On the other hand, I live in a very affluent town where I would guess many (most?) earn a lot more than I do and many have more $ (and maybe a lot more?) saved. And some are also older. Yet they are still working. It sometimes leads me to ask myself if I am missing something in my calculations and thinking. But this earlyretirement.org community provides assurance and validation that I am not alone in thinking life is too short to work longer than you have to and that I can follow through with my plans to stop working earlier than the traditional retirement age and do so successfully. So I thank this community for the examples you have all set and, in particular, the responses to my post.
Update: Pulling the Plug
- Thread starter DustyL
- Start date
Which Roger
Thinks s/he gets paid by the post
- Joined
- Jun 5, 2013
- Messages
- 1,019
My guess is that although many/most of the others earn more than you, a lot of them have saved a lot less than you have. I live in a fairly affluent area, and it's amazing what I see people spending money on; stuff that I would never consider spending a penny on.
Blue Collar Guy
Thinks s/he gets paid by the post
DustyL
I can so relate to your comment "many earn a lot more than I do and many have more $ (and maybe a lot more?) saved. And some are also older. Yet they are still working. It sometimes leads me to ask myself if I am missing something in my calculations and thinking. But this earlyretirement.org community provides assurance and validation that I am not alone in thinking life is too short to work longer than you have to and that I can follow through with my plans to stop working earlier than the traditional retirement age and do so successfully. So I thank this community..."
I do think about this as well. I do love lurking and learning on this site.
I can so relate to your comment "many earn a lot more than I do and many have more $ (and maybe a lot more?) saved. And some are also older. Yet they are still working. It sometimes leads me to ask myself if I am missing something in my calculations and thinking. But this earlyretirement.org community provides assurance and validation that I am not alone in thinking life is too short to work longer than you have to and that I can follow through with my plans to stop working earlier than the traditional retirement age and do so successfully. So I thank this community..."
I do think about this as well. I do love lurking and learning on this site.
Sycamore
Dryer sheet aficionado
- Joined
- Feb 20, 2012
- Messages
- 48
Thanks Dusty. The reason I asked my question is that my employer is close to concluding a major merger, and in my industry mergers usually initiate cost cutting. I think about raising my hand with my manager and letting him know I'm open to listen to a good offer.
SpinDr
Recycles dryer sheets
I'm a couple of years behind you. That look like a great heading out the door package! Congratulations!
From my perspective of retiring 16 years ago at 55 and enjoying every day of it since, it seems very simple to me. Some people are able to retire early, others are not. Of those who can, some are cut out for it, others are not.
Continuing thanks for the responses (whatnot, BlueCollarGuy, Sycamore, Spin Dr., Kimcdougc). Regarding spending and living in an affluent area, I think the best decisions we made were to stay in our same, relatively small house and not suffer from lifestyle creep as my income increased -- no move to a larger home, no fancy cars, no membership in country clubs (or multiple country clubs), no boat etc. Always lived below (and for the later years well below) our means and saved. This honestly was somewhat tiring at times -- a million small decisions in addition to the big ones -- but hopefully has paid off.
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Music Lover
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
One doesn't have to be well off to spend money foolishly.
Another Update:
Still on severance with a few months to go.
Finances: $4.13M with about $2.755M in taxable and $1.375M in retirement. Approximate 55%/45% stock/bond AA.
House: Been making extra mortgage payments -- only $7500 left (will be 0 when severance ends). Small house but equity of about $925K. In HCOL town with high property taxes but not looking to move . . . for now.
Kids: Son out of college, working and supporting himself (although contemplating grad school); daughter: finishing sophomore year, 2 years fully paid, 2 to go. Bonus received earlier this year for 2017 banked to pay for year 3.
Work: Been doing freelance work that has fallen in my lap and banking the earnings in a designated account to fund health care when my coverage ends in the fall. So far, saved up slightly less than 2 years worth for family. Not a big time commitment -- only a few hours a week. I appreciate the $ but don't love the work. And it sometimes makes me feel like I am half in/half out. Probably why I haven't actively pursued work/clients.
SS: Me: 2076 (62), 2970 (67), 3696 (70)
DW: 782 (62), 1110 (67), 1377 (70) (although I think DW gets 1/2 mine, correct?)
