Is it time for me to "call in rich"?

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bhsince87
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Is it time for me to "call in rich"?

Post by bhsince87 » Wed Jan 10, 2018 9:34 pm

I've been planning for a long time to retire in the year I turn 55. That is two years from now. But I am thinking about hitting the silk earlier. Like, in the next few weeks... So this will be the proverbial "can we really pull this off?" post.

This year, I turn 53. I've been investing since 1987 (hence my name here), and the market has been kind. For a long time, I had a goal ("number") of $1.5 million. Then when we hit that, I raised it to $2 million. Then $2.5 million.

Now we're at at $3.2 million!

My salary is highly bonus dependent. It varies between $100k and $180k per year. Plus I get a 12% 401K match. The last few years have been at the high end. My wife, DW, makes $55k per year with a 6% match. She also has an online business that nets $15k-$20k per year. It takes up an hour of her time most evenings, which is when I cook!

We currently have about $1.6 million in 401k's. That is almost all traditional ( tax deferred), except for $25k in a Roth. I've also got $60k in after tax contributions that I can roll into a "mega backdoor Roth" when I decide to do so.

And we have $1.7 million in after tax accounts. Currently, $300k of that is in CDs and cash accounts. About $900k of the after tax is in individual stocks, with about $600k of capital gains.

I will get a $10k per year non-COLA pension at age 65. Social Security for me at FRA (67) is about $30k. For DW, about $24k.

We've set aside $100k of the after tax cash for home improvements and building a stand alone workshop/garage for me to play around in during my retirement. I currently have a fully equipped wood working shop and a metal working shop in our basement. But it's crowded. And loud! And the fumes and dust aren't good for our living space. But I only spend a few hours a week down there at this point. I'd like to ramp up that activity.

So let's say we have $3.2 million invested assets. Our house is worth about $400k, and my wife owns her mother's house, which is worth about $150k.

And if you want to go down in the weeds, DW has about $100k in business inventory, which should translate eventually into $300k of profits. From my previous hobby/part time business venture of jewelry making, I have about $50k in precious metals, $20k in gems. $70k in timber. And also $20k in guns and ammo. Plus a year's worth of food! Three vehicles paid off. A skidsteer, trailer, ATV and accessories worth about $25k No debt.

We have no kids, and have no desire to leave a legacy.

Our bare minimum existence costs are about $40k per year (and that's eating very well!). A few years ago, we tried living on $48k one year, and it was doable, with one week vacation.

Our target retirement spending is around $65k per year, not counting health insurance. If we qualify for ACA subsidies, we can get a package for about $4k max out of pocket per year, which would be great! If not, we're looking at potentially $30k out of pocket per year!

That would put our yearly spend near $95k! But I think we're at the point where even that is doable. But in all likelihood, we're going to be closer to $70k.


Our original plan was to both retire in the year when we hit 55. Dw is currently 50. So that would be two years hence for me, four for her.

But I recently got a new boss (he's 28), and I've lost interest in my job. I was an engineering manager for many years, but I've transitioned back into a purely engineering role over the past 4-5 years. I figured this would be more amenable to remote work, part time work, and would increase my job opportunities.

I am very well known in my industry, with a good reputation, globally. I could get a new job pretty much anywhere in the world where there is an electronics company. At least for the next few years, until I turn 55 or so. Then all bets are off... But truth be told, I'm tired of this job. I've been doing it non-stop for 30+ years, and I'm ready for something else!

All that being said (and I apologize, it's a lot!), I'm still practically paralyzed about the thought of walking away from this gig! Even if I only do it for two more years.

If I do retire, I figure I would have many years of Roth conversions and capital gain harvesting. And I'd probably find a way to make some money doing something I like.

For two years at least, we'd be on my wife's health insurance. After that, who knows? We both have minor pre-existing conditions, so that's a bit of a concern.

Does anyone have any words of wisdom, advice, or can point out something I'm missing?

Thanks!
Retirement: When you reach a point where you have enough. Or when you've had enough.

radiowave
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Re: Is it time for me to "call in rich"?

Post by radiowave » Wed Jan 10, 2018 9:39 pm

Sounds like a good plan. Healthcare is the biggest unknown and cost. Do you want that uncertainty until you both turn 65?
Last edited by radiowave on Wed Jan 10, 2018 9:42 pm, edited 1 time in total.
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kerplunk
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Re: Is it time for me to "call in rich"?

Post by kerplunk » Wed Jan 10, 2018 9:42 pm

Yes, you can easily and safely retire.

