Retire vs making more money?

[LINYbob]

I'm at the verge of retiring - maybe by year end. My financials are fine - every model I run gives me confidence.

But I could stay at my job and make more money and preserve my retirement funds, and grow them more.

What things do you think of when it is time to make the decision? I don't really love my job, it is ok at best. But it pays well and it is not too stressful. And I'm worried that the fun of retirement will wear off in a few months.

I'd like to get some input on how people decide to give up certain income vs time to do whatever you want.

 

[WhenIsItTime]

Congrat’s on achieving the milestone of FI. Only you can decide what role work plays in your life and each and every day. For me it was #1 for 20+ years and then at FI I hit a wall. All the lost family time, hobbies and sacrifices I had made over the years were too much. I resigned abruptly (~5 months ago) and now enjoy each and every day cherishing the small moments with friends and family and doing what I want to do.

Sure I miss colleagues, solving big problems, career achievements and putting money in the bank. But, I worked to live not live to work.

Sorry if my tone is strong. I’m late 40’s and have been explaining myself a lot!

I hope you find comfort with your decision.

 

[Maenad]

My mom has dementia (early stages), and my dad's health has taken a sharp downward turn this year, so I've had a pretty brutal reminder that time is more important than money. So for me, I'm out next spring after I get my bonus, unless the economy implodes.

Are there personal things in your life that you want to be more available for? Are there athletic pursuits that will get harder with every year? How much do you like spending money? How much security do you need, mentally?

Those are the first prompting questions that come to mind. I'm sure others here will have good insights!

 

[pb4uski]

I was in a similiar situation... but I liked my job. Continuing to work would only enrich the state and federal governments (I paid a lot in income taxes) and our kids. I decided that I had better things to do with my time. Best decision that I ever made. Come on in... the water is fine.

 

[Dtail]

Your health will probably never be better than it is now.
Retirement is just another and possibly the best stage of your life.
I am never bored, even when doing nothing.

 

[Dawg52]

I'm 12.5 years in with no regrets. I was bored with work so the decision was easy for me. The only time I'm somewhat bored in retirement is when the weather keeps me inside several days in a row. Even then it's still better than my old job. Everyone is different tho...

 

[H2ODude]

Similar situation but last couple of years became uncomfortable and outweighed the satisfaction of the job. Left the long term for consulting and it just did not work out so somewhat unexpectedly retired. There's an old saw about retiring to something, not from something. Was really not prepared for the full time retirement. Can only stand so much travel, all those "projects" get done.

What I can say is for me it took time, but I'm very glad things went the way they did. I can actually veg out on the couch w the laptop or wander in the woods and not have the anxiety of "I should be accomplishing something." Now, I'd put a gun to my head if forced back to some daily assignment.

Retired in 2011, and struggle to spend what the FIDO model says we can (or Firecalc). Yeah, been pretty good times in markets since then but at this rate the kids will be enriched far more than they need IMO. Maybe I'm just fooled by the good performance since 2011 but I'm of the opinion that at least in our case (roughly 20%SS, 30% pension, and 50% portfolio) the models are pretty damn conservative. I understand they are for the worst case, but when the worst case stays away for 8 years ya can relax. We're way above starting point; if you are fine by the models be prepared to make upward adjustments unless the worst does happen. Just something to keep in mind as you trade work time for leisure. If you're like me, it may take some time to unplug from the productivity (and incoming cash flow) that retirement brings. But, at this point, life is good. Former co-worker passed, we went to Peru for two weeks. Then Europe. Good friend at 74 just had (mild) stroke, so I'm negotiating to trade in a 2018 pickup for a Cayenne S. Kids used to live in Africa and London and made dozens of trips over there. And we are nowhere NEAR the point models said we'd be in 2019 (way above). Good luck with your decision; enjoy your health and retirement.

Edt to add: One more thought on time passing on as you are retired and the models. Don't forget that even if you model to say age 95, as the years go by the size of the egg needed shrinks, or the revenue generated grows (at least from the portfolio). Same million dollars at 68 buys more secure income than it does at 60 (well, inflation adjusted and all that). You simply don't need as much to get you to the end point as, ah, you get CLOSER TO THE END POINT!

 

[Andre1969]

I'm sort of on the cusp right now. I probably hit FI sometime in 2017, thanks to a combination of the stock market, and an inheritance from my Dad. At the time though, I was 47, and not really ready, mentally, to retire. Plus, I had to process the death of my Dad, handle his estate, etc.