Gov pension: Same as above.
To do:
1. Figure out health care. Cobra? Obamacare? Would it be cheaper to move kids to their own policies (son via work, daughter via school)? Been seriously procrastinating on this. Need to focus.
2. Firm up budget/expenses.
3. Firm up withdrawal strategy. Will start with Vanguard Money Market fund, which has more than one year of expenses.
4. Insurance I would like to get rid of our term insurance; my DW doesn't want to. It has a few years to run for each of us. Do we really need it anymore?
Have enjoyed being away from the corporate grind, commute etc. and the freedom. But sometimes nervous about what it will be like when the paychecks stop coming in.
Any suggestions on this? Appreciate the forum and the support it provides.
Still on severance with a few months to go.
Finances: $4.13M with about $2.755M in taxable and $1.375M in retirement. Approximate 55%/45% stock/bond AA.
House: Been making extra mortgage payments -- only $7500 left (will be 0 when severance ends). Small house but equity of about $925K. In HCOL town with high property taxes but not looking to move . . . for now.
Kids: Son out of college, working and supporting himself (although contemplating grad school); daughter: finishing sophomore year, 2 years fully paid, 2 to go. Bonus received earlier this year for 2017 banked to pay for year 3.
Work: Been doing freelance work that has fallen in my lap and banking the earnings in a designated account to fund health care when my coverage ends in the fall. So far, saved up slightly less than 2 years worth for family. Not a big time commitment -- only a few hours a week. I appreciate the $ but don't love the work. And it sometimes makes me feel like I am half in/half out. Probably why I haven't actively pursued work/clients.
SS: Me: 2076 (62), 2970 (67), 3696 (70)
DW: 782 (62), 1110 (67), 1377 (70) (although I think DW gets 1/2 mine, correct?)
Gov pension: Same as above.
To do:
1. Figure out health care. Cobra? Obamacare? Would it be cheaper to move kids to their own policies (son via work, daughter via school)? Been seriously procrastinating on this. Need to focus.
2. Firm up budget/expenses.
3. Firm up withdrawal strategy. Will start with Vanguard Money Market fund, which has more than one year of expenses.
4. Insurance I would like to get rid of our term insurance; my DW doesn't want to. It has a few years to run for each of us. Do we really need it anymore?
Have enjoyed being away from the corporate grind, commute etc. and the freedom. But sometimes nervous about what it will be like when the paychecks stop coming in.
Any suggestions on this? Appreciate the forum and the support it provides.
W2R
Moderator Emeritus
It helps to have a good understanding of your budget/expenses (including health care and income taxes), and I see that figuring that out is part of your plan. Once you know that for sure, you will know how much you need. Hopefully, as a result of your hard work and planning, you will have sufficient income in retirement to cover it without paychecks.
As a retiree, getting a monthly deposit from a pension or SS feels a lot like getting a paycheck. Yesterday my pension was direct deposited! Payday.
As for money from investments, you know what you can withdraw so that can be automated to make it like a paycheck too, if that helps.
In retirement (as when working) sometimes a big, unusual expense comes along like needing a new roof, dental work, new car, or whatever. Just as when working, it helps to not spend one's entire monthly income and put some aside to use on these big expenses if/when they come along.
Thanks W2R for your response. I have tracked my expenses in the past but need to do so again to get more firm and current numbers.
The pension and SS (and medicare) are still a number of years off.
I have stopped the reinvesting of dividends on my bond funds and have used some of the proceeds to pay down my mortgage. After the mortgage is done -- soon! -- I will continue to do so to fund some big ticket items like property taxes and health care.
The pension and SS (and medicare) are still a number of years off.
I have stopped the reinvesting of dividends on my bond funds and have used some of the proceeds to pay down my mortgage. After the mortgage is done -- soon! -- I will continue to do so to fund some big ticket items like property taxes and health care.
Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
DustyL - with some years to go before Medicare, you need to check out the "Obamacare" rates for your county. The rates can be very different for each county within each state.
If you could manage down your MAGI which is used for ACA subsidy calculations, there could be substantial savings.
Usually for early retirees who don't have employer provided medical retiree coverage, the medical expenses before Medicare is one of the largest concerns.