Keep in mind that working for two more years would increase your net worth significantly.
Last edited by kerplunk on Wed Jan 10, 2018 9:50 pm, edited 1 time in total.

sambb
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Re: Is it time for me to "call in rich"?

Post by sambb » Wed Jan 10, 2018 9:43 pm

yes you are rich, not sure wht else is actionable good luck

michaelsieg
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Re: Is it time for me to "call in rich"?

Post by michaelsieg » Wed Jan 10, 2018 9:57 pm

Congratulations BH87!
What a great achievement. I am not sure that I can give you any good advice, you know very well that your plan to retire is as solid as it can get. What seems important to me is that you prepare for retirement not only financially, but that you have a plan about what you want to do with your time. For some people it can be difficult to go from a demanding highly structured professional career to zero - also it can be difficult in terms of your social life if most of your friends and colleagues are still working - if that might be a problem you could consider is to wind down gradually and start with part time work.
In terms of investing I am sure you know all about sequence of returns risk in early retirement and it probably makes sense to err on the conservative side in terms of investing in the first few years of retirement.
Good luck!
Michael

Bacchus01
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Re: Is it time for me to "call in rich"?

Post by Bacchus01 » Wed Jan 10, 2018 10:30 pm

Do you have 35 years of credit for SS? Run the math to see if an extra year or two makes a difference.

Are there any kicks on your retirement plan? For example, for our plan, 55 is a milestone that’s important in the retirement plan. How much is that worth?

bhsince87
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Re: Is it time for me to "call in rich"?

Post by bhsince87 » Wed Jan 10, 2018 10:35 pm

michaelsieg wrote:
Wed Jan 10, 2018 9:57 pm
Congratulations BH87!
What a great achievement. I am not sure that I can give you any good advice, you know very well that your plan to retire is as solid as it can get. What seems important to me is that you prepare for retirement not only financially, but that you have a plan about what you want to do with your time. For some people it can be difficult to go from a demanding highly structured professional career to zero - also it can be difficult in terms of your social life if most of your friends and colleagues are still working - if that might be a problem you could consider is to wind down gradually and start with part time work.
In terms of investing I am sure you know all about sequence of returns risk in early retirement and it probably makes sense to err on the conservative side in terms of investing in the first few years of retirement.
Good luck!
Michael
Well, yes, I forgot to mention this... I have no idea what I am going to do! I've always read you should retire to something, not away from something. That does not describe me! I'm the opposite, actually. And that worries me a little.

The only times I've been bored in the last 30+ years were when I was sitting in useless meetings. So I think I'll be OK. |

We have never been in to traveling much, so that's not a goal.

I have hobbies I've always thought I'd want to focus on, but never had the time or energy. I am hoping that will keep me happy, but I don't know.

I guess there is only on way to find out!
Retirement: When you reach a point where you have enough. Or when you've had enough.

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Re: Is it time for me to "call in rich"?

Post by JBTX » Wed Jan 10, 2018 10:37 pm

Seems like you are in really good shape financially.

Given you don't really have a plan, I'd be a little concerned about your reasons for retiring, and what you are going to do instead. Any possibility of doing any consulting on the side?

bhsince87
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Re: Is it time for me to "call in rich"?

Post by bhsince87 » Wed Jan 10, 2018 10:40 pm

Bacchus01 wrote:
Wed Jan 10, 2018 10:30 pm
Do you have 35 years of credit for SS? Run the math to see if an extra year or two makes a difference.

Are there any kicks on your retirement plan? For example, for our plan, 55 is a milestone that’s important in the retirement plan. How much is that worth?
Hmmm, good points to consider! Thank you.


I will only have 32 years Social Security credits. But it looks like it only makes a small ($100 a month) difference.

My retirement plan is from a previous employer, so I don't think there is any significance there.
Retirement: When you reach a point where you have enough. Or when you've had enough.

bhsince87
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Re: Is it time for me to "call in rich"?

Post by bhsince87 » Wed Jan 10, 2018 10:44 pm

JBTX wrote:
Wed Jan 10, 2018 10:37 pm
Seems like you are in really good shape financially.

Given you don't really have a plan, I'd be a little concerned about your reasons for retiring, and what you are going to do instead. Any possibility of doing any consulting on the side?
I am trying to work out a deal where I can work part time as a 1099 contractor with my current employer. I'm pretty sure I can make that happen.

But I'm not sure I even want to do that. Just sick of the mess...... But I guess it can't hurt for a few years.

I'm also pretty sure I can also find contract/consultant employment elsewhere if need be.
Retirement: When you reach a point where you have enough. Or when you've had enough.

