Class of 2018

I had been expecting to reach FI last year and the RE at start of 18. DW and I had not gotten on the same page about tighter money and I gave up last fall and decided to keep at it until behavior mods started working. Slow progress but progress nonetheless. At the same time, I had told my boss last year that I thought the big project I have been running running so brilliantly since 2014 would be far enough along that I could hand it off to routine operations by mid 18. Late last year boss asks if I still wanted to roll off the project or would I consider taking over the routine ops because he had decided the guy there couldn’t handle it. I said ok as long as I get some leeway to dabble in some good stuff like AI, IoT, and Robotics/automation. He said “I will post a new job for routine stuff, Warranty on your project, and some R&D as well.”
Time goes on and I said are we gonna do that thing, he says yes, just had to punch some more buttons. Silly me. I forgot it’s give two, get one. Last Friday I walk in to his office and the HR lady slides the package over and I’m like “Dayum! Did I fall asleep or what?”The letter from the CTO says”Tech Dev requires org change and your job is impacted. You have 30 days to find a new job in the company, otherwise we will provide a years salary severance lump sum and subsidize the full term of your Cobra”. Boss says” the new job will be posted Monday.” Wink, wink. So, I was gonna stay and slug it out at least another year but they drop a stack of cash on me that will easily cover DW’s spending addiction rehab. So, now it’s down to gut feelings. Hang around as the company cost contains its way to mediocrity and fails to grasp why it’s getting killed. Or play in the sunshine and occasionally work on the tech that bankers drool over if I need a new toy? I mean fair, my bluff has been called. But what if I sign the release or push back on the new job offer? That other dude cost at least$350k/ yr, how about some of that? Or top off my pension with a little retiree medical? Clearly, boss has a better poker face than me. Time to fold ‘em and go trolling the VC’s?
 
I had been expecting to reach FI last year and the RE at start of 18. DW and I had not gotten on the same page about tighter money and I gave up last fall and decided to keep at it until behavior mods started working. Slow progress but progress nonetheless. At the same time, I had told my boss last year that I thought the big project I have been running running so brilliantly since 2014 would be far enough along that I could hand it off to routine operations by mid 18. Late last year boss asks if I still wanted to roll off the project or would I consider taking over the routine ops because he had decided the guy there couldn’t handle it. I said ok as long as I get some leeway to dabble in some good stuff like AI, IoT, and Robotics/automation. He said “I will post a new job for routine stuff, Warranty on your project, and some R&D as well.”
Time goes on and I said are we gonna do that thing, he says yes, just had to punch some more buttons. Silly me. I forgot it’s give two, get one. Last Friday I walk in to his office and the HR lady slides the package over and I’m like “Dayum! Did I fall asleep or what?”The letter from the CTO says”Tech Dev requires org change and your job is impacted. You have 30 days to find a new job in the company, otherwise we will provide a years salary severance lump sum and subsidize the full term of your Cobra”. Boss says” the new job will be posted Monday.” Wink, wink. So, I was gonna stay and slug it out at least another year but they drop a stack of cash on me that will easily cover DW’s spending addiction rehab. So, now it’s down to gut feelings. Hang around as the company cost contains its way to mediocrity and fails to grasp why it’s getting killed. Or play in the sunshine and occasionally work on the tech that bankers drool over if I need a new toy? I mean fair, my bluff has been called. But what if I sign the release or push back on the new job offer? That other dude cost at least$350k/ yr, how about some of that? Or top off my pension with a little retiree medical? Clearly, boss has a better poker face than me. Time to fold ‘em and go trolling the VC’s?

I'm confused by your post. I don't see why your situation is hard at all - it sounds like a no-brainer to take the severance package.

> "I had been expecting to reach FI last year and the RE at start of 18."
> "... they drop a stack of cash on me that will easily cover DW’s spending addiction rehab."

Okay, now you have enough extra money to do what you say you wanted to do originally. So, the problem is what exactly?

> "So, now it’s down to gut feelings. hang around as the company cost contains its way to mediocrity and fails to grasp why it’s getting killed[?]"

Why would you even list this as an option, given everything else you said in your post until that point?

