|
|
03-05-2023, 02:48 PM
|
#61
|
Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,959
|
OP: great financial advice has already been given. If I can humbly give you some specific practical advice, starting today:
1) Make a list of all fixed expenses you currently have.
2) List your best estimates of your discretionary monthly spending for food, gas, entertainment. Don't worry about being super-precise.
3) Voila, you now have a starting point for a budget. You can now estimate what your monthly cash needs are, after pension income.
4) It's then fairly easy to plan for hiw you will access whatever cash you need until SS kicks in.
5) Make notes of the great financial advice previously given, to refer to as the dust settles and you're living your new life.
|
|
|
|
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 Early-Retirement.org 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!
|
03-05-2023, 05:09 PM
|
#62
|
Thinks s/he gets paid by the post
Join Date: Aug 2017
Posts: 2,107
|
Everyone, thank you. I am obviously having trouble wrapping my mind around this whole thing. Once upon a time I wanted to leave at 55 which is why it is not worse situation than it is. However I had pretty well abandoned that plan and this came as a shock. A few weeks ago it seemed do-able but the end of the pay checks is making me question things.
|
|
|
03-05-2023, 09:26 PM
|
#63
|
Thinks s/he gets paid by the post
Join Date: May 2014
Posts: 1,390
|
Quote:
Originally Posted by badatmath
Everyone, thank you. I am obviously having trouble wrapping my mind around this whole thing. Once upon a time I wanted to leave at 55 which is why it is not worse situation than it is. However I had pretty well abandoned that plan and this came as a shock. A few weeks ago it seemed do-able but the end of the pay checks is making me question things.
|
Yes, it was kind of scary not having a paycheck at first. After the first month when I saw that it would work, that lessoned my anxiety greatly of not having a paycheck and relying on my investments for income.
__________________
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger
The first rule of compounding: Never interupt it unnecessarily. Charlie Munger
|
|
|
03-06-2023, 05:33 AM
|
#64
|
Dryer sheet aficionado
Join Date: Jun 2020
Location: Arlington
Posts: 38
|
If I were in your shoes, I'd go see a "fee only" financial advisor. You can see them only once to determine whether retiring now is feasible or you can have an ongoing relationship (annually or however often you want). They can run multiple "what if" scenarios for you and help you get your planning in order. Mine had good ideas that I hadn't though of or known about. It's worth the one time fee to get peace of mind. They'll definitely ask for your specific financial information and I'd imagine going through the process will help you see how much money you really need annually. If you decide to go that route, I'd also suggest to choose an advisor that has been vetted through NAPFA, Garrett Planning Network or other such reputable organizations.
https://www.napfa.org/financial-plan...-only-advising
https://www.garrettplanningnetwork.com
Good luck...
|
|
|
03-06-2023, 06:06 AM
|
#65
|
Administrator
Join Date: Apr 2006
Posts: 23,035
|
Badatmath: Thanks for being so open about your concerns. It will be very helpful to those who may be following in your footsteps. My only advice to you is to do the best you can to reconstitute your spending records, categorize your spending and analyze what will change once you are no longer in the daily grind. If you go to a fee only financial advisor, it will be more helpful (and probably cheaper) if you have all this spread-sheeted rather than just handing the advisor a shoebox of old receipts. Then they can concentrate on the analysis. (The same way you would deal with your tax preparer.)
For those who may be facing this situation in the future, this is a concrete example of why you should track your spending in some detail while you are still working, because to know whether you have enough to retire, you first must determine how much you need. While your spending won't be identical after retirement, you will have a good basis to build a model for your post retirement spending if you already know in detail what you spend now. If you have sufficient spending detail, you can make choices and see what it will take to fat FIRE, skinny FIRE or end up somewhere in the middle.
Knowledge is power and control, and feeling that you are in control goes a long way toward calming the nerves.
__________________
Living an analog life in the Digital Age.
|
|
|
03-06-2023, 06:07 AM
|
#66
|
Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: Reading, MA
Posts: 1,795
|
Before I retired a decade ago, I targeted a retirement income stream hitting my checking account each month roughly the same as my net pay when working, with adjustments for certain insurance coverages.
This was considerably more than my "expenses" when working but has allowed increased discretionary spending in retirement.
Such an approach may not be feasible for people involuntarily terminated...
|
|
|
03-06-2023, 08:50 AM
|
#67
|
Thinks s/he gets paid by the post
Join Date: Aug 2017
Posts: 2,107
|
Yeah, that whole "involuntarily" thing. . .