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Top99%
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Re: Is it time for me to "call in rich"?

Post by Top99% » Wed Jan 10, 2018 10:48 pm

I think this is a slam dunk case finance wise. The key is you have such a low expense floor (way under 2%) relative to your nest egg size.
I would go for it for sure. If you work for a Megacorp you might check and see if they will let you stay in their group health care plan at your expense.
Adapt or perish

JBTX
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Re: Is it time for me to "call in rich"?

Post by JBTX » Wed Jan 10, 2018 10:49 pm

bhsince87 wrote:
Wed Jan 10, 2018 10:44 pm
JBTX wrote:
Wed Jan 10, 2018 10:37 pm
Seems like you are in really good shape financially.

Given you don't really have a plan, I'd be a little concerned about your reasons for retiring, and what you are going to do instead. Any possibility of doing any consulting on the side?
I am trying to work out a deal where I can work part time as a 1099 contractor with my current employer. I'm pretty sure I can make that happen.

But I'm not sure I even want to do that. Just sick of the mess...... But I guess it can't hurt for a few years.

I'm also pretty sure I can also find contract/consultant employment elsewhere if need be.
With the new tax law 1099 contract work gets 20% deduction of net business income.

You can always give it a shot. If you don't like it, then stop. No harm done. I've worked 1099 before, and I find it less stressful. I don't care about all the corporate BS. I'm there to add value doing what I do. Work as much as you want. Go in late. Leave early. People won't care because you don't bill for what you don't work.

pitt76
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Re: Is it time for me to "call in rich"?

Post by pitt76 » Wed Jan 10, 2018 10:54 pm

I always tell people that my definition of rich is people without kids. When I read your post , I eventually came to the line where you have no kids. Yes, you are rich . LOL

moneywise3
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Re: Is it time for me to "call in rich"?

Post by moneywise3 » Wed Jan 10, 2018 11:02 pm

Yes you can easily do it. It’s an enviable position to be in.

JBTX
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Re: Is it time for me to "call in rich"?

Post by JBTX » Wed Jan 10, 2018 11:03 pm

pitt76 wrote:
Wed Jan 10, 2018 10:54 pm
I always tell people that my definition of rich is people without kids. When I read your post , I eventually came to the line where you have no kids. Yes, you are rich . LOL

Exactly. We are about the same age as OP, with somewhat less, but 2 kids. it is entirely plausible we would be in similar financial position as OP without kids.

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Sandtrap
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Re: Is it time for me to "call in rich"?

Post by Sandtrap » Wed Jan 10, 2018 11:09 pm

At age 55 with even 100k/year in expense with $3.5 mil. is 35X.
Sounds great IMHO and welcome to retirement and huge congratulations on your hard earned successes :sharebeer
The unknown are healthcare costs from 55 to 65 when medicare kicks in.

j :D

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Watty
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Re: Is it time for me to "call in rich"?

Post by Watty » Wed Jan 10, 2018 11:27 pm

bhsince87 wrote:
Wed Jan 10, 2018 9:34 pm
Our target retirement spending is around $65k per year,
.......
will get a $10k per year non-COLA pension at age 65. Social Security for me at FRA (67) is about $30k. For DW, about $24k.
Let's see, once you are both getting medicare you will need $65,000 and with just Social Security and the pension you will have $64,000 a year in income. :oops:

Both stocks and bonds are paying roughly a 2% dividend. 2% of $3.5 million is $70,000. :oops:

For a total of $135,000 a year by the time you are 67 :beer

There are lots of details on how to fund the years until you are in your mid in your 60's but it looks good to me.

Having one retired spouse and one working can be hard for some people to make work so you may want to both retire at the same time so that you can do things like travel.

I am in a much different situation but I am buying an ACA policy and need to for a few more years so the uncertainty about the ACA is concerning but for what little it is worth my gut feel is that there will be something that will be available even if it is not cheap.

bhsince87
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Re: Is it time for me to "call in rich"?

Post by bhsince87 » Wed Jan 10, 2018 11:38 pm

Watty wrote:
Wed Jan 10, 2018 11:27 pm
bhsince87 wrote:
Wed Jan 10, 2018 9:34 pm
Our target retirement spending is around $65k per year,
.......
will get a $10k per year non-COLA pension at age 65. Social Security for me at FRA (67) is about $30k. For DW, about $24k.
Let's see, once you are both getting medicare you will need $65,000 and with just Social Security and the pension you will have $64,000 a year in income. :oops:

Both stocks and bonds are paying roughly a 2% dividend. 2% of $3.5 million is $70,000. :oops:

For a total of $135,000 a year by the time you are 67 :beer

There are lots of details on how to fund the years until you are in your mid in your 60's but it looks good to me.

