At a crossroads. Does my plan make sense?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
retiringtype
Posts: 42
Joined: Fri May 20, 2016 11:00 am

At a crossroads. Does my plan make sense?

Post by retiringtype » Sun Apr 29, 2018 10:58 am

Hello everyone. I’ve posted here a number of times and I’m very thankful for the thoughtful replies. At this point in my life, I find myself in a conundrum (to put it mildly) and am turning to the group for guidance. (I apologize in advance if some of my post is repetitious.)

Last time I posted, it was about reaching approximately 50x annual spending. The consensus of the group was to retire and enjoy life. However, I somewhat reluctantly took another job in marketing, mainly for the health insurance. (I’m 62 years, 4 months old with a history of prostate cancer. Otherwise, extremely fit.)

So here’s the trouble: I find myself disliking my job more than ever before. There’s no room for someone 60+ in marketing — for a number of reasons I won’t go into here. So, health insurance notwithstanding, I’ve been planning my escape.

That’s where I need your help. I’ve come up with a tentative financial plan and want to see if it makes sense. Currently, I have investable assets of approximately $6,200,000, with about 45% of my total assets in Vanguard stock mutual funds, split 60/40 domestic international, the rest in bond funds and cash.

I also have an Account Balance Defined Benefit plan from a former employer with a current value of approximately $490,000. It’s been growing at around 3% per year. It’s insured by the PBGC and, according to my last statement, the funding target attainment percentage is 107% for 2017 with adjusted interest rates (91% without adjusted interested rates.)

At age 62, I received notice that I’m eligible to start receiving payments from the Account Balance plan. I can choose monthly payments over one to eight years, OR a lifetime annuity of about $2600 a month (10 years guaranteed) OR a lump sum of approximately $490,000.
So here’s what I’m thinking: My monthly expenses total around $8000 (estimating on the high side, just in case). I have no debt (own my small condo outright). And I’m not married and don't have children, although I have a significant other who’s in my will.

Currently, my Vanguard Intermediate Term Tax Exempt fund holdings generate about $4000/mo. tax free. If I annuitize my Account Balance Plan over the course of eight years, I would receive approx. $5000/mo. (taxable). That’s a total of about $9000/mo.
After the eight years of Account Balance payments end, I’d be 70 and could begin collecting max Social Security. In the meantime, I would hope my other investments would continue to grow. I would then begin to live off Social Security and my nest egg.

So here are some questions:
1. Does my plan make sense? Or is there something I’m missing that makes a lot more sense?

2. Would I be better off transferring the entire amount of the Account Balance plan to a Vanguard IRA and annuitizing that?

3. I did some research. I believe if I voluntarily resign, I’m still eligible for COBRA. Assuming that’s true, I would only have to cover my health insurance on the open market for about a year. Can anyone confirm about COBRA?

I realize that I’m lucky having accumulated this much in assets. But frankly, it’s extremely scary taking such a big step by myself, especially after having worked since I’m a kid. Any insights would be much appreciated.

Thanks so much in advance. And sorry for the lengthy post. I don’t know any financial planners I can trust. And I figured I’m not going to get better advice than I get here.

abonder
Posts: 230
Joined: Sat Nov 03, 2012 10:52 am

Re: At a crossroads. Does my plan make sense?

Post by abonder » Sun Apr 29, 2018 11:39 am

I know Bogleheads are a conservative group, but I think you’re being conservative even by these standards. 50x spending is uber safe. I don’t hunk that you should endure an uncomfortable position at age 62 when you have a paid off condo and 6.2 million.

I think the plan you presented works. But I think any plan would work at your level of assets/age/spending. It doesn’t really matter how you take the pension and SS. That doesn’t mean some approaches might be better than others, but any approach should truly work.

I don’t feel qualified to answer the questions about rolling over vs. annuitization. Nor about healthcare. My apologies for that. I just want to reassure you that you’re in a golden place and you shouldn’t tolerate a job that’s making you unhapppy. Congrats on your efforts coming together and paving the way for a work-free existence.

