Class of 2019

[Lawrencewendall]

Am I Ready to Join Your Class?

Long post
Well, I’ve come full circle. I stumbled upon this site back in 2017 looking for an answer to “How much is enough?” Since I’ve been furloughed for 3 weeks now, I’ve really crunched the numbers and I think I’m ready to put those numbers out for feedback. My original plan was to RE in 2021 when I’m eligible for a small pension (12k) but the numbers I have say I can do it this year, as early as May to keep myself in the 12% bracket. I turn 55 this year (DW 54) and can start to pull from my 401(k).

I’ve been tracking monthly expenses for the last 5 years and subtracting the one-off expenses (such as wedding and DS’s college which is over with). 2018 expenses were right at 70k with some room to cut back.

Here’s my numbers:
Military Retirement, COLA’ed, 39k
VA disability, non-taxable, COLA’ed, 14k
DW SSDI, COLA’ed, 85% taxable, 8k
401(k), 100% equities in small and mid-cap index, 288k, 10-year performance >13%
tIRA, 90/10 AA generating 27k annually in dividends, 252k
Roth, started more than 5 years ago, 25k
Brokerage, tax-free, 20k
Combined tIRA, Roth and traditional 10-year performance > 13%

Medical is covered by Tricare. No CC (assuming I ever get paid), mortgage and car payments are included in the 70k expenses. No expensive hobbies (see “what we’re making”). Travel will be limited due to DW’s health. Live in a HCOL area but both adult DS’s bought houses locally so I don’t envision moving.

I enjoy my j*b (National Security related) but the 3-hour daily commute and the 8.5 hour w*rkday is sucking the precious hours of my life away. I already talked to a FA and he really did not have any advice to offer. I think the numbers say I’m ok but would like feedback from the smart people here to show DW, who is antsy every time I bring up the topic of quitting. She sat in on the FA meeting and I think it did ease some of her anxiety. Your responses may help further help her doubts.

My plan is to use some of the 401(k) to cover monthly expenses and convert the remaining amount to the top of the 12% into a total market index fund, average return>10%.

So, you guys/gals are my last-ditch effort. Am I missing anything? Any gotcha's?

EDIT: I calculate Federal tax to be 9k, State tax about 6k, County/property is included in mortgage escrow.

 

[GR111]

I’m class of 2019 and FIRE age 56, I don’t know anyone in my family or circle who regrets retiring early.

Lawrence, FIRECALC is a great tool. May want to run the numbers if you haven’t already. And as you know, TRICARE is huge for keeping med cost down.

 

[Dtail]

Sounds like you have the expenses covered. 61k cola'd income for 70k expenses. Add in the dividends and you are covered.
I assume the taxes are over and above your 70k expenses?
Have you used firecalc?

 

[Gunny]

Plan A for me is to live off my taxable assets/ dividends & make it to 59.5 where I can start tapping into my deferred 401 & IRAs. Company pension & SS at 65. I am not familiar with the 72T rule & want to learn more about it for Plan B. I believe it’s the calendar year that you turn 55 and volunteering separation from megacorp. I also hear that it’s a mine field so one needs to be well verse before apply the rule to avoid penalties. It’s been a long journey to get to this point and congrats to you. I thought of getting a countdown app but I don’t think I’ll get anything done in the office. Master plan right now is to lay low and bite my tongue at meetings and pretend that I gives a sh!#$.

You don't have to wait for any specific age to begin SEPP vis a vis 72(t). Everything you need to know can be found d at 72t.net.

 

[Lawrencewendall]

Sounds like you have the expenses covered. 61k cola'd income for 70k expenses. Add in the dividends and you are covered.
I assume the taxes are over and above your 70k expenses?
Have you used firecalc?

Taxes are over the 70k. I've ran FireCalc, PC planner, FIDO and I-Orp and all say ok. Just want to make sure I'm not missing anything.

Wendall

 

[Out of Steam]

Also, if they believe you will jump on your own they may just wait you out.

That's my downside. After some turbulence in 2017, it's pretty easy to read that I'm not going to stay much longer than necessary. Though we have had so much management turnover, it's possible that there's nobody in management who remembers that.

 

[camfused]

Well, I made it. Walked out of the office for the last time this afternoon. It was kind of hard to say goodbye to the people I have worked with for so long. Yesterday, they threw a big party for me at a local pub. It was really nice, and I was very humbled by all the kinds words from everyone.

37 years as a half-decent software engineer, and I am suddenly just stopping. Kind of hard to wrap my head around it. I was working on problem tickets this morning even.

I suspect time will fix these perceptions, and in a few weeks I will be dialed into this next chapter of my life. I turned the magic 59.5 last Sunday, so (hopefully) a long way to go in this chapter too.

 

[Shabby]

Congrats! I think about that moment everyday now as I am 1-4 months away. I run the numbers daily to make sure I'm not forgetting anything. You have so much time to build a whole new life.

 

[fishvt]

Congrats Shabby!! I’m going to announce my retirement from Megacorp next week after 32.5 years. (@56.5 ) Looking to close out w*rk on 5/1. So excited to move forward and have new adventures. If I wasn’t doing “no beer January” I would have a beer.[emoji3]

 

[Out of Steam]

If I wasn’t doing “no beer January” I would have a beer.[emoji3]

Congrats also to fishvt!

I decided I didn't drink enough to worry about no beer January.