Having one retired spouse and one working can be hard for some people to make work so you may want to both retire at the same time so that you can do things like travel.

I am in a much different situation but I am buying an ACA policy and need to for a few more years so the uncertainty about the ACA is concerning but for what little it is worth my gut feel is that there will be something that will be available even if it is not cheap.

Thanks Watty!

I think our problem is more mental than mathematical at this point.

It probably shouldn't be discussed here by current rules, but it's a real issue for me!

I'm freaking out over this decision, but I'm pretty sure I shouldn't be worrying.
Retirement: When you reach a point where you have enough. Or when you've had enough.

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Re: Is it time for me to "call in rich"?

Post by flyingaway » Thu Jan 11, 2018 12:11 am

bhsince87 wrote:
Wed Jan 10, 2018 9:34 pm
I've been planning for a long time to retire in the year I turn 55. That is two years from now. But I am thinking about hitting the silk earlier. Like, in the next few weeks... So this will be the proverbial "can we really pull this off?" post.

This year, I turn 53. I've been investing since 1987 (hence my name here), and the market has been kind. For a long time, I had a goal ("number") of $1.5 million. Then when we hit that, I raised it to $2 million. Then $2.5 million.

Now we're at at $3.2 million!

My salary is highly bonus dependent. It varies between $100k and $180k per year. Plus I get a 12% 401K match. The last few years have been at the high end. My wife, DW, makes $55k per year with a 6% match. She also has an online business that nets $15k-$20k per year. It takes up an hour of her time most evenings, which is when I cook!

We currently have about $1.6 million in 401k's. That is almost all traditional ( tax deferred), except for $25k in a Roth. I've also got $60k in after tax contributions that I can roll into a "mega backdoor Roth" when I decide to do so.

And we have $1.7 million in after tax accounts. Currently, $300k of that is in CDs and cash accounts. About $900k of the after tax is in individual stocks, with about $600k of capital gains.

I will get a $10k per year non-COLA pension at age 65. Social Security for me at FRA (67) is about $30k. For DW, about $24k.

We've set aside $100k of the after tax cash for home improvements and building a stand alone workshop/garage for me to play around in during my retirement. I currently have a fully equipped wood working shop and a metal working shop in our basement. But it's crowded. And loud! And the fumes and dust aren't good for our living space. But I only spend a few hours a week down there at this point. I'd like to ramp up that activity.

So let's say we have $3.2 million invested assets. Our house is worth about $400k, and my wife owns her mother's house, which is worth about $150k.

And if you want to go down in the weeds, DW has about $100k in business inventory, which should translate eventually into $300k of profits. From my previous hobby/part time business venture of jewelry making, I have about $50k in precious metals, $20k in gems. $70k in timber. And also $20k in guns and ammo. Plus a year's worth of food! Three vehicles paid off. A skidsteer, trailer, ATV and accessories worth about $25k No debt.

We have no kids, and have no desire to leave a legacy.

Our bare minimum existence costs are about $40k per year (and that's eating very well!). A few years ago, we tried living on $48k one year, and it was doable, with one week vacation.

Our target retirement spending is around $65k per year, not counting health insurance. If we qualify for ACA subsidies, we can get a package for about $4k max out of pocket per year, which would be great! If not, we're looking at potentially $30k out of pocket per year!

That would put our yearly spend near $95k! But I think we're at the point where even that is doable. But in all likelihood, we're going to be closer to $70k.


Our original plan was to both retire in the year when we hit 55. Dw is currently 50. So that would be two years hence for me, four for her.

But I recently got a new boss (he's 28), and I've lost interest in my job. I was an engineering manager for many years, but I've transitioned back into a purely engineering role over the past 4-5 years. I figured this would be more amenable to remote work, part time work, and would increase my job opportunities.

I am very well known in my industry, with a good reputation, globally. I could get a new job pretty much anywhere in the world where there is an electronics company. At least for the next few years, until I turn 55 or so. Then all bets are off... But truth be told, I'm tired of this job. I've been doing it non-stop for 30+ years, and I'm ready for something else!

All that being said (and I apologize, it's a lot!), I'm still practically paralyzed about the thought of walking away from this gig! Even if I only do it for two more years.

If I do retire, I figure I would have many years of Roth conversions and capital gain harvesting. And I'd probably find a way to make some money doing something I like.

For two years at least, we'd be on my wife's health insurance. After that, who knows? We both have minor pre-existing conditions, so that's a bit of a concern.

