Help Annette Keep Working and Not Retire

[AnnetteLouisan]

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.

But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long.

You know my stats:

Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright in a VHCOLA worth $650k that id like to sell and move to a lower cost area, or keep as an inflation hedge and pied a terre. Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k (housing, inflation and car related). Taxes are $85k.

My investment details are elsewhere so I don’t want to bore the readership with that again. I have and max out my 401k, IRA and catch ups, as well as I bonds. I have some CDs and t bills also and a taxable brokerage but my NW totals $2.2 Mil.

My main thing is, help me decide to keep working at least for another few years. Don’t tell me to retire since I am so tempted.

[sport]

It doesn't have to be "all or nothing". Perhaps you can transition to a less stressful job which would be easier to endure for a few years.

[livesoft]

Because you are going to adopt me and that will increase your expenses. Thanks!

[AnnetteLouisan]

Because you are going to adopt me and that will increase your expenses. Thanks!

Lol. Not by much since you are the king of frugality!

[TomatoTomahto]

Another few years and you won’t have to pinch pennies in the event of a market event.

[AnnetteLouisan]

Another few years and you won’t have to pinch pennies in the event of a market event.

Yes that is a good reason. So, target 2025 for now, 2026 later?

[TechExec]

The decumulation phase, not matter how much money you have, is not nearly as fun as the accumulation phase. If you're in a satisfying career, then keep going until you just can't do it anymore.

[retiredjg]

Sounds like you need a vacation, not retirement.

Take a break.

[Parkinglotracer]

I think it’s good for you to keep working so you can start alert, continue to make a good income, keep active, keep saving and investing, and stay relevant. Ha ha your words. I think retirement is a transition and maybe you can work a multi year transition to further define what’s next For paid and and unpaid activities - do you see yourself in another slower career in a semi retirement status? Any training needed? As you know one more year working can do wonders for one’s retirement nest egg / lifestyle.

[TomatoTomahto]

Another few years and you won’t have to pinch pennies in the event of a market event.

Yes that is a good reason. So, target 2025 for now, 2026 later?

But, don’t listen to me. I have been pushing the other side of the equation to my wife (who knows me better than anyone else) and she won’t listen to me.

I sincerely believe that cutting it close on FIRE for intelligent people is an easily avoided regret. See my signature below.

[AnnetteLouisan]

Sounds like you need a vacation, not retirement.

Take a break.

Thanks - yes I have some scheduled and coming up soon. Very good point.

[nedsaid]

I once was very involved in an organization dominated by retired people. I found that the people who stayed active by working in their businesses fared better than those who didn't. Something about work that is good for you.

On the other hand, you can successfully retire if you have plenty to do. Taylor Larimore is a great example of this, his longevity is helped by his sailing hobby and his extensive volunteer work with the Bogleheads. Taylor is also an author. So
he retired from his career but not from life and that is the big key. He said that his work with the Bogleheads really helped him after the loss of his wife. Don't remember at what exact age he retired but he is 99 years old now so he has been
retired for a long time. I think he retired in his late fifties or early sixties. Most importantly, he has stayed connected with lots of people.

[j.click]

Every life needs three things: meaning, purpose and joy. When you start finding more of these outside of work then you know it is time to retire TO a new life as well as FROM your former life.

[Wannaretireearly]

Sounds like you need a vacation, not retirement.

Take a break.

+1
Annette, can you work part time? I would ask now.
Can you take a sabbatical? I would ask now.

This is one path my family has taken to happily have fun at work thru late 60s/70s.

Edit: I wish I had either of these options. Tech is just a weird and workaholic beast

[ichee_marone]

Boy, that is a really conservative asset allocation. Are you sure you don't want to work another 10 years?

[jsapiandante]

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.

But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long.

You know my stats:

Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright in a VHCOLA worth $650k that id like to sell and move to a lower cost area, or keep as an inflation hedge and pied a terre. Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k (housing, inflation and car related). Taxes are $85k.

My investment details are elsewhere so I don’t want to bore the readership with that again. I have and max out my 401k, IRA and catch ups, as well as I bonds. I have some CDs and t bills also and a taxable brokerage but my NW totals $2.2 Mil.

My main thing is, help me decide to keep working at least for another few years. Don’t tell me to retire since I am so tempted.

If you don’t hate your job, you can definitely keep working another 2-3 years and take a very close look at your expenses. Even though you claim your expenses have more than doubled it could just be one of those years some lumpy expenses came up unexpectedly. Eventually, it’ll all average out in the next few years, giving you a more accurate picture of your expenses.