> "I mean fair, my bluff has been called. "

What "bluff"? Your post doesn't say that you told your boss you were planning to ER, but only that you wanted to roll off to a different project. I don't see where there was a "bluff" on your part. Hypothetically, even if you had told your boss you wanted to ER, that would only a bluff if you knew all along that your original ER plan was never realistic (even apart from the extra cash needed due to your wife's spending, which you now seemingly have enough to cover). Is that the case?

> "That other dude cost at least$350k/ yr, how about some of that? Or top off my pension with a little retiree medical?"

It sounds to me like they are already offering you a generous severance package. Some people on this forum are afraid of being walked out the door the same day they give notice. You are being offered a year of salary + medical. Many people on the verge of ER, including me, would love to be offered a package like that. I also don't see why you are worrying about the "other dude". If you think you are significantly underpaid compared to someone else, you should have discussed that with your boss long before now. Trying to negotiate for a higher salary as part of a severance package probably isn't going to happen!

> "Clearly, boss has a better poker face than me. Time to fold ‘em and go trolling the VC’s?"

"Fold 'em" is a term for losing. It sounds to me like you just won. Unless, like I said before, your original plan of ER end of last year was so unrealistic that you need salary not just one extra year, but several more years to achieve your number.

Finally, if you do need to work longer and don't want the severance, your boss says,
> "the new job will be posted Monday.”

This new job is what you had been expecting anyway. The only bitter pill for you is having to turn down the severance package to get the new job, which is essentially admitting to yourself that you aren't really ready to retire after all, even after an extra year of salary. That's too bad - but if it gives you a better perspective on your real financial situation, maybe that's a good thing.

Whether you take the severance or the new job, I don't see where you lost anything. You do have a choice to make - go to the new job which is what you expected to do anyway, or take the severance which may be a much better choice if your original ER plan was remotely in the realm of realism. Am I missing something?
 
Thanks Ilikestartrek!