Does anyone have any words of wisdom, advice, or can point out something I'm missing?

Thanks!
No desire to leave a legacy and no plan for extensive travel? I don't know why you even consider working. You have way more than enough for your living expenses.

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Re: Is it time for me to "call in rich"?

Post by Atgard » Thu Jan 11, 2018 12:11 am

As you said, your numbers are solid. You can do it tomorrow and be more than fine.

But, like you said, psychologically it's hard to go from work-save-invest, work-save-invest, work-save-invest to starting to run those wheels in reverse and spend down your hard-earned savings.

If you said you still loved your job and found it challenging and fun, I'd say stick it out another couple of years. But it sounds like you're sick of the crap. By living below your means and saving and being disciplined for decades, you have earned the ability -- no, the right -- to leave a situation you don't want to be in. This is why we forego all those extravagances we see others spending money on, for this moment, this choice, this opportunity.

Do it, and enjoy. :sharebeer

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Artsdoctor
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Re: Is it time for me to "call in rich"?

Post by Artsdoctor » Thu Jan 11, 2018 12:17 am

Generally, I’d think that “retiring” far younger than most without any plan would be more challenging than enjoyable. Finances are not the concern, but are there any outside interests at all? You don’t need a full schedule but having a vague idea of what interests you would be helpful.

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Re: Is it time for me to "call in rich"?

Post by TravelGeek » Thu Jan 11, 2018 12:22 am

radiowave wrote:
Wed Jan 10, 2018 9:39 pm
Sounds like a good plan. Healthcare is the biggest unknown and cost. Do you want that uncertainty until you both turn 65?
What is the alternative, though? Work until 65?

I am in a similar situation as the OP, with the same healthcare uncertainty. There is just no way I can work until Medicare in my current job; the thought is just extremely depressing (which by itself is a potential heath issue). I think the uncertainty is just one of the risks I have to accept.
kerplunk wrote:
Wed Jan 10, 2018 9:42 pm
Yes, you can easily and safely retire.

Keep in mind that working for two more years would increase your net worth significantly.
True, and after those two years there are two more that would increase the net work. The question is: When is it enough? I’d argue the OP has enough. I am trying to convince myself of the same :)

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Re: Is it time for me to "call in rich"?

Post by quantAndHold » Thu Jan 11, 2018 12:33 am

Artsdoctor wrote:
Thu Jan 11, 2018 12:17 am
Generally, I’d think that “retiring” far younger than most without any plan would be more challenging than enjoyable. Finances are not the concern, but are there any outside interests at all? You don’t need a full schedule but having a vague idea of what interests you would be helpful.
I don’t get this idea that if you’re not working and don’t have a plan, then you’re going to be bored and unhappy. Are people really so unimaginative that they can’t think of anything to do if their boss isn’t telling them to do it?

I retired at 53, with no plan other than to not go to work anymore. I have no trouble figuring out what to do with my time. I don’t have time for all the things I’d like to do, actually.

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Re: Is it time for me to "call in rich"?

Post by Oreamnos » Thu Jan 11, 2018 12:36 am

Love this post. Your situation is so very much like ours in so many ways. DW and I also turn 53 this year, and we also both started in 1987. Our 401k/403b balances are very similar to yours. Engineering manager. No kids. No desire to leave any big chunks of money to anyone. Fairly tired of the routine. Etc..

It's quite nice to see that everyone here thinks you're in great shape. By extension, that is rather reassuring for us.

Congrats!

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Re: Is it time for me to "call in rich"?

Post by TravelGeek » Thu Jan 11, 2018 12:37 am

quantAndHold wrote:
Thu Jan 11, 2018 12:33 am

I don’t get this idea that if you’re not working and don’t have a plan, then you’re going to be bored and unhappy. Are people really so unimaginative that they can’t think of anything to do if their boss isn’t telling them to do it?

I retired at 53, with no plan other than to not go to work anymore. I have no trouble figuring out what to do with my time. I don’t have time for all the things I’d like to do, actually.
I feel the same. There are lots of books I would like to read, and more get written every day. There are lots of trails I would like to hike. I would like to exercise more. I would like to travel more. There are at least two languages I would like to (re-) learn.

I don’t think I need one specific thing to retire to.

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Re: Is it time for me to "call in rich"?

Post by WoodSpinner » Thu Jan 11, 2018 12:45 am

OP,

I started asking the same type of questions last year at this time. I found this forum to be a great place to develop a plan and bounce it off the collective wisdom. Ended up deciding to retire 5 years early (58), but it took me awhile to get comfortable with the plan and the various decisions that needed to be made. Retired In Dec2017. And am just getting started.

