Class of 2022

[bUU]

I searched high-and-low for a Class of 2022 thread, but found none, so I started this one.

[bUU]

So I was RIF'ed in October. As you can well-imagine that threw a monkey wrench into our plans. I had a lot riding on making it to "the end" in my current job: Earning a northeast big city salary but living in the much-more-affordable southeast. I needed just five more years.

I actually did a lot to dig into my position. I was quite vital to the company's ability to serve dozens upon dozens of client companies. The others who could make the software changes necessary to keep things humming along kept falling behind as they pursued furthering their career by investing time in new technology. Well, evidently, that wasn't enough to keep me safe. Honestly, and without any sense of self-promotion, I have no idea how they're going to keep those customers satisfied without me. Luckily, for me, it isn't my problem.

I've got an offer in-hand for a new position. It's "good enough" and I'll be taking it. To get it, though, I had to re-brand myself. Since I stuck with the old technology, my software development skills were no longer in demand - at all - but luckily my solution design skills were. However, it's still a career change (literally my third career), which adversely affects compensation, and of course the change from northeast to southeast also affects compensation.

What's strange is that it didn't move the ER date out more than a handful of months. I suppose it is [a] the impact of the marginal rate of taxation at the upper end of the range, [b] so few years left, and [c] the heavy impact of delaying having to pay full price for my own health insurance. So somehow, even with a 30% pay cut, I'm still class of 2022. Very strange.

As soon as I start working and get the lay of the land at the new megacorp, I'll have a better feel for how likely it is I'll make it to the end, there. And once I have that assurance again, it'll be time to start thinking more carefully and clearly about Life after FIRE.

[pompanobeach]

Yippee. 47 months to go...... but who’s counting?

[Dtail]

Quote:

Originally Posted by bUU So I was RIF'ed in October. As you can well-imagine that threw a monkey wrench into our plans. I had a lot riding on making it to "the end" in my current job: Earning a northeast big city salary but living in the much-more-affordable southeast. I needed just five more years. I actually did a lot to dig into my position. I was quite vital to the company's ability to serve dozens upon dozens of client companies. The others who could make the software changes necessary to keep things humming along kept falling behind as they pursued furthering their career by investing time in new technology. Well, evidently, that wasn't enough to keep me safe. Honestly, and without any sense of self-promotion, I have no idea how they're going to keep those customers satisfied without me. Luckily, for me, it isn't my problem. I've got an offer in-hand for a new position. It's "good enough" and I'll be taking it. To get it, though, I had to re-brand myself. Since I stuck with the old technology, my software development skills were no longer in demand - at all - but luckily my solution design skills were. However, it's still a career change (literally my third career), which adversely affects compensation, and of course the change from northeast to southeast also affects compensation. What's strange is that it didn't move the ER date out more than a handful of months. I suppose it is [a] the impact of the marginal rate of taxation at the upper end of the range, [b] so few years left, and [c] the heavy impact of delaying having to pay full price for my own health insurance. So somehow, even with a 30% pay cut, I'm still class of 2022. Very strange. As soon as I start working and get the lay of the land at the new megacorp, I'll have a better feel for how likely it is I'll make it to the end, there. And once I have that assurance again, it'll be time to start thinking more carefully and clearly about Life after FIRE.

I had a NE big salary and was planning to work 4 more years, but volunteered for a layoff when the opportunity arose. I would have been eventually laid off for no other reason then making too much money.

I couldn't find meaningful work, but discovered I was good to go and moved to the South as part of the solution.

At least you did find a new job, albeit at a lower salary. Hopefully you are physically closer to your ultimate retirement destination.
It will work out for you in the end. Keep your eye on the prize.

[YVRRocketSurgery]

I'm targeting mid April 2022 and couldn't find a 2022 thread so I ended up posting in the 2024 thread until I found the 2021 thread which was closer. Nice to see a 2022 thread created.

If I get offered a standard departure package from the company, I'd probably call it a day at that point since the packages are relatively generous and should be enough, after taxes, to cover my half of our basic annual expenses for about 3 years.

It's not critical at this point yet but I'm debating when to drop hints to my manager that I might be interested in a package (it's kind of vague when they might be offered so it might help if I indicate I'm interested) versus giving enough notice so they can hire and train a replacement. I think my ideal situation would be to snag a package about a year out in Q1 2021 or Q1 2022.

And I'm counting alright...
46.3 months = 1407 days to go -> 858 working days left after subtracting weekends, statutory holidays, and vacation days.

