Nervous but need to bail sooner than later

[SouthBeachGuy]

Hi,

I have run into health issues and need to leave very stressful IT work with no work-life balance. Recently I had a relative pass away only to enjoy 3 months of retirement. This has caused me to accelerate my plans

Here are my stats

• Married both 57
• 600K (450 Taxable 45/55 +150K Emergency)
• 1 M 401K
• House (600K) cars (5 years old low miles) paid no debt
• SS @FRA 3K Myself / 1.5K Wife

Fire Calc @80K (50K nondiscretionary 30K discretionary) 100%
ACA Health Insurance low premium
We have many hobbies (biking, gym, travel, etc) don't think we will be bored
Open to side work

Please let me know of anything I may be missing. It's a scary first step

Thanks!

 

[badatmath]

Is wife also retiring or will she continue to work?

 

[HarryHawk]

My circumstances were very similar to yours with regards to age, assets, and expenses. I pulled the plug 12 years ago and it has been smooth sailing ever since. Things went alot easier, less stressful and less scary once we took the jump (actually I got pushed because I got laid off)

IF things don't go exactly to plan, you can always cut back on your discretionary spending a bit or do some part time work. IN the meantime, you will be enjoying the fruits of your labor that you have worked so hard for your entire adult life. We have probably never been happier.

Truth in advertising, the only thing I didn't like was being on Obamacare, it was crappy and expensive insurance. Of course that was a decade ago, so things may have changes. Thankfully we didn't have any medical problems then. Once you go on Medicare, you get high quality reasonably priced insurance. So lesson to be learned - stay healthy.

Good luck.

p.s. Since retiring we have spent considerable time volunteering to some very worthwhile organizations. We work mostly with kids, very rewarding. They give us much more than we give them in terms of inspiration and joy for life.

 

[SouthBeachGuy]

Is wife also retiring or will she continue to work?

She will not be working

 

[Aerides]

How solid are your expenses? Are they current and real or pinch/estimate?

Low premiums are great, but they usually (like mine) come with high deductibles, so include that potential spending in your plans. At 57, even super healthy, you might find you're about to become a more frequent user of medical services.

 

[HarryHawk]

How solid are your expenses? Are they current and real or pinch/estimate?

Low premiums are great, but they usually (like mine) come with high deductibles, so include that potential spending in your plans. At 57, even super healthy, you might find you're about to become a more frequent user of medical services.

Things may have changed from when I was using Obamacare several years back. THe insurance wasn't particularly cheap, I had $1200 a month premiums with a $12,000 deductible. So if I got seriously sick, I'd be out $24,000 a year plus some percentage after that. And of course, it resets every year. Fortunately, I made it thru without any major health problems.

One of my happiest retirement days occurred when I became eligible for Medicare. Very happy with my Medicare coverage.

 

[MBAustin]

Welcome SouthBeachGuy! If you haven't found them already, take a look at this list to make sure you have your bases covered:

Some Important Questions to Answer

Even if you pull the plug soon, tracking your expenses carefully for a year or so will be very helpful in setting your discretionary expense budget for the future.

You've had some good suggestions already in the thread, so take a deep breath and do what you think makes the most sense for you and your family. There are also lots of folks here who will be happy to provide advice on specific questions, and lots of thread you can search for with good perspectives. Best wishes!

 

[38Chevy454]

It seems you can make it happen if your numbers are good. The big hurdle is getting from now until medicare as several have said. Also a smaller hurdle getting from now until you receive SS. You have plenty of after tax money that you should be able to get some ACA subsidy by keeping taxable income low.


Given that you are having stress related health issues due to work, it makes sense to get out before a major health crisis.

 

[HarryHawk]

One thing that I find is easy to forget - our 401K accounts are joint accounts with our uncle Sam. Any time we take a withdrawal, Sam also hits up the ATM for a withdrawal.

In my mind, that is the one thing that is somewhat unpredictable and just a bit scary about longer range forecasting. Sam and Sam alone decides what is his equitable share will be.

I personally always take any funds I may require from my 401K. I know I am going to be paying Sam now, or later, and I don't think it is going to be cheaper later. That as well as trying to reduce future RMD's. Not necessarily saying that is the smart thing to do, but it's what I feel most comfortable doing in the current environment. I know what the rules of the game are now, not sure what they may be in the future.