Personally, if I was close to FI and still have several working years left, I’d start beefing up my emergency fund so I can replace appliances, hvac’s, cars, etc. when the time comes. That way, replacing those items won’t catch me off guard when I retire and have to scrounge around from my retirement budget.

[AnnetteLouisan]

Every life needs three things: meaning, purpose and joy. When you start finding more of these outside of work then you know it is time to retire TO a new life as well as FROM your former life.

I have those things already. I am fortunate. It’s just housing costs are bad lately. And inflation set me back a bit on my retirement timeline by inflating my X.

[TheGiantess]

Pinching pennies for 40 years does not sound fun. I would not retire now if that is what your planning says will happen. As others have mentioned, take a few vacations, take time off to relax. Do something different, meet up with some interesting friends. At your high salary, a few more years will make a huge difference. Relish that you are very close and could quit if you want and keep working a little longer.
TG

[quantAndHold]

I once was very involved in an organization dominated by retired people. I found that the people who stayed active by working in their businesses fared better than those who didn't. Something about work that is good for you.

Anytime I hear something like that, I think that correlation is not causation. There may have been a reason that these people retired, which you’re seeing.

Anyway, it is entirely possible to stay alert and relevant well into retirement. The difference is that you choose what you want to do, rather than doing what someone is paying you to do.

[AnnetteLouisan]

Pinching pennies for 40 years does not sound fun. I would not retire now if that is what your planning says will happen. As others have mentioned, take a few vacations, take time off to relax. Do something different, meet up with some interesting friends. At your high salary, a few more years will make a huge difference. Relish that you are very close and could quit if you want and keep working a little longer.
TG

Agree. $3M could be a good target. Thanks.

[AnnetteLouisan]

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.

But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long.

You know my stats:

Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright in a VHCOLA worth $650k that id like to sell and move to a lower cost area, or keep as an inflation hedge and pied a terre. Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k (housing, inflation and car related). Taxes are $85k.

My investment details are elsewhere so I don’t want to bore the readership with that again. I have and max out my 401k, IRA and catch ups, as well as I bonds. I have some CDs and t bills also and a taxable brokerage but my NW totals $2.2 Mil.

My main thing is, help me decide to keep working at least for another few years. Don’t tell me to retire since I am so tempted.

If you don’t hate your job, you can definitely keep working another 2-3 years and take a very close look at your expenses. Even though you claim your expenses have more than doubled it could just be one of those years some lumpy expenses came up unexpectedly. Eventually, it’ll all average out in the next few years, giving you a more accurate picture of your expenses.

Personally, if I was close to FI and still have several working years left, I’d start beefing up my emergency fund so I can replace appliances, hvac’s, cars, etc. when the time comes. That way, replacing those items won’t catch me off guard when I retire and have to scrounge around from my retirement budget.

I mostly love my job. There are a few aspects that perhaps could be handled better.

Come to think of it, what stresses me out most is *not* earning money.

Maybe I could start a very small side business like those young people do. And make it a retirement business. I’ve always pooh poohed that as a distraction and likely not lucrative. Like I could sell a few paintings or what have you.

[AnnetteLouisan]

It doesn't have to be "all or nothing". Perhaps you can transition to a less stressful job which would be easier to endure for a few years.

Sport, very good thought. I’ll have to think of some. I’m
Not familiar with the world of low stress jobs.

[student]

What are you going to do if you retire? You mentioned starting a small side business. I think this will be just more stress. You also have to get health care yourself. I know a lot of people on the forum use ACA, however I find it stressful having to reevaluate every year. Since you mentioned that, in general, you like you job, so I think working a few more years is prudent.

[Wricha]

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.


Alert, keep active, and stay relevant are probably not dependent on working vs retirement. For example: Relevant This is going to begin to to fade irrespective of working or retirement. The first half of ones life, one works on life (achievements, successes and of course accumulation = being relevant). Second half of life life works on you (death of friends, change is too fast, sphere of influence diminishes = less relevant). Moving from achieving to enjoying phase of life happens and it will take you kicking and screaming.
Once once accepts this less relevant role, life becomes exciting again trying to stay relevant is exhausting. Once you accept this then, all the practical aspects of life will fall into places such as selling house moving to a LCOL area, asset allocation, healthcare etc.
I was 55 when I had this epiphany it work on me for 5 years before I said I am done. My advice don’t struggle on this too long it’s a waste of time.
Good income, saving and investing are characteristics of the first half of life (accumulation phase) and have limited utility in the phase you are entering. You already paid for your ticket on life’s roller coaster now, just put your hands up in the air and scream. Given your current situation you will be fine I’d bet a fair amount of money on that and I don’t gamble…..much.