[pompanobeach]

Dear YVRRocket. I can only dream of getting a departure package! I work for government and they are only giving sticks and not the carrot! However, I am still blessed to be getting a pension and to retire at 55. I have the same target. April 2022. God willing, I will be able to sell Connecticut home and go live in my vacation Condo in Pompano Beach Florida. Due to fiscal problems, my pension has been reduced by 30% if I go at 55 but I will still get a guaranteed 2% COLA for the rest of my life. If I wait until 60, I get a bigger pension but no COLA. I think I am making the right decision by going at 55. This gains me 5 more years of freedom!
[emoji1317]

[YVRRocketSurgery]

No guarantees that I'll be offered a package. It just sure seems like my megacorp like to give them out to folks in their 50's but I've known a few colleagues that tried to wait for one for a few years before deciding to just pull the plug and retire.

I'm sorry to hear about your pension issues.
The missus also works for quasi-public sector and has a DB pension which they've recently had to make notable changes to it to ensure its viability. Her DB pension does not guarantee COLAs. They'll only do it on an adhoc basis dependent on how well the pension is doing. And they've lowered the payouts for folks taking their pension below their magic number target which for her is age 62. I'm hopefully optimistic that our combined numbers will allow her to retire at 55 with her reduced pension.

DB pensions in general seem to be needing to make adjustments to their plans.

[Dtail]

Quote:

Originally Posted by YVRRocketSurgery I'm targeting mid April 2022 and couldn't find a 2022 thread so I ended up posting in the 2024 thread until I found the 2021 thread which was closer. Nice to see a 2022 thread created. If I get offered a standard departure package from the company, I'd probably call it a day at that point since the packages are relatively generous and should be enough, after taxes, to cover my half of our basic annual expenses for about 3 years. It's not critical at this point yet but I'm debating when to drop hints to my manager that I might be interested in a package (it's kind of vague when they might be offered so it might help if I indicate I'm interested) versus giving enough notice so they can hire and train a replacement. I think my ideal situation would be to snag a package about a year out in Q1 2021 or Q1 2022. And I'm counting alright... 46.3 months = 1407 days to go -> 858 working days left after subtracting weekends, statutory holidays, and vacation days.

I would think it is a bit early to hint about a package, unless you know your boss well. Otherwise, could they hold it against you indirectly in comp over the next few years?

[YVRRocketSurgery]

Quote:

Originally Posted by Dtail I would think it is a bit early to hint about a package, unless you know your boss well. Otherwise, could they hold it against you indirectly in comp over the next few years?

I know my manager fairly well and we have a very good relationship but yup, that's one of the things I'm concerned of as there's bell curving going on for bonuses and raises, though I hear they may be changing that structure in the near future. People at work know I'm interested in personal finance and FI but I try not to talk about retirement. And I won't start hinting about a package until I'm closer to the numbers I'm shooting for.

[Jeffman52]

I have this idea of FIRE'ing on 02/02/22.

However our bonus's pay out in April so my actual plan is April of 2022. More years of great returns can change that for an earlier FIRE but the opposite is also true LOL

[YVRRocketSurgery]

Maybe check the HR fine print?
We get our bonuses for the previous year's performance at the end of the following February. But I found rules in our HR fine print that talks about qualifying for a pro-rated bonus if you exit before the end of the year or a full bonus if you make it to the end of the year but not to the end of February, paid out on your final paycheck.

[bUU]

Those kind of provisions apply where I am working now - in my case, it applies to the 401(k) match: We get the 401(k) match, pertaining to our contributions in the previous year, in the first quarter of the next year, but only if we are still on staff at the time the match is issued. My first reaction to reading this is that it had to be a violation of ERISA, but unfortunately the timing of matching contributions is not dictated. Regardless, that has got to affect when people retire from the place; it surely will affect my decision about when to retire and/or when to stop my contributions.

[fassmac]

I am formally joining this class. April 2022 is the date! T minus 1,356 calendar days.

Background Information

I just turned 49. I will be 52 when I RE.

Savings to date: $1.7MM, 70/30 split, 60% post tax, 40% 401k. House (1,500 sqft, 200k market value) paid off.

I have dual citizenship US/German. One daughter (19) living in Germany, one son (12) living with me in the US. Two divorces! Happy single.

Living in NC. Very nice, low cost of living!


Why April?

Company pays bonus end of March.

I will be able to save the max 401k contributions by then.

Does anyone know a reason for a different date within a year?

Why 2022?

I should have $2.5MM by then. This is about $500k above my projections what I need to RE with a 3.5% WR.

I am kind of worried about market performance over the next couple of years. Feels like a good idea to wait out the next dip.

My daughter living in Germany should have finished her college degree by 2022, giving me peace of mind she has a good start of her own.

