How far over your 'number' did you go?

[Physics Guy]

I'll hit the year number almost exactly. I been planning this since 2000 but in about 2005 we really set age 56 as our target date because it was expected to be 1 year after our youngest graduated from college.

Money wise we had about 150% of my already rather conservative targeted number in Nov when I actually pulled the trigger (teacher - I had to make the decision in Nov but will work until June). The change from our above to my in this paragraph is intentional. While my wife has been onboard with the idea from the start she was always more hesitant about specific monetary amounts. I'm sure she is a little more nervous than I am right now. On the other hand my calculations were always based on a 3% WR on my target number so I'm not worried.

 

[sparky08]

It's a personal decision, trading time today for less financial worry tomorrow, but you'll know when it's time. Some indications - when the money from staying another year doesn't interest you anymore, when the job goes south and the thought of working longer makes you cringe, when the desire to have every day be Saturday becomes overwhelming, etc.

This is hitting very close to home.

I used to love my job. It amazing how quick that can change.

 

[Markola]

I wouldn’t say we went over our number. Instead, by our mid-50s, Vanguard calculator projections showed we reached the point that part time work + portfolio income through the Rule of 55 + future SS benefits = no longer needing to continue full time careers that had run their courses for us. So we quit those to have more time flexibility while we’re still in our relatively healthy years.

 

[TheWizard]

My number was more of an income thing: I wanted roughly the same net income hitting my checking account each month as when working.

And I always planned to annuitize a portion of my 403(b) accumulation from my employer contributions (not my own contributions), thus creating something like a pension.

So I kept an eye on things: each year, that accumulation grew and each year my payout amount per $100k pensionized grew.
I didn't hate my job, but finally I called it quits because of interference with my travel plans.

I probably worked a few years too long as it turned out. I have a few thousand dollars of excess income from pension/annuity + SS most months, so I put additional money into my portfolio most months rather than withdrawing from it...

 

[Out of Steam]

We retired at about 10% over our number for retirement savings, and were at about 10% over that as of December 31st.

 

[tmm99]

I think I went over about 30% of what Firecalc said I could spend (using the "spending level" option.) Once I retired, I realized that I didn't need to spend as much as I projected, so after about three years in retirement, I started spending a little more. My stash has increased since my retirement, so I"m still spending only about 35% of what Firecalc says I could spend. I'm planning to increase my spending more again unless inflation shoots up even higher...

 

[bada bing]

I worked 20 months longer than I had intended, so I guess that was my "number". Literally the week I had planned to submit my 30 day retirement notice the company announced an asset sale of the facility I worked at. I stayed on 8 months until the company left and then was offered an additional year as a "secondee" employee facilitating transition of systems to new owner. Lots of carrots for the extra time, so I guess it was worth it. I made almost obscene money for the time, at least relative to my usual pay and relative worth.

 

[jcretire77]

DW and I both took a voluntary severance when we were 10% below "The Number". That number was a bit arbitrary as it was more than needed for our spend rate. It has all worked out with the good market. Have to see what the future holds. We have SS in our back pockets if things go really south.

 

[big-papa]

I calculate my "number" but the most important one I've hit is that my calculated withdrawal, using an amortization based withdrawal shows my dollar amount to be about the same as my current gross salary. Remove things like SS withholdings, monthly deposits into my taxable account, and 401K withholdings and I'm more than good to go. Thinking July as that gets me my last set of RSU's for 2022 and a small bonus, 2 more ESPP sales and several months of full salary since I've already front loaded 401K and HSA. Happy Dance!

 

[kcowan]

I retired 2 years before we reached our number. I spent the first 2 years trading our portfolio to reach the number, then went "buy and hold". It was a very stressful 2 years.

Our buffer really grew when we started spending 6 months in Mexico. Suddenly we could live for Ever! In 2020, we drew less than 2% from our portfolios.

Now we are trying to Blow That a Dough!

 

[Markola]

Our buffer really grew when we started spending 6 months in Mexico. Suddenly we could live for Ever! In 2020, we drew less than 2% from our portfolios!

Sounds nice, congrats. I’m curious what meaningful savings categories you attribute to the 6 months in Mexico? We have snow-birded within the US the last two winters but I’m not sure we’ve seen savings due to having two households. We do have a mortgage up north, so maybe that’s the difference for you, if you don’t.