Right now, I'm just taking it day by day. They let us work a somewhat flexible schedule at my job, so I can stay a bit late one day, leave work a bit early another day, take a random day off here and there, etc. Just as long as the work gets done, and my 2-week period totals out to 80 hours (any combination of paid hours + vacation hours). So, that's been helping a bit with the transition. Rather than working five 8-hour days per week, I'll usually stay a bit late on Monday/Tuesday/Thursday, and leave early on Wednesday/Friday, and take a day off occasionally. It does help, breaking up the routine and making it feel less monotonous.

Eventually though, I'm going to come to the conclusion that I've only got so much time left on this earth, and only so many of those will be "good" years (versus the years sitting around old and decrepit, pining for the good old days). Once the value of the time exceeds the value of the extra money, I'll make the decision.

Right now, I'm toying with the idea of retiring in 2021, around the age of 51.

 

[dirtbiker]

I'm at the verge of retiring - maybe by year end. My financials are fine - every model I run gives me confidence.

But I could stay at my job and make more money and preserve my retirement funds, and grow them more.

What things do you think of when it is time to make the decision? I don't really love my job, it is ok at best. But it pays well and it is not too stressful. And I'm worried that the fun of retirement will wear off in a few months.

I'd like to get some input on how people decide to give up certain income vs time to do whatever you want.

I'm still a long ways off from retirement, so as I get older and closer my priorities may change, so take my advice for what you will.

I would ask myself (and make projections based on this):

Is my current financial situation adequate to have the retirement I want?

Would working longer/saving more improve my retirement? What things would I like to do in retirement that I can't do now due to my financial situation.

How is my (and my wife's) current and projected health?

If you can't justify the material benefits of working longer, than why give up good years of you and your spouse's life?

 

[street]

I would think that is some very common questions and concerns. I can only give you my story but after 3.5 years into retirement there are days I feel I wish I had went sooner (58 for me).
I Loved my job and I can tell you, it was the hardest decision I ever made to walk away. I was a workaholic and work was very important to me, so if I can step away I really do believe anyone can. As far as retirement getting boring for you, you will need to have a plan for that, and you are the only one that can help you, for that issue. I can say I thought the same thing but I haven't had a boring minute yet. I even dislike having commitments or appointments because they interfere with my life now.

You are really the only one that can make you happy if you step away. Good luck.

 

[jimbee]

I've been retired for 5.5 years, and I've made more money than I ever made working. You might be surprised how well things work out for you.

 

[mrfeh]

I'm at the verge of retiring - maybe by year end. My financials are fine - every model I run gives me confidence.

But I could stay at my job and make more money and preserve my retirement funds, and grow them more.

What things do you think of when it is time to make the decision? I don't really love my job, it is ok at best. But it pays well and it is not too stressful. And I'm worried that the fun of retirement will wear off in a few months.

I'd like to get some input on how people decide to give up certain income vs time to do whatever you want.

Visit bogleheads.org and search for OMY Syndrome (One More Year Syndrome).

 

[H2ODude]

Yeah, I have two good friends afflicted w the OMY syndrome. One at 67 who's had several health scares yet still is at it. His wife is worse off and he pines to travel and do stuff. But, because he may have to supplement his 98 yo mother he's worried about money. And he owns a beach house and S Florida condo. Go figure. I think it's a failure to look realistically at what the percentages really are in terms of likely futures.

 

[Rianne]

Congratulations regarding your dilemma. It's a nice dilemma to have. We wanted to enjoy life while our health is good. And enjoy each other. We were more or less roommates for many years, too busy to completely relax and remember why we got married in the first place. BTW, we feel younger. Stress will age you.

 

[jollystomper]

The way my thinking evolved, there is very little to limit how much money you can choose to continue to make and save, but there is a definite limit to ones health and life and ability to enjoy that money in the long run. I did enjoy my job, and worked nine years beyond my Megacorp retirement eligibility. Once I had enough money and my desired buffer, and fortunately was still in good health, I chose to retire. I wanted as much time to enjoy my health and life on things of my own choosing, before the inevitable (and in some cases sudden) decline.

 

[nancyfrank232]

If you can retire and haven’t tried it, I would try it

If you have long tenure at your company, I would personally try and negotiate a severance. Might as well give it a shot since there’s nothing to lose

 

[ckelly78z]

How much is that extra 2-3 years worth to you, because you will never be in better shape/health than right now. I would hate to squander my active years making more money to enjoy my sedentary years.

 

[Jerry1]

I looked at this two ways. First was more of an overriding thought about retirement. How much time did I have on earth and did I want to spend any more of it at work. I didn’t. But, I didn’t want to just exist either. Therefore when I made my number, which sounds like where you’re at, the question is how much longer to work.

