Class of 2021

[Lawrencewendall]

I too am planning for 2021. March 31, 2021 to be specific. Megacorp requires me to be on the payroll in Q1 2021 when 2020 Bonus & 2020 401K match is paid. DW will retire at same time probably. Plan to work remaining 3.25 years to top off financials, mainly for future medical needs. Between me, DW, and Megacorp matching, we will put away nearly $50k/year in 401k/IRAs.

We're doing great as far as retirement FI goes. Will be 62.5 when retiring. Not planning to take SS until 66, for full benefits. Will have to fund pre-SS retirement from cash bucket. May also find a part-time consulting gig doing remote web SW coding during then too. Just depends on how bored I get.

I ran different scenarios at personalcapital.com and it actually showed that it was better for me to draw SS at 62 and not touch my portfolio since the portfolio had better returns (8.6%) than the early SS withdrawal penalties (5% at 62, 63 & 64, 6.6% at 65 and 66. My FRA is 67). Might want to check it out.

To see the effect of postponing claiming SS benefits

https://www.ssa.gov/OACT/ProgData/ar_drc.html

 

[Markola]

I ran different scenarios at personalcapital.com and it actually showed that it was better for me to draw SS at 62 and not touch my portfolio since the portfolio had better returns (8.6%) than the early SS withdrawal penalties (5% at 62, 63 & 64, 6.6% at 65 and 66. My FRA is 67). Might want to check it out.



To see the effect of postponing claiming SS benefits



https://www.ssa.gov/OACT/ProgData/ar_drc.html

That’s really interesting! I played around on PC Retirement Planner, too, and it apparently makes a big difference to have that extra income stream come online in one’s early 60s. I guess things I’d need to get comfortable with first are:

- Politicians’ incompetence aside, SS is solid like an annuity, or is supposed to be.

- The PC projections are just that, projections. Can we count on them?

- There’s benefit in spending down tax favored accounts before RMDs start.

Major food for thought though, so thanks.

I’ll count myself 2021, though the current plan is to take a gap year then and see how we like it.

 

[ChrisTexas]

Excited that 2021 is only 3 years away. Financial goal this year is to hit net worth of 900K. I retire in late 2021 with two pensions equal to 66K a year. I will turn 60 in 2010. I am taking SS at 62 as I had children late in life, better payout early. Still considering part-time work, maybe 10 hours a week. I think this would be healthy for me.

 

[Proteus126]

I'm signing myself up with this group. Born in 1970 (DW 1962).

I will meet the Fed Employee 50+20 (age+service) threshold in May 2021. A milestone of moderate financial significance, and a convenient landmark. 50/20 means I can start my modest FERS pension unreduced at age 60, rather than at age 62.

I spend more time than I should keeping the Excel spreadsheet up to date and thinking about this stuff. Chasing FI is fun, but too much focus on it negatively impacts my attitude towards work. In reality my job is a good one, with good coworkers. I'm going to try to look less often in 2018. But I am signing up!

 

[ChrisTexas]

I'm signing myself up with this group. Born in 1970 (DW 1962).

I will meet the Fed Employee 50+20 (age+service) threshold in May 2021. A milestone of moderate financial significance, and a convenient landmark. 50/20 means I can start my modest FERS pension unreduced at age 60, rather than at age 62.

I spend more time than I should keeping the Excel spreadsheet up to date and thinking about this stuff. Chasing FI is fun, but too much focus on it negatively impacts my attitude towards work. In reality my job is a good one, with good coworkers. I'm going to try to look less often in 2018. But I am signing up!

Awesome, glad to have you on board. I look at my spreadsheet too often because I enjoy it. Same issue, I enjoy my job.

 

[Lawrencewendall]

Awesome, glad to have you on board. I look at my spreadsheet too often because I enjoy it. Same issue, I enjoy my job.

I enjoy my job also but there are too many postings on here about people's time cut short unexpectedly.

