How do I get over the fear of FIRE?

[Poopycat]

I am planning to work until August 1, 2023. Before I stop working, I will get all the basic medical exams done just to make sure I don’t have an underlying health issue I’m unaware of because I’d rather get it taken care of on employer-sponsored health insurance than through an ACA policy.

I want to leave next August, assuming I’m healthy, but as the date gets closer, I find myself getting more and more nervous instead of feeling more excited. I want to stop working and enjoy life, I’m sick and tired of company politics, but I seem to be getting more anxious about saying goodbye. I find reasons to worry: that the government will try to get rid of the ACA again; that I’ll end up with a health condition that could wipe me out even with coverage; that some unexpected expense will bite me.

I will be 53 and single when I retire with a net worth of about $3.8 million, which doesn’t count the mineral rights I own in some land in Montana which periodically provides royalties. Every time I have done FIRECalc, I have gotten a 0% chance of running out of money in the next 40 years. There is no rational reason for me to be worried but I am.

Was anybody else nervous about finally pulling the trigger? What got you to feel less worried?

 

[Midpack]

Almost everyone who retires voluntarily (not age, health, reduction in force) has some degree of nervous. You won’t retire until you are comfortable with the decision. I doubt anyone retires with pure excitement and no reservations, it’s going to be a mix of excited and anxious, and it will even come and go as the day nears. No one can tell you when you’re ready…only you will know.

 

[njhowie]

Assuming you live in a reasonable cost of living area, 53 with $3.8M net worth, you have absolutely nothing to worry about, in my view.

Don't be fearful - be happy and excited! Think of what you could be doing. Think of waking up in the morning and having no responsibilities. If you don't complete what you planned for the day, who cares - there's always the next day. You're on nobody's schedule but your own.

In the absolute worst case, if things don't work out as you planned, you are still young enough to be able to go back to work, maybe pick up a part-time job, doing something you'd enjoy to keep you busy and provide some additional income. And of course, don't forget that you'll have some amount of Social Security coming to you to supplement your income in as little as 9 years if you choose.

Congrats!

 

[FLSUnFIRE]

Just Jump! Sure, it is normal to be nervous with any major life decision but the water is indeed fine...

 

[RobbieB]

Yeah. you're fine.

Yeah, I know you're still worried, so was I and so is everyone else.

Just do it. Then you won't have to worry about it anymore.

 

[street]

I am planning to work until August 1, 2023. Before I stop working, I will get all the basic medical exams done just to make sure I don’t have an underlying health issue I’m unaware of because I’d rather get it taken care of on employer-sponsored health insurance than through an ACA policy.

I want to leave next August, assuming I’m healthy, but as the date gets closer, I find myself getting more and more nervous instead of feeling more excited. I want to stop working and enjoy life, I’m sick and tired of company politics, but I seem to be getting more anxious about saying goodbye. I find reasons to worry: that the government will try to get rid of the ACA again; that I’ll end up with a health condition that could wipe me out even with coverage; that some unexpected expense will bite me.

I will be 53 and single when I retire with a net worth of about $3.8 million, which doesn’t count the mineral rights I own in some land in Montana which periodically provides royalties. Every time I have done FIRECalc, I have gotten a 0% chance of running out of money in the next 40 years. There is no rational reason for me to be worried but I am.

Was anybody else nervous about finally pulling the trigger? What got you to feel less worried?

Well, financially you shouldn't have a worry about that part. If you can't retire, then no one would be able to retire with your numbers and what you shared.

Like the rest it is a scary thing to give up something you have done a life time. All that is a normal event for retirement or anything in life that you have been accustomed too for any length in life.

What made me feel less worried? Dreaming of the new journey in life and I had many things I love to do but when working I was always in a hurry to get everything fit it. Now, I can do those things at my pace and my time. I have found so many things I love to do I never had that chance when working to discover them.
If you can, you should retire and start your second career and work on retirement and the new life and journey. How much more exciting can that be!!
I was one that would have worked till I died had no plan to retire. My wife gave me that nudge and I jumped and haven't looked back.

You will be fine and like they told me here. Retire to something just don't retire. Retirement is not the end but the start.

Good Luck!!

 

[SnowballCamper]

Aside from the $$ uncertainty, there is a bit of transition when you have 40+ hours to fill each week as well. Think about what you want to do with all your new free time and start to develop those contacts and connections. It can distract you from the $$ worries...

 

[walkinwood]

Like previous posters said, your reactions are quite normal. Excitement & nervousness.

I think a big part of it is that we're going against social norms. That exerts a big subconscious pressure whether we admit it or not.