 

[retiresumtime]

Well all, I turned in my papers April 1st 2019. 32.5 years of service, funny I am doing no alcohol January. Had scare on high blood pressure. So scared turned the papers January 3rd. Leaving ..... retire April 1st —fly to Palm Springs play golf, 3 days, fly to Colorado see DD...I have run numbers over and over. AND over.

 

[fishvt]

Congrats!! I was supposed to meet with my boss to tell him about my 5/1 date. His flights were late, now I have to wait.

 

[targatom2019]

also class of 2019 July 5th at 50yo. Are you guys nervous or it's just me ?

 

[EastWest Gal]

Well all, I turned in my papers April 1st 2019. 32.5 years of service, funny I am doing no alcohol January. Had scare on high blood pressure. So scared turned the papers January 3rd. Leaving ..... retire April 1st —fly to Palm Springs play golf, 3 days, fly to Colorado see DD...I have run numbers over and over. AND over.

You will love the feeling of going on a trip and not having that dreaded feeling of catching up at work when you get back.

 

[Aiming_4_55]

Brief update - I have OMY so moving to 2020 or 2021. I've been shuffling my investment mix and selling off certain real estate to make transition easier for the future. Meanwhile, company has loaded me with RSUs and making it worth staying OMY.

Age 49, so I'm thinking... options to myself without any buyout or BS bucket overflowing, the following new targets.

9/1/2019 - payout of RSUs and age 50 (personal goal, much better than 55)
7/31/2020 - payout of RSUs and age 51 (BUT qualify for 6 week paid sabbatical, so might stay a few months)
7/1/2021 - payout of RSUs and age 52 (primary bonus paid in March and RSUs in July, same every year thereafter)

If BS bucket overflows, then I'm so willing to reconsider.

Well, I've had some time to play and currently experimenting with career options. Currently, working harder than I want but enjoying the nicer weather.

Originally, before reading various forums, counting all the nickels, and reviewing expenses, I was just hopeful of targeting age 55.

Now, after a few years, I am targeting 2019, either age 49 or age 50 depending on time of year. I will be a landlord, somewhat, so it'll be semi-ER, but it'll give me alot of ME time with the family and myself.

5 years from now seems long, but better than 2024 which I was previously thinking.

 

[HI Bill]

I'm going with my 53rd birthday in January 2019, if the market doesn't tank by then!

OK, so I missed that one...looking at summer 2019 or so. I'm laying out the condo sale, and almost two years of dive travel, as well as moving schedule. I'm getting excited...planning to go diving in many places I've been wanting to so since the 1990s!

 

[Shabby]

Getting so close to retiring I changed my avatar today! Either Feb 28th or May 31st.

 

[retiresumtime]

also class of 2019 July 5th at 50yo. Are you guys nervous or it's just me ?

O yes I am nervous 32 years. I just finished my letter to our senior leadership team. It has been a great place to work. However it’s time for me and my spouse. The grind has wore me out. I can’t wait to sleep a month....[emoji23]

 

[fishvt]

I’m officially a class of 2019 now! After 32.5 years, my last day is May 10th(56.5 YO). And, hell ya, I’m nervous. Not so much about finances but just the change in lifestyle. Now that I announced, so many people ask me what I’ll do all day. I usually tell them “whatever I want to do”. [emoji3]DW will work through the Summer and finish up a project at w*rk, then join me. We’re going to FL in April to scout out snowbird communities near the Gulf Coast. Any suggestions from folks in the greater Sarasota /Bradenton area would be appreciated. Thanks !! Happy Dance!!

 

[Osprey]

First full day of retirement!! Relaxing morning and off to see WW1 documentary They Shall Not Grow Old with hubby this afternoon. So thrilled that my retirement has started!

 

[bushpilot]

Well, 55 and I am joining the class of 2019, graduating July 1. Got offered a nice PT job yesterday, but was unable to take it because of the FT job. Will be looking for one after graduation, as I am in the "probably fine" category for quitting, not the "slam dunk" category. And I can quit if I want to.

Greg

 

[Bigdawg]

First full day of retirement!! Relaxing morning and off to see WW1 documentary They Shall Not Grow Old with hubby this afternoon. So thrilled that my retirement has started!

Congrats Osprey. I'm looking at going 3/4 time in 2020 (the year I turn 55).

 

[Octogirl]

OMY... Dec. 15, 2019.

I worked from home 3 days this week (in part bec of Freezing weather in NE) but find it harder to motivate myself for work tasks.

Any tips ? I use to think about the $ value of each day's work for motivation, but that is not working well now that I know DH and I are FI....but not RE yet.

My next strategy may be to plan a "Blow that Dough" vacation and use 2019 salary to pay for it.

Ideas ?? Something you planned for in your last year ?

 

[FI50]

Was not planning to retire in 2019. Got a RIF package, so here I'm. 4/1/2019.

 

[ugeauxgirl]

OMY... Dec. 15, 2019.

I worked from home 3 days this week (in part bec of Freezing weather in NE) but find it harder to motivate myself for work tasks.

Any tips ? I use to think about the $ value of each day's work for motivation, but that is not working well now that I know DH and I are FI....but not RE yet.

My next strategy may be to plan a "Blow that Dough" vacation and use 2019 salary to pay for it.

Ideas ?? Something you planned for in your last year ?

I'm retiring a month later than you, which puts me in the next years class. But I'm eavesdropping on this thread too. I have a lot of once per year tasks, now that I'm into my final year, I am cheerfully checking off things I never have to do again.

You could begin planning your retirement vacation. I'm thinking a month on the beach somewhere- Costa Rica maybe? My husband has NOT agreed to this (yet) but dreaming about it makes me smile.