What I am overlooking?

[COcheesehead]

Sure, those extra $ sound great, but if you are truly at 35x expenses (less than 3% WR), what are they really worth to you and your wife?

At the minimum, I'd be taking some nice vacations each year, or whatever you like to do with your time.

I predict that at age 59, you will look back and wonder what the heck you waited for. But by then, it's too late.

For reflection, you said:

We have a long list of things we want to do and places to travel.

Trust me, if I could bail now, I would.​

-ERD50

No, I agree with you. I am trying not to "work myself to the bone" right now. We take a couple nice vacations a year. I am home usually by 4pm. We have lots of friends we hang out with on the weekends. I get it.

 

[CabinLifeAt50]

As long as you can cover your expected expenses with what you have, congrats! Would love to have a portfolio that size.

 

[Scuba]

DH and I had the same questions/fears about whether we had enough. It helped us a lot to hire a financial advisor to review our asset allocation and develop an income strategy for us post-FIRE. Now we feel a lot more confident about where the funds will come from, as well as what areas we can reduce discretionary spending if a downturn should happen. We are planning to ER very soon, in our mid-50's.


Sent from my iPhone using Early Retirement Forum

 

[cyber888]

You're uneasy, because you have enough money - but you're acting like you don't have enough. And you're uneasy, because if you retire 5 years from now to get that extra $700K, you will be missing 5 years of your life that you could enjoy now. You probably think, yeah, why not save $700K more and work hard for another 5 years, but that's 5 years you're at work instead of enjoy your $3 Million dollars now.

Hi, new poster here. Just found this forum today.
I am 53, married no kids and plan to retire at 58. We have about $3 mm in conservative (50/40/10) investments which is about 35x our planned retirement expenses. I have health insurance, long term care insurance, umbrella liability, disability and life policies on both of us. We should be able to put away another $700k easily before 58. We have a long list of things we want to do and places to travel. We will try and defer SS until at least 67. I use the Fidelity Planner and an app called Retire Plan. I have also used Firecalc. Everything points to a positive outcome even with very conservative peremeters. Yet I still feel uneasy. What I am missing, overlooking?

 

[COcheesehead]

You're uneasy, because you have enough money - but you're acting like you don't have enough. And you're uneasy, because if you retire 5 years from now to get that extra $700K, you will be missing 5 years of your life that you could enjoy now. You probably think, yeah, why not save $700K more and work hard for another 5 years, but that's 5 years you're at work instead of enjoy your $3 Million dollars now.

Maybe I wasn't clear when I explained up thread about the need to work until 2021. I am contractually obligated to work until the end of the buyout. I am selling my half of an ongoing business. I will bag the extra money, but I also need to "hang around" till then as well. I really have no choice.

 

[Aiming_4_55]

I don't think you are missing anything, you have it covered in the key areas, $$ and insurance policies. If you are committed to the company the next 5 years, I would try and take more vacations and time off. Whole weeks off are probably more noticeable, so take a few extended weekends, go on a few extra weekend trips and the take a few days off even if your wife has to work. It may give you a sense of what some of us are trying to achieve in small dosages.

 

[pb4uski]

Maybe I wasn't clear when I explained up thread about the need to work until 2021. I am contractually obligated to work until the end of the buyout. I am selling my half of an ongoing business. I will bag the extra money, but I also need to "hang around" till then as well. I really have no choice.

Understood, but if it gets to the point where the new owners are comfortable with the business and your hanging around is not adding value, then perhaps they might agree to let you out early or dial down to part-time... they would save up to $275k/year. IOW, just because you have a deal doesn't mean that you and the new owners can't mutually agree to change the deal if it makes sense to do so... you both have an interest in making the business better... them for obvious reasons and you so they are able to pay the buy-out money.

 

[Shanky]

Since your next 5 years will be spent earning money you will never need, I would suggest you plan on some sort of philanthropy which will make these five years worthwhile in the scheme of things. Something that will make a difference and you will be proud of.

 

[aida2003]

Yep, the OP has to work for 5 years or till the death 'take us apart'. I sincerely wish you for the former and after it's all accomplished you will live a free-spirited life. Just make sure you stay healthy for the next 40+ years.

 

[COcheesehead]

Since your next 5 years will be spent earning money you will never need, I would suggest you plan on some sort of philanthropy which will make these five years worthwhile in the scheme of things. Something that will make a difference and you will be proud of.

Way ahead of you. I already have established a scholarship fund at my alma mater and contribute to it yearly. My wife has also started a breast cancer charity and gives a complete wedding away every year to a couple whose lives have been touched by breast cancer.