 

[Lawrencewendall]

2021 cannot come fast enough! This morning I had a tough time getting into the car. The doors were frozen shut due to yesterday's ice storm. I finally got in and headed to the train station but traffic was backed up due to an accident in one of the intersections. After sitting there for awhile, I knew I missed my normal train. Police diverted us and I finally got to the train station. I was just about ready to board the next train when I realized I left my w$rk credentials (used to get in the building and for teleworking) in the laptop at the house since I teleworked yesterday. My badge holder not only has my work credentials, but also my train ticket and the Metro pass. I wasn't going any place. Figured I might as well telework another day. Still had to find an alternate route to get home. What a morning!

 

[YVRRocketSurgery]

I've been participating in the 2024 thread in the Young Dreamers forum because I couldn't find a 2022 thread. I have a soft target of April 2022 so I can hit my 25 year work anniversary. However, since my megacorp typically gives an 18 month separation package, I wouldn't be upset if I got "pushed" at some point in 2021.

I likely look at my countdown too often and it impacts my sanity. 3-4 years out is likely excessive. However, I've planned trips a year and a half out and time seems to fly by with the departure day seemingly arriving out of the blue.

The missus is a handful of years younger than me and needs to work longer to best benefit from her DB pension. So, I'm starting to look at ideas on how to keep active while still being able to enjoy a leisurely retirement during the time she still needs to work.

 

[Markola]

.



I likely look at my countdown too often and it impacts my sanity. 3-4 years out is likely excessive. However, I've planned trips a year and a half out and time seems to fly by with the departure day seemingly arriving out of the blue.
.

Nothing wrong with a little escape fantasizing and mind games, I say. DW and I have a little red spiral bound notebook on the cover of which I drew a palm tree and hammock. Each page counts down a month to Jan. 2021. On the 20th of each month, we pull it out and whoever had the worst month at work gets to tear out a page and crumple it. Usually, it’s her. We think it helps and, you’re right, the long time moves along surprisingly fast.

 

[Lawrencewendall]

Here's a kicker. I ran the numbers numerous times and I am FI right now but it is all locked up in tax deferred which I can't access until 2021 without the 10% penalty. Not wanting to pay Uncle Sam that 10% so I must wait until 2021 even though I am almost a MULTI right now. Can't bring myself to pay that 10%, forfeit a small non-COLA'ed pension just to walk away early. Need to keep myself engaged at w*rk just to keep my mind off of it. I am starting a new project which should make the time pass faster. Besides, the extra years of normal income may help finance the dream retirement home (unless my DW keeps blowing the dough). Enjoy my j*b so life is good. Just looking towards the new found freedom.

 

[ears20]

Here's a kicker. I ran the numbers numerous times and I am FI right now but it is all locked up in tax deferred which I can't access until 2021 without the 10% penalty. Not wanting to pay Uncle Sam that 10% so I must wait until 2021 even though I am almost a MULTI right now. Can't bring myself to pay that 10%, forfeit a small non-COLA'ed pension just to walk away early. Need to keep myself engaged at w*rk just to keep my mind off of it. I am starting a new project which should make the time pass faster. Besides, the extra years of normal income may help finance the dream retirement home (unless my DW keeps blowing the dough). Enjoy my j*b so life is good. Just looking towards the new found freedom.

If you’re FI and enjoy your j*b then you already have quite a bit of freedom...congrats!

One thing you might want to consider is a section 72t, or SEPP, withdrawal. This allows you to take substantially equal periodic payments from your IRA before 59.5 without penalty. The biggest catch is you have to take whatever amount you set up when you commence withdrawals every year for the longer of 5 years or until you turn 62.

I’m availing myself of this since I’m 57 and can’t stand the thought of spending another 1.5 years on the corporate hamster wheel. I’ll be forfeiting a tiny non-COLA pension as well, but the time that will become mine, and mine alone, is priceless.

As always, YMMV.

 

[Markola]

A lot of 401ks and 403bs allow penalty-free withdrawals upon separation in the year one turns 55 or older. IRAs do not. Both DW’s and mine do, though I had to track down the fine print and confirm with the plan custodian.

 

[YVRRocketSurgery]

Nothing wrong with a little escape fantasizing and mind games, I say. DW and I have a little red spiral bound notebook on the cover of which I drew a palm tree and hammock. Each page counts down a month to Jan. 2021. On the 20th of each month, we pull it out and whoever had the worst month at work gets to tear out a page and crumple it. Usually, it’s her. We think it helps and, you’re right, the long time moves along surprisingly fast.

