So tempted to pull the trigger and Retire

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renue74
Posts: 1893
Joined: Tue Apr 07, 2015 7:24 pm

Re: So tempted to pull the trigger and Retire

Post by renue74 »

You're going through a midlife crisis. I'm 47....same deal. You think about the future, you think about the past.

Get a therapist. Find new hobbies. Buy a sports car. Have an affair. Change up your life.

I've basically retired and have things to do, but I find that all our friends (and my wife) still work. So on Monday's when everybody is at work, I try to find things to do. Sure...I work out at the Y, piddle around on rental houses, food shop, etc. But, mentally you have to prepare yourself to fill the time. Our friends envy me....but they don't realize there is a mental toll to retiring early.
Trader Joe
Posts: 2697
Joined: Fri Apr 25, 2014 6:38 pm

Re: So tempted to pull the trigger and Retire

Post by Trader Joe »

Bread wrote: Sun Jun 13, 2021 1:20 pm Hello BHs:

I have not posted in years, but often visit and comb the site for helpful information. I have always been able find previous questions that are close enough to what is on my mind, that the answers often suffice, and I am able to gain from other's experiences. This portal is so helpful! However, this time I want you, sages, to reflect on my personal situation. At the outset let me thank you!

Emergency funds at BOA: $40,000
Debt: $0
Tax Filing Status: married filing jointly, twins starting college, one 15 yr. old in high school.
Tax Rate: Federal - where do I get this from? AGI is much smaller than my nominal salary. No state tax.
State of Residence: TX.
Age: 48
Desired Asset allocation: 70/30
Desired International allocation: 20% (I can see myself wavering on this...)

Total Portfolio Size: 1.2M

Current Assets
Taxable at Vanguard (Vanguard Index Fund Account):
100,000 VTMMX 8.33%
294,550 VTSAX 24.66%
18,000 VTMGX 1.49%

His Rollover IRA at Vanguard:
198,887 VBTLX 16.65%
223,423 VTSAX 18.70%

His 401K:
54,268 S&P 500 Index - SSgA 4.54% E.R. 0.01%
18,813 Core Bond Index - SSgA 1.49% E.R. 0.03%

His Roth IRA at Vanguard:
22,054 VBTLX 1.85%
65,516 VGSLX 5.48%
26,932 VTSAX 2.25%

Her Roth IRA at Vanguard:
28,491 VBTLX 2.39%
56,196 VFWAX 4.70%

His HSA at Fidelity:
26,840 FSKAX 2.25% E.R. 0.02%
27,288 FXNAX 2.28% E.R. 0.03%

Questions:
1. My current expenses (as tracked for last two years) has been: $40,000 per annum. Do I have enough to retire? Do I have enough to stop working for the corporate job that pays me well, and find something less stressful? What would be your advice? I think i am just burned out/exhausted. They want me to go back to the office after almost 2 yrs. of WFH. Covid is considered past and now they are flexing their muscles and pushing everyone back in - actually being less flexible now then they were prior to Covid.

My kids are practically gone. They are working and have their school paid for. The youngest in high school has a strong work-ethic and is working this summer. Given her siblings track record and how closely she is following them I have no doubt she will also be a self-starter.

Thanks again for your advice,

Bread
No. I would never try to retire in your financial situation.
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kelway
Posts: 391
Joined: Wed Jan 06, 2016 1:37 pm
Location: Nashville, TN, USA

Re: So tempted to pull the trigger and Retire

Post by kelway »

Bread wrote: Sun Jun 13, 2021 2:37 pm Thanks to all for your input. Based on most (if not all) respondents - the advice is hold off for a few more years and revisit. I hope I can last that long. I am getting too old to keep up with the newer ppl we are hiring. And the firm seems to push everyone to try and outdo one another. I may have to take something more gentle and with less reward. It isn't as fun as it once was.
Do you have any inheritance in scope? I'm in a similar situation as you where my nest egg is iffy for retiring with ACA healthcare at 46 -- but I also know there is some inheritance somewhere down the road in the neighborhood of 300k or so. I don't like to count on it, but it helps tilt the scales a bit.
User avatar
kelway
Posts: 391
Joined: Wed Jan 06, 2016 1:37 pm
Location: Nashville, TN, USA

Re: So tempted to pull the trigger and Retire

Post by kelway »

renue74 wrote: Sun Jun 13, 2021 9:28 pm You're going through a midlife crisis. I'm 47....same deal. You think about the future, you think about the past.