You'll be nervous for a while after ER, get butterflies each time the stock market tanks a bit, or you encounter a big unexpected expense. Each time, you'll come away with more confidence in your plan.

And, what's the alternative? Keep working at a life-sucking job (I assume you don't enjoy yours)?

Keep in mind that if you monitor your finances well, you'll have years of advance notice that you're in financial trouble. And you only have to find a way to finance the gap between a prudent withdrawal scheme and your expenses. And, hopefully, you have enough headroom in your budget that you can reduce expenses if needed.


Good luck.

 

[KrisQuit]

I was there. I retired at 55 (last year) and had a lot of concerns that it was the right thing to do. Like you, finances were not really a concern for me, it was something else — heading off into the unknown and releasing myself from a career of multiple degrees, certifications, long hours, stress-filled meetings. But, I jumped (sort of).

I accepted an offer to contract back with my company for eight months’ work, significantly part-time (just a few days a month), and this allowed me to satisfy lingering career efforts and decide if I’d made the right decision. I had. Would an arrangement like this be possible for you?

Spend some time looking less at the money and consider what else might be holding you back — and work with whatever that is. I had to work through letting go. I think this might be where you are.

 

[jollystomper]

The more you are just retiring from something, the more nervous you will be.

The more you have things to retire to, the less nervous you will be.

The question becomes, have you investigated/considered/planned for things to retire to?

 

[WhenIsItTime]

I am planning to work until August 1, 2023. Before I stop working, I will get all the basic medical exams done just to make sure I don’t have an underlying health issue I’m unaware of because I’d rather get it taken care of on employer-sponsored health insurance than through an ACA policy.

I want to leave next August, assuming I’m healthy, but as the date gets closer, I find myself getting more and more nervous instead of feeling more excited. I want to stop working and enjoy life, I’m sick and tired of company politics, but I seem to be getting more anxious about saying goodbye. I find reasons to worry: that the government will try to get rid of the ACA again; that I’ll end up with a health condition that could wipe me out even with coverage; that some unexpected expense will bite me.

I will be 53 and single when I retire with a net worth of about $3.8 million, which doesn’t count the mineral rights I own in some land in Montana which periodically provides royalties. Every time I have done FIRECalc, I have gotten a 0% chance of running out of money in the next 40 years. There is no rational reason for me to be worried but I am.

Was anybody else nervous about finally pulling the trigger? What got you to feel less worried?

I spent a lot of time making sure I was "FI" before retiring. In my case, I "RE'd" by age, but not by "FI". Meaning, I had enough money to retire. I can say that with confidence now 3 years later.

To get confidence in FI, I made sure I had a good handle on my budget spend post retirement including healthcare and spending that might result from free time. I spent time in FireCalc looking at sensitivity analysis. If I spent X% more, would I be OK? If returns were lower, would I be OK?

I made sure my investments were appropriate for retirement. Meaning, I didn't have to trigger a bunch of tax to reposition them for loss of ordinary income.

The other big part for many is to know how you are going to spend your time. This can be challenging for some if work satisfied the ego, if idle hands are at risk of bad decisions (drinking, gambling), or you simply don't have any hobbies. I have a few peers with these issues.

What are you worried about? How can you stress test it before the big decision?

 

[TripleLindy]

I find reasons to worry: that the government will try to get rid of the ACA again; that I’ll end up with a health condition that could wipe me out even with coverage; that some unexpected expense will bite me.

My guess is this is why you’re apprehensive - not necessarily the healthcare angle, but large, unexpected expenses in general. I’ve been retired 5 years and have yet to touch my retirement portfolio and I still get anxiety, especially when markets go south. Like you, we’re fine financially. All kids are married with great educations (no student debt) and good jobs, house and cars are paid for and Monte Carlo analysis showing 97% chance of portfolio survival with both my wife and I living to 100. Yet I will still sweat until I reach Medicare eligibility. And then it will be Social Security. Always something.

I think the anxiety is just human nature. Once you settle in and realize that your expenses are actually pretty predictable and under your control, you’ll be fine.

Best of luck to you!

P.S. If you feel strongly about the ACA or anything else that Congress has control over, make sure you let your representatives know how you feel. And of course, vote.

 

[pacergal]

single, with 3.8 million appears to be good to go to me.

1) have you run Firecalc?
2) try living on your planned retirement budget from now until August
3) have you answered the retirement questions in the ER FAQ forum "Some Important Questions to Answer Before Asking - Can I Retire?"
4) Read Ernie Zelinski "How to Retire Happy, Wild and Free", do his Tree of Life exercise--look forward to what you are free to do, each and every day of retirement!

I think it is normal to be a bit anxious for any changes in your life.
Change is the only constant thing we have in life!
How you prepare and deal with it will help with success or not.

