Rescheduling a 2020 Retirement Date?

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TresBelle65
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Rescheduling a 2020 Retirement Date?

Post by TresBelle65 »

I'm in good health, federal employee nearing 60 yrs of age. My original retirement date was 3/31/2020.

As I was sliding into home plate, the world came unhinged, the markets tanked and the world came to a virtual stand still (as you all know)....doom and gloom everywhere, predictions of untold future disasters.
I skipped my retirement and just kept working - wasn't too hard now that I am working from home 100% of the time and the extra income has made up for a little bit of the earlier losses.

I had not and still haven't witnessed anything like this - even though I have survived the millenial year tech meltdown and financial meltdown of 2008/2009.

It's the upside-down income side of the investment equation, staggering economic activity downturn and job losses that have concerned me - more than the market volativity....I am used to the latter, but have never seen the former.

So now the market has somewhat been restored and economic activity is returning....I still can't comprehend how we return to the pre-virus economy until somewhere ....somewhere farther down the road.

So I am thinking of a new retirement date - either 8/20 or 9/20.

I have a portfolio that - as of today - will easily allow Lean Fire and add to that - my pension (though only 12K/year) and Soc Sec of $24K/year @ 62 - and subsidized health care starting upon retirement - it seems like Full Fire to me.

Anyone else jettison retirement plans and now thinking to resume them?

Maybe it's only me - but it seems hard to know how to plan given all the market and news volativity?
Pinotage
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Re: Rescheduling a 2020 Retirement Date?

Post by Pinotage »

TresBelle65 wrote: Sun May 31, 2020 12:26 pm I'm in good health, federal employee nearing 60 yrs of age. My original retirement date was 3/31/2020.

As I was sliding into home plate, the world came unhinged, the markets tanked and the world came to a virtual stand still (as you all know)....doom and gloom everywhere, predictions of untold future disasters.
I skipped my retirement and just kept working - wasn't too hard now that I am working from home 100% of the time and the extra income has made up for a little bit of the earlier losses.

I had not and still haven't witnessed anything like this - even though I have survived the millenial year tech meltdown and financial meltdown of 2008/2009.

It's the upside-down income side of the investment equation, staggering economic activity downturn and job losses that have concerned me - more than the market volativity....I am used to the latter, but have never seen the former.

So now the market has somewhat been restored and economic activity is returning....I still can't comprehend how we return to the pre-virus economy until somewhere ....somewhere farther down the road.

So I am thinking of a new retirement date - either 8/20 or 9/20.

I have a portfolio that - as of today - will easily allow Lean Fire and add to that - my pension (though only 12K/year) and Soc Sec of $24K/year @ 62 - and subsidized health care starting upon retirement - it seems like Full Fire to me.

Anyone else jettison retirement plans and now thinking to resume them?

Maybe it's only me - but it seems hard to know how to plan given all the market and news volativity?
Sounds like no downside to postponing a few months.

If we are really just talking about August or September, using the end of March as the starting point you’re potentially halfway there already.

WFH this summer, daydream about what you’ll do once retired and the world is a little more open.
02nz
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Re: Rescheduling a 2020 Retirement Date?

Post by 02nz »

Yes there's a lot going on in the world. But your post doesn't say how any of them impacts your retiring now, nor how postponing to some future date mitigates uncertainties. As a federal employee you have way fewer uncertainties (e.g., health of pension system, health care) than most retirees, in fact. How are you measuring your readiness for retirement? I'm not near retirement, but if I had been planning to retire in March, then being ready (financially, emotionally, etc.) for retirement would not depend on news events are happening now.
stan1
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Re: Rescheduling a 2020 Retirement Date?

Post by stan1 »

Have you considered working until 62 to get the extra 10% bump in pension that comes at age 62, greater average high 3 salary due to COLAs, 2 more years of service, and more sick leave credited to your years of service? Given your pension benefit of $12K/year this would help out.

I expect some federal employees will continue to telework full time or at least multiple days per week for a long time, possibly until you are 62.
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Watty
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Re: Rescheduling a 2020 Retirement Date?

Post by Watty »

TresBelle65 wrote: Sun May 31, 2020 12:26 pm Maybe it's only me - but it seems hard to know how to plan given all the market and news volativity?
Another non-financial factor to consider is how COVID-19 may have changed your post retirement plans. A lot of people plan big trips either internationally or domestically when they retire or to get involved with other post retirement social activities. If you cannot do those then being retired and mostly at home might not be nearly as appealing.

If you don't have a lot of post retirement plans that you can still do then that alone could make delaying your retirement by a few more months a good choice.