User avatar
midareff
Posts: 5854
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: At a crossroads. Does my plan make sense?

Post by midareff » Sun Apr 29, 2018 11:48 am

So here are some questions:

1. Does my plan make sense? Or is there something I’m missing that makes a lot more sense? To me it does but I would move the money to Vanguard anyway.

2. Would I be better off transferring the entire amount of the Account Balance plan to a Vanguard IRA and annuitizing that? I would move the money to Vanguard and invest it conservatively there while drawing the needed monthly income ($4K - $5K) from that account.

3. I did some research. I believe if I voluntarily resign, I’m still eligible for COBRA. Assuming that’s true, I would only have to cover my health insurance on the open market for about a year. Can anyone confirm about COBRA? What happens insurance wise if you voluntarily retire @ 62 instead of resigning? When I retired I was able to put my wife on my former employer's medical plan and can keep her there until she is Medicare eligible.Granted, I pay plan cost without subsidy but the employer had a huge employee base and the plan is excellent.

I realize that I’m lucky having accumulated this much in assets. But frankly, it’s extremely scary taking such a big step by myself, especially after having worked since I’m a kid. Any insights would be much appreciated.

I have a childhood friend who retired about 2 years ago at about age 68 and was extremely guilty about doing so since his father, an attorney, worked until his 80's and his older brother, a dentist, still keeps office hours in his mid 70's. Here's the skinny, pretty much as I gave it to him... no rush hour traffic, no bonehead bosses, no presentations, no grumpy clients, no shopping on crowded weekends at grocery stores, no more rush for anything unless you are running late to a movie, and then it could have been an afternoon matinee in a nearly empty theater at a lower price. Your time is your own and the stress of working is gone, although it takes about a year + to really settle in to the lack of pressure, responsibility and BS that comes with it. You finally have time to get into your hobbies or develop new ones, do all the reading you had wished to have time for and travel as you like. I'm starting year 7 retired now and if I have to go out into rush hour traffic I'm amazed how I could have put up with it and weekend crowds as long as I did, let alone deadlines and the work place politics. I worked all the way through college and on to a total of 46 years before retiring. In retrospect, despite having liked and enjoyed my job immensely, and having had a great staff and great report 2's for many years, I can't think of a single day or work that was better than a day of retirement as long as financial freedom comes with it, and it is apparent your financial freedom is secure too. Go forth young man, there is a beautiful world out there.

PhilosophyAndrew
Posts: 456
Joined: Sat Aug 13, 2016 10:06 am

Re: At a crossroads. Does my plan make sense?

Post by PhilosophyAndrew » Sun Apr 29, 2018 11:58 am

I don’t think you are missing something as long as you have access to (or can purchase access to) healthcare in between now and your 65th birthday.

So, I would find out the answer to your question about Cobra and make specific plans for your healthcare needs over that relatively short period. Once you do have those plans in place, you have plenty of financial assets to see you through the rest of your life.

As long as you develop a reasonable healthcare plan, there seems no reason to engage in unwanted work.

Two questions; Were there any specific problems that led you to choose taking your current job instead of retiring and purchasing your healthcare insurance? What impact, if any, does the prior prostate cancer have on your ability to purchase your own insurance?

Andy.

walkindude
Posts: 76
Joined: Wed Nov 11, 2015 4:46 pm

Re: At a crossroads. Does my plan make sense?

Post by walkindude » Sun Apr 29, 2018 12:16 pm

retiringtype wrote:
Sun Apr 29, 2018 10:58 am
If I annuitize my Account Balance Plan over the course of eight years, I would receive approx. $5000/mo. (taxable).
$5000/month x 12 months/year x 8 years = $480,000, which is less than your current $490,000 balance. If this is true, I'd roll it to an IRA invested in all bonds and probably do much better.

chevca
Posts: 1945
Joined: Wed Jul 26, 2017 11:22 am

Re: At a crossroads. Does my plan make sense?