If perhaps you are still very anxious as August gets closer, is there a way you could reduce work hours to part time for a bit to ease into retirement for you?

But, in general, jump in, the water is fine!
Many fine and knowledgeable folks here would be willing to answer specific questions if you have any.

 

[Alex The Great]

May be you feel better if I tell you I'm 55 single and plan to retire around the same time (September 2023) with less than half of money you have and in extremely high cost of living area. Indeed you will be fine no matter what. But for healthcare, make sure you get a comprehensive coverage. Even in ACA which I agree not great in many aspects, it is possible to get a descent coverage in most metro areas.

 

[Jerry1]

The thing that got me over the nervousness was knowing (KNOWING) my non-discretionary cost to live. Once I knew that I could eat and keep a roof over my head, I was comfortable taking the leap. Then I kind of looked at it and said, what’s the worst that could happen? I’d still be okay in all but the very worst of circumstances (think Great Depression) and even then I’d be better off than most.

In the end you just gotta jump. Trust us, the water is very nice!

 

[Koolau]

The more you are just retiring from something, the more nervous you will be.

The more you have things to retire to, the less nervous you will be.

The question becomes, have you investigated/considered/planned for things to retire to?

Hear, hear!

Best advice by far!

 

[Aerides]

I find reasons to worry: that the government will try to get rid of the ACA again; that I’ll end up with a health condition that could wipe me out even with coverage; that some unexpected expense will bite me.

Outside of a healthcare catastrophe, you are unlikely to find anything else to "bite" you. Your retirement portfolio is bigger than most couples here, and you're single. So there's that.

Now, as far as the ACA? I had similar concerns. We retired in 2016, and you'll recall the next few years after that saw the ACA face a few challenges - all failed. So, it's in better shape now than it was then. And, the longer it stays law, the harder it will be to repeal. It's pretty popular, more people use it now than before, and you don't hear the chants to repeal it near half as loud as we used to.

When I have worries, I look to see what I would do if they come to pass. Have a plan, file it, and calm the worry.

Ok, sure, let's say that some time after you retire, worst case, a couple of years from now, the tides turn and the ACA gets repealed, and you have an underlying condition that shows up. (that's a lot of if's/ands, already).
What do you do? The odds are one of the following:
Something else takes its place, maybe not at the federal level, but many states will have something. Being single it's easier to move if you need to.
Private plans will come back, maybe not all of them will take you, but there will be something.
Part time work could be an option, you'd be out of work only a couple of years.

So, for me, that would be good enough to mitigate the main concerns.

 

[rodi]

As mentioned - many of us can relate to your nervousness.

I was 52 when I retired in 2014. Like you, my biggest concern was healthcare. To make it more stressful - I had middle school age kids under the roof... and so healthcare expenses were even more of a concern. I stayed nervous for the first year to 18 months... then I forgot to get nervous.

My mom retired at 62, and was DXd with ovarian cancer at age 63... that was a big motivator for me to retire early - I don't have a crystal ball on what my future health will be. Dad died of cancer, mom died of cancer, my brother died of cancer... So I have NO regrets retiring early... I'll at least have had 8 years (so far) of retirement if I get cancer in the future.

I retired with a lot less than you, so frugality was also something I practiced to reduce my worries. Fortunately, the kids are starting to launch (college, paid by 529 money) and the budget is less worrisome.

You'll be fine!!! Just make sure you do the bit health workup sooner... that way if you need any procedures, you'll have time to schedule them before you retire.

 

[Ronstar]

Was anybody else nervous about finally pulling the trigger? What got you to feel less worried?

I was a little nervous a couple years before retirement, but I was running financial numbers 5-10 years before I retired. I knew how much $ I had and how much I was spending. Retirement financial planning was easy with that much data.

I gave notice 6 months ahead of my retirement date and then agreed to another year - all part time. So for my last 18 months I worked about 1.5 days per week and banked the entire paycheck and lived like I was retired. Semi-retirement worked as planned so I wasn't nervous from that point forward.

 

[COcheesehead]

I trained to do a 200 mile, single day bike ride. It’s called a double century.
I had a training partner and after doing a particularly grueling 160 mile ride about 6 weeks before the big event, my partner asked if I thought I felt ready. I said I dunno, I feel kind of bad right now. He then said something that has stuck with me ever since. He said have you ever not finished a ride? I said no, I finish every ride I start. He said well go with that.
So OP, you made it further than 90-95% of Americans. Go with that. You got this. You will always find a way.

 

[Poopycat]

Spend some time looking less at the money and consider what else might be holding you back — and work with whatever that is. I had to work through letting go. I think this might be where you are.