Realistically you may not be able to really make any long term plans so you may need to just decide what to do one month at a time.
Topic Author
TresBelle65
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Re: Rescheduling a 2020 Retirement Date?

Post by TresBelle65 »

Yes, I've considered two more years and done that math...I just don't think mentally I can hang on much longer. I don't like the organization I work for - at all - and it doesn't seem worthwhile to seek out federal employment elsewhere, just to turn around and leave them in a relatively short amount of time. I was a 2009 mid-career changer, maybe this decision would be easier for a federal employee lifer.

As mentioned, I have no idea what will happen in the future that would make it worthwhile to try to stick it out - 3 more months, 6 more months, etc. Really, there likely aren't any objective measures to place on this - and I know...this goes against principals of behavioral finance.

I just want gone and I can afford it. It's the global events of late that have shaken me.

Surely I can't be alone in this feeling.
02nz
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Re: Rescheduling a 2020 Retirement Date?

Post by 02nz »

TresBelle65 wrote: Sun May 31, 2020 1:17 pm I just want gone and I can afford it. It's the global events of late that have shaken me.

Surely I can't be alone in this feeling.
Of course you're not, the events are crazy. But you still haven't articulated what delaying would do, or what you're looking for. It seems like it's not financial. So what is it? Are you looking to work as a source of stability, personal connections, sense of purpose, or something else? You need to think that through and articulate it, otherwise this discussion is going nowhere, if you'll excuse my being frank.
Topic Author
TresBelle65
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Re: Rescheduling a 2020 Retirement Date?

Post by TresBelle65 »

I appreciate the frankness, truly I do. I suppose that working a little longer provides a bit of security in case a second wave of the virus occurs and the markets crash again and crash even further - I suppose to articulate it more clearly - the fear is retiring and THEN there is another huge economic downturn.

I have tried to defend myself against this by keeping a pile of cash so I don't have to sell securities any time soon.

Realistically, this can happen anytime - a virus wave or no virus wave.

It just feels like a high risk in the current time frame.


AND - yes as Watty said, my plans for immediate post retirement called for plenty of international and domestic travel and well, we all know that's up in the air for now.

Thanks for the therapy lol
02nz
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Re: Rescheduling a 2020 Retirement Date?

Post by 02nz »

Nothing wrong with holding off for a few months since you won't be able to do what you'd planned anyway. But have you done the math on how much you'd add to the nest egg and pension?
makingmistakes
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Re: Rescheduling a 2020 Retirement Date?

Post by makingmistakes »

Given your financial fear, coupled with the fact that your retirement activities can’t begin as planned yet, plus working from home takes a lot of the pain of working away, I’d just continue working from home for a while. You’ve reached that point where you can quit any time, so even that makes work more endurable.
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Eagle33
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Re: Rescheduling a 2020 Retirement Date?

Post by Eagle33 »

TresBelle65 wrote: Sun May 31, 2020 2:01 pm I appreciate the frankness, truly I do. I suppose that working a little longer provides a bit of security in case a second wave of the virus occurs and the markets crash again and crash even further - I suppose to articulate it more clearly - the fear is retiring and THEN there is another huge economic downturn.

I have tried to defend myself against this by keeping a pile of cash so I don't have to sell securities any time soon.

Realistically, this can happen anytime - a virus wave or no virus wave.

It just feels like a high risk in the current time frame.


AND - yes as Watty said, my plans for immediate post retirement called for plenty of international and domestic travel and well, we all know that's up in the air for now.

Thanks for the therapy lol
How many years of annual retirement expenses is in your pile of cash? Will that cash and your bonds amount be sufficient for the time it will take for stock to recover after your theoretical market crash?
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.
Topic Author
TresBelle65
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Re: Rescheduling a 2020 Retirement Date?

Post by TresBelle65 »

4-5 years of living expenses are in cash.
260chrisb
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Re: Rescheduling a 2020 Retirement Date?

Post by 260chrisb »

02nz wrote: Sun May 31, 2020 12:38 pm Yes there's a lot going on in the world. But your post doesn't say how any of them impacts your retiring now, nor how postponing to some future date mitigates uncertainties. As a federal employee you have way fewer uncertainties (e.g., health of pension system, health care) than most retirees, in fact. How are you measuring your readiness for retirement? I'm not near retirement, but if I had been planning to retire in March, then being ready (financially, emotionally, etc.) for retirement would not depend on news events are happening now.
This says it best!! My plan is to retire 4-1-2022 and as of late last year I started to plan financially so that I'm prepared to actually do it when the time comes. I've had many people say "isn't this going to change your timing with all that is going on"?? No, I don't think so. If we go into a deep extended depression and I lose 75% of my saving; maybe but our current state of affairs can be weathered. I've often wondered in the last couple years if people actually plan (reduce risk and protect assets) properly as they get near the actual projected date of retirement. For me, a couple years is enough to plan for the initial few years while having saved for 25 years! Delaying it several months isn't a big deal. The question is; are you ready financially and emotionally to retire? For me, financially I'm ready and this week being my 13th week "off" has help prepare me emotionally.
Faith20879
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Re: Rescheduling a 2020 Retirement Date?