Post by chevca » Sun Apr 29, 2018 12:26 pm

With the medical history given, I'd stop working now, take the 8 year payout deal, $4k/month from the bond fund, start SS now, and enjoy life. Who knows how long you have, right?

You have done very well for yourself. Now enjoy!

stevekozak2
Posts: 40
Joined: Sun Dec 25, 2016 12:38 pm

Re: At a crossroads. Does my plan make sense?

Post by stevekozak2 » Mon Apr 30, 2018 6:00 am

midareff wrote:
Sun Apr 29, 2018 11:48 am
So here are some questions:

1. Does my plan make sense? Or is there something I’m missing that makes a lot more sense? To me it does but I would move the money to Vanguard anyway.

2. Would I be better off transferring the entire amount of the Account Balance plan to a Vanguard IRA and annuitizing that? I would move the money to Vanguard and invest it conservatively there while drawing the needed monthly income ($4K - $5K) from that account.

3. I did some research. I believe if I voluntarily resign, I’m still eligible for COBRA. Assuming that’s true, I would only have to cover my health insurance on the open market for about a year. Can anyone confirm about COBRA? What happens insurance wise if you voluntarily retire @ 62 instead of resigning? When I retired I was able to put my wife on my former employer's medical plan and can keep her there until she is Medicare eligible.Granted, I pay plan cost without subsidy but the employer had a huge employee base and the plan is excellent.

I realize that I’m lucky having accumulated this much in assets. But frankly, it’s extremely scary taking such a big step by myself, especially after having worked since I’m a kid. Any insights would be much appreciated.

I have a childhood friend who retired about 2 years ago at about age 68 and was extremely guilty about doing so since his father, an attorney, worked until his 80's and his older brother, a dentist, still keeps office hours in his mid 70's. Here's the skinny, pretty much as I gave it to him... no rush hour traffic, no bonehead bosses, no presentations, no grumpy clients, no shopping on crowded weekends at grocery stores, no more rush for anything unless you are running late to a movie, and then it could have been an afternoon matinee in a nearly empty theater at a lower price. Your time is your own and the stress of working is gone, although it takes about a year + to really settle in to the lack of pressure, responsibility and BS that comes with it. You finally have time to get into your hobbies or develop new ones, do all the reading you had wished to have time for and travel as you like. I'm starting year 7 retired now and if I have to go out into rush hour traffic I'm amazed how I could have put up with it and weekend crowds as long as I did, let alone deadlines and the work place politics. I worked all the way through college and on to a total of 46 years before retiring. In retrospect, despite having liked and enjoyed my job immensely, and having had a great staff and great report 2's for many years, I can't think of a single day or work that was better than a day of retirement as long as financial freedom comes with it, and it is apparent your financial freedom is secure too. Go forth young man, there is a beautiful world out there.
I'm new here, and don't give advice, but this reply captures all of my thoughts!

pennywise
Posts: 513
Joined: Sat May 31, 2014 6:22 am

Re: At a crossroads. Does my plan make sense?

Post by pennywise » Mon Apr 30, 2018 6:11 am

Dude, you've got almost 7 million bucks. Quit your job, do whatever you want.

Seriously how is this even a question?!!?

User avatar
Watty
Posts: 14592
Joined: Wed Oct 10, 2007 3:55 pm

Re: At a crossroads. Does my plan make sense?

Post by Watty » Mon Apr 30, 2018 6:55 am

retiringtype wrote:
Sun Apr 29, 2018 10:58 am
I have investable assets of approximately $6,200,000, ......


So here’s what I’m thinking: My monthly expenses total around $8000 (estimating on the high side, just in case).
retiringtype wrote:
Sun Apr 29, 2018 10:58 am
1. Does my plan make sense? Or is there something I’m missing that makes a lot more sense?
You are missing your interest and dividends.

Overall the stocks and bonds that the $6.2 million is invest in are likely generating about 2% in dividends and interest. That is $124,000 a year or over $10,000 a month. You will also get Social Security and your expenses may go down when you start Medicare.