My son will be in 11th grade. I am looking forward to spend more time with him during his last year in school before he moves out and goes to college.

My big dream is to convert a van to a RV and tour the US/Canada for a year or two. This won't be possible until my son is in college and I need a few months to build this thing.

I HATE w**k more and more! It all started first day in kindergarten when I first had to get out of bed and start the daily grind. I hated it ever since!

[Dreaming of Freedom]

I am going to guess I am now in the Class of 2022. In 2022 my husband will be 63.5 and can use my COBRA from when I leave my job until he is Medicare age. At that point, only I will have buy an insurance policy on the wild west open market of crappy insurance policies. We are pretty much FI now, but the health insurance drama and healthcare costs in the US are really making me nervous. If I can talk my husband into it, we could retire to Mexico as soon as we can get our act together. He moves at a snail's pace though.

[Oz investor]

so what are the chances of a part time course ( go for FI )
aiming for March 2022 when i MIGHT graduate from medical watch .

after all there is not much logic in investing in bonds and CDs where i am likely to mature before the investments do .

outlived all the close family ( unless i snare a cutie and do my usual late start thing )

i get to look forward to plenty of exercise ( rehab ) and fiscal responsibility ( my nest egg with or without an aged pension )

i should probably start the countdown clock , but Abbott Vascular , the FDA , and clinical trial.gov. are all watching anxiously for the outcome , why not leave it to the scientists ??

https://clinicaltrials.gov/ct2/show/NCT01751906

( please note trail version IV has been merged with this trial moving the observation period to 5 years minimum )


where do i live , that will depend on the rehab and it's success ( currently couch-surfing to stay near medical support )

the upside there is potential for plenty of adventure ahead

health insurance ?? i am currently un-insurable now ( 100% safety net ) maybe my rating will improve but those health insurers are slippery blighters , not expecting much there

[YVRRocketSurgery]

This is such a quiet thread yet the front end of this group is only about 40 months away from their 2022 retirement! I can't believe half of 2018 is already gone.

Quote:

Originally Posted by fassmac Why April? Company pays bonus end of March. I will be able to save the max 401k contributions by then. Does anyone know a reason for a different date within a year?

I'm targeting to retire in April too. Apart from work specific considerations...
Minor investment consideration: I have a bunch of dividend stocks in my taxable account where a lot of them pay out in months 1, 4, 7, and 10. Retiring in April allows me to have a small cash surge from the dividends.

Weather: It'll be nice to start retirement when the days get longer, the weather gets nicer, and there are more activities around town.

And my softball league starts up around then. Hopefully, may team will still be playing and I can spend some time focusing on improving my swing.

Quote:

Originally Posted by fassmac Why 2022? I should have $2.5MM by then. This is about $500k above my projections what I need to RE with a 3.5% WR...

I'm hoping to get really close to $2.0M by 2022. It's kind of an ego target for me though since markets are going to fluctuate and I can't discount a market "dip" some time in the next few years.

With an acknowledgement to the argument that dividends really should not be considered anything special other than being a component of total return, my holy grail quest is to generate $50k in dividends per year from my taxable account. I should be able to yield that much in 2022 (while not neglecting my tax advantaged accounts) by working into 2022.

[JakeinChina]

Quote:

Originally Posted by fassmac I am formally joining this class. April 2022 is the date! T minus 1,356 calendar days. Background Information I just turned 49. I will be 52 when I RE. Savings to date: $1.7MM, 70/30 split, 60% post tax, 40% 401k. House (1,500 sqft, 200k market value) paid off. I have dual citizenship US/German. One daughter (19) living in Germany, one son (12) living with me in the US. Two divorces! Happy single. Living in NC. Very nice, low cost of living! Why April? Company pays bonus end of March. I will be able to save the max 401k contributions by then. Does anyone know a reason for a different date within a year? Why 2022? I should have $2.5MM by then. This is about $500k above my projections what I need to RE with a 3.5% WR. I am kind of worried about market performance over the next couple of years. Feels like a good idea to wait out the next dip. My daughter living in Germany should have finished her college degree by 2022, giving me peace of mind she has a good start of her own. My son will be in 11th grade. I am looking forward to spend more time with him during his last year in school before he moves out and goes to college. My big dream is to convert a van to a RV and tour the US/Canada for a year or two. This won't be possible until my son is in college and I need a few months to build this thing. I HATE w**k more and more! It all started first day in kindergarten when I first had to get out of bed and start the daily grind. I hated it ever since!

Fassmac - Why don't you get into real estate and diversify your income stream for when you retire at 52yrs old? You live in North Carolina, where you can purchase inexpensive homes, pay low prop taxes, and rent out the homes for a decent return.