Post by Faith20879 »

TresBelle65 wrote: Sun May 31, 2020 12:26 pm Anyone else jettison retirement plans and now thinking to resume them?
I am in a similar situation.

Original retirement date was set on 5/5/2020 - right after the April paycheck that would have frontloaded my 401k 100%.

Then C-19 lockdown happened. Decided to postpone to 6/5/2020, hoping the virus would clear up a bit so that I don't have to risk my health to go in to office to process retirement paperwork and clean up my stuff. WFH also made "work" much more tolerable and saved me from all those meaningless meetings.

Now 6/5 is fast approaching and my county is nowhere near phase II. My revised date is looking more likely the end of August or the day we have to go back to WFO, whichever is the earliest.

My DH and I use a hybrid LMP approach so markets' up and down is less of a threat to our finances.
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samsoes
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Re: Rescheduling a 2020 Retirement Date?

Post by samsoes »

Faith20879 wrote: Mon Jun 01, 2020 11:13 am My DH and I use a hybrid LMP approach so markets' up and down is less of a threat to our finances.
What us a "hybrid LMP?" Google says it's a Le Mans prototype race car.
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WoodSpinner
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Re: Rescheduling a 2020 Retirement Date?

Post by WoodSpinner »

LMP = Liability Matching Portfolio, https://www.bogleheads.org/wiki/Matching_strategy

The poster will have to explain what their Hybrid Approach consists of.

FWIW, mine involves keeping the next 10 years of expenses (Expected Income - Expenses) in Treasuries. In my case, we should not need to tap the Retirement Portfolio once SS starts for me at 70. At least that is what my Cashflow projections indicate. It’s a workable plan, one of many approaches.

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Faith20879
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Re: Rescheduling a 2020 Retirement Date?

Post by Faith20879 »

WoodSpinner wrote: Mon Jun 01, 2020 11:45 am LMP = Liability Matching Portfolio, https://www.bogleheads.org/wiki/Matching_strategy

The poster will have to explain what their Hybrid Approach consists of.
Thanks, WoodSpinner for explaining it.

I first learned about LMP from this thread:viewtopic.php?f=10&t=245377

I said "hybrid" because we have a large holding of savings bonds, not the typical bonds. Perhaps "quasi" would have been a better word.
ColoRetiredGirl
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Re: Rescheduling a 2020 Retirement Date?

Post by ColoRetiredGirl »

260chrisb wrote: Mon Jun 01, 2020 7:24 am
02nz wrote: Sun May 31, 2020 12:38 pm Yes there's a lot going on in the world. But your post doesn't say how any of them impacts your retiring now, nor how postponing to some future date mitigates uncertainties. As a federal employee you have way fewer uncertainties (e.g., health of pension system, health care) than most retirees, in fact. How are you measuring your readiness for retirement? I'm not near retirement, but if I had been planning to retire in March, then being ready (financially, emotionally, etc.) for retirement would not depend on news events are happening now.
This says it best!! My plan is to retire 4-1-2022 and as of late last year I started to plan financially so that I'm prepared to actually do it when the time comes. I've had many people say "isn't this going to change your timing with all that is going on"?? No, I don't think so. If we go into a deep extended depression and I lose 75% of my saving; maybe but our current state of affairs can be weathered. I've often wondered in the last couple years if people actually plan (reduce risk and protect assets) properly as they get near the actual projected date of retirement. For me, a couple years is enough to plan for the initial few years while having saved for 25 years! Delaying it several months isn't a big deal. The question is; are you ready financially and emotionally to retire? For me, financially I'm ready and this week being my 13th week "off" has help prepare me emotionally.
Are you FERS? If so, talk to HR for the best date to retire. FERS employees should retire prior the month end while CSRS employees should retire at the beginning of the month. It has to do with when you will receive your first pension payment. I would double check my statements. I was FERS and retired the last day of the month. My HR people got me the best pension amount just by talking to them and reports they ran. Just my 2 cents.
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