Can I retire now?

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CaseyK
Posts: 1
Joined: Wed Jan 11, 2017 2:36 pm

Can I retire now?

Post by CaseyK » Thu Jun 29, 2017 8:23 am

This is my first post after lurking on this forum few years. I'm 46 year old programmer working in software since last 20 years. At mid life stage I'm in dilemma to decide: should extend my professional career 7-10 years more by updating my skills with latest tools/software/technologies (and possibly higher salary) or continue current job which might be eliminated in next 2-3 years. Advantage being with current job is that it gives enough flexibility to spend time with kids/family but no job satisfaction.

Background:
Age: 46 and 42(DW), Salary: 120K and 110K (HCOL), two kids 9 and 7. DW wants to continue employed as she loves her job and health insurance provided by her employer
Annual expenses: $100K (after tax, including mortgage and property taxes)
Retirement Assets: $2,180,000 (60/40 split between equity and bond)
529: $150K
Emergency Fund: $201K
Paid Vacation Condo: $125K
Primary Home: $500K, ($228K mortgage left at 2.25% for next 14 years)

why3not
Posts: 186
Joined: Wed Aug 10, 2016 12:07 pm

Re: Can I retire now?

Post by why3not » Thu Jun 29, 2017 8:41 am

Yes, assuming your wife stays employed.

CoAndy
Posts: 461
Joined: Thu Jun 06, 2013 4:45 pm

Re: Can I retire now?

Post by CoAndy » Thu Jun 29, 2017 9:04 am

How long does your wife want to keep working? As long as she continues her employment for the next several years, you should be able to retire today. Might want to look into paying the mortgage down with some of that cash sitting around.

EdB
Posts: 52
Joined: Mon Jan 25, 2016 1:25 pm

Re: Can I retire now?

Post by EdB » Thu Jun 29, 2017 9:11 am

If you like what you have with your current job, stay with it. You are definitely in a financial position where you can feel like you can voice your opinion, if the management starts making decisions that you know are wrong. You may get laid off and then get severance pay and insurance for a while. That's what happened with me.

I know a lot of retired people who did not retire because they were tired of working. They just got tired of putting up with the ever-increasing bull**** that seems to overtake companies as time goes on.

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knpstr
Posts: 1827
Joined: Thu Nov 20, 2014 8:57 pm
Location: Michigan

Re: Can I retire now?

Post by knpstr » Thu Jun 29, 2017 9:15 am

Presuming you can get to your retirement assets before you're 59, this is how I see it:

You have enough to sustain about $65,400 per year in spending starting at such a young age.
I don't know how flexible your budget numbers are but you have a $34,600 per year (or $1,153,333 nest egg size) shortfall as it stands now.
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

tampaite
Posts: 428
Joined: Wed Feb 18, 2015 9:29 pm

Re: Can I retire now?

Post by tampaite » Thu Jun 29, 2017 10:07 am

CaseyK wrote:
Background:
Age: 46 and 42(DW), Salary: 120K and 110K (HCOL), two kids 9 and 7. DW wants to continue employed as she loves her job and health insurance provided by her employer
Annual expenses: $100K (after tax, including mortgage and property taxes)
Retirement Assets: $2,180,000 (60/40 split between equity and bond)
529: $150K
Emergency Fund: $201K
Paid Vacation Condo: $125K
Primary Home: $500K, ($228K mortgage left at 2.25% for next 14 years)
Suggestion:

1. Take 100K from Emergency fund and pay down 228k mortage leaving you with 118K balance.
2. Work for another 1.5 years, eliminate the 118k mortage, increase your emergency fund and then retire.
3. Your wife's income will sustain you given that you have $2.1Million in assets, 150k college fund and a rental condo (assumption)

By the time you have paid off the mortage, you should be able to answer to yourself: "what will i do when I retire".

bloom2708
Posts: 2941
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Can I retire now?

Post by bloom2708 » Thu Jun 29, 2017 10:20 am

How about college funding? Any 529 or money set aside for college expenses?

At 46, I think you should "tough it out". That may mean looking for lateral moves with less stress or taking a "one day at a time" approach.

With a spouse still working, I am not a fan of using "retired". We will be "retired" when both of us no longer work. You would be financially independent enough to be a non working parent.

My wife loved her career. 1.5 years later she hated it and came home crying. 22 direct reports. She is now a stay at home parent. You have done well and can be flexible/creative.
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

WhiteMaxima
Posts: 627
Joined: Thu May 19, 2016 5:04 pm

Re: Can I retire now?

Post by WhiteMaxima » Thu Jun 29, 2017 10:21 am

Health insurance?

Dieharder
Posts: 979
Joined: Mon Apr 02, 2007 6:22 pm

Re: Can I retire now?

Post by Dieharder » Thu Jun 29, 2017 10:27 am

46 year old programmers are too young to retire! By that I mean it is a hard skill not easily acquired by everyone and you still have lots to contribute. You may find it hard to be full time employed in the IT department of a major corporation these days with full benefits and all that.

However, if you quit your job right now with the assets that you have got, and went into consulting mode on your own, with the skills that you have or new skills you can learn on your own time, then you will be in demand and you can charge as much as the market is willing to pay you and you can work as many hours as you wish to. That means, you may quit FTE position with benefits and get them through spouse, then make as much as you can get or want from consulting on your own.

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Hawaiishrimp
Posts: 322
Joined: Tue Apr 14, 2015 4:13 am

Re: Can I retire now?

Post by Hawaiishrimp » Sat Jul 01, 2017 12:03 pm

If I were you, I will aim for early retirement and stay on the course unless the cost of higher education is paid by the company.

You have close to enough to retire on.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.

NYCguy
Posts: 199
Joined: Sun Nov 13, 2016 12:42 pm

Re: Can I retire now?

Post by NYCguy » Sat Jul 01, 2017 8:32 pm

Go for it if that is your dream.

Consider paying off the mortgage with the emergency fund and taking out a HELOC to use only in case of an emergency. That is not bulletproof but given your other substantial assets it is low risk and puts about $400 extra a month in your pocket.
If your out-go is greater than your income, your upkeep will be your DOWNFALL.

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