Mulling early retirement

[motley]

At 61 and planned to retire at 65 but debating otherwise...once I turned 60, that "retirement mentality" kicked in as I can see the light at the end of the tunnel now, and I don't care for my job...it's not that hard and I work from home, so it's not like I'm in agony or anything, but I have an ass for a boss, plus just not wanting to work anymore. Anyway, I have a military pension which would cover my monthly expenses or close to it, and I could tap an IRA for extra if need be until SS kicks in. My retirement analysis tool I use with my brokerage says I can do it, even assuming rather pessimistic returns, but I've always felt somewhat leery of their accuracy, and I'm paranoid despite being an aggressive investor generally, and so would prefer to err on the side of caution...

I guess I'm just thinking out loud! Did anyone else struggle with this? Thinking of those who didn't have so much $ that they knew they could do it, but those who felt it was a little bit of a gray area.

 

[NgineER]

Do a thorough analysis of your expenses, it sounds like you have, but you want to be sure you include taxes and health insurance in the expense categories.

If your expenses are correct you should be good to go, but it depends on how much you have in your IRA to cover lumpy expenses and increased spend.

 

[pb4uski]

When I was deciding to retire I ran our situation through every free online retirement planner known to many and they all gave me different versions of a green light, and that made me comfortable leaving work behind. While I loved my work, retirement is better.

Natural to struggle since it is a big decision and in most cases there is no going back.

 

[FlaGator]

When I was deciding to retire I ran our situation through every free online retirement planner known to many and they all gave me different versions of a green light, and that made me comfortable leaving work behind. While I loved my work, retirement is better.

Natural to struggle since it is a big decision and in most cases there is no going back.

^^^^^^^do this, believing you'll never again earn what you're making right now. If you plan for -0- earnings from a paycheck and it still works with reasonable spending (with a ++ factor for contingencies), it's a lifestyle decision, not a financial one.

 

[motley]

Do a thorough analysis of your expenses, it sounds like you have, but you want to be sure you include taxes and health insurance in the expense categories.

Well the latter is an interesting point. As retired military, I can go to any base for medical needs if need be, but God forbid it be something serious...I wouldn't trust them...so yeah, I am investigating options.

 

[zl55lz]

^^Doesn't Tricare for Life + Medicare A and B mean that Medicare is Primary and you can go anywhere that accepts Medicare, with Tricare for Life acting as a secondary?

 

[braumeister]

^^Doesn't Tricare for Life + Medicare A and B mean that Medicare is Primary and you can go anywhere that accepts Medicare, with Tricare for Life acting as a secondary?

Yes, within the US.
Overseas, Medicare has no coverage, so TFL becomes primary.

 

[Humbooster]

but I have an ass for a boss, plus just not wanting to work anymore. .

Two good reasons right there, if you can afford it, get out.
I looked forward to telling my own particular ass that I was leaving, unfortunately, he went off "to pursue other interests" before I had a chance. I just had to tell the new guy, not the same level of satisfaction at all but still great.

 

[CaffeineMe]

When to retire: "When you have enough, and you've had enough" LOL

You can post your info on Bogleheads and they will give you a review of your retirement assets and may help you think of things you might have missed. One of the first things you need to do is have a realistic idea of how much you will spend in retirement.

 

[pacergal]

*Have you run Firecalc and do you get a success rate you are comfortable with?
*Have you answered the questions in the Early Retirement FAQ's:
"Some Important Questions to Answer Before Asking - Can I Retire?"
*Will you get Military disability along with your pension?

If your pension will cover most of your expenses, you are most likely good to go--just take that leap of faith!

 

[brett]

Understand your expenses (current, past over the last four years or so). And your anticipated expenses in retirement based on your plans.

Understand your after tax income flows, your financial assets/current liabilities.

Be conservative, be realistic. Adjust for inflation. Make another spec adjustment for errors and ommissions/just in case.

Do your calculations on a pre tax and after tax basis.

Do the calculations assuming one of you (unless you are single) passes away.

It may sound complicated but it is really fairly straighforward back of the envelope type calculation assuming you have accurate data and have made realistic assumptions.

Your result will be the bottom right hand number as they say.

I would go for it if your numbers work and you are so inclined. You have a limited number of healthy years ahead of you. You cannot buy time.

 

[motley]

When to retire: "When you have enough, and you've had enough" LOL

You can post your info on Bogleheads and they will give you a review of your retirement assets and may help you think of things you might have missed. One of the first things you need to do is have a realistic idea of how much you will spend in retirement.

Thanks, but I left that place; you can get some good info there, but it's somewhat cult-ish IMO and the mods can be real asses.

Appreciate the responses. Again, I've crunched the numbers and ran them through some analysis tools, but still hesitant, and just wondering if others were, did they hold off, if so how long, etc.

 

[Lewis Clark]

... Again, I've crunched the numbers and ran them through some analysis tools, but still hesitant, and just wondering if others were, did they hold off, if so how long, etc.

Lots of folks hesitate to pull the trigger and retire. You are far from alone.

Once the numbers line up and are acceptable to you, you will know when it is time to cut the cord on the paycheck. We will always leave money on the table when we choose to retire. But at some point, we will be giving up time we cannot get back for money that we will never spend.