Biker_on_FIRE
Dryer sheet wannabe
Hi everyone, I need some thoughts/comments/encouragement/discouragement on whether I should retire from my current job. Here is our situation:
My wife and I are turning 52 years old this year and were originally planning on retiring in 2025 when we will have penalty free withdrawals from our company 401ks. We currently have roughly
$5M in retirement accounts (both Roth and Traditional 401ks and IRAs, 80% equities/20% bonds)
$550K in cash
$150K in brokerage accounts (ETFs)
$500k in pension lump sum when we turn 55
$1.7M in home equity
Mortgage: $550k
Approx expenses: <$150k/year
I have generally been satisfied at work (where I have worked for 23 years) but things have changed recently where it is no longer as fulfilling and it causes me a lot of stress and aggravation. Plus we are in the phase of a project where I would need to put in 60-80 hours/week for the next couple of years. So rather than retiring in 2025, I'm thinking of retiring in the next few months.
My job pays well ($180K) with great benefits (100% 401k match up to 12% of my income and good medical benefits) so I would be giving that up over the next three years. Plus, I would not be able to tap into my 401k at 55 due to separating early. But my wife is planning to continue working until age 55 because she doesn't want to lose some of her retiree benefits (generous pension and retiree medical) so she will have access to her 401k at age 55 which will be more than enough to bridge us between age 55 and 59.5. And she makes a very nice salary ($210k).
I am not worried at all about the financial impact of retiring now. I really feel that any money earned by working longer would just mean a larger inheritance for my kids or for the charities we support. But some of my concerns are:
-In the very small possibility that my wife were to leave her job before age 55, we will have a tough time bridging between 55 and 59.5 unless we withdrew early from our 401k. But I'm not that concerned because I could always go back to work and her job is very very stable. Or else we could set up a 72(t).
-My wife may be resentful that I stopped working and she is still going to work for the next three years. I've asked her several times and she has says that she won't be resentful, but we agree that we won't be absolutely positive until that time comes. I honestly don't think she will be, especially since I told her I would get her a dog that she has been wanting.
-Most of my friends are not retired and probably won't be for at least five years. I have plenty of hobbies that take up a lot of time (biking, hiking, exercise, photography, etc.) so I'm not so worried about not being able to fill up my time, but I think I will very much miss the camaraderie and social interactions at work.
Any other concerns that I should have?
Any thoughts and comments appreciated! Thanks!!
My wife and I are turning 52 years old this year and were originally planning on retiring in 2025 when we will have penalty free withdrawals from our company 401ks. We currently have roughly
$5M in retirement accounts (both Roth and Traditional 401ks and IRAs, 80% equities/20% bonds)
$550K in cash
$150K in brokerage accounts (ETFs)
$500k in pension lump sum when we turn 55
$1.7M in home equity
Mortgage: $550k
Approx expenses: <$150k/year
I have generally been satisfied at work (where I have worked for 23 years) but things have changed recently where it is no longer as fulfilling and it causes me a lot of stress and aggravation. Plus we are in the phase of a project where I would need to put in 60-80 hours/week for the next couple of years. So rather than retiring in 2025, I'm thinking of retiring in the next few months.
My job pays well ($180K) with great benefits (100% 401k match up to 12% of my income and good medical benefits) so I would be giving that up over the next three years. Plus, I would not be able to tap into my 401k at 55 due to separating early. But my wife is planning to continue working until age 55 because she doesn't want to lose some of her retiree benefits (generous pension and retiree medical) so she will have access to her 401k at age 55 which will be more than enough to bridge us between age 55 and 59.5. And she makes a very nice salary ($210k).
I am not worried at all about the financial impact of retiring now. I really feel that any money earned by working longer would just mean a larger inheritance for my kids or for the charities we support. But some of my concerns are:
-In the very small possibility that my wife were to leave her job before age 55, we will have a tough time bridging between 55 and 59.5 unless we withdrew early from our 401k. But I'm not that concerned because I could always go back to work and her job is very very stable. Or else we could set up a 72(t).
-My wife may be resentful that I stopped working and she is still going to work for the next three years. I've asked her several times and she has says that she won't be resentful, but we agree that we won't be absolutely positive until that time comes. I honestly don't think she will be, especially since I told her I would get her a dog that she has been wanting.
-Most of my friends are not retired and probably won't be for at least five years. I have plenty of hobbies that take up a lot of time (biking, hiking, exercise, photography, etc.) so I'm not so worried about not being able to fill up my time, but I think I will very much miss the camaraderie and social interactions at work.
Any other concerns that I should have?
Any thoughts and comments appreciated! Thanks!!
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