Class of 2022

[YVRRocketSurgery]

Milestone reached today. Started part-time working, down to 3 days

Transitioning to part time sounds like a great way to trend down to your exit date!
I'm debating something similar. I carried over and backloaded enough vacation time to work about a 3.5 day workweek for the rest of the way. But I'm weighing the advantages and disadvantages of a short work week versus grouping days up for weeklong+ periods of time off or a combination.

 

[Jim59]

Transitioning to part time sounds like a great way to trend down to your exit date!
I'm debating something similar. I carried over and backloaded enough vacation time to work about a 3.5 day workweek for the rest of the way. But I'm weighing the advantages and disadvantages of a short work week versus grouping days up for weeklong+ periods of time off or a combination.

Yes, it sure is. It puts me well on the glide path for a smooth descent. If you are still working full time I would go ahead and put a reduced working week into effect. In hindsight I should have started at the beginning of spring time.

Thanks to MC, I’ll drop to 2 days, 3 months out and still have a bunch of vacation days.

 

[fassmac]

I'm debating something similar. I carried over and backloaded enough vacation time to work about a 3.5 day workweek for the rest of the way. But I'm weighing the advantages and disadvantages of a short work week versus grouping days up for weeklong+ periods of time off or a combination.

Same here. Thinking of 4 day workweek starting January, but also not sure if better than taking grouped days especially in March when it gets warmer.

 

[Aiming_4_55]

Is there any benefit to retiring early January? Perhaps first working day ? Paid new year holidays etc

In my situation, I've thought end of the year 2021 or early year 2022. I'm planning March 2022 as I have large RSU vesting and annual bonus. With that along with increase 401k contributions, I'll fulfill annual 401k contribution for 2022. It will allow me to use (abuse) the flex spending account as well. I understand that I will declare flex spending contribution amount with annual selection in Oct/Nov and that amount is spread over 2022 payroll contributions. In early 2022, I will try to spend it all before my departure. No pay back is needed. This will easily provide new glasses, contacts, contact supplies, etc. for the year. Sounds wrong, but have been openly shared in some HR meetings.

 

[Bullwinkle]

Is there any benefit to retiring early January? Perhaps first working day ? Paid new year holidays etc

Surely it's good to go before accumulating too many taxable wages for the year, right? That way you qualify for ACA subsidies, and of course lower tax bracket too.

I assume it would also be good to go before open enrollment, so you don't have to switch in the middle, but maybe switching is not a big deal and the main thing is still just your taxable wages for the year.

My experience with COBRA was that was extremely expensive.

 

[caninelover]

Surely it's good to go before accumulating too many taxable wages for the year, right? That way you qualify for ACA subsidies, and of course lower tax bracket too.



I assume it would also be good to go before open enrollment, so you don't have to switch in the middle, but maybe switching is not a big deal and the main thing is still just your taxable wages for the year.



My experience with COBRA was that was extremely expensive.

I plan to go on my Fiance's plan as a domestic partner so ACA subsidies won't come into play for me for a few years. Though I do plan to do some Roth conversions over the next 10 years so not having any taxable wages in 2022 does help that.

Once I break the news at work and if they really push for more time, I may adjust back to Jan or Feb 2022 but no later than that for sure. I would still prefer to make the clean break at year end - work is quiet then anyway so it will be a good time to wrap things up, I hope.

 

[Escapevelocity]

Surely it's good to go before accumulating too many taxable wages for the year, right? That way you qualify for ACA subsidies, and of course lower tax bracket too.

I assume it would also be good to go before open enrollment, so you don't have to switch in the middle, but maybe switching is not a big deal and the main thing is still just your taxable wages for the year.

My experience with COBRA was that was extremely expensive.

My strategy is to quit in March after maxing out 401k one last time by jacking my contribution rate to 50% (max allowed by company policy). This will negate half of the taxable income for those 3 months while also allowing me a last year of HSA company sweetener of 2k which they credit each Jan. It also gets me vested another quarter of annual bonus without jacking my tax bracket for the year.

The cherry is that my company credits all of the calendar year vacation days in Jan so I can leave around Presidemts Day and then take 5 weeks of vacation to stay on payroll hopefully until April 1st and get April benefits paid as well.

 

[Present Aside]

allowing me a last year of HSA company sweetener of 2k which they credit each Jan.

Don't forget that there is a limit on HSA contributions based upon how long you are on a HDHP. https://www.irs.gov/publications/p969#en_US_2020_publink1000204046

So after you leave, you will need to be sure to get a health plan that qualifies for the HDHP rules for HSA.

