Join Early Retirement Today
Thread Tools Search this Thread Display Modes
How did You Pick the Final Date?
Old 02-12-2016, 07:33 AM   #1
Thinks s/he gets paid by the post
Senator's Avatar
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
How did You Pick the Final Date?

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!

FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-12-2016, 07:51 AM   #2
Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 2,159
I was prepared to work a couple more years, or quit when my dental practice sold, whichever came first. I figured if I couldn't sell it in 2 or 3 years, I'd just give it away and walk. Once I had a buyer, I let the buyer decide how long he wanted me to stick around. We closed in September, and he wanted me to work a very limited (2 half-days/week) until March 1, to ease the transition. R minus 17 days, and counting.

HadEnuff is offline   Reply With Quote
Old 02-12-2016, 07:53 AM   #3
Thinks s/he gets paid by the post
RockyMtn's Avatar
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,409
mine was pretty simple....end of employment contract.
FIRE'D in July 2009 at 51...Never look back!
RockyMtn is offline   Reply With Quote
Old 02-12-2016, 08:00 AM   #4
Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,286
My organization was going through a downsizing but offered a voluntary early retirement incentive, but you had to apply and be gone by Feb 3. Turned in my badge Feb 3.
RE2Boys is offline   Reply With Quote
Old 02-12-2016, 08:20 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 25,792
We had two homes and sold one of them in October. I realized that our expenses were much lower with one house rather than two and we were ready. I wanted to give my employer suitable lead time so I decided that I wanted to have my last day of work be our last workday of the year which happened to be a couple days before Christmas. I had about 6 weeks of vacation pay so I proposed to stay on payroll through mid-February so I could get the holidays and health insurance for January and February (if you were on payroll on the 1st you qualified for the month). HR came back and proposed February 1, and I agreed to that.

My last day of work was just before Christmas and since I was on vacation after that I was available to answer questions until I turned in my laptop on February 1.

In January, DW and I went to NYC (where our main office was) and they threw me a nice retirement party and I got to say good-bye to my colleagues.

The other benefit was that I change my 401k deduction to 100% effective January 1 so I deferred tax on all that accumulated vacation pay.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 65/35/0 AA TBD
pb4uski is offline   Reply With Quote
Old 02-12-2016, 08:33 AM   #6
Moderator Emeritus
Ronstar's Avatar
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 12,008
I gave 6 months notice to terminate my contract at the end of Q1 2013, and agreed to another year of part time, retiring on April 2, 2014. Thought that retiring at the end of a qtr would make company stock sale accounting easier.
The wilderness is calling and I must go.
Ronstar is offline   Reply With Quote
Old 02-12-2016, 08:36 AM   #7
Thinks s/he gets paid by the post
2017ish's Avatar
Join Date: Apr 2012
Location: Nashville
Posts: 1,902
Originally Posted by HadEnuff View Post
I was prepared to work a couple more years, or quit when my dental practice sold, whichever came first. I figured if I couldn't sell it in 2 or 3 years, I'd just give it away and walk. Once I had a buyer, I let the buyer decide how long he wanted me to stick around. We closed in September, and he wanted me to work a very limited (2 half-days/week) until March 1, to ease the transition. R minus 17 days, and counting.
We are taking a similar approach. Once we had around enough assets to support desired discretionary spending, DW gave initial notice to her group last May or June, expecting it would take until August 2017 to get a replacement out of residency. Now, maybe, they think they've found a lateral hire. If/when that doc signs, they'll discuss how long to juggle call schedule, office space, and the like with DW continuing (probably 12.31.16?). Her last day is my last day, unless we have a case set for trial or an appeal underway that would benefit from another month or two of my time.
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 02-12-2016, 08:42 AM   #8
Full time employment: Posting here.
Join Date: Apr 2006
Posts: 925

The logic you use has led me to a series of OMY's: My distribution is a bit different though, seeming to give me another carrot (401k max, holiday, bonus, etc.) just a few more weeks down the road. I have been in the executive suit; these incentives are working on me exactly as designed.

