Thinking of making a leap to partial retirement.

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rai
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Thinking of making a leap to partial retirement.

Post by rai » Fri Feb 14, 2020 8:41 am

I’m not expecting anyone to talk me into or out of this but maybe just a few words of advice on moving on or semi retirement.

Married 2 physician household, kids are in college but paid for, have already paid private HS and private college full price so after getting that expenses done with was 20% of my spending.

Basically my income went like 35-40% taxes, 20% savings and 40% living expenses etc.

Taxes are max tax bracket, 8% state income which we are no longer able to deduct and net investment income surtax as well as Medicare on our entire income which we pay both employee and employer portion including an additional 0.9% on income over a specific threshold.

I figure if we work part time, our taxes will go down and if we eliminate savings and paying for college we should spend less of our income. We could probably retire free and clear but at age 53/54 have a ways to go until we can get Medicare and Social Security.

We just got a substantial pay out from sale of our practice and we want to relocate to Florida 0% tax from an 8% income tax state. So right away lower taxes plus if we make even less we’d get out of the net investing income surtax and the top tax bracket.

We plan on quitting our group and do temporarily work but cut way back. I don’t really think we need to work at all but I would like to keep some paychecks coming so it’s not 100% from our investments. Our job is in big demand and we can find weekly gigs without too much trouble (Anesthesiologists).

Only thing keeping me here this long is that I’ve been here 23 years and got to know the people well and will miss some of them, but the daily workplace has gotten more toxic and also having the ability to FIRE has gotten my tolerance for BS way down.
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

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Sandtrap
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Re: Thinking of making a leap to partial retirement.

Post by Sandtrap » Fri Feb 14, 2020 8:56 am

The sensibilities, self discipline, and perseverence that built the life and financial position you have now, greatly ensures your success in the strategy you propose going forward.

It's not a "leap" into partial retirement, but just one of life's many transitions.

Can you do it, can you prosper?
Based on past success and existing solid foundation.
yes.

j :happy
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Nowizard
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Re: Thinking of making a leap to partial retirement.

Post by Nowizard » Fri Feb 14, 2020 9:03 am

You can do it. The issue is not financial but psychological. You and your wife made major, early commitments to enter your professions followed by similar commitments to the career. It worked. You have a history of success and that is a good predictor of future ones, plus you have opportunities for PT work as you scale down from FT to PT if that is your choice. As posted in another thread, there are several approaches to this and other significant changes that one theoretical approach has been personally helpful in making. It involves moving through stages of Precontemplation, Contemplation, Planning, Implementation and Maintenance.

Tim

Old Guy
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Re: Thinking of making a leap to partial retirement.

Post by Old Guy » Fri Feb 14, 2020 9:05 am

So what will you do with your new free time?

Topic Author
rai
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Re: Thinking of making a leap to partial retirement.

Post by rai » Fri Feb 14, 2020 9:14 am

Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

Shallowpockets
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Re: Thinking of making a leap to partial retirement.

Post by Shallowpockets » Fri Feb 14, 2020 9:30 am

Your plan is good.
Your last paragraph about toxic work and leaving people is a non issue in the sense that sooner or later you will leave some form of employment and the people you work with. We all do. No one who retires keeps that around in full. You just go, and fade away. When I retired I felt the same, leaving some good people I liked. Has to be done. If there is no friendship involved much beyond work friendship, you have to realize that. You cannot stay to hold on to that. If it has not happened that you have moved the good people into your non work life, then that serves as a reminder that it is not in that sort of friendship sphere,
Do not sacrifice your dreams and future to such a thing.

retiredjg
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Re: Thinking of making a leap to partial retirement.

Post by retiredjg » Fri Feb 14, 2020 9:37 am

rai wrote:
Fri Feb 14, 2020 9:14 am
Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
This is a little like diving into the pool the first time. Scary but after a few weeks, you'll wonder what on earth you were ever worried about.

BruinBones
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Re: Thinking of making a leap to partial retirement.

Post by BruinBones » Fri Feb 14, 2020 9:45 am

I am in very similar situation as yours. My physician wife retired several years ago in mid-40 yo, and I, a surgeon, will retire this year at mid-50 yo. Children are in college, which is fully fundable with savings. Less than $100k remaining on a single mortgage, no other debt. Have reached FIRE (and medical will be through Tricare).
We will live in Florida and slow travel. My wife thinks I will be bored with retirement and want to go back to work in 6 months. I will keep my license active and board certification up to date and probably do short Locum Tenens assignments when bored.
Sounds like you have a good plan. Consider locum tenens, too.

