Updated and would love your thoughts

[makemakeyourfuture]

I have now consistently dropped the age to retire based upon investments as well as overall desire to enjoy life more. Currently 53 and looking to stop no later than 1 year 4 months ( end of 2025, I’ll be 54) but contemplate calling it quits each day. Out of respect and my reputation would give employer minimum 4 months notice. I am 99.9% certain there would be no ramifications. Wife works minimal PT now and we just max tax deferred, no take home paycheck.



$1.1 mil in brokerage

$1.8 mil tax deferred- current there is another $42,000 will be added by year end

Tracked spending would be $125,000 ( includes healthcare cost). I hope to figure out how to have company cover COBRA for the 18 months but not counting on it. Otherwise ACA. There is a lot of discretionary spending in the $125K.



Under 100K on mortgage and hammering it down each month. Interest rate is 2.8% so majority of what I pay is principal.



Each month I keep working puts roughly $6,100 into tax deferred and $12,500 in brokerage.

SS @ 67 or later. Assuming only 70% of my expected benefit. Combined wife and me $44,800 annual.

College for kids covered in 529.



Most calculators say I’m fine.



The input of this community is the greatest and just looking for thoughts? Anything is greatly appreciated.

 

[FREE866]

You're more than set.

I think the assumption of only getting 70% of your SS is being irrationally conservative and even then you're fine at what I see is a ~4.3% WR for 13 years till SS at 67. You could easily retire now IMO

 

[mrfeh]

Most calculators say I’m fine.

Firecalc says you're good for 40 years?

My rough calculation in my head says you're on the edge...

 

[Al18]

I recommend retiring at the beginning of 2026, because:
1. Lots of paid holidays between Thanksgiving, Christmas and New Years. You can augment this by using some paid vacation days.
2. In 2026, you can use the rule of 55 and withdraw from your 401K without penalty.

 

[CardsFan]

A quick run in Firecalc says 95% chance of success for 35 years, if you retired today. So, you are close, but that would not be good enough for me. But a lot depends on your spending. You say $125k/yr has a lot of discretionary spending, but if they are things you really want to do in retirement, do you really want to cut them? Are taxes included? Have you really looked at healthcare costs? for 10-11 years they could be significantly more than you are paying now (assuming you get employer subsidies)

Good Luck

 

[FREE866]

His expenses are going from 125 K to 85K in 13 years and thats assuming a 30% cut in SS

not sure how you guys come up with less than 100% in firecalc

hes starting with $3,000,000

 

[Koolau]

Each month I keep working puts roughly $6,100 into tax deferred and $12,500 in brokerage.

Is this all from your monthly income or are you counting your returns on investment? If from income, that's a very nice income! Either way, good on you!!

 

[Surewhitey]

Is this all from your monthly income or are you counting your returns on investment? If from income, that's a very nice income! Either way, good on you!!

Probably income only. With $3mm, he should be growing / adding $30-40k/monthly...

 

[RetiredHappy]

I recommend retiring at the beginning of 2026, because:
1. Lots of paid holidays between Thanksgiving, Christmas and New Years. You can augment this by using some paid vacation days.
2. In 2026, you can use the rule of 55 and withdraw from your 401K without penalty.

OP does not need to use rule of 55. OP has $1.1m in brokerage.

 

[JohnRM]

When my sister retired she was able to fill in once in a while, kind of gradually retire. I wish I would have had that option, but it was a a union job and part of it was physically demanding- Anyway, when you retire there they take your badge. I would have liked to be able to visit once in awhile and spout wisdom like Inspector Luger on Barney Miller. When you retire and your work life is there one day and gone the next, it's kind of a shock to the system, YMMV

 

[Koolau]

When you retire and your work life is there one day and gone the next, it's kind of a shock to the system, YMMV

And in a year, no one remembers your name!

 

[orbops]

Personally, I wouldn't give your employer a minimum of 4 months before you retire. Why do you think your reputation could be harmed?

Since you have $1.1M in a brokerage, that will more than cover your expenses until you hit 59.5.

I decided to retire at 50 when I started to count down the days to retirement almost every day. I'm 58 now, and just eagerly awaiting my 59.5 date so that I can start taking distributions from my retirement accounts.

 

[RetireRay]

I retired at 53 years old. Gave my employer 3 weeks notice, which is three weeks more than they would have given me if I had been laid off.
59 now and no regrets. Our portfolio has doubled since I quit working.
JUST DO It!!

 

[JJpop]

Just remember all the enthusiastic responses like the last one about portfolio doubling in 6 years.
Your portfolio could be negative for the next 6 years.

 

[NeilDH]

I'm in my rookie year of FIRE, age 54, portfolio a little smaller than yours. Some are comfy with a 95% score on FIREcalc, some clearly are not. (Sometimes I am, sometimes I'm not!) Maybe you're a little tight, but it's really a first-world tight. Your options are looking good.

 

[yhoomajor]

but if they are things you really want to do in retirement, do you really want to cut them?

Seems like OP wants to enjoy life now. OP seems to be in decent financial shape to do so.

If OP doesn't do that, OP would be "cutting" the thing that he/she wants to do

45 - 60 are the decent years to reflect back on life and be at peace. We all can live on a little less. But most of us can't get these healthy/active years back.

 

[Drake3287]

Yep, almost my exact story. Retired at 54 ten years ago and never looked back. You're giving yourself and family an extra 10 years of an enjoyable life style without the worry of work. Just remember that a lot of people are living in a bubble with the current stock market. It'll pop at some point and you don't want it to set you back in your retirement plans.