Thanks Dtail. I did some initial review but need to do so now in earnest. Due to my severance (even part from the money I have been earning freelancing), my 2018 MAGI will be much too high to qualify for a subsidy in 2018. 2019, however, could be a different story since the severance will be over.
Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
If you have access to Fidelity, I would run their calculator too. It is Monte Carlo based and tends to give a more conservative result than the historical based calculators.
It also is a bit more flexible for expense input and assigns a higher inflation rate to medical expenses.
Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I had the same issue in 2016, but my severance and employer provided medical coverage ended Dec 31st, so no half year issue.
Perhaps Cobra for a half year even though could be expensive.
I do have access to Fidelity so I will try its calculator.
Started the health care research yesterday. On the phone with Cobra folks; reviewing my son's health care plan at his job, my daughter's plan from school etc. Not a ton of fun but needs to be done. Had me thinking for a few minutes that I should get a job just to avoid figuring out health care (and paying for it).
With Cobra, I learned something I should have known when I selected my plan at the end of last year for 2018 -- you can't move from gold to silver or gold to bronze, only gold to gold. But I can switch from gold family to gold husband/wife and take the kids off. And can switch to silver or bronze during open enrollment. Next, need to review the ACA options/prices. Can't wait.
Started the health care research yesterday. On the phone with Cobra folks; reviewing my son's health care plan at his job, my daughter's plan from school etc. Not a ton of fun but needs to be done. Had me thinking for a few minutes that I should get a job just to avoid figuring out health care (and paying for it).
With Cobra, I learned something I should have known when I selected my plan at the end of last year for 2018 -- you can't move from gold to silver or gold to bronze, only gold to gold. But I can switch from gold family to gold husband/wife and take the kids off. And can switch to silver or bronze during open enrollment. Next, need to review the ACA options/prices. Can't wait.
ncbill
Thinks s/he gets paid by the post
I've found the Personal Capital retirement calculator the most conservative of all the ones I've tried.
Another Update
Another update.
About 2 1/2 years since I left my job and 1 1/2 years since my severance ended. I'm 58 1/2 and DW turning 57.
Finances: $4.76M with a 50%/50% stock bond split.
No mortgage. House equity is about $900K (not including in above net worth).
Kids: Daughter finishing up college (so fully paid up) with a good job when she graduates, son in grad school after working and supporting himself for years (we are helping him out).
Work: Continued to do work on freelance basis. Had good year in 2018 and great year in 2019 (easy, not stressful work, good $) such that we haven't had to withdraw anything yet from principal but the work is drying up and I haven't been motivated to replace it.
Healthcare: Until end of 2019 was on Cobra since I left my job but now on a new plan purchased in the market ($1250 per month for the two of us, which is a lot less than Cobra but much higher deductibles; kids health care is via school).
SS ($3200 for me and 1/2 of that for DW at 67, obviously more if we wait until 70) and Gov. pension ($10K at 62) essentially as above.
Need to track my spending more which I haven't been doing given my earnings, but probably around $150K (very high real estate taxes).
Happy new year to all. Thanks for all prior comments and suggestions.
Another update.
About 2 1/2 years since I left my job and 1 1/2 years since my severance ended. I'm 58 1/2 and DW turning 57.
Finances: $4.76M with a 50%/50% stock bond split.
No mortgage. House equity is about $900K (not including in above net worth).
Kids: Daughter finishing up college (so fully paid up) with a good job when she graduates, son in grad school after working and supporting himself for years (we are helping him out).
Work: Continued to do work on freelance basis. Had good year in 2018 and great year in 2019 (easy, not stressful work, good $) such that we haven't had to withdraw anything yet from principal but the work is drying up and I haven't been motivated to replace it.
Healthcare: Until end of 2019 was on Cobra since I left my job but now on a new plan purchased in the market ($1250 per month for the two of us, which is a lot less than Cobra but much higher deductibles; kids health care is via school).
SS ($3200 for me and 1/2 of that for DW at 67, obviously more if we wait until 70) and Gov. pension ($10K at 62) essentially as above.
Need to track my spending more which I haven't been doing given my earnings, but probably around $150K (very high real estate taxes).
Happy new year to all. Thanks for all prior comments and suggestions.