 

[cyber888]

Well, you could retire now. Why wait You could meet your maker in 2 -3 years, and you wont take your $3 million where you are getting going in the afterlife

 

[COcheesehead]

Well, you could retire now. Why wait You could meet your maker in 2 -3 years, and you wont take your $3 million where you are getting going in the afterlife

You didn't read the whole thread did you.

 

[haloFIRE]

Awesome!

Way ahead of you. I already have established a scholarship fund at my alma mater and contribute to it yearly. My wife has also started a breast cancer charity and gives a complete wedding away every year to a couple whose lives have been touched by breast cancer.

Very cool! Amazing way to give back. My compliments!

 

[cyber888]

You didn't read the whole thread did you.

No, I have read it. You leaving stuff to charity and stuff. Its all fluff. You are in lala land. Deal with it

 

[COcheesehead]

No, I have read it. You leaving stuff to charity and stuff. Its all fluff. You are in lala land. Deal with it

No, that wasn't the point. You said I should retire now. I can't, I am in the middle of a buyout and need to work until 2021. I stated that a few times in the thread.

 

[MichaelB]

One of the things I like most about ER forum is the friendly and respectful way members treat each other. Let's keep it that way, eh?

No, that wasn't the point. You said I should retire now. I can't, I am in the middle of a buyout and need to work until 2021. I stated that a few times in the thread.

That part seems pretty clear.

 

[Bestwifeever]

I won't get the rest of the buy out money. Right now that stands at about $650,000 plus I'll make about $275,000 a year. So saying FU costs me about $2 million gross. I can work 5 more years for that.

Not to mention you have a contract--your continued presence for the next five years must add value to the deal well beyond what is being paid to you. I imagine the buyers would need to recoup that if they would even agree to let you out early.

I think you're covered in your plan and I love the charitable giving you are committed to.

 

[2017ish]

I think everyone is missing the point. I have to work. I have a buy out in process and it requires me to remain a part of the company until 2021. Trust me, if I could bail now, I would.

You are in good shape and seem to have carefully thought through everything. Hopefully, the five years will go fast with your ability to cut back your time commitments a little bit. I respect the fact that you are committed to your obligations with the sale.

We are nearing the home stretch of 2+ years notice of retirement (more than contracts required, but we wanted to maximize chances of employers finding replacements). It went pretty fast until the past month or so, when we started planning and making reservations for big trips in late 2017 and 2018. Five years seems forever, but those on the board who were/are eligible for pensions/health_insurance likely faced the same long transition--albeit without the portfolio to theoretically walk out early.

 

[timemoveson]

Considerations

Cheese, congratulations on your situation. I've read the entire thread and understand your views on your work situation.

I would only add the following for your consideration. As a chief executive/equivalent, I have led the purchasing of several companies and been on-point to customize earn-out deals of the nature you describe, as well as negotiate and close on many senior hires and legal partners. All of those deals had contracts and rigid legal structures behind them, carefully negotiated with the right intent in mind to satisfy (slightly dissatisfy? ) all parties at the time.

However, many of those deals ended up being scrutinized as circumstances changed or needs of one or more of the parties changed. I can think of a number of instances where it was easy, convenient and very appropriate to change the terms of reference.

I would just seriously invite you to think about changing yours. You are NOT a servant to a deal if you don't want to be and your partner(s) agree to talk about it, you don't HAVE TO do anything you can negotiate out of, and five years is a hell of a long time to be "locked up" in something in your 50's when you are already financially independent.

TMO

 

[COcheesehead]

Cheese, congratulations on your situation. I've read the entire thread and understand your views on your work situation.

I would only add the following for your consideration. As a chief executive/equivalent, I have led the purchasing of several companies and been on-point to customize earn-out deals of the nature you describe, as well as negotiate and close on many senior hires and legal partners. All of those deals had contracts and rigid legal structures behind them, carefully negotiated with the right intent in mind to satisfy (slightly dissatisfy? ) all parties at the time.

However, many of those deals ended up being scrutinized as circumstances changed or needs of one or more of the parties changed. I can think of a number of instances where it was easy, convenient and very appropriate to change the terms of reference.

I would just seriously invite you to think about changing yours. You are NOT a servant to a deal if you don't want to be and your partner(s) agree to talk about it, you don't HAVE TO do anything you can negotiate out of, and five years is a hell of a long time to be "locked up" in something in your 50's when you are already financially independent.

TMO

I appreciate your view. It comes from an experienced individual. My situation isn't one that most people will ever find themselves in so I can understand how it would be challenging to relate to it. I thank you for your thoughts.