Get a therapist. Find new hobbies. Buy a sports car. Have an affair. Change up your life.
Yeah have an affair and maybe you can cut your nest egg in half!
livelovelaugh00
Posts: 243
Joined: Sun Dec 25, 2016 7:15 pm

Re: So tempted to pull the trigger and Retire

Post by livelovelaugh00 »

Of course you will find ways to cope with the stress of the job. Take more days off if company has flexible pto policy. Understand manager's job is to pile up your plate with assignments. Your job is to take one bite a time. There still will be a point that enough is enough. It's not worth it to work stressfully for another ten years then have two heart surgery afterwards. It's better to be poor than unhealthy. You are in good financial shape anyway.
Wash.Invest
Posts: 703
Joined: Sat Jun 13, 2009 1:25 am

Re: So tempted to pull the trigger and Retire

Post by Wash.Invest »

. We do spend less than everyone I know. We never eat out - but cook all the time. When the cars are giving us issues, I fix them. Cars and motorcycle maintenance are hobbies.
We could be twins, maybe we meet on Tx 2wheel ADV rides? I'm the one riding one of my many vintage thumpers from 50yrs ago... My $500 very simple and fun solution, tho most spend 20x that, for same objectives, same fun, same result. :D (at least my beaters finish!, as they have for 50 yrs :happy )

Yes, you can do this ER (with minimal risk) BUT.. do it correctly for you, career, family, future...
A) get stress / mental barriers resolved
B) exit strong, on your terms and timing
C) have your tank topped off (financial, emotional, relationships, spouse, future plans)
D) fully utilize current employment situation. Take ALL vacation and perks (including sabbaticals / time off w/o pay)
E) take a lessor role if possible or reasonable. (Your objectives take precident, your objective is now to minimize stress, maximize pay / benefits, leave as soon as YOU are ready)... I.e... quit your job (emotionally), but don't bother to tell your boss.... Show up, do the job, go home ! (Book on this topic = Die Broke)

My story... (+/-, should have followed above advice :oops: )
BTDT .... Out at age 49 (16 yrs ago), @ about the same investible NW (w/o house paid for) + kids college, no pension, no HC (no ACA). Single earner family, never saw north of 60k gross.
I waited for a super sweet severance, which included free college. And 24 months UI and HC.

16 yrs later
1) Haven't touched any investment or retirement income (yet). It is up ~ 3x my exit amount. Had set up a DAF prior to leaving employment to mitigate severance / cover charitable commitments. Gift 10% of that annually, yet it too has doubled since exit from employment.
2) HC was a crisis when A(?)C A took away all my affordable options. We had pre-existing conditions, so premiums went from $300/month to eventually $2800/mo.... So we used alternatives, including none (self pay international care) , just like 10m others do every year. https://www.patientsbeyondborders.com/. Also used HC cost sharing networks (works excellent for several friends and family during last 20+ yrs, including extensive cancer and very long ICU / brain surgeries.. also used ACA
3) great business and investment opportunities cropped up once I was no longer bothered by employment. (Volunteer and paid)
4) spending increased due to more time off and more projects to finish. Lots of inexpensive travel (>1/2 the time). Property taxes are up 500% on a home we planned to keep and donate to charity.
5) I took some international paid gigs so we could get paid well for traveling to reall nice places we had previously lived, + a few new countries.
6) interests changed. ... I didn't expect that. Hint... Keep your undone project list very short for increased flexibility.
7) did some crazy things, such as a 1 yr RTW trip with no itinerary or timeframe... Just go and enjoy and be flexible. (~$40,000 for 2 traveling international for a yr). Also did a few yrs USA travel on free companion passes 100+ flights / yr. - followed lots of dreams, plenty of dead ends.
8) been selling extra properties during pandemic property valuation frenzy. (Don't really need the income or the hassle)