I plan on going with a short term plan until the end of the year as by April I will have earned too much to bother with ACA (yes, I know they have raised the limits for 2022 on the ACA).

 

[Escapevelocity]

Don't forget that there is a limit on HSA contributions based upon how long you are on a HDHP. https://www.irs.gov/publications/p969#en_US_2020_publink1000204046

So after you leave, you will need to be sure to get a health plan that qualifies for the HDHP rules for HSA.

I plan on going with a short term plan until the end of the year as by April I will have earned too much to bother with ACA (yes, I know they have raised the limits for 2022 on the ACA).

Wow, great callout! I had no idea of this rule. As of April or May, I'm planning to move onto my Megacorp retiree health insurance which does not feature an HSA option. Now that I am aware of this, I will probably just change my plan away from HSA to traditional Network plan for 2022 during our Fall open enrollment period. I don't want to be messing around with the rules that you linked above and potentially owe a penaltiy.

 

[EastWest Gal]

Short term plans have pre-existing condition exclusions, and there is a lot they don’t cover.

 

[Present Aside]

That is the downside for sure. I don’t have any medical issues and I am single. I would only use recommend using them sparingly (for less than a year). I wouldn’t use it or recommend it for a family or if there were any previous health issues. For example those plans don’t cover pregnancy. They are a solution but with a limited use case.

My DW passed away from cancer in her late 40s so I appreciate the importance of good health insurance. Starting in 2023 I would go on the ACA plans. I have priced those out and I should be able to control my income to get subsidies. The deductibles are similar to what I have with Megacorp and the subsidized cost is not that much more than I pay now. A much better option than COBRA.

 

[kaudrey]

Adding myself to the class of 2022 - shooting for the end of February.

 

[David3]

Adding myself to the class of 2022 as well, with a June target.

 

[Jim59]

First month of part-time working completed in August. 3 x 50 mile cycles and a climb of Ben A’an in the Trossachs in the Scottish Highlands. No spectacular views due to the mist and rain. Will have to wait until next time. This is what Monday’s are for .

(Please quote the latest version of the list, then remove the quote tags.)

roady-runner - Jan 2022
dadu007- - Jan 2022
oldmedic - Jan 2022
caninelover - Feb 2022
Escapevelocity - Feb 2022
kaudrey - Feb 2022
Ozinvestor - March 2022
Sean Pizzle - March 2022
Aiming_4_55 - March 2022
Pompanobeach - April 2022
fassmac - April 2022
Goingcamping - April 2022
ejw93 - April 2022
Present Aside - April 2022
YVRRocketSurgery - April 2022
cynicalbuthopeful - 1 May 2022
Jeffman52 - May 2022
GTP2022 - May 2022
Jim59 - 6 May 2022
nhcycling - June 2022
plex - June 2022
beernutzbob - June 2022
retire48in2018 - June 2022
Physics Guy - June 2022
Poopycat - June 2022
ImThinkin2019 June 2022
David3 - June 2022
Mrs & Mr Bustergordon - 30 June
Silent Walker - July 2022
Skyward1 - July 2022
CaliKid - September 2022
BGH1 - September 2022
firemediceric - October 2022
mountainsoft - December 2022
Panda Bear - XX 2022
Sam Cro - XX 2022
Dreams of Freedom - XX 2022
Callitaday - XX 2022
dd564 - XX 2022
Chris Texas - XX 2022
Bee4 - XX 2022
cyber888 - XX 2022

 

[David3]

Adding myself to the class of 2022 as well, with a June target.

A few more details. Want to stay till June for some bonus and stock vesting milestones. I will have enough vacation time to work 4 day weeks for the first half of the year, so I am seriously considering that versus taking a week here and there or just getting the time paid out in my final pay.

 

[Present Aside]

A few more details. Want to stay till June for some bonus and stock vesting milestones. I will have enough vacation time to work 4 day weeks for the first half of the year, so I am seriously considering that versus taking a week here and there or just getting the time paid out in my final pay.

Out of curiosity, why would you take the one day a week off before you leave? I know a lot of people do that but I have always wondered why. I know people at my work do it to extend to the start of another month for the health insurance but otherwise, what is the reason to do it? I could do the same and I am trying to think of the pros and cons.

 

[caninelover]

I wish I could drop to a 4 day work week. My j*b has a lot of contractual deadlines so a reduced work week does not fit it well as there would inevitably be a Friday where there would be a meeting to address a deadline.