There is no need to take any of the annuity options since you would in effect just be taking the annuity payment and saving it. In the right situation an annuity can make sense because it is longevity insurance but you do not have any need to buy that insurance since you have no risk of outliving your funds.

The annuity would also be taxable income. Without that you might be able to do some Roth conversion in a lower tax brackets before your start Social Security.

As I recall the recent tax law changes raised the estate tax limit to $10 million dollars and it sounds like you will likely have more than that if your investments grow even minimally so you should have some professional estate planning advice from a lawyer that specializes in estate planning.
retiringtype wrote:
Sun Apr 29, 2018 10:58 am
3. I did some research. I believe if I voluntarily resign, I’m still eligible for COBRA. Assuming that’s true, I would only have to cover my health insurance on the open market for about a year. Can anyone confirm about COBRA?
Small companies(<50 employees ???) may be exempt from offering COBRA and there may be special rules for places like non-profit companies but it sounds like these are not an issue for you. It goes a minimum of 18 months. Some states like California have expended this to 36(?) months but they may call it something other than COBRA. One risk with COBRA is that if the company goes out of business then the COBRA will stop since it just extends what the current employees get. In some situation if an employee if fired for cause then they may not be eligible for COBRA so if you think there is any risk of than then it would be better to quit before you are fired.

Many but not all companies will extend health insurance through the end of the month when you terminate so it is is better to leave on the first day of the month instead of the last day of the month since you could in effect get a free month of healthcare. Other than that I don't see any reason not to quit today. Tomorrow is the first of the month so you I don't see any reason that you could not retire tomorrow. :D

User avatar
Psyayeayeduck
Posts: 107
Joined: Mon Mar 07, 2016 7:46 am

Re: At a crossroads. Does my plan make sense?

Post by Psyayeayeduck » Mon Apr 30, 2018 7:08 am

pennywise wrote:
Mon Apr 30, 2018 6:11 am
Dude, you've got almost 7 million bucks. Quit your job, do whatever you want.

Seriously how is this even a question?!!?
Some people are scared even if the math tells them everything will be fine. A lot of people are scared of making that first jump into a non-working world from decades of being in a working world. That's a massive paradigm shift if I ever see one. It's easy to say from the luxury of one's office chair to say "You have enough! Why are you still playing the game?!" because there is no risk except for the poster's finances. If it were my wealth and I wanted to make that leap, I would definitely count everything multiple times and let others check my math.

But I do agree with you. OP has plenty of cushion to stop.

User avatar
midareff
Posts: 5854
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: At a crossroads. Does my plan make sense?

Post by midareff » Mon Apr 30, 2018 7:15 am

I had two additional thoughts....... U said have a long term significant other to whom U are not married. In Florida, when I added my (now) wife I added her as a Registered Domestic Partner despite my being male and her female. Can U be added to her insurance in the same manner?

#2. The defined benefit plan from the former employer.... the one growing about 3% a year in the current bull market..... that's not very much, any idea why so little?

retiringtype
Posts: 42
Joined: Fri May 20, 2016 11:00 am

Re: At a crossroads. Does my plan make sense?

Post by retiringtype » Mon Apr 30, 2018 8:30 am

Midareff: To be honest, I don't know exactly how much my Account Balance plan has been growing. I've been told by other participants that it's anywhere from 3-5% annually. Been having trouble getting the exact amount from Mercer, the administrator. Will try again.

retiringtype
Posts: 42
Joined: Fri May 20, 2016 11:00 am

Re: At a crossroads. Does my plan make sense?

Post by retiringtype » Mon Apr 30, 2018 8:33 am

Psyayeayeduck, thanks for your reply. You're right, I'm extremely scared. Not only will I be jumping into the unknown, but my whole identity (for better or worse) has always been tied up with work. It's sad, but in some unfortunate way, you get addicted to the stress. Been up many, many nights going over all this in my mind.

ReadyToRetire
Posts: 63
Joined: Tue Oct 11, 2016 8:47 am

Re: At a crossroads. Does my plan make sense?