In my head I'd have told you I wanted more or less current net pay, to allow discretionary spending. . . but I can't get there now.
|
|
|
03-06-2023, 10:28 AM
|
#68
|
Thinks s/he gets paid by the post
Join Date: Jun 2021
Posts: 1,574
|
How much is the current net pay? That will help us understand the deficit.
|
|
|
03-06-2023, 10:34 AM
|
#69
|
Thinks s/he gets paid by the post
Join Date: Mar 2013
Posts: 1,788
|
Yeah, sounds like you need to continue to work for a while. Maybe just a few years. You don't want to go into retirement against your will and prematurely.
|
|
|
03-06-2023, 10:50 AM
|
#70
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,498
|
Quote:
Originally Posted by ER Eddie
Yeah, sounds like you need to continue to work for a while. Maybe just a few years. You don't want to go into retirement against your will and prematurely.
|
badatmath, you have my sincere sympathies! If you decide that you DO need to work a few more years than you had hoped, maybe it will comfort you to know you are not the only one. In my case I had to work two years longer than planned, because I needed to be eligible to keep my employee/retiree health insurance.
Turned out I hadn't sufficiently explored how much such insurance would cost independently, and at that time (2007-2009) policies unrelated to employment were rapidly spiraling upwards in cost. Or so it seemed to me. When I found out how much I would have to pay, it was like a sucker punch to the gut. I didn't want to deal with it so I kept working. But the two years passed, and everything has been fine since then.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
03-06-2023, 11:08 AM
|
#71
|
Administrator
Join Date: Apr 2006
Posts: 23,035
|
Heck, I worked 5 years longer than I originally planned due to the ravages of the Great Recession. We do what we must.
__________________
Living an analog life in the Digital Age.
|
|
|
03-06-2023, 07:34 PM
|
#72
|
Thinks s/he gets paid by the post
Join Date: Aug 2017
Posts: 2,107
|
I have spent like 30 minutes trying to type an answer that makes sense out of the muddle of crap in my head but it isn't working real well.
I clearly do not think in great detail about such things as long as long as 401k and roth are maxed, bills are paid, etc. If I spend $250 on groceries or $900 I figure it is mine to spend. No CC debts or anything. can't really wrap my head around the idea if I need a new tire I can't buy food next week or something. . . . When I was young enough that was a possibility I was tough enough to not worry about it or walk everywhere or whatever needed done. Life has knocked that confidence right out of me.
Not really looking to buy a Ferrari. I am basically cheap by nature.
|
|
|
03-07-2023, 06:52 AM
|
#73
|
Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,543
|
Quote:
Originally Posted by badatmath
Life has knocked that confidence right out of me.
|
OP, here to tell you it will be OK. Many of us (I'm betting all) have had knocks on the head, kicks in the groin and slaps to the face. Not to say that information makes your situation any easier to swallow. No one likes to be unexpectedly terminated. Even if we were planning to leave on our own. You will be alright. Also, you don't have to be some financial guru and or spend hours upon hours coming up with a detailed plan (today). Start with the small knowns. Rough guess on expenses. Start with the big 3: Housing, transpo and food. Those 3 things make up 75% of the average persons budget. Then look at your income/$ sources. Then, slowly dig just a bit deeper on each of those items. Such as how old is your transpo and when will you need to replace it. Back to the kicks in the head topic, tell us a few of your accomplishments. I'm betting you have done some awesome things in your life. Brag to us a bit. We are all curious about some cool stuff you have done. Much of this journey/transition is mental. We are all cheering for you.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie
" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
|
|
|
03-07-2023, 06:56 AM
|
#74
|
Thinks s/he gets paid by the post
Join Date: Mar 2011
Location: North TX
Posts: 1,833
|
After reading everything, I'd break up a couple of things & focus on each differently.
1. You now have time to really understand your needs while spending & it will be different from your working experience. Expenses will likely be less (my experience), so good news there. Take a look at the big 3 categories of spending & see what you can lower. I found that my gas, dry cleaning, office attire and restaurants were substantial and went to almost $0 from $5-600/mo.
2. Look at any expenses you can now do personally instead of hiring it out, e.g. Lawn & cleaning home costs many $100+/week. I call it paid exercise now. Lawn equipment is inexpensive compared to paying. You can get a ROI after a few months of DIY. We went back to a home cleaner as we had gotten too efficient everywhere else...
3. Unemployment will give you some time to dial in everything & take a breath to not stress it as much. By the end of it, you will know exactly what you need to do (maybe you will be fine, my gut thinks so). Another option is to start a small business (what I did) to coast into full time RE... Lots of benefits for this. SEP 401k, monetize your hobbies, mileage and home office write offs to name a few.
|
|
|
03-07-2023, 07:15 AM
|
#75
|
Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,369
|
Quote:
Originally Posted by badatmath
I clearly do not think in great detail about such things as long as long as 401k and roth are maxed, bills are paid, etc. If I spend $250 on groceries or $900 I figure it is mine to spend. No CC debts or anything. can't really wrap my head around the idea if I need a new tire I can't buy food next week or something. . . . When I was young enough that was a possibility I was tough enough to not worry about it or walk everywhere or whatever needed done. Life has knocked that confidence right out of me.