It’s clear you can do this from a financial perspective. Have you started to adjust your AA to a level of comfort for retirement?

Sounds like you are a Maker (I am as well) which can be part of what you retire to.

You mentioned it wouldn’t be hard to find a new job or part time work, so that could be a Plan-B if you don’t like it.

So, what is holding you back? What more information or analysis will make you feel comfortable?

Would can we do to help?

WoodSpinner :beer

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Artsdoctor
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Re: Is it time for me to "call in rich"?

Post by Artsdoctor » Thu Jan 11, 2018 12:49 am

^ You don’t need a specific plan. Changing gears from a career to “retirement” at a relatively young age is a significant life switch. There’s a big difference between saying “I’ve always wanted to spend more time pursuing my interests in X” rather than “I’ve had it with my job, anything is better than this, and I have no idea what I’m interested in.”

At any rate, it’s clear that the OP can afford to cut back, which was ostensibly what he was asking. It’s just that after the money aspect is taken care of, you’d like to imagine something that would make your days fulfilling. It’s not a given that people easily adapt to early retirement.

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Re: Is it time for me to "call in rich"?

Post by techrover » Thu Jan 11, 2018 12:56 am

You have enough assets and not many liabilities to do what you want.
As others mentioned, health insurance would be one concern, but a good way to deal with it would be to get in better health by using this early retirement option. There are great many ways to regain/recover from many health ailments if you do not follow the Western medicinal approach, but instead follow holistic/homeopathic/ayurvedic approaches.

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Re: Is it time for me to "call in rich"?

Post by EnjoyIt » Thu Jan 11, 2018 2:03 am

As almost everyone above has pointed out you have more than enough to retire. If you don't want to leave a legacy I highly advise you to get a boat and a fancy sports car. You have 3.2 million with at least $300k in cash coming your way from sales. That $300k will last you easily for 3 years and allow your 3.2 million to keep growing. You also have a pension and social security that should cover your expenses. Even if you set aside $1 million for long term care for yourself and DW, you still have way too much money for someone who has no interest in a bequest.

Regarding what you want to do with yourself after you retire is a much more important question. The problem I am seeing is that you are sick and tired and making your decision while sick and tired. I think you need to step away a little to clear your mind. Any chance for a long vacation or sabbatical? Maybe going part time/consulting to free up your time a little and see what you want to do with the newly found free time.

Personally, If I had your wealth, at your age I would not waste another minute and at a minimum be looking to go part time. I would also look for ways that spending a lilttle more money can enhance my life. I am younger with less wealth and currently working out my plan on going part time at the end of 2018. Life is way to short to spend most of it at work. I enjoy my job and want to keep doing it some, but there are so many other things I want to spend my time doing and I am sick and tired of wasting my precious time away.

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sergeant
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Re: Is it time for me to "call in rich"?

Post by sergeant » Thu Jan 11, 2018 2:06 am

Do it. Now. You will spend the next two years getting your shop/man cave built and outfitted. That should keep you busy. Go to Garage Journal for ideas. Good job on the finances. Enjoy!
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Bfwolf
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Re: Is it time for me to "call in rich"?

Post by Bfwolf » Thu Jan 11, 2018 2:19 am

I agree with everybody else. Do it! You have enough money even WITHOUT SS and your pension. With them, you have OODLES of money. You will find things to occupy your time. Or if you can't, that problem's still going to be there in 2 years. You're finding work tiresome so stop doing it!!!

CurlyDave
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Re: Is it time for me to "call in rich"?

Post by CurlyDave » Thu Jan 11, 2018 2:33 am

The convincer for me was the realization that I did not know how many days I had left, but that I was selling them to the company for less than they were worth to me.

I was 61 and had less than you in assets, but also pensions and SS which added an income floor. Also had rental properties. Right now, managing the rentals is a part time job which is satisfying and adds to our budget. 72 now.

Acepilot
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Re: Is it time for me to "call in rich"?

Post by Acepilot » Thu Jan 11, 2018 6:21 am

Congratulations on your situation. I would agreee you are there and could retire comfortably.

I would suggest the slower transition and go to part time work. It’s amazing how it changes your mental view of work and is a nice balance between something you have done and starting something new. Also allows you to keep your head in the game. If you don’t like it then pull the trigger.

Best of luck with your decision.

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Re: Is it time for me to "call in rich"?