Post by ReadyToRetire » Mon Apr 30, 2018 8:49 am

I am deep into OMY syndrome myself. What I have been telling myself is that retirement is not the end of something, but the beginning of something else. Not that that has worked yet (I'm sitting in a cubicle now). It also helps for me to figure out what is the worse that can happen. I am 15 years younger than you so my "worst" is probably different than yours. My wife and I both keep telling ourselves that the worst is maybe sell our current home in favor of something less expensive or further worst is find some sort of gainful employment again. Both of these worsts are unlikely, but it helps us to believe that those are our "worst" scenarios. Then we think what happens if a major health crisis hits? In other words, I think at some point you have to just make the leap.

Again, this is advice from someone who has yet to follow it, so take it for what it is worth.

Best of luck (and personally, I'm hoping your decide to retire. My bet is a year or two from now you'll be on this board wondering why you waited to pull the trigger. :D

Maverick3320
Posts: 505
Joined: Tue May 12, 2015 2:59 pm

Re: At a crossroads. Does my plan make sense?

Post by Maverick3320 » Mon Apr 30, 2018 9:11 am

Come on, buddy. You've won.

gotester2000
Posts: 594
Joined: Sun Nov 12, 2017 1:59 am

Re: At a crossroads. Does my plan make sense?

Post by gotester2000 » Mon Apr 30, 2018 9:34 am

Take the lumpsum and retire - you dont need an annuity with 6-7M corpus. Enjoy your life.

Murgatroyd
Posts: 150
Joined: Sun Jan 21, 2018 8:23 pm

Re: At a crossroads. Does my plan make sense?

Post by Murgatroyd » Mon Apr 30, 2018 1:10 pm

retiringtype wrote:
Sun Apr 29, 2018 10:58 am


So here’s the trouble: I find myself disliking my job more than ever before. There’s no room for someone 60+ in marketing — for a number of reasons I won’t go into here.
Amen. Get out. I hated my job the final 2 years. After 37 years of creating products and marketing plans out of the ether it is so clear marketing is a youngsters game. And the politics......
I’ve been free almost a year and can tell you life is MUCH better.

User avatar
samsoes
Posts: 897
Joined: Tue Mar 05, 2013 9:12 am
Location: Northeast Rat Race

Re: At a crossroads. Does my plan make sense?

Post by samsoes » Mon Apr 30, 2018 1:27 pm

Over $6 million?? BAIL OUT! Seriously.
You've won the game! :sharebeer

Remember, every day you delay is a day you'll never get back.
Last edited by samsoes on Mon Apr 30, 2018 1:32 pm, edited 1 time in total.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)

aristotelian
Posts: 4904
Joined: Wed Jan 11, 2017 8:05 pm

Re: At a crossroads. Does my plan make sense?

Post by aristotelian » Mon Apr 30, 2018 1:31 pm

pennywise wrote:
Mon Apr 30, 2018 6:11 am
Dude, you've got almost 7 million bucks. Quit your job, do whatever you want.

Seriously how is this even a question?!!?
Haha, worst case scenario, OP could buy himself a personal physician. Second worst case is medical tourism in Costa Rica or Eastern Europe.

The choice between taking the annuity or transferring to Vanguard will also likely make zero impact on his quality of life. It is purely personal preference at this point.

User avatar
8foot7
Posts: 866
Joined: Mon Jan 05, 2015 7:29 pm

Re: At a crossroads. Does my plan make sense?

Post by 8foot7 » Mon Apr 30, 2018 2:36 pm

Dear boss,
I resign effective immediately. I'll mail you my key card and laptop. Send my last check to my home address.
Signed,
OP


Please go do this now. And enjoy! :sharebeer

trueson1
Posts: 95
Joined: Mon Mar 13, 2017 11:40 am

Re: At a crossroads. Does my plan make sense?

Post by trueson1 » Mon Apr 30, 2018 3:49 pm

Read "How to Retire Wild Happy and Free" - then actually do it! I'm right behind you! :D

retiringtype
Posts: 42
Joined: Fri May 20, 2016 11:00 am

Re: At a crossroads. Does my plan make sense?