Not really looking to buy a Ferrari. I am basically cheap by nature.
|
Don't confuse budget with spending controls. A budget is a tool to help you understand where the spending occurs. Sure if you have limited income and a "tight" budget, it is where you might make tradeoffs where spending occurs. But if you have the extra savings to cover any occasional large expense (car repair, A/C repair, etc) then you are fine. The budget just helps you understand what income you have and where the outgo of that money. don't overthink it, it's not a controlling tool that mandates where you spend. It helps you understand how much income you need.
I keep a very loose budget in terms of details and specifics. Mainly just keep tabs on total monthly expenditures. I know basic amounts for fixed expenses, which are fairly stable and consistent. But the discretionary side varies each month. You do not have to detail budget if that makes you uncomfortable, however you do need to know your total expenses so that you can structure your income sources to cover your needs.
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
|
|
|
03-07-2023, 08:35 AM
|
#76
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2015
Posts: 5,858
|
Quote:
Originally Posted by badatmath
Life has knocked that confidence right out of me.
|
Take a deep breath. Give yourself some time to adjust to the change of being home instead of work. Change is difficult!
Start an expense analysis, keep track of what/how you are spending your money for a few months to start.
Perhaps a few sessions with a local therapist may help you re-focus, make sure you are not heading into depression or anxiety or give you tools to handle if you are.
Many folks here have been through similar. Feel free to ask questions.
Take Care.
__________________
Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
|
|
|
03-07-2023, 08:48 AM
|
#77
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,358
|
Since this whole thing seems to be stressing you out and you have the time now, spend a little time analyzing your expenses for 2022. Look at what your normal expenses by looking at the checks that you wrote in 2022, credit card bill details, etc. Try to put together a budget for what you think you will spend in 2023 given your current lifestyle.
I'm guessing that your spending is probably lower than you are thinking that it is and that you are stressing unnecessarily and it's not good for you.
__________________
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 56
|
|
|
03-07-2023, 09:30 AM
|
#78
|
Thinks s/he gets paid by the post
Join Date: Aug 2017
Posts: 2,107
|
My biggest expenses are taxes (income and property) and insurance (all kinds). Best guess is I will spend ~ $1200 a month going forward on just that.
But yeah some is stress talking and not a $ issue. The number of people who say to me I was a fool to not take the other offer to rebadge is wearing on me.
|
|
|
03-07-2023, 09:39 AM
|
#79
|
Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,959
|
OP: It seems to me that 1) when all the dust settles you'll realize you are 100% fine, financially but 2) you are stressing out because you don't have a firm handle on your finances.
I mentioned it in a prior response, but I'll reiterate you should take a half hour and literally write down your fixed expenses, any rough estimates of non-fixed expenses such as food, recreation, etc. and finally what your current net income is. Just seeing the totals in black and white could give you a sense of comfort.
A personal anecdote that may also help you: I was laid off at 58. I knew we were financially OK, but didn't think I could retire at that point. After a few weeks the realization came that yes, I could retire. As it worked out, I landed another position in a few months and I stayed at it for 2 additional years before leaving on my own terms. In short order, you may find yourself similarly situated.
|
|
|
03-07-2023, 09:43 AM
|
#80
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2015
Posts: 5,858
|
Perhaps those saying that to you don't have a paid off mortgage, a million in 401K, vacation pay to last until a pension take over.
Don't listen to them!
OP--you are second guessing yourself to death. Get out of your own head. Breathe in, breathe out.
Take a few months to gather some info, live the way you have been, a couple of months won't make that much difference.
If you still feel stressed by spending instead of saving each month, look for a job then.
Many folks have posted that it seems you will be fine financially, based on the numbers you have posted.
You state that you are generally frugal anyway.
Give yourself some time to de stress.
Don't pay attention to what others say!
Live your own life. You are blessed to have a pension, many do not. And I think it was a good idea to do what you could to protect that retirement benefit.
__________________
Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
Similar Threads
|
Thread |
Thread Starter |
Forum |
Replies |
Last Post |
I think I can.....I think I can....
|
Dinky |
Hi, I am... |
12 |
01-19-2019 01:41 AM |
I think I can. I think I can.
|
Gil24 |
Hi, I am... |
26 |
01-22-2014 04:48 PM |
I think I'm close, what do you think?
|
erinsd |
Hi, I am... |
6 |
04-08-2012 07:30 PM |
55 and anxious to retire, I think I can, I think I can
|
56mga |
Hi, I am... |
6 |
10-09-2007 04:12 PM |
I think I can, I think I can, but why am I afraid?
|
behappy |
Hi, I am... |
30 |
09-26-2007 10:29 PM |
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|