company (and me). I needed to stay for that.
I would max out my 401K sometime in March, as I always allocate 75% of my paycheck to the 401K. Worse case, it’s the end of April. By the end of January I can typically predict the date it will be maxed out. It’s very likely my last chance to put any money in a 401K for the rest of my life. I wanted to stay for that.
From there it is a slug to June 23, where I will have put in 1,000 hours. That gives me another year of calculated pension, which is worth ~$100 at age 65. An annuity of that amount would probably be worth ~$10K, so that is not bad money for the couple of extra months.
Once I get to the end of June, July 1 brings another 1.67 days of vacation and a month of healthcare. Like triple pay day.
If I work July 5, I get the 4th of July as a paid holiday, so double pay for that day.
From there, it’s not worth staying around, so I am gone!
What went into your calculation on how you determined your final date of work? Or what is going into your calculations if you have yet to FIRE?
In my case, I waited until I was at least 55, I wanted to make sure that any likely social security changes would not affect me. There were no guarantees, but one less unknown. My birthday is in early November.
When I made my plans at 54, I originally was going to leave right after I maxed out my 401K when I turned 56. That would be anywhere between the end of February and the end of April, depending on how large bonuses were. It was nearly two years out. As I started delving into things, I realized there were other things to consider. We receive ~60% of our pay in the first six months of the year. There are many milestones that make it fun to track and worthwhile to stay just a bit longer.
On January 2, I receive a 1.67 days of vacation, a paid holiday (1/1), and a $400 match to my HSA. Pretty good money for one day, almost 5 days’ pay for a single day of work.
Around late January, I have worked enough so that my contributions to my 401K will have exceeded 4% of my salary, so I secure the current years 401K match, to be received the following year.
At the end of January, I receive a 4% 401K match for the prior year’s contributions. It’s a lump sum, and I do not have to be employed to get it.
In mid-February, I receive a long term incentive bonus. It’s a bonus we vest over the next four years, but the past four years are vested and I receive those funds. About 5% of my pay. I needed to stay for that.
At the end of February, I receive a performance bonus that can be as much as ~15% of my pay, depending on the performance of the company (and me). I needed to stay for that.
I would max out my 401K sometime in March, as I always allocate 75% of my paycheck to the 401K. Worse case, it’s the end of April. By the end of January I can typically predict the date it will be maxed out. It’s very likely my last chance to put any money in a 401K for the rest of my life. I wanted to stay for that.
From there it is a slug to June 23, where I will have put in 1,000 hours. That gives me another year of calculated pension, which is worth ~$100 at age 65. An annuity of that amount would probably be worth ~$10K, so that is not bad money for the couple of extra months.
Once I get to the end of June, July 1 brings another 1.67 days of vacation and a month of healthcare. Like triple pay day.
If I work July 5, I get the 4th of July as a paid holiday, so double pay for that day.
From there, it’s not worth staying around, so I am gone!