 

[Sunset]

Personally, I wouldn't give your employer a minimum of 4 months before you retire. Why do you think your reputation could be harmed?

Since you have $1.1M in a brokerage, that will more than cover your expenses until you hit 59.5.

I decided to retire at 50 when I started to count down the days to retirement almost every day. I'm 58 now, and just eagerly awaiting my 59.5 date so that I can start taking distributions from my retirement accounts.

You could have been doing Roth conversions since age 50 and then (probably after 5 years ) withdraw the money from the roth tax free. There are other ways to get to retirement accounts without penalty as well.

 

[FLSUnFIRE]

A quick run in Firecalc says 95% chance of success for 35 years, if you retired today. So, you are close, but that would not be good enough for me. But a lot depends on your spending. You say $125k/yr has a lot of discretionary spending, but if they are things you really want to do in retirement, do you really want to cut them? Are taxes included? Have you really looked at healthcare costs? for 10-11 years they could be significantly more than you are paying now (assuming you get employer subsidies)

Good Luck

Firecalc for me is 100%; that said, I'd worry more about the 44.6% chance I'd be dead in 35 years (SS mortality) than the 5% of being broke. From my second favorite FIRE calculator: Rich, Broke or Dead? Post-Retirement FIRE Calculator: Visualizing Early Retirement Success and Longevity Risk - Engaging Data

 

[ncbill]

Firecalc for me is 100%; that said, I'd worry more about the 44.6% chance I'd be dead in 35 years (SS mortality) than the 5% of being broke. From my second favorite FIRE calculator: Rich, Broke or Dead? Post-Retirement FIRE Calculator: Visualizing Early Retirement Success and Longevity Risk - Engaging Data

yep, I love that calculator!

for myself, ~1/3 chance of being dead by age 75, ~1/2 chance by age 80, ~2/3 chance by age 85.

really puts things into perspective...

 

[Koolau]

Firecalc for me is 100%; that said, I'd worry more about the 44.6% chance I'd be dead in 35 years (SS mortality) than the 5% of being broke. From my second favorite FIRE calculator: Rich, Broke or Dead? Post-Retirement FIRE Calculator: Visualizing Early Retirement Success and Longevity Risk - Engaging Data

My only real worry about being "dead" is that it complicates DW's situation - especially taxes - and she's virtually uninterested in investing, tracking spending or investments, etc.

So I'm (slowly) putting together a notebook of what to do, who to call, where to get help when I'm gone. Hope she doesn't need it for a long time, but you never know. None of us gets out of here alive.

 

[thefist]

I retired 6yrs ago at 52 with most of my money in brokerage. It’s worked out well.
If you’re truly going to retire in 16 months, start preparing now.
Get an asset allocation defined and set before you retire. I retired fairly abruptly with about 95% equities. Shortly after, the Covid bear market hit. If the recovery wasn’t quick, it may have sent me back to work. The quick recovery was luck. Interest rates are good now, so bonds aren’t crap like they had been. The 2022 stock and bond debacle was unkind to retirees. Prepare now.
Need a loan (HELOC perhaps)? Get it now. Qualifying for a loan can be challenging without a W2 income.
I wouldn’t worry about paying the mortgage early, but that’s fine. It will reduce your annual income needs. It’s such a small part of your net worth.
Plan a Roth conversion strategy now. With 1.8M in 401k, your RMDs will be quite large eventually. At the very least, begin using that money at 59.5.

 

[USGrant1962]

...


Each month I keep working puts roughly $6,100 into tax deferred and $12,500 in brokerage.

...

Is this a typo? You are saving $223,200 per YEAR?

Anyway, ignoring that and assuming you save the $42K/y you mentioned (wife's salary to 401k?) you are over 100% in FIRECalc with your extremely conservative SS assumption.

If one has impactful SS or a pension (covers say 1/4 or more of your spending) it is common and fine to draw a little over 4% for the ER period.

 

[Gallaher]

My BIL retired at about sixty. Two years later diagnosed with leukemia…had a positive outcome. At 65 he was playing pickup basketball at local HS, fell dead on the gym floor from a widow maker.
He was generally a healthy guy. Was in the mainstream of medical care because of cancer and his heart issue went undetected. Irony, same happened to his brother.

Your finances are fine, so what are you waiting for?

I retired at 57 in 2017 with $1.7 in accounts and $500k home equity.
Today $2.8 mill in accounts, mostly tax deferred and $1.2 mill in home equity. My big regret is that I didn’t retire earlier.
At a point, time is way more important than money.

 

[Koolau]

My BIL retired at about sixty. Two years later diagnosed with leukemia…had a positive outcome. At 65 he was playing pickup basketball at local HS, fell dead on the gym floor from a widow maker.
He was generally a healthy guy. Was in the mainstream of medical care because of cancer and his heart issue went undetected. Irony, same happened to his brother.

Your finances are fine, so what are you waiting for?

I retired at 57 in 2017 with $1.7 in accounts and $500k home equity.
Today $2.8 mill in accounts, mostly tax deferred and $1.2 mill in home equity. My big regret is that I didn’t retire earlier.
At a point, time is way more important than money.

Excellent example of why to get out when you are Financially Independent. Of course, some people still enjoy their j*bs and there's nothing wrong with that and YMMV.