I think you’re right, what is worrying me is not money, at least not directly, it’s health fears. I was taking good care of my health but have neglected my health over the past 8 months. I won’t go into the reasons why; they are all just excuses and I have to own it and get back on track. But I think the fear is getting a serious illness and having my savings wiped out because my insurance would find a way to deny coverage.

As I said, the fear is irrational and overblown. I read stories about people who go bankrupt with medical debt even with insurance, but it would take something huge for that to happen in my case, right? And the same thing could happen even now, when I have employer sponsored coverage.

But I definitely do need to get my health back on track and eat better/exercise more instead of being stupid. Then my fears will probably fade away.

 

[Poopycat]

My guess is this is why you’re apprehensive - not necessarily the healthcare angle, but large, unexpected expenses in general. I’ve been retired 5 years and have yet to touch my retirement portfolio and I still get anxiety, especially when markets go south. Like you, we’re fine financially. All kids are married with great educations (no student debt) and good jobs, house and cars are paid for and Monte Carlo analysis showing 97% chance of portfolio survival with both my wife and I living to 100. Yet I will still sweat until I reach Medicare eligibility. And then it will be Social Security. Always something.

I think the anxiety is just human nature. Once you settle in and realize that your expenses are actually pretty predictable and under your control, you’ll be fine.

Best of luck to you!

P.S. If you feel strongly about the ACA or anything else that Congress has control over, make sure you let your representatives know how you feel. And of course, vote.

Yep, I think you’ve hit my fear right on the head. Nailed it. Unexpected expenses that I didn’t properly account for that knock me for a loop.

 

[RetiredAt49]

Yep, I think you’ve hit my fear right on the head. Nailed it. Unexpected expenses that I didn’t properly account for that knock me for a loop.

I retired at 49 (beginning of this year) and understand. I’ve had family die in their teens, 20’s, 30’s, etc…. Life is too short. Retire and live your life. You can always make minor adjustments (if needed).

 

[Poopycat]

Outside of a healthcare catastrophe, you are unlikely to find anything else to "bite" you. Your retirement portfolio is bigger than most couples here, and you're single. So there's that.

Now, as far as the ACA? I had similar concerns. We retired in 2016, and you'll recall the next few years after that saw the ACA face a few challenges - all failed. So, it's in better shape now than it was then. And, the longer it stays law, the harder it will be to repeal. It's pretty popular, more people use it now than before, and you don't hear the chants to repeal it near half as loud as we used to.

When I have worries, I look to see what I would do if they come to pass. Have a plan, file it, and calm the worry.

Ok, sure, let's say that some time after you retire, worst case, a couple of years from now, the tides turn and the ACA gets repealed, and you have an underlying condition that shows up. (that's a lot of if's/ands, already).
What do you do? The odds are one of the following:
Something else takes its place, maybe not at the federal level, but many states will have something. Being single it's easier to move if you need to.
Private plans will come back, maybe not all of them will take you, but there will be something.
Part time work could be an option, you'd be out of work only a couple of years.

So, for me, that would be good enough to mitigate the main concerns.

You’re right. A few years ago when the Republicans held the WH, the House and Senate and the ACA came within a vote or two of repeal, I was really worried and thought I’d have to work til I was 65.

While there is still a possibility of repeal, I do think it isn’t a government priority and won’t be an issue til at least 2025. But this time around there are states that have more protections in place and I’d probably move to one of them if I weren’t living in one of them already. And I’m also willing to go the expat route if worse comes to worse. I’d prefer to stay here - better tennis than other places I’m considering outside the US - but relocating internationally is something I’d be willing to do. Hopefully it won’t come to that.

 

[mickj]

It is common for people to feel nervous about making a big life change, such as retiring. It is natural to have concerns about the future and to worry about potential risks or challenges. In your case, it sounds like you have carefully planned for your retirement and have a strong financial foundation, so there is no reason to be concerned about running out of money.

One way to address your concerns is to take a step-by-step approach. Start by focusing on the things you can control, such as getting your medical exams done and making sure you have adequate health insurance coverage. You can also consider meeting with a financial advisor to review your retirement plan and make sure it aligns with your goals and values.

It may also be helpful to remind yourself of the reasons why you want to retire and focus on the positive aspects of retirement, such as having more time to do the things you enjoy or the freedom to make your own schedule. You may find it helpful to talk to friends or family members who have successfully retired to get their perspective and advice.

Overall, it is important to remember that you have put in a lot of effort to plan for your retirement and that you have a strong foundation to support you in this next phase of your life. Trust in your own abilities and try to let go of any unnecessary worries.