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rai
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Re: Thinking of making a leap to partial retirement.

Post by rai » Fri Feb 14, 2020 9:47 am

Old Guy wrote:
Fri Feb 14, 2020 9:05 am
So what will you do with your new free time?
1) read more. I have a 1000 book collection that I’m only 20% through.
2) may write something short story etc.
3) take some college courses
4) travel
5) exercise more
6) I have a pinball collection which I’d love to spend more time playing
7) maybe take up a new hobby like cars and maybe learn computer programming
8) watch TV and movies and sports maybe go to some sporting and concert events and theatre
9) more time with family
10) computer games and internet
Last edited by rai on Fri Feb 14, 2020 12:10 pm, edited 3 times in total.
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

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Sandtrap
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Re: Thinking of making a leap to partial retirement.

Post by Sandtrap » Fri Feb 14, 2020 9:52 am

rai wrote:
Fri Feb 14, 2020 9:14 am
Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
You're not alone.
I am 8 years into retirement and still uncomfortable with this.
Very large paradigm shift.

j :happy
Wiki Bogleheads Wiki: Everything You Need to Know

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rai
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Re: Thinking of making a leap to partial retirement.

Post by rai » Fri Feb 14, 2020 10:08 am

One thing I’m greatly looking forward to is paying less taxes. I don’t mind paying taxes that’s fine but with no deductions and highest tax bracket and state income taxes it’s like working 4+ months to pay my tax bill since i now have a good amount of investment income as well as work income. Figure in another 2-3 months working to fund retirement. I’m looking forward to maybe not being in the top tax bracket (!) for once.
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

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BolderBoy
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Re: Thinking of making a leap to partial retirement.

Post by BolderBoy » Fri Feb 14, 2020 11:37 am

rai wrote:
Fri Feb 14, 2020 9:14 am
Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
I think your plan is good, too. Moving to a locums situation on your terms will ease a lot of the toxic workplace issues. I semi-retired in 2011 with some locums availability provided to my former workplace for 3 years (gradually declining) until I felt my skills, knowledge and mental quickness were eroding so retired completely.

Your plan allows you to ease into retirement. After a while I think you'll find you don't miss practicing anesthesia anymore. I certainly don't.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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rai
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Re: Thinking of making a leap to partial retirement.

Post by rai » Fri Feb 14, 2020 11:44 am

BolderBoy wrote:
Fri Feb 14, 2020 11:37 am
rai wrote:
Fri Feb 14, 2020 9:14 am
Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
I think your plan is good, too. Moving to a locums situation on your terms will ease a lot of the toxic workplace issues. I semi-retired in 2011 with some locums availability provided to my former workplace for 3 years (gradually declining) until I felt my skills, knowledge and mental quickness were eroding so retired completely.

Your plan allows you to ease into retirement. After a while I think you'll find you don't miss practicing anesthesia anymore. I certainly don't.
I see so many guys working into their late 60s and 70s and I’m just wondering why. I know people are wired differently and or maybe didn’t save as well as they could have. But I’m perplexed why so many keep on working so hard.
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

22twain
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Re: Thinking of making a leap to partial retirement.

Post by 22twain » Fri Feb 14, 2020 11:47 am

rai wrote:
Fri Feb 14, 2020 9:14 am
Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
Are you really going to become net "spenders"? Or will your reduced income cover your basic expenses, leaving your savings/investments to grow?
My investing princiPLEs do not include absolutely preserving princiPAL.

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JoeRetire
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Re: Thinking of making a leap to partial retirement.

Post by JoeRetire » Fri Feb 14, 2020 11:54 am

rai wrote:
Fri Feb 14, 2020 8:41 am
I figure if we work part time, our taxes will go down
And if you don't work at all, your taxes will go way down!

So other than avoiding taxes and BS, is there something you want to do with your time?
Very Stable Genius

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rai
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Re: Thinking of making a leap to partial retirement.

Post by rai » Fri Feb 14, 2020 12:08 pm

JoeRetire wrote:
Fri Feb 14, 2020 11:54 am
rai wrote:
Fri Feb 14, 2020 8:41 am
I figure if we work part time, our taxes will go down
And if you don't work at all, your taxes will go way down!

So other than avoiding taxes and BS, is there something you want to do with your time?
See my post above
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

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rai
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Re: Thinking of making a leap to partial retirement.