Your young at 52 and still have over 10 years until 401K and Medicare kicks in. Depending solely on the stock market IMO is risky and will require you to have at least 1 to 2 years of cash to cover your cost of living in case the market drops big time.

Look at properties in NC in your area, what price you can buy at (any foreclosures?) and do the math on figuring out rental income vs costs and find the return on investment. IMO if its above 6%, I think its a good deal. Many tax advantages to renting out property, and your real estate will appreciate slightly in NC (not big time like up north). Check it out

[CyPlainsDrifter]

Hi all -- I'll jump in here as well.

Wife and I have been planning to retire in 2022 for some time now(current ages: me=55 and her=58). My company recently announced that they are closing the facility I work in, late in 2020. So, I will be forced out in 2020, which financially is a pretty good deal for me -- as they are going to pay us one year’s salary into our cash balance retirement fund on the way out of the door. Another nice incentive is that in the next month I will be given a retention bonus to stay on until the end. So it looks like they are going to pay me to stay and then pay me to go. With the early retirement package we are currently on track to have $1.5M (mostly in 401K & 403B) by the end of 2020 and possibly around 1.8M by the end of 2022.

Wife intends to work until the summer of 2022 (teacher) to get her pension to ~$36K/year. I will likely consult for 2 years after this gig ends to delay retirement until she is ready to quit. That puts us into the Class of 2022.

Not sure what we are going to do yet for healthcare. Our HSA will be around 50K when we retire so we can dip into that. My wife will have a healthcare purchase option but it will likely be over $1K a month. I won’t have healthcare, but I am a veteran and I can apply for VA. Plus, let’s face it…. in four years things will undoubtedly be different than they are today in the word of healthcare. FWIW, the wife and I don’t have any health issues right now and we take no meds of any sort.

We live in Iowa now, but it is a horrible place for retirees IMO. High state income tax, fairly high sales and property taxes, cold winters, etc... We have some ties here, but also family across the country and we've lived multiple states, so moving somewhere else is certainly in play. Currently looking at summering somewhere north -- possibly Wyoming, and wintering in the south – possibly in the RV lifestyle for a while to allow us to try out various different southern locales.

Looking forward to the journey to the life after work and I’m learning a lot here and on some other forums I have found since the recent announcement concerning my current career.

[YVRRocketSurgery]

Congratulations! I think everyone (ok, well, at least I) hopes for a bit of a bump before retirement though a departure package. And you even get a retention bonus!

[DesignFIRELife]

Yeh, found my people! July 2022 is my FIRE date!
Background:
In 2022 when I RE, I will be 49, DH will be 59. We have 3 kids. At that time, oldest should be done with college (and hopefully full-time employed), middle one would be 3rd year in college, and youngest done with HS and off to college.
I am currently working full-time and DH stays home (laid-off 2 years ago) and looks after our finances (my personal wealth manager & bill payment services), gets younger ones to and from school/games/practices, and helps out his elderly parents who live nearby. My current income (after max out 401k and HSA) barely covers our household expenses (fairly large due to private school tuitions). However, because we’ve always been frugal and saved a lot early in our careers, we are able let our money work for us in the stock market and get by these last few years.
Savings to date: $2.3M in taxable and $2.2M in 401k&IRA. House value after mortgage = $700k. Planning to sell current MA home, travel internationally and then RV travel in US/Canada in an Airstream first few years in RE.Use the proceeds from the house sale to pay for kids’ remaining college cost & first two years of RE.
Why July 2022?
Already achieved FI now but waiting to RE when youngest finishes up HS. DH also want to have more time for investments to grow since his definition of “enough” is higher than mine. It also allow us to get more tuition bills out of the way, have company health insurance coverage and 401k matches.
Company bonus payout in late June. Will miss bonus payout if leave prior to payout.Also can get some more company match on 401k.Planning to put home on market in spring and move during summer.Start traveling in the fall after dropping the youngest one off to college.
RE Plan:
Stage 1: Go-go years (first 10-15 years) – lots of travel while healthy.Slow international travel first few years and then RV in Airstream around US/Canada.Goal to visit all national parks and check out great cities/community to retire.
Stage 2: Slow-go years – slow down, find a place to settle, hope to be close to kids (and grandkids if any).Take up past hobbies include gardening, woodworking, painting, yoga, volleyball, and other activities.Volunteer & get involved with community, still travel part-time.
Stage 3: No-go years - Hope to settle near family and grow old.See grandkids grow up, have strong social support, continue to volunteer & contribute to community.