Decision made for me (maybe?!) in Colorado

[38Chevy454]

I agree with the rest of the replies, take the severance and be retired. You worked hard and have a great financial position. Enjoy the success and retirement.

You can add years to your retirement, but you can't add years to your life.

 

[wrigley]

Hi All,
Been following the forum for a while and first post. I’ve been balancing looking for a new role with early retirement. I’m 56 and wife is 55. We have been diligent savers since we started working. Found out Friday my c-level role is being eliminated and I will have severance through the end of the year. Since I started looking for other opportunities about a month ago, I have 4 slow moving opportunities, working through recruiters. My other option in my head was to retire in October if I found nothing I could get excited about. 6.1M savings split about 50/50 between tax deferred and after tax accounts. About 400k in home equity in addition to that. No debt outside of the mortgage. Financial advisor plan has us at 97-99% success rate with spending 165k per year, excluding healthcare costs which is more than enough.

This little “boost” to accelerate my plan is exciting. Still talking with recruiters on these opportunities, but the prospect of getting in better shape, hiking, cycling, and skiiing (in the middle of the week!) is really raising itself as the most exciting option!

Am I sensing some hesitation about leaving the work force?

Mike

 

[dmpi]

Other see 55 as a early retirement, I see it as a normal retirement. Especially so if your job is stressful. If you've saved money and actually prepared for retirement, why wouldn't you just execute your plan and retire now?

 

[Willers]

Luckily, we moved to CO 18 months ago and purchased a home in a great area!

Awesome. Dallas being listed in your profile as your location threw me off.

Enjoy the Colorado life. I've been back in state and retired for about 10 years and still haven't gotten tired of the daily outdoor life. You have earned it.

 

[pacergal]

You have definitely prepared for retirement, and sounds like you have a nice severance on top.
Congratulations. Enjoy retirement, it is wonderful!

 

[Romer]

I am also in Colorado

I retired in 2022 at age 60. Retiring now would allow you to get Cobra for medical for 18 months after severance is expired. That is what I did.

I have retiree medical through my former company

One thing I would check is to log into the Social Security Web site and make sure you have enough credits for Medicare. Likely you do, but good to know now rather than at age 65. That is going to be like a raise when we turn 65

Also, Colorado does not tax Social Security, that is a ways off for you. Before that there is some write-off on the taxes for withdrawal from retirement accounts. For me it is $20K per person, not sure what age that starts at (at least 60 for sure)

One thing I would look into is opening a Roth IRA. You can decide if you want to do conversions later, but opening the account starts the 5 year timer on earnings being tax free on withdrawals. That counts for any Roth contributions/conversions even made in last year once account is open. Lots of threads with differing opinions on conversions. I did it to make sure a surviving spouse didn't get hit with a huge impact to single tax rates. At your age, you can slowly make conversions if you choose.

Cobra covering you for 18 months provides a chance for your income to settle down and to evaluate the trade of ACA vs Roth Contributions.

Colorado is a great place to retire

 

[Bryan Barnfellow]

Retired before 60 and started on two decades of extensive planned travel. Then, my wife was diagnosed with Parkinson's Disease five years into our retirement. You can never predict with certainty, alas. Waiting might add to financial assets, but may cost big in plans based on projected health assets. For me, it's clear: jump!

-BB

 

[dcmmsu]

Am I sensing some hesitation about leaving the work force?

Mike

Just making the leap, but excited about the future. A little different when it isn’t exactly on your terms, but I know that happens a lot. Just the suddenness of it all!

 

[Koolau]

No need to limit yourself to 3% Safe Withdrawal Rate - IF you will be getting decent Social Security and/or pension down the line.

I'd say go for it but do your homew*rk first (what are your expenses, taxes, health care, etc.?) Good luck and check back often.

 

[Mark1]

Also, Colorado does not tax Social Security, that is a ways off for you. Before that there is some write-off on the taxes for withdrawal from retirement accounts. For me it is $20K per person, not sure what age that starts at (at least 60 for sure)

Yup, you get to deduct $20K (55-65 years old) and $24K (after 65) off of your state taxes, provided you have that much retirement income (IRA, Pensions, Annuity, etc). Recently, CO added SS as tax free, but you have to choose either the 20/25K , or SS, as you can't do both. Also, the SS deduction is actually line 1040 Line 6b, not Line 6a, so the max SS deduction is actually 85% of your SS.

 

[Milkman]

Congratulations from another Coloradan. I've been retired going on 10 years now. We have been blessed that our assets are significantly more than when I left the job. My alcohol consumption is about 25% of what it was when I was working. We have traveled to places that I could never have imagined going to 40 years ago. You will wonder how you ever found the time to work!

 

[CO-guy]

Hike, bike, travel, ski, concerts I could never do on a Tuesday!….. The list keeps growing!

Congrats! You've just described what I've been prioritizing since leaving the full-time.

Skied over 50 days this past season. I don't count the hikes, but it's Wed. and I've been on my mtn. bike 4 days this week.

 

[ApeX]

Another CO here, it’s nice to live where everyone wants to vacation … until they all arrive. A little worse every year in that regard.
Endless recreation opportunities, the challenge is not getting broken! I heard we wete ranked the fittest state in the country, which makes sense.

 

[Koolau]

Another CO here, it’s nice to live where everyone wants to vacation … until they all arrive. A little worse every year in that regard.
Endless recreation opportunities, the challenge is not getting broken! I heard we wete ranked the fittest state in the country, which makes sense.

I love our tourists. I welcome them every chance I get. Not only do they have palpable love and excitement about our aina but they also pay most of our taxes (which I apologize for from time to time.) YMMV