Hoping to Retire ASAP

[Accidental Retiree]

No, not sure how to do that. I only saw my estimated payment on the SS website.

Friends of mine who were teachers and received pensions were surprised to find their SS payments decreased by the WEP, so you’ll want to check into that if you haven’t already.

 

[RetiredHappy]

OP is only 50 yo, so at best has put in maybe 27 years into SS? 8 years of 0s. I had only put 18 years, so 17 years of 0s. But those prior years had helped build up my taxable account, i.e. prior to living and working in the US.

 

[Surewhitey]

However, I do not feel it is my responsibility to pay for their college.

I think you are ready but I would hope you don't receive the same attitude from the kiddos when you get up in age...

 

[Cayman]

I'd stick it out at least 5 more years, or get another job. You'll increase your family's financial security considerably. I wouldn't sleep well with the numbers you posted, including not having a full work history for SS and not having any financial responsibility supporting kid's post HS education. That's me, you and DW may sleep well with the scenario you posted.

 

[Oakster]

Any consideration of part time work? Can you drop back to substitute or a reduced role that gave you more free time, but kept building the retirement and getting you 1 year closer to pension etc.?

 

[WhenIsItTime]

A comment to encourage being cautious: my family of 4 never had health issues. I retired early and had to buy health insurance in open market once cobra ran out. I've paid maximum out of pocket for 1 individual 3 years in a row and nearly there this year for the 4th. That is $6-$7k of additional health care costs per year. I'm fortunate I can afford it, but never saw that coming.

 

[Koolau]

A comment to encourage being cautious: my family of 4 never had health issues. I retired early and had to buy health insurance in open market once cobra ran out. I've paid maximum out of pocket for 1 individual 3 years in a row and nearly there this year for the 4th. That is $6-$7k of additional health care costs per year. I'm fortunate I can afford it, but never saw that coming.

Until Medicare, $12K OOP wasn't unheard of in a given year for the two of us. Could have been even worse had we had more stuff go wrong with our aging bodies.

 

[lennyandgragg1]

At what age did you start your full-time work? Social security bases the payout on 35 years worth of work history. So if you started work at the age of 20 then you'd have approximately 5 years of zero income averaged in. But if you started full-time work at the age of 25 you'd have 10 zero years averaged in. Social security website has an option of changing future years to zero so that your estimate will be accurate for retiring immediately.
One more question, is the $25,000 pension index for inflation? In other words, is it $25,000 in today's dollars and then adjusted for inflation each year so that by the time you do draw it at age 60, it would probably be more like $35,000 or $40,000?

Yea, it’s $25k in today’s dollars. Thanks.

 

[lennyandgragg1]

Thanks for your time in education, I know that is a tough profession and getting tougher. Great job saving! So if wife is working and kids in school, what does a typical day look like, or week or months? Maybe a job change would bring more happiness? Or Part time work?

I work in local Gov. job and see a lot of guys retire early because they are burnt out, had enough, etc...then they are back to work pretty quickly, or regret leaving because a few more years would be a higher pension.....I think you have a good financial situation, but at 50, you could live another 50 years! That social security is calculated on your highest 35 years of work, if there is less than 35 years, each of those years is a ZERO.

Thanks for the input. I have always thought of retiring early. Not sure why, but I just have never enjoyed my work so much that I always wanted to do it. I be always been looking to just have the freedom to come and go whenever I want.
I know I could live to 100, but most everyone in my family has made it 80 or not even. However, its thoughts like this that make me keep plugging away. Another job is an option, maybe even part time, but it would have to be something I really loved and I’m not sure what that would be yet.

 

[lennyandgragg1]

OP, we have a lot in common. Just turned 50 with about the same in assets. You're better off than me as most of your is in taxable as I'm working on building that now.
I completely get the burnout and wanting something more/different. My work isn't that bad, but the people are unbearable and toxic. Everyday I calculate what it would take to walkout, lol. Things have gotten so bad that I've thought about raiding an old IRA to enable my leaving. I'm trying to endure a few more years, but only time will tell. Hang in there!

Thanks. I agree, it’s mostly the people. They probably say the same about me though I think I could retire now or in the next five years. It’s just the years of brainwashing I think that you have to work until your in your 60’s because you won’t have enough money.

 

[lennyandgragg1]

You may find that with ACA for health insurance (neither w*rking) you costs could be much lower.

Also, there are often things you can do to reduce costs in retirement. But, of course, retirement is when you want to make up for all those years you couldn't get away, so...

Do you have an option of a different line of w*kr for a while? I understand education being difficult these days. I don't know how anyone does it. I had a friend who drove a school bus and it was all he could do not to commit violence!