Post by retiringtype » Tue May 15, 2018 6:59 am

Hi, I'm the OP. I want to provide a postscript to my original message. Yesterday, thanks to the encouragement and advice of the people on this board, I resigned from my job. (I gave three weeks notice. Want to leave on good terms. I'm in management. And you never know.)

After 39 years in marketing, I'll be finally free of tiresome meetings, backbiting politics, insane deadlines and late night (and weekend) projects. As other Bogleheads have confirmed, marketing ain't what it used to be. The fun (and the nice salaries) are long gone.

Can't say I'm not a tad worried — I've been working since high school. And I still have to figure out how to best fill my days. (Thinking of working with rescue dogs.) But enough was enough.

Yesterday, I saw an article stating that 25% of Americans have saved zero for retirement (can't vouch for the accuracy), so I count myself lucky for having accumulated a nice nest egg. Thanks to a large extent to the Bogleheads, I've lived way below my means for a LONG time, and always stayed the course, even during market downturns.

Here's hoping for a fun and healthy, cancer-free future. Thanks everyone.

P.S. So as soon as I made the news public, a couple of people let me know they'd hire me for freelance work in the future. To quote Michael Corleone, just when I thought I was out...

chevca
Posts: 1945
Joined: Wed Jul 26, 2017 11:22 am

Re: At a crossroads. Does my plan make sense?

Post by chevca » Tue May 15, 2018 7:22 am

Congrats and enjoy!

10YearPlan
Posts: 249
Joined: Tue Dec 22, 2015 2:58 pm

Re: At a crossroads. Does my plan make sense?

Post by 10YearPlan » Tue May 15, 2018 8:07 am

retiringtype wrote:
Tue May 15, 2018 6:59 am
Hi, I'm the OP. I want to provide a postscript to my original message. Yesterday, thanks to the encouragement and advice of the people on this board, I resigned from my job. (I gave three weeks notice. Want to leave on good terms. I'm in management. And you never know.)

After 39 years in marketing, I'll be finally free of tiresome meetings, backbiting politics, insane deadlines and late night (and weekend) projects. As other Bogleheads have confirmed, marketing ain't what it used to be. The fun (and the nice salaries) are long gone.

Can't say I'm not a tad worried — I've been working since high school. And I still have to figure out how to best fill my days. (Thinking of working with rescue dogs.) But enough was enough.

Yesterday, I saw an article stating that 25% of Americans have saved zero for retirement (can't vouch for the accuracy), so I count myself lucky for having accumulated a nice nest egg. Thanks to a large extent to the Bogleheads, I've lived way below my means for a LONG time, and always stayed the course, even during market downturns.

Here's hoping for a fun and healthy, cancer-free future. Thanks everyone.

P.S. So as soon as I made the news public, a couple of people let me know they'd hire me for freelance work in the future. To quote Michael Corleone, just when I thought I was out...
OP, even though the numbers are what they are and quite comfortable, even by conservative BH standards, I understand the trepidation.
I think it would help to know what you are moving toward, rather than leaving. Volunteering or even working very part time doing something you are passionate about might be a good bridge for you. You amassed a nice nest egg, perhaps you can teach others how to do so? I, for one, would be interested to know how you got to the $6+M. :)

cjcerny
Posts: 212
Joined: Sat Sep 15, 2007 12:47 pm

Re: At a crossroads. Does my plan make sense?

Post by cjcerny » Tue May 15, 2018 8:39 am

I don't think you need to annuitize anything. Annuities are a vehicle for someone who runs the risk of outliving their savings. You are nowhere close to that. You can safely withdraw 4% a year from your $6.2m which would give you almost 3 times your monthly expenses. At this point, all your decision making about your various retirement plans should be focused on making sure that they will not end when you do and can be passed along. You are going to be passing a lot of money along to a charity or beneficiary, unless your expenses jump markedly. Wait as long as you can to claim SS, obviously.

retiringtype
Posts: 42
Joined: Fri May 20, 2016 11:00 am

Re: At a crossroads. Does my plan make sense?