Post by rai » Fri Feb 14, 2020 12:11 pm

22twain wrote:
Fri Feb 14, 2020 11:47 am
rai wrote:
Fri Feb 14, 2020 9:14 am
Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
Are you really going to become net "spenders"? Or will your reduced income cover your basic expenses, leaving your savings/investments to grow?
Probably live off the interest/dividends (2% WR) and some PT work.
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

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mrspock
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Re: Thinking of making a leap to partial retirement.

Post by mrspock » Fri Feb 14, 2020 12:44 pm

Congrats! I say take the plunge. I envy your ability to go part time.... very rare in my field.

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BolderBoy
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Re: Thinking of making a leap to partial retirement.

Post by BolderBoy » Fri Feb 14, 2020 8:42 pm

rai wrote:
Fri Feb 14, 2020 11:44 am
I see so many guys working into their late 60s and 70s and I’m just wondering why. I know people are wired differently and or maybe didn’t save as well as they could have. But I’m perplexed why so many keep on working so hard.
A lot of my colleagues live quite large and can't yet afford to retire. One fellow in his 50s has about 25% of my net worth.

I don't know anyone over the age of 50 who so loves practicing anesthesia that they plan to do it forever - they are all just counting the days. I did know a surgeon with a net worth >$50mil who truly loved practicing medicine. He had to quit surgery at age 80 (couldn't get surgical insurance coverage anymore) but continued to run an office practice until a week before he died (sepsis) at age 82.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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Re: Thinking of making a leap to partial retirement.

Post by asset_chaos » Fri Feb 14, 2020 9:34 pm

I found the transition to retirement by working 3 days a week for 3 years to be great. Still added something to savings, but ~5% instead of 20%, and shed the administrative and management tasks that I did not particularly enjoy, kept the tasks and interactions that I most enjoyed. The latter was more satisfying than still receiving some money. Now at zero paid days, I find I can still keep up the research activities and interactions that I enjoy.

I didn't find it a wrenching change to go from large net saver to net spender, but I have the mental buffer of a pension that covers all baseline spending, so withdrawls from retirement accounts under my control have been exceptionally modest so far.

To the OP, do it, go to part time, ease into retirement. If you don't throughly enjoy it, it sounds like you can always go back to full time. I suspect you'll throughly enjoy it.
Regards, | | Guy

LifeIsGood
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Re: Thinking of making a leap to partial retirement.

Post by LifeIsGood » Sat Feb 15, 2020 5:39 am

If you're not sure if you're ready for retirement (especially the mental part) I'd suggest going part time for a while and then re-assess. I'm a retired veterinarian and went part time at age 57. I was worried that I might easily become bored. After 2 years I was loving retirement much more than working and pulled the plug permanently. Eleven years later and I've never looked backed. If I had it to do over again, I'd do exactly the same thing. The biggest surprise I had in full retirement was how quickly I forgot things related to my profession. A perfect example of "use it or lose it".
Best of luck going forward.

in2bait
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Re: Thinking of making a leap to partial retirement.

Post by in2bait » Sat Feb 15, 2020 6:48 pm

Very similar situation for myself. 20 plus years in anesthesia, CRNA, Florida resident. Saved 35x annual spending and pulled the plug from FT job 9 months ago. Although I'm 99% sure I could hang it up I'm still having a hard time wrapping my head around spending vs saving, so doing locums 2-3 days a week with at least a week/month off.
Locums covers most of the basic bills and I have a great gig working as much or little as I want. No administrative BS and I'm the first one out every day.
Pay is great and it keeps me mentally sharp.
Also makes it much easier to splurge on travel and justify knocking off the bigger bucket list items.
So far so good. Way, way less stress and havent been bored at all. I've found the days to fly by and I have no problem keeping busy and active. But I understand the mental aspect of letting medicine go after you've committed so much time to the field.
I'm not sure how long I'll keep up the locums, the potential impending financial crash keeps me in the game for now. 2008 is still burned into my brain.
Best of luck moving forward, There's a lot of life to live outside the OR.

Inframan4712
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Re: Thinking of making a leap to partial retirement.

Post by Inframan4712 » Sat Feb 15, 2020 8:19 pm

rai wrote:
Fri Feb 14, 2020 9:14 am
Our retirement savings is large but psychologically moving from super saver to a spender is hard to wrap my head around.
Sent you a pm

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