Just gave my notice

[lem1955]

I participated in this forum back before the 2008 crash, and after it hit, put my head down and didn't think about retiring. But I've made back what was lost in the crash and more, and am comfortable with the money end for retiring. I've given my notice at work. I'll be packing up my things in mid-December and be officially "done" (as we say in Vermont) at the end of the year. I've got a list of things I want to do to prepare for that date, but would like to hear your suggestions. What are the three most important activities, transactions, etc. (besides being confident you have enough) to accomplish before you have no more paycheck?

 

[Dash man]

Arrange health care, pay off all debts and stock up on beer.

 

[Big_Hitter]

Arrange health care, pay off all debts and stock up on beer.

+1

 

[rodi]

Congratulations!

 

[TallTim]

Congratuations

+1 on setting up new healthcare coverage and paying off debt, if any.
Though I do like the idea of stocking up on your beverage of choice (esp for those VT winters) ... my 3rd item would be to make sure you take care of any check-ups, dental, vision, etc. that you need (or for which you're due) before you transition away from employer provided coveage.

 

[lem1955]

I live a few miles from Hill Farmstead Brewery, best beer in the world. I'll have a lot more time to stand in line to wait for my growler fill-ups. Better start now to line up health insurance. Vermont Health Connect still has mega problems. Oh, right gotta schedule an eye exam. Dental and annual physical done. I'm in process of consolidating and simplifying 401(k)s and IRA's.

 

[Big_Hitter]

I live a few miles from Hill Farmstead Brewery, best beer in the world. I'll have a lot more time to stand in line to wait for my growler fill-ups.

get a kegerator

 

[lem1955]

Arrange health care, pay off all debts and stock up on beer.

On that pay off debt thing, I'm thinking I want to keep my small mortgage and Home Equity debt. The very low interest I pay on those loans is enough to allow me to itemize deductions rather than take the standard. I like getting a tax break on charitable contributions, for example. Oh, and in order to pay off those loans, I would need to take assets from retirement accounts in an amount that would put me in the 25% bracket. I like 15% better. Comments?

 

[Dash man]

On that pay off debt thing, I'm thinking I want to keep my small mortgage and Home Equity debt. The very low interest I pay on those loans is enough to allow me to itemize deductions rather than take the standard. I like getting a tax break on charitable contributions, for example. Oh, and in order to pay off those loans, I would need to take assets from retirement accounts in an amount that would put me in the 25% bracket. I like 15% better. Comments?

If you have a sufficient emergency fund or pension to handle the debt payments in case of a prolonged market downturn, otherwise you might find yourself having to sell low just to pay these debts. Personally, I hate debt.

 

[Katiek]

Congratulations!

 

[lem1955]

If you have a sufficient emergency fund or pension to handle the debt payments in case of a prolonged market downturn, otherwise you might find yourself having to sell low just to pay these debts. Personally, I hate debt.

I plan to have two years of expenses in quarterly laddered CD's.

 

[Big_Hitter]

I'd keep the debt

 

[MBAustin]

If the interest rate on the mortgage is lower than your average portfolio return, then in my mind there is no financial reason to sell assets to pay it off, particularly if you would take a tax hit on the sale. We still have a mortgage on our house for that reason.

 

[lem1955]

If the interest rate on the mortgage is lower than your average portfolio return, then in my mind there is no financial reason to sell assets to pay it off, particularly if you would take a tax hit on the sale. We still have a mortgage on our house for that reason.

Yes, that's the situation, exactly.

 

[yakers]

A year or so before I retired youngest son was in college and I wanted to make sure I could cover various costs so I arranged a home loan line of credit, only used it once to buy an RV and paid that off quickly but I have it in place to cover emergencies and smooth cash flow. Easier to set up when one is still employed.

 

[lem1955]

A year or so before I retired youngest son was in college and I wanted to make sure I could cover various costs so I arranged a home loan line of credit, only used it once to buy an RV and paid that off quickly but I have it in place to cover emergencies and smooth cash flow. Easier to set up when one is still employed.

Thanks, yakers. My current HELOC is for a maximum of $50,000. I set it up years ago when I thought that would be plenty. Right now it's topped out. I don't have many more home projects needing attention, and I've got other resources of course, but I was thinking it would be a good idea to see if my credit union can increase the line with no additional costs before December. Thanks for reminding me to check into it. Current rate is 2.99%

 

[Sarah in SC]

I live a few miles from Hill Farmstead Brewery, best beer in the world. I'll have a lot more time to stand in line to wait for my growler fill-ups.

I'm a big fan of their Edward pale ale. Very, very nice beer and always a pleasure to get to sample it when we visit family up in Burlington. Congrats on having more time to wait for growlers!

And would you mind stockpiling some Heady Topper and Sip o' Sunshine for me while you have so much time on your hands coming up!

 

[lem1955]

I'm a big fan of their Edward pale ale. Very, very nice beer and always a pleasure to get to sample it when we visit family up in Burlington. Congrats on having more time to wait for growlers!

And would you mind stockpiling some Heady Topper and Sip o' Sunshine for me while you have so much time on your hands coming up!

Edward is my favorite Hill Farmstead beer too, Sarah. I'll have that and cans of Heady Topper in my fridge when you come visit. I don't know Sip o Sunshine, looks like it's a down country brew.

 

[Al in Ohio]

I hate debt. All debt has hidden costs too. Dump it!


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[Sarah in SC]

lem, yes, it is a bit of a ways from y'all, but also a fine beer (I think from CT, perhaps, but quite popular in Burlington) and fits in well with Hill Farmstead. One of my nephews is named Edward, so of course THAT ONE would be my all-time go to brew when we visit.

Ah, you are so lucky to be retiring at the end of the year, knowing that you won't be spending yucky February digging out the car early in the morning! I love it up there during our brief December visits, but love it even more in mid-summer, when we stay a bit longer. Congrats again!

 

[papadad111]

I like the three recommendations given -- would add a fourth

I would add that a post retirement game plan is fairly important to some. I am working on that one now myself, after being retired and I wish I had spent a bit more time crafting my post FIRE life 2.0 plan before retirement.

I'm not a fan of debt so i would pay off the mortgage. For me it was an unnecessary complexity and stressor.

 

[texcurtis]

1. All wills & associated paperwork complete with executors informed.
2. Complete closure with all the folks in your working life. Say your thank you's and what you need to say to move on.
3. Take a long break once you retire before making any big decisions on next steps.


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[ERD50]

I hate debt. All debt has hidden costs too. Dump it!


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Hidden costs?

-ERD50

 

[Pilot2013]

Smart move I think (as I look into it more) on the low mortgage debt.

 

[lem1955]

Update - I managed to double my HELOC to $100,000 with only lawyer's fees for cost. Balance is $44K, so I have room for some real estate improvements and emergency cash. Rate is 2.75%. I moved my 401(k) to my Vanguard IRA. Now I need to invest it. Will be talking with a rep though I have a plan already that includes a couple of years of expenses over and above what we get from a real estate investment and my DW's SS invested in CD's and index funds. I'm counting down the days to December 17, but trying not to wish this gorgeous summer away either.