Early Retirement vs. Latecomer Parenthood

[cocoa2012]

Hi I'm Cocoa2012 - I am a single future retiree, retiring with a minor child in 2013.... PLAN A is to retire at that time with an initial pension benefit of 40k to include a built in COLA of 3% and med insurance coverage for us both.

I could opt for (PLAN B) to work for up to 5 additional years with the pension benefit placed into an account with a growth rate of (4% including COLA), but would be affectively retired at entry into the 5 year DROP plan.

Because, Im a single parent, I'm looking forward to staying at home to raise my child - who will be 9 1/2 years old when I enter into retirement 1/2013 and I will have just turned 48 yo. There should be enough to support us with just my pension alone, but I am torn between building a small legacy for my child or just live off of pension as it grows to continue support until adulthood.

 

[Brat]

The time you spend with your child will be priceless, much more valuable than any financial legacy. When s/he enters high school or college you can augment your pension with income generating activities if you desire.

Been there done that with children six years older than yours. The teen years sometimes require a lot of parental leadership.

 

[W2R]

Maybe you could supplement your pension with a different part time job during the hours while your child is in school? I agree with Brat - - the years with your child are priceless if you can afford to spend time with him or her.

 

[cocoa2012]

Thanks for the comment. Indeed I agree, besides I've worked my butt off for almost thirty years and have a plan in place that will already lend to my 'three legged stool' should I need it. I just worry that i won't be able to provide all of his needs as grows, but in reality I think we'll be just fine. He is a very excitable child and full of energy and I think I better have fun with him while I'm still young enough to do so. Deciding to have a baby late in life was a decision made on purpose with the ability to raise in retirement. He is my one true blessing and retiring with a pension to support us was the next best decision. Coming out of a very demanding career, it will bring me great comfort to know that i can relax and have the time to pursue a personal life to include building a family - even if it just growing my small family to be strong and productive contributors to society.

 

[Amethyst]

You sound like somebody who has it together. Good luck and I look forward to reading your posts as retirement approaches, and after you retire.

Amethyst

 

[Brett_Cameron]

Congrats! I am retiring at the end of July at age 55. I have my second pair of children still at home at 7 and 14 yo. I look forward to spending a lot more time with them. I will have pension, 401k and partially paid health insurance. Best of luck!

 

[Urchina]

Welcome!

I semi-retired (I call it taking a homemaker sabbatical) when my oldest was born six years ago. I'm now getting back into small amounts of part-time work. I'm glad I can stay home with the kids, but I was surprised at how difficult it was to not be engaged professionally. This may not be a challenge you encounter, but I'd have something up your sleeve if you decide that you really, really need some part-time work to avoid going bonkers.

Congratulations to you both, and have fun!

 

[cocoa2012]

I look forward to hearing from my new found friends. It's lonely out here, after making so many personal sacrifices for career goals. It is my hopes that the time will soon come that i have no money worries. Not that i will be wealthy, but not poor either. My three/four legged stool should support us well until i reach retirement age when SS kicks in. If I absolutely feel the urge to go back to work in the meantime - it will be in a no brainer job/part time or project work (using the brains ).
I love my work and would still consider working just for a couple of years more to secure a bigger cushion in my retirement savings. The cushion will bridge the gap as my pension grows over the years and until SS. Once I hit 50 years old, absolutely no more work for pay! Only volunteer work after that.
I still worry though that I've missed something, but i so look forward to the time for huge REST - if nothing else and to devote all of my energy to my son. This old mama better keep it movin while I can .

 

[growing_older]

The time you spend with your child will be priceless, much more valuable than any financial legacy.

Second this. Also note that there is a limited time when your child will be so engaged with you. Before long he will be looking to friends and peers increasingly, so enjoy it while you can.

 

[flyfishnevada]

I'm retired with a 13 year old and 15 year old boys. I decided it was more important to enjoy my life and my time with my boys more than pursue more money. I don't regret that. I spent all fall, winter and spring attending their football, basketball and baseball games. I am looking forward to the summer, taking them to the movies, going fishing and hiking, swimming in our Wal-Mart pool.

As for the legacy, we prepaid their college tuition through the state, but they've known for a long time that's all they get from us. I've also joked with them that I will spend every cent of their inheritance before I go. In reality, they'll probably share a tidy little estate, but no big windfall. We want our kids to make their own way, not count on mom and dad to bail them out at every turn. We'll be there when they really, really need us, but they need to be on their own.