[Grt2bOutdoors]

Because an extra $10K per year in pension income is worth an additional $333K you don't have to save and you take no additional market risk to boot. Work 3 more years and reconsider your position then.

[Cruise]

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.

But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long.

You know my stats:

Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright in a VHCOLA worth $650k that id like to sell and move to a lower cost area, or keep as an inflation hedge and pied a terre. Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k (housing, inflation and car related). Taxes are $85k.

My investment details are elsewhere so I don’t want to bore the readership with that again. I have and max out my 401k, IRA and catch ups, as well as I bonds. I have some CDs and t bills also and a taxable brokerage but my NW totals $2.2 Mil.

My main thing is, help me decide to keep working at least for another few years. Don’t tell me to retire since I am so tempted.

Boy, you sure no how to stack the deck toward your desired response. Are you serious?

Reasons to keep working:

1. You really don't have a huge investment portfolio for being in a VHCOLA and wanting a high standard of living.
2. Your investments are too conservative.
3. You have the false impression that working at a high level that it makes you tired actually keeps you alert. (You are probably making your brain mush compared to retiring, finding new activities that are refreshing, and creating new synaptic pathways.) But, you wanted an excuse to keep working, so there it is!

Good luck with your decision.

[AnnetteLouisan]

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.

But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long.

You know my stats:

Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright in a VHCOLA worth $650k that id like to sell and move to a lower cost area, or keep as an inflation hedge and pied a terre. Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k (housing, inflation and car related). Taxes are $85k.

My investment details are elsewhere so I don’t want to bore the readership with that again. I have and max out my 401k, IRA and catch ups, as well as I bonds. I have some CDs and t bills also and a taxable brokerage but my NW totals $2.2 Mil.

My main thing is, help me decide to keep working at least for another few years. Don’t tell me to retire since I am so tempted.

Boy, you sure no how to stack the deck toward your desired response. Are you serious?

Reasons to keep working:

1. You really don't have a huge investment portfolio for being in a VHCOLA and wanting a high standard of living.
2. Your investments are too conservative.
3. You have the false impression that working at a high level that it makes you tired actually keeps you alert. (You are probably making your brain mush compared to retiring, finding new activities that are refreshing, and creating new synaptic pathways.) But, you wanted an excuse to keep working, so there it is!

Good luck with your decision.

Thanks. Yes the reason I phrased it the way I did is that I’m already aware of the reasons to retire (retire now while I can still enjoy it, YOLO, etc). But I’d prefer to motivate myself to keep at it a little bit longer. Just 2 or 3 more years. Or 2 and then reassess.

[LFKB]

Another few years and you won’t have to pinch pennies in the event of a market event.

She’s 20/80 so she’s largely insulated from that now. Her portfolio was likely hit about as hard as possible by the rapid rise in rates, unless she was short in duration.

[KiwiBobs]

You want to keep working because $340K is hard to walk away from and as you get older, once you leave there is probably no going back.

You should plug your numbers into some retirement software. I use Pralana Gold. My gross is 230K and currently have 1.1M with 60/40 AA. If I tell it work to another year, at age 95, I will have an extra 235K working one more year, 464K working two more years. I am not saving that much but it is the power of compounding. Your numbers will be different because you make more and your AA is more conservative. Those numbers should give you more incentive to work longer.

You also want to work longer to optimize what you have in different account types to reduce your future taxes. For example, I am now 60 so my 401K plan allows me to do in-service withdrawals. So I am putting in 30K/year into after tax 401k then every month I roll that over into a Roth IRA. My take home pay is not enough for me to live on so I live off my other savings. I am effectively moving my savings into Roth IRA. I am also maxing my HSA.

[SuzBanyan]

Pinching pennies for 40 years does not sound fun. I would not retire now if that is what your planning says will happen. As others have mentioned, take a few vacations, take time off to relax. Do something different, meet up with some interesting friends. At your high salary, a few more years will make a huge difference. Relish that you are very close and could quit if you want and keep working a little longer.
TG

Agree. $3M could be a good target. Thanks.

Unless you really want to own 2 homes, with your current one as your pied a terre, $3M is probably more than you need. You have both a pension and SS, which will equal $70k at age 70 if you work a few more years. With $90k in expenses (excluding taxes and health insurance), even your current portfolio will likely support your current spending. Are you currently pinching pennies?
And you may find that the costs involved in owning 2 homes feels like too much, even if you can afford it. I’m in the process of downsizing and realized that there is a cost if I buy the new home first, because my financial portfolio will be smaller and my earnings less. Even though I can afford it and it is just short term, it hurts to imagine such a hit to my financial assets.