Thanks for commenting Ilikestartrek! I like Star Trek a lot also but not at Trekkie level. I seem to rank DS9 higher than most do but I really enjoyed the mix and abilities of the characters species.
About my post, I suppose I’m working through a form of grief maybe? I get that I am saying confusing things. It was a bit of thinking out loud with the notion that the post would help me unload some stress and declutter my mind. Also, by opening up my thoughts to feedback like yours, help me sort out head from heart and see more objectively and dispassionately as this situation plays out. The more I gameplan this, the more confidence I have that I will make good choices.
I’m still considering the severance offer/RE versus staying on. I applied for the job to keep the option on the table. Had I not applied by last night, 5 day posting, I would have defaulted to accepting separation.
WRT to ability to RE, we seem to be in the middle range of nest egg/income sources of forum members. Admittedly, my assessment is not rigorous, only based on cursory skimming of other’s postings.
I’m 58-1/2, DW is 57-1/2. She RE’d at 49. It brought much goodness to us and allowed her to provide end of life care for both parents. It was difficult and painful but now she carries no guilt or regrets. She got closure as she was able to reconcile deep bitterness that an only child end survives but is damaged by a family broken by the betrayal and selfish, spiteful behavior of a narcissistic mother and a hard edged father. He was a good man but her mother couldn’t resist pushing his buttons to enjoy his suffering.
Our investable asset NW is roughly $1.6m, $850k in qualified accounts,$400k in deferred comp, $350k cash deposits. Insured fixed assets(house, collector cars, coins, etc.)worth about another $400k. I also am pension vested, and my benefit, if I start immediately, will be $4250/mo for 50% survivor, $4590 single life. We are still weighing benefits payout start date, annuity type, e.g., survivor benefit vs carrying term life insurance after RE. Deferred comp must pay out in equal yearly installments from date of separation. My plan uses that $80k only in yr 1-5. Years 5+ use the pension and retirement funds. SSI benefits at some point after yr 5. The SRP portion of pension also commences immediately and is $4k/yr.
I can augment from dividends, some rents if we keep this property but reside elsewhere. I’m invested in a couple of profitable small businesses that generating proceeds, $3-4K/yr. As long as they don’t lose money or turn into jobs that I have to do, I’ll keep them.
I started calculating my RE target date 6-7 years ago and was projecting somewhere around 2020. The company was growing fast when I joined in ‘02. I climbed the ladder quickly and by ‘08 was in upper executive ranks, just below company officer. For many reasons, I have stayed at that career level rung. Our lifestyle is relatively modest and auto saving allowed us to stockpile the egg without rigorous penny pinching. I recognize that frivolous spending could derail any plans so that is a real readiness issue.
A change in LTI vesting plans/schedules led to big payouts the last 2 yrs and 4 yrs ago. Fortunately they landed after I quit with blowing big chunks of dough.
I admit that 10 years AG I did some binging with a boat, RV, guitar collection, toys, showering relatives, etc. Hard work and success deserves shiny stuff type rewards, right? We were arriving from a start where we counted pennies at the checkout counter to pay for diapers and chicken leg quarters.
I got most of that acquisitive behavior out of my system about 5 years ago. I woke up to my stuffitis and proceeded to debt free in ‘13 and my RE countdown started in earnest. Still need to seriously unload the stuff though. Maybe I’ll donate it to the Jones’s.
Our expenses run $75k annually and will shave off corporate-drone convenience fees and club taxes, at least 10%. I include storage rentals as convenience fee here!!! Cash flow models project my retirement annual income w COLAs in the $100-110k range without depleting the egg. Short of force majeure tragedy, our biggest RE hurdle will be health care cost from age 60-65 beginning 2020. It won’t be so big that it’s RE blocking, however, staying 3 more years would qualify me for retiree medical from 2021 to 2025 and Medicare supplemental afterward.
So back to the conversation between boss and I. Since I would be accepting a new offer, the terms are negotiable. I expect the offer will be directly comparable to current comp but some modifications. I currently receive auto allowance. That perk for new hires at my level was eliminated 2 years ago and likely will be absent from the new offer. Good offer- redress the perk loss with base comp or IC to boost pension FAC. Neutral offer- tie to a new bonus or convert it to LTIP multiplier points/raised target. Bad offer- perk gone w no offset. About the job- R&D is like being paid to play, Delivery is cool but doesn’t get you in the C-suite under ordinary conditions. Ops is brutal and takes years off your life but is where tech careers are made and engineers can become CTO & CEO. I’m too long in the tooth to climb more than another level here. This job will be twice as hard as what I do today. If I do it I’m gonna get paid.
I’ve been very windy here so try to wrap. Subjectively, I need to know how much I matter to the team and mission. I need to know if Im appreciated and needed outside the context of job ability, or if I’m simply a means to an end. Is my presence and influence seen as an intrinsically good thing or grudgingly accepted that to get the best person for the job, they have to put up with my :confused:
The offer and negotiation will reveal those things. If I am going to stay and do some work that is unpleasant, such as RIF a lot of people, it will need to be for something more meaningful than a percentage swing in retirement security.
This is the denouement of my professional life story. When my great grand children ask what I was like, will they hear about a cold hearted businessman that took a payoff to “do what needed to be done”? Or will it be “if he hadn’t been a selfish lazy wimp that wanted to sloth in a hammock on the beach, you would be able to afford to go to college.”? Granted, in the great scheme of things, it doesn’t matter but my choice will bias toward where my legacy is more likely to be one of virtue and betterment as opposed to one of self-aggrandizement and egotism.
 
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About my post, I suppose I’m working through a form of grief maybe?
ClayMore, best of luck in whatever you do.

I'm having a bit of a time digesting your very thick posts, but I wanted to say, hang in there. I think you are in tech, and you and DW are over 55. That pretty much say to me, "take that year of severance and run."

Maybe it simplifies things a bit, but man, I'm in tech, and if I got that, I'd be gone so fast. Tech doesn't give a flip about anyone over 50. Just leave. I dream about that kind of offer. My megacorp gave those 10 years ago, but stopped. Now, they just try to get you to leave, or if push comes to shove, they give 3 months.

I'm going to leave. In May.

But, yeah, I totally understand your "grief" comment. I do! I'm grieving my career. I know I could do more. For less even. But geez, Megacorp just doesn't make it easy.

When HR shoves the package across the table, and it is a good package, you really need to consider it.

I say this mostly for our young ERers who read this. BE PREPARED people. Age 40+? THINK about this. This is reality.