I think being there for them is way more important than me spending another five or ten years slowly killing myself so they can have some sort of legacy. I don't judge those people that do that, but that's not me. They won't hug the money, or enjoy fishing and camping trips with it, or look up to the money and learn from it. They will, I hope, cherish the memories of dad at their games, taking them fishing and just being there when they are older. I also hope I set a great example by working hard and retiring early and they learn from my poor career choice and choose something they enjoy instead of something that will just provide a big paycheck.

I suppose you can guess my advice would be to retire now and begin enjoying the all too short time with your child. Let them make their own legacy for themselves and spend the next 5 years teaching them all you've learned to help them along.

 

[er dr]

Because, Im a single parent, I'm looking forward to staying at home to raise my child - who will be 9 1/2 years old when I enter into retirement 1/2013 and I will have just turned 48 yo. There should be enough to support us with just my pension alone, but I am torn between building a small legacy for my child or just live off of pension as it grows to continue support until adulthood.

Hi Cocoa2012! Being able to spend unlimited time with a child is probably the best legacy you could leave. I too am so driven to make this happen. I have a 10 y/o son and I so want to spend evenings, weekends and summers doing all the things I was never able to do growing up because both my parents worked 1.5 jobs just to make ends meet. I love my parents dearly and their sacrifices abled me to get a great education and the ability to hopefully retire early so I can give my child more than just financial support. If you feel comofrtable that you would be ok financially but not have a whole lot left over to pass on to your child, you could always as a worst case senario do some part-time work while child is in school, or even do something when they are off to college and are so busy with their own life that your involvement might not be as much. Keep in mind that this is only if really necessary. I want to retire in 2 years and my son will be 12 then. I definitely want to spend as much time with him during his teen years as possible. I may do some part-time stuff while he is in school or later in life but not because I have to but rather because I might get bored. Not everyone gets the luxury that we both are striving for... my parents couldn't but I hope to!

 

[Nords]

I'm retired with a 13 year old and 15 year old boys. I decided it was more important to enjoy my life and my time with my boys more than pursue more money. I don't regret that. I spent all fall, winter and spring attending their football, basketball and baseball games. I am looking forward to the summer, taking them to the movies, going fishing and hiking, swimming in our Wal-Mart pool.

As for the legacy, we prepaid their college tuition through the state, but they've known for a long time that's all they get from us. I've also joked with them that I will spend every cent of their inheritance before I go. In reality, they'll probably share a tidy little estate, but no big windfall. We want our kids to make their own way, not count on mom and dad to bail them out at every turn. We'll be there when they really, really need us, but they need to be on their own.

I think being there for them is way more important than me spending another five or ten years slowly killing myself so they can have some sort of legacy. I don't judge those people that do that, but that's not me. They won't hug the money, or enjoy fishing and camping trips with it, or look up to the money and learn from it. They will, I hope, cherish the memories of dad at their games, taking them fishing and just being there when they are older. I also hope I set a great example by working hard and retiring early and they learn from my poor career choice and choose something they enjoy instead of something that will just provide a big paycheck.

I suppose you can guess my advice would be to retire now and begin enjoying the all too short time with your child. Let them make their own legacy for themselves and spend the next 5 years teaching them all you've learned to help them along.

Great post.

Our daughter complains happily to all her friends about how our ER gave us all kinds of time to interfere with her life...

 

[er dr]

Our daughter complains happily to all her friends about how our ER gave us all kinds of time to interfere with her life...

I love that!

 

[Urchina]

Great post.

Our daughter complains happily to all her friends about how our ER gave us all kinds of time to interfere with her life...

Hey, will you tell your daughter to stop talking to my daughter? At just-turned-four she informs me constantly that "Youw're wrecking my wife, mama!" I tell her "Honey, this is just the beginning. You wait and see."

 

[flyfishnevada]

Great post.

Our daughter complains happily to all her friends about how our ER gave us all kinds of time to interfere with her life...

My sons were already used to having my wife around since she works from home, but dad is a whole new level of interference.

 

[REWahoo]

Our daughter complains happily to all her friends about how our ER gave us all kinds of time to interfere with her life...

Heck, she better thank her lucky stars this guy isn't her dad...

Waving to the bus in a different costume every day

 

[Nords]

Heck, she better thank her lucky stars this guy isn't her dad...

Hmmm... would his kid move out of the house as soon as he's legally entitled, or perhaps even move in with another family before then?

I used to get a lot of heat if I drove by the school bus stop with the longboard hanging out the back of the station wagon.

 

[FreeAtLast]

I was 50 when I found myself a single parent having to raise a 10 year old. I also had a 19 year old at the time. This was about 9 years ago.
Your child needs your time now. As he gets older he will need less and less of your time allowing you to return to work if necessary.

I cut my hours back to 20/week and along with some investments that has been working out for me.