Several changes to my situation, including moving into an individual contributor role, have made the OMY's tolerable if not exactly enjoyable. My current carrot is fully funding my 2016 401(k). The next one will be some vacation (use it or lose it), then holidays and remainder of vacation, then bonuses & vesting, then I'll be almost to 2017....
If there's one thing in my life that's missing; It's the time I spend alone
Sailing on the cool and bright clear waters; There's lots of those friendly people
Showin me ways to go; And I never want to lose your inspiration
CoolChange is offline   Reply With Quote
Old 02-12-2016, 08:46 AM   #9
Moderator Emeritus
W2R's Avatar
Join Date: Jan 2007
Location: New Orleans
Posts: 43,516
The first date upon which I became eligible for retiree health insurance was 11/7/2009.

That was a Saturday, so in order to make sure there was no question about it, I retired on 11/9/2009.
"It ain't over till it's over"
- - - Yogi Berra (1973)
W2R is offline   Reply With Quote
Old 02-12-2016, 08:47 AM   #10
Aerides's Avatar
Join Date: Nov 2015
Posts: 5,368
My planning is very similar to Senator, as my megacorp also front loads the year with Bonus, hsa, stock grants, etc. I'm loading my 401k to be complete the annual max by March, and my MC matches quarterly, requiring employment on the last day of the quarter to get the match (so 3/31, 4/1 to be safe) MC also likes to force dates around payroll date, and 4/1 is one of them.

So anytime then or after, depending on a few personal factors and things.
Aerides is offline   Reply With Quote
Old 02-12-2016, 08:55 AM   #11
MichaelB's Avatar
Join Date: Jan 2008
Location: Sheltered in place
Posts: 31,876
An assignment to another country with an end date for me. The job was a bad fit, I didn't do it well, and had some serious ethical encounters with my management. I wanted to return (back home), they gave me a new job in the same location, even though I was a fish out of water. They said "you have no alternative", so I showed them I did, and quit.
“The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts” Bertrand Russell
MichaelB is offline   Reply With Quote
Old 02-12-2016, 09:00 AM   #12
Gumby's Avatar
Join Date: Apr 2006
Posts: 14,113
When I left private practice for public service in 2007, I was just going to work until my young wife completed 25 years of service and could retire with a modest pension. We intended to finance our retirement on her pension and our portfolio. I did not expect to work long enough to get a pension myself. That would have been July 2014. However, the enormous portfolio hit that we took in 2008/09 convinced us that we had been too optimistic and that we should: 1) amass a greater starting portfolio and 2) ensure that pension income would cover our basic living expenses.

Accordingly, I committed to working until I could get a pension, along with essentially free retiree health care for both of us. That point will be reached on November 1, 2017. Since the young wife is a teacher, she would never retire during a school year, as it would be harmful to her students. That makes the end of June 2018 the earliest retirement date for her (and for me, since she would strongly dislike having me retired while she works). However, if she works one more school year, until the end of June 2019, she will hit the 30 year mark and her penalty for retiring early is substantially reduced. I must retire on the first of a month, so that means July 1, 2019 is my date.

At that point, our pension income will definitely cover our expenses with no reduction in our current standard of living. When social security starts for me in 2021, it will add a 25% buffer. And, God willing, by that point our portfolio should be of sufficient size that a 4% withdrawal rate would completely replace both pension and social security income should that ever be necessary.

Yes, it is a very conservative approach, but once I stop work, I never want to go back.
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 02-12-2016, 09:02 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
Join Date: May 2009
Posts: 8,462
Pension with cola covered 167% of my monthly spending needs based on previous 5 year spending patterns. Time to go... 6 years later pretty much the same....

Sent from my iPad using Tapatalk
Mulligan is offline   Reply With Quote
Old 02-12-2016, 09:03 AM   #14
Aerides's Avatar
Join Date: Nov 2015
Posts: 5,368
MichaelB I fantasize that moment, when a boss might ask me to take on something and I refuse. Hearing something like "you really don't have a choice" and then imagining the faces when I say "oh, but I do".
Aerides is offline   Reply With Quote
Old 02-12-2016, 09:04 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
Join Date: Apr 2013
Posts: 8,963
After 29 years I finally had too much of idiots who didn't know the difference between data and hardware issues. I'd been OMY for a couple and needed an excuse.