Anyway, best of luck. Meanwhile, I sit here employed, and riding on a train in a tunnel with this light at the end. The light is getting bright, and it is getting scary! 3 months away. WOAH! Can I do this?
 
Thanks for commenting Ilikestartrek!

<etc>

Also, by opening up my thoughts to feedback like yours, help me sort out head from heart and see more objectively and dispassionately as this situation plays out. The more I gameplan this, the more confidence I have that I will make good choices.
I’m still considering the severance offer/RE versus staying on.

<etc>

ClayMore, I'm glad you found my comments helpful. Best wishes in whatever you decide. Here's my feedback on your latest post.

It sounds like you believe you have enough on the income side to RE. But there may still be a nagging doubt on your level of spending. I think you need to sit down with your wife and have a frank discussion about your retirement. Talk through the level of retirement you think you can have on your budget, including the "toys" you have to forego if you retire now vs after the 3 more years. If she is resentful about having to cut spending in order for you to retire, you will have continued problems. For the sake of your marriage, you may need to keep working. But if the quality time you two can spend together is worth it to the both of you and she is fully on board with the RE plan, that's great. The result of that conversation will likely make your work decision for you.

If you're still on the fence, you will need to decide on the work stress vs financial reward of working longer.

It does sound like an awful lot of work stress - "Ops is brutal and takes years off your life... This job will be twice as hard as what I do today." You are in your 50s, so likely you will never be healthier than you are now. You don't know if your current level of health will last another year or another 30 years. If you really think the new job will "take years off your life", and you already have the means for a comfortable retirement, the job is probably not worth it no matter how good the salary will be.

About this:
> "Subjectively, I need to know how much I matter to the team and mission. I need to know if Im appreciated and needed outside the context of job ability, or if I’m simply a means to an end. Is my presence and influence seen as an intrinsically good thing or grudgingly accepted that to get the best person for the job, they have to put up with my :(" -

I think you are making things too personal. If management has decided from past history that Job X is worth Salary (including benefits) Y, it could be that they just won't go beyond Salary Y even if you are Superman. Management has to take the view that no one is indespensable. Is anyone so indespensable that if they drop dead from a heart attack, the company will go out of business? Not likely! (If you owned your own business, then maybe you really would be indespensable. But not in Megacorp.) So Megacorp is only going to negotiate to a certain point. If you can get extra benefits that's great, but don't take it too personally if they don't meet your expectations.

JoeWras put it frankly, "Tech doesn't give a flip about anyone over 50." I think there could be exceptions but I mostly agree with that comment. I pretty much agree with all JoeWras' points. If I had that severance offer, I would jump at it just like he would. You probably should, too - but making sure that you and your wife agree on the plan is the main thing.
 
I'm in tech, and if I got that [severance offer], I'd be gone so fast. Tech doesn't give a flip about anyone over 50. Just leave. I dream about that kind of offer. My megacorp gave those 10 years ago, but stopped. Now, they just try to get you to leave, or if push comes to shove, they give 3 months.

I'm going to leave. In May.

But, yeah, I totally understand your "grief" comment. I do! I'm grieving my career. I know I could do more. For less even. But geez, Megacorp just doesn't make it easy.

<etc>
I sit here employed, and riding on a train in a tunnel with this light at the end. The light is getting bright, and it is getting scary! 3 months away. WOAH! Can I do this?

JoeWras,

I'm with you on wishing I could get a nice severance offer!

I want to tell you that even though I've only been on this forum for a few months, I've enjoyed reading your posts in this thread which have been ongoing since you started it 5 years ago. I know you have been dreaming about FIRE for a long time and have often been frustrated at Megacorp. It's great to see that you are finally within a few months.

I'm in the Tech field as well, but as a developer. I have the impression that you're a manager. I've avoided going into management, partly because I didn't want the stress and bureaucracy there. I don't feel too stressed about my job, but it can be tedious. It *is* a job and I would prefer to have all the free time from RE. Now that I'm getting close, I'm just finding it harder to do my work every day - I find myself daydreaming that in just over a couple more months, I won't have to do this anymore but I can enjoy a lot more free time.

I'm now targeting May 1 as my last day. From what I gather from your posts, I think I will beat you out the door by a couple weeks. Hopefully you and I will both be enjoying ourselves in June!
 