Post by 2comma » Thu Jan 11, 2018 6:50 am

87,

If you quit now or work another 10 years you'll eventually retire and be faced with "now what" so you're going to have to figure this out . Obviously you don't have a money issue. Some don't do well in a non-structured environment and some thrive. Which lifestyle do you find more stressful?
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boridi
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Re: Is it time for me to "call in rich"?

Post by boridi » Thu Jan 11, 2018 6:52 am

Bacchus01 wrote:
Wed Jan 10, 2018 10:30 pm
Do you have 35 years of credit for SS? Run the math to see if an extra year or two makes a difference.

Are there any kicks on your retirement plan? For example, for our plan, 55 is a milestone that’s important in the retirement plan. How much is that worth?
An extra year or two would make no difference due to the 32 and 15% marginal rates of the PIA:
https://www.ssa.gov/oact/cola/piaformula.html

Gooseadoose
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Re: Is it time for me to "call in rich"?

Post by Gooseadoose » Thu Jan 11, 2018 7:33 am

I cant contribute to this thread because im 33, but i applaud you for the food, firearms, and timber. We might be neighbors! Ive had a logosol and alaskan mill for a few years and its crazy how quick the slabs pile up. Not stopping till we build a house and everything in it with the saw and sweat equity.

Mike Scott
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Re: Is it time for me to "call in rich"?

Post by Mike Scott » Thu Jan 11, 2018 7:38 am

While it seems clear that finances are not a problem, there is also no rush to actually do it. Before you make any quick decisions, take stock of everything you can think of that is relevant. Make notes. Make plans. Give yourself some time and space to make the mental transition before committing. Then after you know you can make it work, you can then do it any day you feel like it. You may discover that this is good enough for a while.

rkhusky
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Re: Is it time for me to "call in rich"?

Post by rkhusky » Thu Jan 11, 2018 8:01 am

3% of $3.2M is close to $100K. With your expected expenses, you are set. If you get bored, go do some charity work.

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Strayshot
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Re: Is it time for me to "call in rich"?

Post by Strayshot » Thu Jan 11, 2018 8:17 am

Retire! By all measures your asset base should support it assuming the investments are in an appropriate allocation.

Now is the perfect time to get a lot of traveling done over the next decade while your mobility is (hopefully still) good. It also sounds like there are ATVs to be ridden, guns to be shot more often, and jewelry to be made. Heck, perhaps the jewelry will become a side business once again and you won’t be fully retired, but dump the day job. If you are known globally and have a desire to get out of the house on someone else’s dime, do a quick consulting gig as a 1099 contractor. Most friends/family/colleagues who have retired don’t seem to go cold turkey but rather end up with a side business or consulting for a few years before they fully retire.

If you do happen to get an urge to leave a legacy you can put me on the list of bogleheads seeking adoption :sharebeer

saveinvestbecomefree
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Re: Is it time for me to "call in rich"?

Post by saveinvestbecomefree » Thu Jan 11, 2018 8:25 am

Nicely done! As others have mentioned, you are golden financially. Ignore the naysayers that worry about health care. Your assessment of something like $5K per year (current law) and up to $30K per year if things change is my assessment as well. If health care is more than this, a large portion of the country goes bankrupt because most are in much worse shape than you......I don't see it happening in a wealthy country like the US. Plus the only other option is to keep working to 65 (assuming Medicare also never changes).......no thanks. You're likely to regret working to 65 and having a lot more money versus retiring now and focusing on enjoying life (with a very high probability of still having more money than you really want to spend).

It's simply a personal choice at this point but I'd say go for it.

I also don't feel you need to have everything figured out for your retirement life. I may be biased because I don't have things figured out either but I think I'll actually need to retire in order to figure it out. Like you, I have a lot of interests and hobbies and can't imagine being so bored and unfulfilled that I want to return to work. The only people I've seen in this situation were those that loved their work and were defined by it and didn't have any other interests. And surprisingly, even quite a few of these people adjust to retirement and love it more than they ever expected. I don't have clear data but there seems to be a very, very small % of people that actually regret retiring when their finances are in good shape like yours.

drg02b
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Re: Is it time for me to "call in rich"?

Post by drg02b » Thu Jan 11, 2018 8:26 am

Yes, you can retire now. It sounds like you don't have a clear plan for your retired life, so consider going part time for a year or two so you can learn how to build your retired "schedule".

Bacchus01
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Re: Is it time for me to "call in rich"?

Post by Bacchus01 » Thu Jan 11, 2018 8:27 am

boridi wrote:
Thu Jan 11, 2018 6:52 am
Bacchus01 wrote:
Wed Jan 10, 2018 10:30 pm
Do you have 35 years of credit for SS? Run the math to see if an extra year or two makes a difference.