Post by retiringtype » Tue May 15, 2018 8:59 am

To 10 Year Plan: You asked how I got to $6+ million. Truthfully, there was nothing magical about it. I just kept saving and saving and saving, always investing in mostly index funds, never wavering when the market went down.

There are two key elements I should point out. The first was a very cheap lesson I learned early on. When I was in my mid-20s, my mom's accountant convinced me to put my meager $2800 rollover IRA into a limited real estate partnership. Not knowing any better, I agreed. Long story short, after about 10 years, my balance was down to about $400. It was a scam. After that, I vowed to learn the right way to do things and take control of my own money.

The second element: For a while during my career, marketing paid quite well. For a bit of time, I was making $350-400K annually and socking away every dime I could. Since then, salaries have dropped precipitously. But I caught the very tail end of the "Mad Men" era.

More than anything, I found, it's that it's so important to live below your means. My parents never had a dime, and I was always very conscious of ending up penniless in old age. When my dad died at age 62 (my age now) after many years of illness, his life insurance policy paid us $5000, just enough for the funeral.

SimplicityNow
Posts: 477
Joined: Fri Aug 05, 2016 10:31 am

Re: At a crossroads. Does my plan make sense?

Post by SimplicityNow » Tue May 15, 2018 10:36 am

Congrats on your decision. I believe it to be the right one.

I retired last October although my wife is still working for a few more years. Although we have more then "enough", it didn't make the decision easier.
I too have a lot of my identity wrapped up in my former profession. It takes a while to get adjusted but at the end of the day I know I picked the right time.

Enjoy your retirement.

bloom2708
Posts: 5011
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: At a crossroads. Does my plan make sense?

Post by bloom2708 » Tue May 15, 2018 10:46 am

OP,

Make a promise to yourself to not take another job for 1 year. Maybe 2. You have to get out and be out. Find yourself.

Discover old hobbies. Discover new hobbies. Travel. Go for a long walk. Make slow coffee. Go for a bike ride.

If you retire and hop back to another job, you won't experience the freedom. Also be vary wary of volunteering for 1 year. I'm not saying you shouldn't volunteer at some point. You could easily find yourself "working" frequently for zero pay.

With your 50x plus, spend and track, but don't go out of your way to spend for spending sake.

Give it some time to decompress and adjust. Congrats again!
"We are not here to please, but to provoke thoughtfulness." --Unknown Boglehead

CedarWaxWing
Posts: 653
Joined: Sun Nov 02, 2014 12:24 pm

Re: At a crossroads. Does my plan make sense?

Post by CedarWaxWing » Tue May 15, 2018 11:24 am

gotester2000 wrote:
Mon Apr 30, 2018 9:34 am
Take the lumpsum and retire - you dont need an annuity with 6-7M corpus. Enjoy your life.
And I would reiterate what has been said already:

If the retirement funds are taken as a rollover into a traditional IRA one could take advantage of relatively low tax years to do conversions to a roth if you decide to postpone SS until you accomplish what ever conversions you wish to do. (Obviously, the wisdom of this depends somewhat on what other tIRA funds you have, but your annual expenses suggests that doing some conversions seems sensible for the years during which RMDs are in effect.

The benefits of this would depend a lot on your other funds and whether you would be living on taxable accounts harvesting, and where the money comes from to pay the conversion taxes.

The status of your health in regards to prostate cancer history is also of significance, but the way you mentioned it implies you are doing well in that regard.

CnC
Posts: 552
Joined: Thu May 11, 2017 12:41 pm

Re: At a crossroads. Does my plan make sense?

Post by CnC » Tue May 15, 2018 11:33 am

Your plan is fine.

I would take the payout and invest it.

Honestly as long as you don't invest it all in Bitcoin or some random futures market you are going to be just fine.

I would talk about to your employer about Cobra and then just be gone.

If you loved your job you could stay working, but there is no reason what so ever to work a job you don't want.

Post Reply