Ha. Part time work is always an option if I can find the right fit. Yes, education is tough, but I’m sure everyone has things about their jobs that are tough.

 

[lennyandgragg1]

From the info provided, I come up with safe spending of $80,586 in 2024 dollars.

• $1.6m portfolio
• 50 year time horizon (to age 100)
• $32,400 for his SS starting in 2041
• $24,000 for her SS starting in 2041
• $25,000 fixed pension starting in 2034 at age 60
• Investigate for safe spending at 95% success rate
• All other assumptions are default assumptions

1. Refine/verify your SS at the SSA website. Go to ssa.gov and log in. Then go to the Retirement Calculator (see screenshot below) and change average future salary to $0 to get your SS benefit if you retired now and had $0 future earnings.
View attachment 52152
2. Pension is fixed or COLA?

If I add in your wife continuing to work for another 10 years at $60,000 with inflation adjustments, then sfe spending is $105,023.

Seems like you could stop working full time now if you want to. YMMV.

I appreciate it!

 

[lennyandgragg1]

Friends of mine who were teachers and received pensions were surprised to find their SS payments decreased by the WEP, so you’ll want to check into that if you haven’t already.

Thank you. My district has always taken out SS taxes, so I should be good there.

 

[lennyandgragg1]

OP is only 50 yo, so at best has put in maybe 27 years into SS? 8 years of 0s. I had only put 18 years, so 17 years of 0s. But those prior years had helped build up my taxable account, i.e. prior to living and working in the US.

Yes, I have 28 years in.

 

[lennyandgragg1]

I think you are ready but I would hope you don't receive the same attitude from the kiddos when you get up in age...

Ha. I’m assuming you mean that they would have to pay for my care or something. I have saved and planned so that I will have enough to take care of me and my wife. I think kids today think of college as a place to party and maybe pick up an education along the way. I believe they value things they work for so my kids know I will help them, but they are mainly responsible for paying their way through school if that is the route they choose.

 

[Surewhitey]

Ha. I’m assuming you mean that they would have to pay for my care or something. I have saved and planned so that I will have enough to take care of me and my wife. I think kids today think of college as a place to party and maybe pick up an education along the way. I believe they value things they work for so my kids know I will help them, but they are mainly responsible for paying their way through school if that is the route they choose.

I agree with you on the college comment. Neither of us are past high school educated and have been fine. If you raise them right, they'll be fine with making their own way. DD decided to only get her associates and not be pursue a bachelor's and is a great "kid" at 39.

Her husband seems to resent his parents a little for not putting him through college though. He's been a success professionally imo, but he may be comparing himself to his peers...

 

[jtmax]

Hello there. I’m not new, but I don’t comment often. I usually read the newsletter each week though.
I turned 50 recently and I’m not sure what happened but I really want to retire. I am a teacher and after enjoying the freedom of summer, it just really hit me that I want that freedom all the time. I’m just not sure I can do it yet. I’m hoping if I provide some numbers maybe some of you can help me determine if I really can do it and it’s just a matter of me being scared to do it.
I have 1,000,000 in brokerage and Roth IRA’s and 600,000 in IRA’s. All investments are 90% stocks. At 60 I will receive a pension of around $25,000 annually.
I have two children who are in high school, so if I retired now I would need to buy health insurance in the marketplace which I am guessing would cost around $12,000ish a year based on what I see out there. The income between wife and myself is about $120,000 which is about $60,000 each. If she kept working I know I could retire but want to see if both of us could retire. Current yearly expenses are around $80,000, but I am figuring they will grow as my kids go to college. However, I do not feel it is my responsibility to pay for their college.
As for social security, I estimate that bringing in around $2000 a month each for me and the spouse.
I tried to put all of this in firecalc, but not sure if I did it correctly. It showed I was good about 80% of the time. That was another thing I was wondering. For those who use firecalc, do you only retire if is shows 100% or is there a lower percentage that most feel comfortable with?
Thanks in advance for any help.

These calculators are limited in that they can't account too exactly for black swans in life including natural disasters, hyperinflation, health disasters, and market crash. What I'm thinking about to overcome these risks is to figure out a life style to minimize unnecessary costs without compromising happiness. This makes the planning simpler for me. Location is everything when it comes to cost so that's something to consider. If you are willing to relocate to a cheaper area you have to worry much less about these uncertainties. If free time is the most valuable then you can retire now if there is a decent area that is significantly cheaper than where you are. Being retired is nice because you don't have to live near a job so there are so many more choices. If I leave CA I immediately get $2m extra in the bank from selling the house and reduce my yearly costs by at least $60k for example.