I asked myself, how different would my retired life be if I worked longer. In my case, not much. The one thing I wanted that I wouldn’t have is the money to snowbird in style, e.g. buying a condo in a nice Florida location. To do that, I would have had to work 5 years or more. I wasn’t willing to do that so I left. I’m very happy with my decision.

So ask yourself, what will be different about your retirement if you work one or more years. Just having more money wouldn’t do it for me.

And, if you look at it as security, you can be wiped out no matter how much money you have. If things go so far wrong that you lose everything you have right now, do you really think one more year of savings will make a difference?

 

[Austin704]

My situation was similar to yours. My finances were in order and the calculators were saying “go for it” but I liked my job enough, and the people, was making good money and the stress level was manageable. Even so, I grew tired of commuting, sitting in meetings on beautiful fall days, spending my weekends getting ready for the next week, traveling for work, and never having enough time to do the things I really wanted to do.

So, 4 months ago at age 53 I pulled the plug. I’m growing comfortable with retirement now, but I have to admit I didn’t know what to do with myself for the first month or so. Leading up to retirement I did a whole lot of financial planning but very little planning for how to spend my time.

I’m probably one of the few who think you don’t need to “retire to” something or have some greater purpose to fulfill when you retire. Just allowing yourself to be and reconnecting to what matters to you is enough. But I do believe you need to have plan for how you’ll fill your days and some structure.

As far as leaving money on the table, yeah... that is tough. I like money and there is some level of angst even now that I could have worked longer and earned more. And if I made up my mind to, I could go back to work. But I’ve found the freedom and control over my time is much more valuable to me than a few more dollars in the bank—and besides, my portfolio continues to grow and I expect it will if I manage it properly.

Good luck!

 

[Spanky]

I'm at the verge of retiring - maybe by year end. My financials are fine - every model I run gives me confidence.

But I could stay at my job and make more money and preserve my retirement funds, and grow them more.

What things do you think of when it is time to make the decision? I don't really love my job, it is ok at best. But it pays well and it is not too stressful. And I'm worried that the fun of retirement will wear off in a few months.

I'd like to get some input on how people decide to give up certain income vs time to do whatever you want.

If you do not need to acquire more and you rather spending more time on other things than work, why would you continue to work just for more money unless you not feel secure no matter how much you have? There is a term for it - Once more year (OMY).

 

[tb001]

How old are you? What is your health like? Personally, I think that matters a lot in thinking about the trade offs. In your late 40s/early 50s if you like your work, OMY for a year or two can fund some nice extras. In your late 50s/early 60s, I would be more focused on the clock.

Realistically, how much will another year or two make in padding your funds. If you’re FI, that doesn’t seem like the issue. My guess is, if you’re asking the question, you’re not ready yet emotionally. Maybe spend some time thinking about how you want to spend your days and what you want to do.

 

[steelyman]

I’m probably one of the few who think you don’t need to “retire to” something or have some greater purpose to fulfill when you retire. Just allowing yourself to be and reconnecting to what matters to you is enough. But I do believe you need to have plan for how you’ll fill your days and some structure.

Very nice response and I particularly agree with this portion. I think people adjust in ways that suit them best and flexibility can help along the way.

 

[Bir48die]

You don't say how old you are. That would be a big part of my decision process. If you're young then you can retire and test it out. If you don't like it then go back and work.

Some is just the anxiety about transitioning from income building to spending/preservation.

 

[pb4uski]

If you do not need to acquire more and you rather spending more time on other things than work, why would you continue to work just for more money unless you not feel secure no matter how much you have? There is a term for it - Once more year (OMY).

+1 What's the point of continuing to work? What's the objective? What's in it for me?

 

[Mdlerth]

Ready...ready...ready...ready...ready...ready...ai m...FIRE

My guess is, if you’re asking the question, you’re not ready yet emotionally.

+1 Making a big decision can be uncomfortable, and unilaterally switching off a steady paycheck is a big decision.

One fine day my own numbers said I could bail any time. Even DW encouraged me to hand it in, but I found myself unwilling to pull the trigger. "What if I underestimated expense X, or miscalculated resource Y?" "I think I want to do ABC in retirement, but suppose a month later I'm bored by it?" "Am I going to be a target for people trying to burden me with crap because they think I've got endless free time?" So I dithered for an extra year or so.

A few weeks ago a Megacorp executive made the decision for me. When the boss handed me the severance package, a wave of relief swept over me and the doubts disappeared.

Contemplating my reactions to how it all unfolded, I think I never was truly waiting for answers to questions so much as I was waiting for some external prompt that the time for internal debate was now over. Imagine a mental chairman banging the gavel and demanding a vote among all the disparate voices in my head. Does that sound too weird? If so, maybe there's a plot for a sci-fi book somewhere in there!

Anyway, good luck.