Actually my Fidelity guy suggested that those type of additional rewards, while appealing, make little difference to a 35 year retirement. YMMV.
MRG is offline   Reply With Quote
Old 02-12-2016, 09:05 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
Join Date: Jan 2008
Location: NC
Posts: 15,545
I retired effective Jun 30, 2011. My date was tied to a bonus payment, that simple.
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 40% equity funds / 35% bond funds / 25% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 02-12-2016, 09:18 AM   #17
Thinks s/he gets paid by the post
Join Date: Aug 2005
Location: Crownsville
Posts: 2,558
My goal was always to retire around my birthday, which is April 2. A few years ago, a more lucrative time would have been to do it around September, though. We usually got a bonus in August, and a raise in September. So I figured realistically, I'd stay around to get the bonus, and quit soon after the raise, so any vacation pay got paid out at a higher rate.

But then, I got to thinking about it...was waiting like that really worth w*rking over another summer? The bonus is usually around $1000, or about $400 after they take out taxes, 401k, etc. And lately our raises have only been around 3%.

Fortunately, the company came around to my way of thinking. As luck would have it they changed our raise cycle. Now we get a bonus in March, and raises take effect the first week of April.

So, I'm still shooting for doing it close to my birthday...just don't have a definite year in mind yet. At one time, my goal actually was this year...April 2, 2016, where my last day of employment would be April Fool's Day, a Friday, and my birthday would kick off my retirement. But, the real world got in the way. Now I'm shooting for April of 2020. Time will tell though.
Andre1969 is offline   Reply With Quote
Old 02-12-2016, 09:43 AM   #18
gone traveling
Join Date: Mar 2015
Location: Winnipeg
Posts: 2,701
I always knew that 55 was the earliest I could leave and do so with no penalty on my pension, but only recently found out that I could take a year of leave and make it pensionable. So, I'm now retiring at the end of March, 2 months prior to my 54th birthday...I'll be on vacation for 2 months, then on leave for a year, then "officially" retiring.
Music Lover is offline   Reply With Quote
Old 02-12-2016, 09:52 AM   #19
Thinks s/he gets paid by the post
Join Date: Apr 2005
Location: Midwest
Posts: 2,360
I picked April Fools Day. It was whimsical. The Establishment was convinced I wouldn't really leave and I wanted to be a bit of a pr1ck on my way out.
And it reduced my work life to that "Dream Season" from the old TV show "Dallas" where none of the story lines or events mattered because it was all just a dream one of the characters had.
razztazz is offline   Reply With Quote
Old 02-12-2016, 10:04 AM   #20
rodi's Avatar
Join Date: Apr 2012
Location: San Diego
Posts: 10,707
My date was changed at the last minute.

I planned on retiring at age 55 (which won't happen till later this year.). Then my boss had a staff meeting and told us that 3 of us would be rotating, 1 week at a time, at a customer site on the other coast. No significant reason to have us there other than to "appear" responsive to the customer, and to babysit them. I came home and discussed with my husband - and we agreed that 2 week notice was in order.

Ironically, this rotation at the customer site lasted exactly two weeks then was dropped.

Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Did you get a counteroffer when quitting? What did you do? brewer12345 Other topics 111 01-09-2014 11:38 AM
How Did You Get There and When Did You Start cscott711 FIRE and Money 51 01-05-2012 10:53 AM
roth conversion ,can you cherry pick mathjak107 FIRE and Money 19 11-07-2009 12:39 PM
Remember Date You Retired?...Know Date You Will Retire? Danny Other topics 35 07-09-2007 12:02 PM
Did you retire or Did you quit GTM Life after FIRE 19 03-09-2006 02:06 PM

» Quick Links

All times are GMT -6. The time now is 02:03 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.