Retiring Early in This 2020 Market

[schellem]

Hi All,

Wanted to get some insight on retiring early during this current market. I'm 58 and DW is 56, I've been trying to pull the trigger for better than a year now but making good money working from home in a job I mostly enjoy has been hard and wondering when the market was going to drop also played in my mind.

I told myself at the beginning of the year after a spring vacation I was going to turn in the resignation but now with so much uncertainty I am having a hard time deciding if this really is the time to do it.

Our portfolio is actually up from Jan 1 2020, we have a 72,21,7 equity, bond cash allocation with 50% taxable, 42% TIRA and 8% ROTH. We can easily live off a 2.5% WR not counting any SS and wanting to get some ROTH conversions in as well. I'm hoping the DW can make it 2 more years providing us with cheaper health benefits but she may burn out before then.

What should I be concerned about if I decide to retire in the current market and state of the country?

 

[candrew]

Markets and the state of the country will change. You might want to first consider the following.

https://www.early-retirement.org/fo...-answer-before-asking-can-i-retire-69999.html

For DW & I, once we had answered the financial questions about ER, of greater concern to us is what we planned to "retire to" rather than what we were "retiring from".

 

[Unpaintedhuffhines]

Hi All,

Wanted to get some insight on retiring early during this current market. I'm 58 and DW is 56, I've been trying to pull the trigger for better than a year now but making good money working from home in a job I mostly enjoy has been hard and wondering when the market was going to drop also played in my mind.

I told myself at the beginning of the year after a spring vacation I was going to turn in the resignation but now with so much uncertainty I am having a hard time deciding if this really is the time to do it.

Our portfolio is actually up from Jan 1 2020, we have a 72,21,7 equity, bond cash allocation with 50% taxable, 42% TIRA and 8% ROTH. We can easily live off a 2.5% WR not counting any SS and wanting to get some ROTH conversions in as well. I'm hoping the DW can make it 2 more years providing us with cheaper health benefits but she may burn out before then.

What should I be concerned about if I decide to retire in the current market and state of the country?

Similar boat. Things were blowing and going, and I was planning on pulling the ripcord in October (after some stock vesting). Recent market volatility coupled with future market uncertainty has me worried. However, I'm comfortable long term that things will be okay. Question I have is: am I running from or running to?

 

[Octogirl]

We re in a different situation but related.

We re not worried financially about RE but I received an offer to work from home for fall semester, teaching a class I enjoy.
In Feb-March, I was planning to turn it down so we could travel this year, but now I may accept it because travel may still be VERY limited until vaccine arrives


If- When COVID returns in Fall, it will give me something interesting to do at home.
So if I accept teaching the class, I'll think of it as a hobby for which I get paid

They'll send me a contract in July after students enroll.

 

[jebmke]

I retired in December, 2007. The key for us was to have an allocation that we were comfortable with so that (a) we didn't obsess about money and (b) we didn't hesitate to re-balance as needed.

 

[Aerides]

with a planned 2.5% wr you should have no worries - but does that include health insurance now if your wife retires with you?

 

[schellem]

with a planned 2.5% wr you should have no worries - but does that include health insurance now if your wife retires with you?

Yes, dollar wise I'm figuring both of us as retiring now, getting her to work a bit longer is just another extra buffer.

 

[sheldon cornped]

See if this might shed any light on your perspective.

 

[Onward]

Markets and the state of the country will change.

This was my thought also. I would even say there is no such thing as "the current market."

The notion of a steady "state" that we're currently in is an illusion.

 

[Dwhit]

I am basing my reply on the fact you said you have a job you mostly enjoy. Based on that, I would say give it another year. To my mind, things should be much clearer next year at this time concerning longer term virus/economic effects.

If you are enjoying your job, then be glad you have it and enjoy it one more year. I think the virus effects this time next year will be small, but I am not sure how the economy will be. We are starting to see some big-time bankruptcy news (Hertz announced today). I am hoping things ramp back up quickly, but you never know, things could get quite ugly. You might be glad for that last year cushion.

 

[mrfeh]

What should I be concerned about if I decide to retire in the current market and state of the country?

If you're certain you can live off of 2.5%, there is nothing to be concerned about.

 

[schellem]

Markets and the state of the country will change. You might want to first consider the following.

https://www.early-retirement.org/fo...-answer-before-asking-can-i-retire-69999.html

For DW & I, once we had answered the financial questions about ER, of greater concern to us is what we planned to "retire to" rather than what we were "retiring from".

I've been analyzing and reading all I can find for better than 2 years now, you can only do this once. Being a software developer for 30+ years and always having to worry about minor details doesn't help matters at all.

I speculate that sequence of returns is my biggest risk at this point.