 

[pb4uski]

.... My question is: How much longer did you remain at an unpleasant job once you hit your retirement number?

I didn't have an unpleasant job, so not applicable. I stayed longer than I needed to. Our WR once we are both collecting SS and my pension will be ~1%, so I could have left much earlier.

 

[Jerseytunahunter]

No "number" for us. Always maxed 401k, bought investment properties, wife has a pension and we're set for healthcare (teacher). I sold my company last year for 10 figures. We could easily retire today. I guess we've realized we like our jobs and continue to work. Maybe when we hit the big 6-0 or an aging parent passes we will feel differently. Strange how the sale was a non life altering event. We haven't spent a penny. It's never been about the money. Family, friends and health right?

 

[TheWizard]

Ten figures to the left of the decimal point is a LOT!

 

[wannabefire]

No "number" for us. Always maxed 401k, bought investment properties, wife has a pension and we're set for healthcare (teacher). I sold my company last year for 10 figures. We could easily retire today. I guess we've realized we like our jobs and continue to work. Maybe when we hit the big 6-0 or an aging parent passes we will feel differently. Strange how the sale was a non life altering event. We haven't spent a penny. It's never been about the money. Family, friends and health right?

10 figures!

Mic drop.

Well done sir!

 

[finnski1]

No "number" for us. Always maxed 401k, bought investment properties, wife has a pension and we're set for healthcare (teacher). I sold my company last year for 10 figures. We could easily retire today. I guess we've realized we like our jobs and continue to work. Maybe when we hit the big 6-0 or an aging parent passes we will feel differently. Strange how the sale was a non life altering event. We haven't spent a penny. It's never been about the money. Family, friends and health right?

Are you sure about the 10 figures? That would be > $ 1billion!
If so. What are you doing on here with us mere mortals.

 

[street]

10 figures!

Mic �� drop.

Well done sir!

Nicely done for sure!
If I had that money, I would throw mine away.

 

[Jerseytunahunter]

Oops I meant 8 figures sorry!

 

[kcowan]

Sounds nice, congrats. I’m curious what meaningful savings categories you attribute to the 6 months in Mexico? We have snow-birded within the US the last two winters but I’m not sure we’ve seen savings due to having two households. We do have a mortgage up north, so maybe that’s the difference for you, if you don’t.

The cost of living in Mexico is 60% less than Vancouver. Maintaining duplicate residence is netted against that.

If you rent both residences when not there then that is a wash.

If you spend more time up north, then the savings are less.

 

[youbet]

Ten figures to the left of the decimal point is a LOT!

Yeah. I’m quantitatively challenged but doesn’t that mean a billion bucks?

I guess I’d retire confidently too!

 

[Dtail]

Yeah. I’m quantitatively challenged but doesn’t that mean a billion bucks?

I guess I’d retire confidently too!

He corrected it to 8 figures. 2 commas gives one 10.

 

[jollystomper]

My question is: How much longer did you remain at an unpleasant job once you hit your retirement number?

Fortunately I did not have an unpleasant time (at times I thought it amazing what they were paying me for enjoying a hobby ). Beyond my "number" I built up a cash buffer of several to avoid having to sell equities during a downturn to cover expenses. I cannot recall setting a particular "percentage", but it was probably 20-30% over the "number".

 

[cyber888]

I hit my number last year, but now down about $150k due to the stock market. My SS income computation was very conservative. Using my most current SS statement, im still at 100% Firecalc with 500-700k left when I hit 100. Im suppose to retire this year, but will work 1 more year with inflation and war and a down market

 

[Koolau]

I retired 2 years before we reached our number. I spent the first 2 years trading our portfolio to reach the number, then went "buy and hold". It was a very stressful 2 years.

Our buffer really grew when we started spending 6 months in Mexico. Suddenly we could live for Ever! In 2020, we drew less than 2% from our portfolios.

Now we are trying to Blow That a Dough!

A much better problem to have is figuring out how to BTD than how will I survive!

 

[G-Man]

Can someone explain the 33x rule.

Assume the following as an example: Retiring at age 57

$80K per year in expenses

$1.7M in pension annuity (age 60 - 94 $52K per year)
$1M (401K fund at age 57) - Need to use Rule 55 to withdrawn from 401K starting at 57
$704K in SS funds (age 62-94 $22K per year)
$100K in cash (age 57)

Would the person be OK to retire at 57?