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...