Good luck,. Be smarter than I.
CurlyDave
Posts: 3182
Joined: Thu Jul 28, 2016 11:37 am

Re: So tempted to pull the trigger and Retire

Post by CurlyDave »

Bread wrote: Sun Jun 13, 2021 6:33 pm
CurlyDave wrote: Sun Jun 13, 2021 6:21 pm If it were me, I would strongly consider holding out for at least ten more years, even if I had to take far less competitive positions. I have been there and done that in my career. When I decided to lessen the pressure on myself, my value to the company increased as well as the importance of the assignments I got and my satisfaction with doing them.
Thanks for the advice. Help me understand - Are you saying that when you lessened the pressure on yourself that the company picked up on that and dealt with you in a better way? Or did you get less "important" tasks from a company point of view?
When I reached FI (which was a lot more than you are talking about) I dialed back the pressure on myself. The company seemed to sense that and I started to get assignments that were both less stressful and that were more important to the company.
Answering a question is easy -- asking the right question is the hard part.
Wanderingwheelz
Posts: 3145
Joined: Mon Mar 04, 2019 8:52 am

Re: So tempted to pull the trigger and Retire

Post by Wanderingwheelz »

renue74 wrote: Sun Jun 13, 2021 9:28 pm You're going through a midlife crisis. I'm 47....same deal. You think about the future, you think about the past.

Get a therapist. Find new hobbies. Buy a sports car. Have an affair. Change up your life.

I've basically retired and have things to do, but I find that all our friends (and my wife) still work. So on Monday's when everybody is at work, I try to find things to do. Sure...I work out at the Y, piddle around on rental houses, food shop, etc. But, mentally you have to prepare yourself to fill the time. Our friends envy me....but they don't realize there is a mental toll to retiring early.
I think that has a lot to do with the type of person you are.

I walked away from paid work last year at 49 and, no, I don’t need a therapist, and no, there is no mental toll that I’m aware to identify to no longer working for money. It’s like having seven Saturdays and Sundays and who wouldn’t want that? But sure, if you’re an extremely extroverted person who needs tons of human reinforcement throughout your day, then yeah, you’re probably going to have a tough time Monday through Friday unless you hang out with folks who are mostly 15+ years your senior.
Being wrong compounds forever.
flyingaway
Posts: 3908
Joined: Fri Jan 17, 2014 9:19 am

Re: So tempted to pull the trigger and Retire

Post by flyingaway »

StealthRabbit wrote: Sun Jun 13, 2021 10:47 pm
16 yrs later
1) Haven't touched any investment or retirement income (yet). It is up ~ 3x my exit amount. Had set up a DAF prior to leaving employment to mitigate severance / cover charitable commitments. Gift 10% of that annually, yet it too has doubled since exit from employment.
2) HC was a crisis when A(?)C A took away all my affordable options. We had pre-existing conditions, so premiums went from $300/month to eventually $2800/mo.... So we used alternatives, including none (self pay international care) , just like 10m others do every year. https://www.patientsbeyondborders.com/. Also used HC cost sharing networks (works excellent for several friends and family during last 20+ yrs, including extensive cancer and very long ICU / brain surgeries.. also used ACA
3) great business and investment opportunities cropped up once I was no longer bothered by employment. (Volunteer and paid)
4) spending increased due to more time off and more projects to finish. Lots of inexpensive travel (>1/2 the time). Property taxes are up 500% on a home we planned to keep and donate to charity.
5) I took some international paid gigs so we could get paid well for traveling to reall nice places we had previously lived, + a few new countries.
6) interests changed. ... I didn't expect that. Hint... Keep your undone project list very short for increased flexibility.
7) did some crazy things, such as a 1 yr RTW trip with no itinerary or timeframe... Just go and enjoy and be flexible. (~$40,000 for 2 traveling international for a yr). Also did a few yrs USA travel on free companion passes 100+ flights / yr. - followed lots of dreams, plenty of dead ends.
8) been selling extra properties during pandemic property valuation frenzy. (Don't really need the income or the hassle)

