Am I crazy?

[Chuckjim]

I owned my own electrical contracting business for 6 years so I completely understand your wanting to get out. My buddy owns a very successful hvac company and thought he had it sold but the deal fell through. Hopefully yours works out. My stress levels always went up when my phone rang as someone needed something from me. I don’t miss that.
I am not normally a people person but I do enjoy traveling, meeting new people, and seeing parts of this great world we live in. Some of my best memories are when the trip goes bad and things get interesting. I don’t enjoy the hoops you have to jump through to travel on a plane these days, but once I get where I’m going I can usually relax as I know my cell phone doesn’t work and my time is mine.

 

[PandaBear]

Chuckjim.......100% off topic but my great grandpa was one of the founders of the IBEW. I always feel a connection when I see a reference to it.

 

[Chuckjim]

Well, you should be very proud. I started in the IBEW apprenticeship program which is a 5 year program of 8000 hours on the job training and 1000 hours in a classroom. It has given me a skill that I have used to provide a fair and honest living for my family. It’s hard work but also rewarding.

 

[marion10]

On health insurance, do not be so sure you can just jump back into the Federal government when you want to get a job.

 

[imnontrad]

What about healthcare if your wife choose to leave work (or loses her job or for some reason cannot work) until your start Medicare at age 65? You may find out that this expense is a lot higher than you anticipate.
What are you planning to do? Could you consider teaching at a tech school to raise the next generation of electricians? Could you volunteer with Habitat for Humanity and other organizations who help low income to create safer housing in your town?

 

[Yoheadden]

Thank you for those words of encouragement. I have actually thought about home inspection. I have built 6 homes in the last 23 years including my rental properties. I have built them from the ground up meaning I have only hired out hvac and maybe installing carpet. I currently work for the federal government as an electrician at the second largest hydroelectric facility in the USA and I hope I’m not making a bad move by retiring early? Yes, thankfully I have a set of skills to fall back on although the thought of going back to construction doesn’t sound appealing, it’s nice to have options.

Welcome to the panel. As you can see (or read), there is a ton of helpful people and information here.
It sounds like between your trade and the rentals, you are in a great position.
You ? About retiring too early. How happy or unhappy are you on the job ? What would be the pros and cons of stretching in out another 2, 3, 5 years ?
How is the rental market in your area? Do u have short term or long term renters? Can you swing it, if one or more go vacant for an extended amount of time?
It seems like you LBYMs already, but have you taken a close look at your expenses ? Factored in any future expenses if you retire?
These are just some quick ?s that came to mind to maybe ponder over.
The Mrs & I are both 50. We just decided to wait a few years to ER in order to save more & less time to withdrawal from the pot. We also wouldn’t have health ins, like u would.
I am also in Vanguard but stick to broad based funds with some others for diversification.

 

[Chuckjim]

Yoaheaddn, those are all great questions. I was originally going to retire at 52 but I decided to pull the plug a year sooner. I’m considering selling a couple of my rentals and shove some more money in my vanguard account as I think the return will come close to monthly rental income minus the headaches. I work with so many guys who are waiting to retire until they finish buying everything they think they will ever need to buy in retirement. I looked at it like I can live comfortably and on less if it means doing what I want when I want. I think we all question if we’re financially ready or not but I know in the back of my mind that at some point I might get bored and want to do something part time or seasonal to make a few bucks or get out of the house?
Life is so uncertain, tomorrow is not guaranteed, and I would kick myself if I worked all my life to reach retirement and never got to enjoy all my hard work. I’m ready!

 

[nvgs123]

Chuckjim, did you get an official estimate of your government retirement annuity from your personnel center? I am doing the same plan (essentially), and asked AFPC for a deferred retirement estimate based on my high-3 base pay and years of service. Its interesting how it is calculated...My estimate was about $10 off per month than the official estimate.
I'll be resigning my position next year close to my 55th birthday and expect a deferred retirement at 62.
Good luck!!!

 

[Chuckjim]

Nvgs123. Last year our division sent out some retirement folks to meet with those interested in retirement. They had us provide some info and then when we met, they had 4 or 5 scenarios all printed out like if we waited a few more years, if we were taking health insurance with us and some other stuff? It’s going to seem weird to write a resignation letter as I will be deferring retirement like you until 62 but honestly, I can’t wait. Part of me wants to go in on my last day and at our morning meeting stand up and announce that today will be my last day. I know you shouldn’t burn your bridges, but the thought has crossed my mind.
Are you planning to travel or just tired of working? Curious.