Upper management let a great manager go yesterday with no good reason. It's better to retire on my terms.

Exactly so! Having been ‘exited’ from jobs twice in my career, it matters to me that I retire in my own terms, having done proper succession planning and leaving my team in a good state.

Me and DW have about ten weeks to go now (04/27.) And we became grandparents last Thursday!
 
JoeWras,

I'm with you on wishing I could get a nice severance offer!

I want to tell you that even though I've only been on this forum for a few months, I've enjoyed reading your posts in this thread which have been ongoing since you started it 5 years ago. I know you have been dreaming about FIRE for a long time and have often been frustrated at Megacorp. It's great to see that you are finally within a few months.

I'm in the Tech field as well, but as a developer. I have the impression that you're a manager. I've avoided going into management, partly because I didn't want the stress and bureaucracy there. I don't feel too stressed about my job, but it can be tedious. It *is* a job and I would prefer to have all the free time from RE. Now that I'm getting close, I'm just finding it harder to do my work every day - I find myself daydreaming that in just over a couple more months, I won't have to do this anymore but I can enjoy a lot more free time.

I'm now targeting May 1 as my last day. From what I gather from your posts, I think I will beat you out the door by a couple weeks. Hopefully you and I will both be enjoying ourselves in June!

I am a developer. But you know, Megacorp says "everyone is a leader." Blah, blah, blah. We have all these developers telling each other what to do. Seriously. Megacorp has decided over the last 15 years to have all new talent offshore, so onshore developers seem to spend time looking good and telling each other what to do. There is no new talent to actually lead and nurture. It is a strange game.

On top of that, we identify issues, and they require resources (either people, time or equipment) and there's no power to do anything about it. When we press, we're basically told the same thing: "You are a leader, just fix it." Right.

And you are right, my immediate manager has it even worse.
 
DW's last day is March 28th.

My brother's last day is June 1st.

My last day is not exact yet...but will be in October this year.


Hat Trick!!!
 
Well, I told my boss today I was leaving in the summer. I was planning to tell her next week. But, as it turned out, she is getting a promotion and leaving around the same time. She told me this first, then I told her. I think we both expected the other to be devastated, and due to our mutual departures, that didn't happen, lol! That makes the transition easier, as the organization will probably hold everything in abeyance pending reorganization - which means I won't have to conduct much in terms of planning for next year. And my boss won't be hyper about my getting every single procedure and loose end in order.
 
Just a wrap up. I interviewed and got offered the job at a significant increase on base from 210 to 230. Perk pack at 15(Auto allowance & welfare expense) IC & LTIP of 180. I took the offer and my new plan is to complete major goals of the job, get DW used to tighter money and solve for health insurance cost with the additional pay from now until mid 2019. I would have to work to end of ‘21 to get retiree hc and that’s too long to wait. Thanks to advice on here, I realized more diligence was needed on readiness to RE.
 
Three years to retiree healthcare is nothing! Totally worth it!! I've been working 8+ years toward retiree healthcare at a job I'm overqualified for and as such get treated like crap by 'less gifted' [insert eye roll here :)] colleagues. Still worth it!! Can't wait to leave the dopes at the job behind. To have cover for the risk of the cost of healthcare is big. I found my retiree plan is good enough and cheap enough that I plan to keep it over Medicare Part B, the part you pay for that isn't drugs. Things to think about.... Good plan, IMO.
 
12 weeks. It is getting real. I have to say, I wake up both excited, and also with a little pit in my stomach. I mean, am I really going to do this?
 
I always think of the worst case scenario. You are quitting a job you hate because you have enough money that you don't have to do it anymore. So if you decide you hate retirement or the market goes down, you can always get another job. You didn't want the old one back anyway did you? And you don't have to make anywhere near as much money- you can take a job- IF you want to, just cause you like it and it doesn't even have to pay well. And if you don't like THAT job, you can quit that one too!

I wish I could take my own advice- Ha
 
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12 weeks. It is getting real. I have to say, I wake up both excited, and also with a little pit in my stomach. I mean, am I really going to do this?

It will be one of the best things you have ever done. Don't back off. :D
 
Yay! Last two months for me and DW! Eight weeks to go.