I would love it if I could though. Where I live a 3-day weekend opens up a lot of recreational activities in the mountains. But, I will just have to wait for my coming-up-fast FIRE date.

I'm really wanting to blurt it out at work but may wait one more month. I have next week, then a partial week, and am off on an Alaska cruise with no internet access. I figure it may be better to wait until I return from our cruise to drop the news in the event a firestorm ensues

 

[Jim59]

I wish I could drop to a 4 day work week. My j*b has a lot of contractual deadlines so a reduced work week does not fit it well as there would inevitably be a Friday where there would be a meeting to address a deadline.

I would love it if I could though. Where I live a 3-day weekend opens up a lot of recreational activities in the mountains. But, I will just have to wait for my coming-up-fast FIRE date.

I'm really wanting to blurt it out at work but may wait one more month. I have next week, then a partial week, and am off on an Alaska cruise with no internet access. I figure it may be better to wait until I return from our cruise to drop the news in the event a firestorm ensues

Have you asked your employer about dropping a Friday ? Some will be receptive, especially if it saves them some cost. No reason why the meetings cannot be arranged on a Thursday. In today’s times employers are making it a virtue of having work/ life balance policies in place.

 

[caninelover]

Have you asked your employer about dropping a Friday ? Some will be receptive, especially if it saves them some cost. No reason why the meetings cannot be arranged on a Thursday. In today’s times employers are making it a virtue of having work/ life balance policies in place.

Since I'm planning to throw in the towel by year end I'm thinking it isn't worth it to ask, plus things are pretty busy right now and I'd like the time to wrap up as much as I can before I FIRE...

 

[caninelover]

I did it!!!!

I finally decided to just call my boss and break the news, mostly because I suck at keeping secrets and was feeling more and more like a fraud by not saying anything.

I'm glad I did. My boss was TERRIFIC. She was sad to lose me but also very happy for me personally. She was also appreciative that I gave her ample notice to consider how to reshape our department with my departure - I told her my target end date was year end but I had some flexibility and could push into January if needed (which she also greatly appreciated).

She also told me she was considering me for a promotion up to Director to manage West Coast Operations. I said I had sensed that and appreciated it but I'm at a point in my life where I really needed to slow down (and the pandemic has confirmed my readiness to do so!) and wouldn't be up for taking on more responsibilities. She said she understood and would be in touch next week after considering how to transition my current workload.

So - the cat is officially out of the bag and now I can just start the countdown!!!

 

[Jim59]

Fantastic news for you, the end is in sight.

It was good for you that your boss was considering you for a promotion so seems like all will end well. A new year and a new life chapter begins.

The notice you have given will be appreciated. I’m keeping the cat in the bag until December, though it’s becoming harder as I definitely know I’m going in May. Having dropped to part time should keep any major projects off my desk.

 

[caninelover]

Fantastic news for you, the end is in sight.



It was good for you that your boss was considering you for a promotion so seems like all will end well. A new year and a new life chapter begins.



The notice you have given will be appreciated. I’m keeping the cat in the bag until December, though it’s becoming harder as I definitely know I’m going in May. Having dropped to part time should keep any major projects off my desk.

Thanks so much Jim! Yes I think it will end well and I'm glad for that. I don't like corporate life but through that frame I was lucky - my boss and Megacorp both strive to treat their employees well. Which is why I also wanted to give them ample notice - they will be fine without me but just want an orderly transition for my boss and my team.

Totally understand your exit strategy though - it is smart and makes a lot of sense.

That being said, I AM SO EXCITED!

Definitely a celebration weekend!

 

[David3]

Out of curiosity, why would you take the one day a week off before you leave? I know a lot of people do that but I have always wondered why. I know people at my work do it to extend to the start of another month for the health insurance but otherwise, what is the reason to do it? I could do the same and I am trying to think of the pros and cons.

My reason is that I need to stay till June to hit a vesting milestone and will have 23 days I can take by then. This approach sounded better than the other options for me.

 

[Present Aside]

My reason is that I need to stay till June to hit a vesting milestone and will have 23 days I can take by then. This approach sounded better than the other options for me.

That makes sense!

 

[YVRRocketSurgery]

I finally decided to just call my boss and break the news, mostly because I suck at keeping secrets and was feeling more and more like a fraud by not saying anything.

Congratulations!
I feel the same way as you. I'm holding off until January to let the cat out of the bag for my April departure. And looking forward to that sense of relief you feel.