 

[old medic]

I will say your in way better shape than we were at 50, and I was about fed up with work too. But stuck it out and retired at 58. I see Waxhaw, as in the land of Andrew Jackson? Im familiar with the NC retirement system
Will you be able to dig into your savings without penalty? One thing I seriously considered at that point in time was finding another job that remained in the same pension system and transfer the time.

 

[pjigar]

Thanks for the input. Social Security is an estimate. My income was almost double that for a long time before we moved. Wife says she would be okay with me not working while she does, but who knows if that would change She actually likes working whereas I have had enough.

I would not recommend one spouse retiring. The other spouse would typically feel bad subconsciously after a few years even if he/she doesn't mention it.

 

[pjigar]

I tried to put all of this in firecalc, but not sure if I did it correctly. It showed I was good about 80% of the time. That was another thing I was wondering. For those who use firecalc, do you only retire if is shows 100% or is there a lower percentage that most feel comfortable with?

There was a thread about what percent of FireCalc success would be acceptable to different people. I would not be comfortable with anything less than 100% because it would be very hard to find a job after a few year in my industry, in case I had a false start.

I would heed to advise of other people. Put in a few more years of work.

By the way, did you account for lumpy expenses (e.g. roof, car, HVAC, etc.) which may not be reflected in your expenses today. Also account for out-of-pocket (deductible, dental, vision) cost of healthcare as you get older. How about any retirement dream expenses (travel, home improvements, hobby, etc.)? Personal happiness takes a big toll if you experience diminished quality of life when you retire. YMMV.

 

[old medic]

I would not recommend one spouse retiring. The other spouse would typically feel bad subconsciously after a few years even if he/she doesn't mention it.

As would I.... I will be retired 3 years the end of the Dec and DW still working. She says it doesn't bother her, but it does bother me. She needs to work 4 more years for her full pension, but I'm wanting her to pull the plug the end of next year... we can manage on the cut in pension.

 

[pacergal]

OP--could you work as a substitute teacher? Pick and choose which days to work? It would allow you to semi retire, yet still be in charge of when you worked.
Due to health issues, my DS is doing that now, works more when feeling well, less during times of flareups. He can get benefits if he works a certain amount of time.

At 80% in Firecalc, I would not be comfortable retiring yet.

 

[Koolau]

I would not recommend one spouse retiring. The other spouse would typically feel bad subconsciously after a few years even if he/she doesn't mention it.

BFF got a chance to retire at 51 with a nice package from Megacorp. He really didn't want to as he was making good money and he always spent even more than he made. BUT Megacorp had all the eligible empl*yees sit in a room and explained that they'd probably be fired with no extra benefits if they didn't take the package. So he spoke with his DW and she agreed that she would keep w*rking until regular retirement age (at least 62) at her really great paying j*b to cover their expenses. So, he took the package. (By the way, so many took the package that Megacorp was struggling with the lack of w*rkers. Turns out he would not have been fired and likely would have made more money.)

Less than a year later his wife came home and informed him that she had retired that day. No consultation with BFF first. She didn't think it was fair that he was retired and she wasn't!! SO, suddenly HE had to go find a j*b. Only thing he could find was driving a school bus. YUCK! He hated every minute of it and didn't make much money.

Know your spouse if you plan different retirement dates! YMMV

 

[jtmax]

There was a thread about what percent of FireCalc success would be acceptable to different people. I would not be comfortable with anything less than 100% because it would be very hard to find a job after a few year in my industry, in case I had a false start.

I would heed to advise of other people. Put in a few more years of work.

By the way, did you account for lumpy expenses (e.g. roof, car, HVAC, etc.) which may not be reflected in your expenses today. Also account for out-of-pocket (deductible, dental, vision) cost of healthcare as you get older. How about any retirement dream expenses (travel, home improvements, hobby, etc.)? Personal happiness takes a big toll if you experience diminished quality of life when you retire. YMMV.

Lumpy expenses are inevitable and can really mess everything up. Roof, water heater, car accidents. Shi*t happens and they happen alot. I retired a few years and find that I'm always busy fixing stuff myself to save money. So many things go wrong when you own a car and a house. When you get older you become like old house or car and then you become high maintenance with your health The money keeps flying out the window.

 

[TheWizard]

Lumpy expenses are inevitable and can really mess everything up. Roof, water heater, car accidents. Shi*t happens and they happen alot. I retired a few years and find that I'm always busy fixing stuff myself to save money. So many things go wrong when you own a car and a house. When you get older you become like old house or car and then you become high maintenance with your health The money keeps flying out the window.

Yes.
So it's helpful to have a much higher income in retirement than you initially expected to need...