 

[nvgs123]

Chukjim,
I was planning (pre-covid) to spend 6-9 months in Alicante, Spain to attend university to learn Spanish....then continue my travels and begin to explore central and south America... but now its wait and see, still hanging up my hat at 55 but might wait until things settle down before venturing.

 

[Chuckjim]

Nvgs123. I had planned to spend 3 weeks in Portugal, 3 weeks in Spain and 3 weeks in Italy but I’m planning a couple contingencies just like you but hoping things return to more normal by September. If it’s still crazy, I’m planning Mexico, Ecuador and Peru. I’ve been to Italy for 3 weeks these last 2 years and really enjoyed Europe but have been looking at Thailand and Vietnam as well. Years ago I spent 3 weeks in Costa Rica living with a Costa Rican family and studied Spanish at a school there. Costa Rica is amazing but Ecuador rivals Costa Rica by a bit. Let me know if you had any questions about those places.

 

[nvgs123]

Chuckjim, I've been living and working in Saudi Arabia since April 2016. One of the perks of working here is the 57 paid days off a year. So I have visited 27 cities in 20 countries since arriving. Asia, Europe and ME...its been fun.

Of course, covid put a stop to all that nonsense....last real trip was Dubai in January (I was in Boston in March to July but had family issues and covid to deal with, not a real vacation).

I, too am looking at Ecuador (among others), so many options.
But first, I must learn conversational Spanish to feel more comfortable getting off the beaten path.

 

[Chuckjim]

Please share your thoughts on Southeast Asia. I’m not sure why I have never really thought about traveling there? There are amazing online Spanish courses, but there would be nothing better than traveling to a Spanish speaking country,studying Spanish at a school with in person conversation, and immersion into the language on a daily basis. It is one of my goals to become fluent in Spanish as well. I am far from there but I love the thought.

 

[PandaBear]

Well, you should be very proud. I started in the IBEW apprenticeship program which is a 5 year program of 8000 hours on the job training and 1000 hours in a classroom. It has given me a skill that I have used to provide a fair and honest living for my family. It’s hard work but also rewarding.

I am very proud!

 

[ckelly78z]

ChuckJim, it's good to see other blue collar workers who are able to be financially savvy enough to be considering their retirement options at a young age. I'm 55, and have been in a factory/engineering setting for 21 years, and would be ready also except for health insurance.

I wish you luck in all you do.

 

[Chuckjim]

Thank you. It’s sad that so many retirement plans hinge on health insurance.

 

[MrBig1]

First time on this site and I’m so excited to have found this resource.
I am 50 years old and I have been an electrician for 22 years and currently with the federal government for 9. I plan to retire next September at 51 years of age and only 9 years with the government.
I have 400,000 in my tsp(gov 401k)
100,000 in cash savings held by vanguard
A 20,000 emergency fund
My home is paid off and I have 4 rental properties that net me 4,000/month. All rental properties are paid for. And valued at 1,000,000
I have no debt and I currently make 103,000/year and my wife who is a physical therapist, is planning to continue to work so I can move onto her medical insurance through work. My wife makes about 60,000/year
We estimate we can live on 30,000/year but with extra travel in retirement, I would expect it to be closer to 50,000/year

My government pension of 800/month and my IBEW pension of 450/month wouldn’t start until 62 and of course I wouldn’t start retirement tsp withdrawals until 59 1/2. I’m hoping my tsp will be worth 500,000 by age 60 when I start withdrawing.
Any thoughts or advice on how to maximize my chances for success in retirement? Me and my wife would be close to maximum social security benefits at 67.

Hey there. As one electrician to another my advice would be to work at least until you're 55 and save your ass off. Live on the income you plan to have and use in retirement, bank the rest and allow your social security benefits to grow. This is only true if you can stand your present job. More is always better in retirement. Better to have and not need then Need and not have.
Just my 2 cents. Free advice is worth what you pay for it.

 

[ckelly78z]

Thank you. It’s sad that so many retirement plans hinge on health insurance.

I look like I am fit/trim, and am very active, but have a new pace maker/defib, and have been on a maintenance dose of chemo for years, so not wanting to test the ACA waters.