Are there any kicks on your retirement plan? For example, for our plan, 55 is a milestone that’s important in the retirement plan. How much is that worth?
An extra year or two would make no difference due to the 32 and 15% marginal rates of the PIA:
https://www.ssa.gov/oact/cola/piaformula.html

If it raises his average earnings by erasing some zero years, it matters. Probably not much.

livesoft
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Re: Is it time for me to "call in rich"?

Post by livesoft » Thu Jan 11, 2018 8:38 am

Your situation resembles our family's situation around your ages except that you all have higher income, a higher portfolio value, and probably pay more in income taxes. And we had 2 kids about to go to college. Rather than call in rich, you should try to call in part-time and see what happens, but that is clearly not necessary.
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Re: Is it time for me to "call in rich"?

Post by technovelist » Thu Jan 11, 2018 10:13 am

I "retired" for the first time with a lot less money than you have, although I was also older and therefore closer to Social Security and Medicare eligibility.

You're all set financially. As for what to do with all the free time, I've been working on my own projects and often don't have enough time in the day to do everything that I want to do.
In theory, theory and practice are identical. In practice, they often differ.

Pharm91
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Re: Is it time for me to "call in rich"?

Post by Pharm91 » Thu Jan 11, 2018 10:28 am

What I can tell you is that health care without subsidies or employer aid will cost you a fortune at your age until you qualify for medicare. Those suggesting a 2% bond portfolio need to factor in inflationary risk. Other than that If you can keep busy I would say go for it. You've worked hard your whole life, you deserve to enjoy life now.

mortfree
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Re: Is it time for me to "call in rich"?

Post by mortfree » Thu Jan 11, 2018 10:57 am

does your company know you have the finances to retire?

Does your company typically offer separation packages?

the other consideration is if you don't mind your job and you are salaried, unofficially cut back your hours until someone says something. what's the worst they can do to you?

but it is probably best to call it a career at this point and enjoy.

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Re: Is it time for me to "call in rich"?

Post by marcopolo » Thu Jan 11, 2018 1:40 pm

Congratulations!
I think you are in very good shape financially. Although, I think it might still be early in the day - I have not seen any of the "even 1% withdrawal rate is too risky" crowd respond yet.

But, I completely understand your concerns.

My wife and i are in a very similar situation in both expenses and investments, but we do have 2 kids.
We just went through similar inflection point, hit well beyond our target number a little earlier than planned retirement. We are both 51.
My company was re-organizing a couple months ago, I took the opportunity to negotiate a good exit package.
While I am pretty sure I could find other work pretty easily, I am in the process of convincing myself that i don't need to. I hope to officially join the world of retirees next months.

It is both exciting and scary at the same time. Healthcare is still a major concern. Like you, I am budgeting mentally for $30k+ a year in Health insurance costs, with the hope that it will actually be somewhat lower. I don't know that there really is a safe strategy for this for a long early retirement span. Who knows where things will actually end up. But, I figure we are in better shape to handle whatever comes along than the vast majority of people.

Best of luck to you, enjoy your retirement!
:sharebeer
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tampaite
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Re: Is it time for me to "call in rich"?

Post by tampaite » Thu Jan 11, 2018 3:50 pm

bhsince87 wrote:
Wed Jan 10, 2018 9:34 pm
Now we're at at $3.2 million!

Our target retirement spending is around $65k per year, not counting health insurance. If we qualify for ACA subsidies, we can get a package for about $4k max out of pocket per year, which would be great! If not, we're looking at potentially $30k out of pocket per year!

Our original plan was to both retire in the year when we hit 55. Dw is currently 50. So that would be two years hence for me, four for her.
You can retire if that's what you are asking!. Good Luck :D

Golf maniac
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Re: Is it time for me to "call in rich"?

Post by Golf maniac » Thu Jan 11, 2018 4:48 pm

Of course you can retire. Health care is only risk and if you and spouse are in good health, probably not a major risk.

I will give you one caution, you really need to think about how you will spend your days. I retired at 56 two years ago, but I knew exactly what I wanted to do. It took me about a year to get everything set up the way I wanted but now I have a great routine and doing what I love. For the first few months it was weird, not having to go to work, but that didn’t last long.

Good luck... :D :D :) :D

tbradnc
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Re: Is it time for me to "call in rich"?

Post by tbradnc » Thu Jan 11, 2018 6:23 pm

Pretty good! But consider there's a 14 year old around here somewhere with $5,000,000 wondering if he's doing OK... :)

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