My mind game is a reverse countdown lookup. If retirement is 1500 days away, I think back or look up what I was doing 1500 days ago and try to think about the memory of that event being not that long ago.

 

[corn18]

I am in for the class of 2021 (55 yo). Not sure what I'm going to do at that point, but it will be nice to be FI.

 

[HillCountry]

I am in for the class of 2021 (55 yo). Not sure what I'm going to do at that point, but it will be nice to be FI.

Being FI is only part of the picture. You do have 3 years to think about what you to do after retirement.

 

[COcheesehead]

I am in for the class of 2021 (55 yo). Not sure what I'm going to do at that point, but it will be nice to be FI.

I am in the 2021 class too. I have a list a mile long on my iPad of things we are going to do. The financial part to me is relatively easy. It’s the lifestyle that I spend most of my time thinking about.

 

[YVRRocketSurgery]

Unfortunately, the missus is not scheduled to retire at the same time as me in 2021/22 so I think the initial plan for me is to be the prime for the bulk of the household chores (laundry, cooking, errands, etc) which I actually don't mind doing.
I'm trying to line up a "fun" job too.

 

[Markola]

Today is DW’s last as a federal employee. It’s earlier than we planned but her bucket was overflowing. I predict she’ll take a break through summer then find another j*b. Then again, maybe not. Just shows how the best laid plans can change. I still think I can pull the plug in 2021, assuming the Personal Capital/Retirement Planning page is right.

 

[Lawrencewendall]

You go! Just started a new project which will help the time to fly. GO 2021!

 

[COcheesehead]

I took a class at the local community college on retirement finances just to make sure I wasn't overlooking anything and I wasn't. I knew 95% of what they taught just by hanging around forums like this one.
The one interesting thing they brought up was that about 10% plan to retire before 60, but reality is about 20% or more actually do, not by choice, but because of circumstance.
I also wonder how stats like this play into so many taking SS at 62 when they are forced to retire earlier than expected.

 

[goingtotravel]

New here and joining the countdown. FIRE date for me can be May 2021 to get a full pension and for DH probably 2019 although talking about 2018 dates too. The two co-workers I'm closest to are retiring this year making me wonder how I'll survive a little less than 3 years w/o them! Trying to refocus my brain on planning and life after FIRE to help make the time fly. It's both scary to think of giving up a regular salary check and exciting to think about being able to travel and not have to plan around taking the fewest number of days off so we don't run out of leave!

 

[Lawrencewendall]

New here and joining the countdown. FIRE date for me can be May 2021 to get a full pension and for DH probably 2019 although talking about 2018 dates too. The two co-workers I'm closest to are retiring this year making me wonder how I'll survive a little less than 3 years w/o them! Trying to refocus my brain on planning and life after FIRE to help make the time fly. It's both scary to think of giving up a regular salary check and exciting to think about being able to travel and not have to plan around taking the fewest number of days off so we don't run out of leave!

Welcome. We need to keep motivating each other to hang in there!

 

[COcheesehead]

New here and joining the countdown. FIRE date for me can be May 2021 to get a full pension and for DH probably 2019 although talking about 2018 dates too. The two co-workers I'm closest to are retiring this year making me wonder how I'll survive a little less than 3 years w/o them! Trying to refocus my brain on planning and life after FIRE to help make the time fly. It's both scary to think of giving up a regular salary check and exciting to think about being able to travel and not have to plan around taking the fewest number of days off so we don't run out of leave!

I ride the emotional roller coaster as well. I have days where I am so excited and then others where I think I am making the mistake of my life. In the bad times I try and focus on what I am retiring to, not what I am leaving. It helps.

 

[goingtotravel]

Tomorrow will be the 999th day before retirement based on my earliest planning date. Not that I'm counting or anything!!!

 

[cynicalbuthopeful]

Hello my fellow esteemed candidates of the class of 2021! I finally searched to see if a class had been organized - what was I thinking -- of course there was! We are targeting March/April 2021 time frame. We'll relocate to my home state of FL. Can't wait!