Good luck,. Be smarter than I.
If you have not touched your investment or retirement income, where did you get money to spend?
Wash.Invest
Posts: 703
Joined: Sat Jun 13, 2009 1:25 am

Re: So tempted to pull the trigger and Retire

Post by Wash.Invest »

. If you have not touched your investment or retirement income, where did you get money to spend
1) Live very, very cheap (spend little) - by choice... Until SSI @ FRA (coming soon). Fix everything myself, drive a $35 car that burns free fuel, build houses in my free time. Eat on $100 / month, garden, glean, barter, raise beef, trade, sell years of farm accumulation.
2) use savings, not investments.... Many years of accumulated rental income reserves covered few yrs of spending need.
3) nominal rental income - currently liquidating props, but carrying contracts = nominal income
4) rented out primary and second homes. Each have guesthouses where I can live for free
5) PT international gigs pay extremely well and include free travel, spouse accompanies.
6) 30yrs of accumulated airline and hotel points
7) Economy methods for living / retirement... Such as WW travel using guest accomodations (free to $20 max / night. Volunteer services for free room and board, sometimes for months at a time)
8) senior discounts :wink:
9) volunteer at homeless shelter and senior meal program = free food when there is extra.
10) be stealth.... Free camping, sell garage sale finds on eBay. (BIL generates $80k / yr doing that)

Other....
Outer Marker
Posts: 4382
Joined: Sun Mar 08, 2009 8:01 am

Re: So tempted to pull the trigger and Retire

Post by Outer Marker »

StealthRabbit wrote: Mon Jun 14, 2021 9:58 am
. If you have not touched your investment or retirement income, where did you get money to spend
1) Live very, very cheap (spend little) - by choice... Until SSI @ FRA (coming soon). Fix everything myself, drive a $35 car that burns free fuel, build houses in my free time.($500k tax free gains every 24 months, if needed) Eat on $100 / month, garden, glean, barter, raise beef, trade, sell years of farm accumulation.
2) use savings, not investments.... Many years of accumulated rental income reserves covered few yrs of spending need.
3) nominal rental income - currently liquidating props, but carrying contracts = nominal income
4) rented out primary and second homes. Each have guesthouses where I can live for free
5) PT international gigs pay extremely well and include free travel, spouse accompanies.
6) 30yrs of accumulated airline and hotel points
7) Economy methods for living / retirement... Such as WW travel using guest accomodations (free to $20 max / night. Volunteer services for free room and board, sometimes for months at a time)
8) senior discounts :wink:
9) volunteer at homeless shelter and senior meal program = free food when there is extra.
10) be stealth.... Free camping, sell garage sale finds on eBay. (BIL generates $80k / yr doing that)

Other....
That sounds unnecessarily frugal!

But, as long as you're on a roll, you should keep going past FRA until 70 before drawing SSI . . . viewtopic.php?t=102609
Chadnudj
Posts: 1269
Joined: Tue Oct 29, 2013 11:22 am

Re: So tempted to pull the trigger and Retire

Post by Chadnudj »

Bread wrote: Sun Jun 13, 2021 2:37 pm Thanks to all for your input. Based on most (if not all) respondents - the advice is hold off for a few more years and revisit. I hope I can last that long. I am getting too old to keep up with the newer ppl we are hiring. And the firm seems to push everyone to try and outdo one another. I may have to take something more gentle and with less reward. It isn't as fun as it once was.
Given this, I'd suggest trying to tough it out awhile longer (maybe until your 15 year old heads off to college) and then "engineer" your layoff to get a severance package of some type. There's books out there (Financial Samurai wrote one) on how to do this, and you may as well find a way to get paid to leave if you can figure it out.
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