We’re having different “wind down” experiences. Me - my successor has been selected and I’ve been passing most of my tasks to him, leaving me happily under employed. Love it!

DW on the other hand is being beasted to complete all manner of (unnecessary) projects because they’re scared that no one after her can do them - they will just have to cope....

Roll on 04/27!

Best wishes to all my fellow 2018 retirees!
 
Thanks. Needed a booster shot!

Funny thing. I love home improvement. I don't necessarily want to dabble in retail. But, I have a friend who ERd from another company and works PT at one of the home improvement big boxes and loves it.

Back up plan for rice and beans money, should it come to that. It won't though. :)
 
12 weeks. It is getting real. I have to say, I wake up both excited, and also with a little pit in my stomach. I mean, am I really going to do this?



I’m having the same emotions, Joe. I’ll be telling my boss next week about my 4/30 retirement. I liken it to the feeling I had when I went whitewater rafting over a 20’ waterfall: extremely excited to do it, but more than a little nervous, too.

I keep telling myself that the plan was solid last summer, and I’m 18% better off than I was then. I also know I have some options to bring in some income through PT w*rk if it looks to be necessary.

Hold steady and keep the faith...!
 
In the Class of 2018

I too have set a firm ER date of 5/15/18, after 42 years of full-time career work. DW retired last May (and is a few years older than my 63.5 year age). We can finally spend some significant time together, and apart, that doesn't involve w*rk.
No turning back for me - I can taste the freedom, and won't miss another summer, like I have missed essentially since 1976.
Go Class of 2018 !!!
 
Gave unofficial/verbal notice today when my supervisor came by to schedule a goals discussion. Planning on exit 5/4/18, but want to be sure they can get someone onto my project by then, as the end of May things will heat up and they need to be up to speed. Also want him to give any raise allocated to me to someone else, as I'll be out before it hits anyway and he only gets so much budget.

Slightly stomach churning, but I'm about 25% over what I figured I would need due to the past year's returns (partly because we have once per year appraisal of the company stock price that came out last week - up 35% this year!), so even with the current volatility, I'm pretty comfortable. Currently dumping 50% into 401k to try to hit the max for the year by departure (already banked the annual matching money as of this morning's paycheck!) so I can easily manage IRA conversions and taxes this year for ACA plans if need be.

Exciting times for all!
 
It IS so exciting! I've actually STOPPED dumping money into my 401k because my FA and I are planning that I will live off some savings and sick leave payout for the 5 months after 8/1, and not draw on my retirement savings until 2019. So I'm putting money into my plain vanilla savings account for now. But, just got a (modest) check for my part in the sale of my parents' home, and that is going to get the savings account up to what I need, the emergency savings account filled again, and my new car paid off. Once that is done, I will see what spending more freely feels like! I have a fall trip planned already, am sending a deposit this weekend. It feels like intermission before the Third Act right now!

PS: What do you call an emergency savings account after retirement? Previously it was the "replacement job earnings" account. Now does it become the "supplement-in-case-of-market-downturn" account?
 
I’m 4 weeks out. I’ll be FIRE at 46.

Anyone have a final days at work checklist? I feel like I only know that I’ll send an email to work colleagues with new contact information.
 
I’m 4 weeks out. I’ll be FIRE at 46.

Anyone have a final days at work checklist? I feel like I only know that I’ll send an email to work colleagues with new contact information.



Make sure you’ve downloaded any contacts you want to keep into your private address book.

Are there any emails or documents that you’d rather not have anyone see after you go? Delete now.

Are there any emails or documents that might conceivably be useful to you later? Thumb drive (yeah I know they aren’t really your property but...)

Are there any project loose ends that could spur an unwanted phone call later? Do a handover document while you’re still getting paid.

Say goodbye privately to people whom you like but you won’t want to see again so you don’t feel like there’s unfinished business.

Go through your pockets for any unclaimed expense receipts - you have only one last shot at reimbursement.
 
12 weeks. It is getting real. I have to say, I wake up both excited, and also with a little pit in my stomach. I mean, am I really going to do this?



Same thing here. I have reworked my numbers so many times I know that they are solid. Still however there is that part of me saying OMG this is for real. And you are so much closer than I am. I can’t imagine what you must be going through...[emoji15]
 
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