[LFKB]

Sounds like you need a vacation, not retirement.

Take a break.

Thanks - yes I have some scheduled and coming up soon. Very good point.

You could ask for a sabbatical, say 3-6 months, and see how it goes

I don’t know what your job is, but you could stop working as hard. You’d be surprised but you could probably coast for several years and they wouldn’t let you go, if you’ve been there long enough and don’t completely slack off.

[Jack FFR1846]

Ask yourself what I asked DW when she was in a job that had turned miserable because of increasing demands paired with people leaving in droves. I would ask: "Are you having fun in your job?". I knew the answer was no. She left. It was good. But we had over 50 times spending saved. I don't see you at that level and you have a longer timeline. If your annual spend will be $90k, I'd say your minimum (as others have said) should be at least $3M. At least.

Have you put together a "retirement spending list"? This doesn't show a $400 group health insurance cost covering your whole family per month (what mine was) but instead will likely be well over at least double that per person. The rest of the retirement spending list can help you figure out what you want to do when you stop working.

And you CAN just keep working. My dad loved his work and never retired until he passed away. Some people are like that. I'm not, but have certainly seen plenty of people who never want to retire. That's fine.

[drk]

It doesn't have to be "all or nothing". Perhaps you can transition to a less stressful job which would be easier to endure for a few years.

Not just easier to endure, but likely to pay dividends in the future. An experienced and accomplished attorney likely has plenty of opportunities to downshift while continuing to do interesting and meaningful work.

[jeffyscott]

Sorry, but I'd retire . At least I surely would if I wanted to move from the VHCOLA. I only know what I need/want in a medium cost of living area.

But then, I would have a much different opinion of what "pinching pennies" means. Having even $65K per year would be well outside my definition of that. You've got that at 70+, without even considering the portfolio. And then to get to $65K per year for the ~15 years from now to age 70 would only require $40K per year, so $600K or maybe $750K with inflation. That would leave you with about $1.5 mil or an additional $40K per year with less than a 3% withdrawal rate. So about $105K per year by my rough estimate, definitely nowhere near pinching pennies in my world.

In addition, if you moved to a normal cost of living area, maybe there's something like another $300K freed up by selling your home and buying a similar one elsewhere?

Of course, I never had a good income to worry about keeping, my max was about equal to your taxes. And I'm not sure what keeping alert, keeping active, or staying relevant really mean in relation to choosing to continue working vs. retiring.

[AnnetteLouisan]

Another few years and you won’t have to pinch pennies in the event of a market event.

She’s 20/80 so she’s largely insulated from that now. Her portfolio was likely hit about as hard as possible by the rapid rise in rates, unless she was short in duration.

Yes so true. I only had $110k in a bond fund in 2021 and it’s only down to $99k now. My other fixed income is treasuries, G Fund, SVFs, HYSAs, CDs and cash (checking).

[Watty]

Looking for some great reasons *not* to retire for another few years.
....
total comp and other income $340k gross, portfolio $1.55.....my NW totals $2.2 Mil.
...
Expenses moved up this year from $40k to $90k (housing, inflation and car related).

A huge red flag is that for your income and expenses your net worth is not very high for someone who is in their mid 50s. There could be some clear reason for this that you might not want to post on the internet but if not then think long and hard about why your net worth is not higher. Even if you had been making half your current salary for most of your career then I would think your net worth would still be higher. If the reason is that you are really spending a lot more than you think then your retirement numbers could be way off.

A couple of sort of random points to consider.

1) As already mentioned you could cut back on your work so retiring or working is not a black and white choice.

2) Figure out a way to take a sabbatical for several months, three months or more would be better. Once you have been away from work a while you may have a better perspective on how desirable it is for you to retire sooner than later. You might also come back recharged and be ready to work for a few more years. Even if your company does not normally have sabbaticals there is no reason that you could not schedule several months off next spring since the company would have more than six months to plan for your absence.

3) You can look up life expectancy calculators which will tell you the odds that you will live to be a certain age. At the age of 55 there is a very significant chance that you will not live to be 70 or 75 and even if you do you may be having health issues by then. Be realistic about just how many "good years" you might have left.

Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k

So at 70 you will have $65-70k in COLA pension and SS if you retire today. With a paid off house that is enough for a comfortable middle class lifestyle so your "worst case scenario" is really not all that bad so your fear of "penny pinching" is not very realistic especially since your current expenses are in the same ballpark.

[sport]

It doesn't have to be "all or nothing". Perhaps you can transition to a less stressful job which would be easier to endure for a few years.

Sport, very good thought. I’ll have to think of some. I’m
Not familiar with the world of low stress jobs.

Perhaps you can keep the same type of job you have now. Just work fewer hours at it.

[Watty]

One more thing to consider. If you retire then you have more time to spend money on activities and things like travel. Be sure to consider what your expenses will be if you retire since they could go up significantly.

[AnnetteLouisan]

Looking for some great reasons *not* to retire for another few years.
....
total comp and other income $340k gross, portfolio $1.55.....my NW totals $2.2 Mil.
...
Expenses moved up this year from $40k to $90k (housing, inflation and car related).

A huge red flag is that for your income and expenses your net worth is not very high for someone who is in their mid 50s. There could be some clear reason for this that you might not want to post on the internet but if not then think long and hard about why your net worth is not higher. Even if you had been making half your current salary for most of your career then I would think your net worth would still be higher. If the reason is that you are really spending a lot more than you think then your retirement numbers could be way off.

A couple of sort of random points to consider.

1) As already mentioned you could cut back on your work so retiring or working is not a black and white choice.

2) Figure out a way to take a sabbatical for several months, three months or more would be better. Once you have been away from work a while you may have a better perspective on how desirable it is for you to retire sooner than later. You might also come back recharged and be ready to work for a few more years. Even if your company does not normally have sabbaticals there is no reason that you could not schedule several months off next spring since the company would have more than six months to plan for your absence.

3) You can look up life expectancy calculators which will tell you the odds that you will live to be a certain age. At the age of 55 there is a very significant chance that you will not live to be 70 or 75 and even if you do you may be having health issues by then. Be realistic about just how many "good years" you might have left.

Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k

So at 70 you will have $65-70k in COLA pension and SS if you retire today. With a paid off house that is enough for a comfortable middle class lifestyle so your "worst case scenario" is really not all that bad so your fear of "penny pinching" is not very realistic especially since your current expenses are in the same ballpark.

Yes, there are reasons:

1. Started investing and taking advantage of workplace retirement plans very late. And low equity AA when I did start investing.
2. Super high tax rate for 30 years, all high tax VHCOLA and no deductions.
3. Bought a home very late. So no benefit of compounding value plus high rental costs.
4. Overspent (VHCOLA). Made loans. Then took a very long time to reduce expenses, thinking that was the way to wealth.
5. Didn’t start out as a very high earner. First few jobs were in the 65-85k range.
6. Started out poor so actually thought I was doing great.
7. Discounted inflation.
8. Gradual income increases. No Stock options or RSUs.
9. Until Bogleheads I didn’t have many people I could trust who were knowledgeable about how to invest a white collar salary and minimize taxes.
10. I consolidated my student loans.
11. I had no parental financial help after graduating.

Good point about life expectancy and minimum income at 70.

[protagonist]

Looking for some great reasons *not* to retire for another few years.

I can't think of any. The vast majority of retirees are happy they retired, including ones with a lot less assets than you. Maybe if you had a job like that British guy on American Idol who got paid a fortune to just diss singers for an hour a week....

Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

The pitfalls are going broke (I doubt that would happen to you) or getting bored (there is a subset of retirees who don't know what to do with themselves if they don't work)> Also, I suppose if you are in a really crappy relationship, you would no longer have work as a valid excuse to get away from your spouse.
For my first year or two of retirement, I missed the comeraderie and the respect I got for being really good at my job. But I got over that when weighed against being master of my time. Time is the one thing that you constantly have less of.

My main ones are: I want to keep alert

,

If you are really good at your job and you have been doing it for decades, the chances are that 95%+ of what you do at work is really routine. If it was not you would be dangerous. Taking on new challenges....things you love... will keep you alert in retirement.

continue to make a good income,

If that is your goal, keep working.

keep active

,
Unless you are a professional athlete you will have much more time to do that if retired. especially if you have a desk job.

keep saving and investing

The implication in retiring is you feel you saved enough already. You can give more time to managing your money.

and stay relevant.

I'm not sure what that means to you, but the more free time you have the more you can focus on what is meaningful to you.

If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long.

More money to spend on health but less time to spend on health. You have to decide how much money you need for happiness. You will probably spend a fair amount less when reitred. If you really think it will be that tight, you prob. should keep working. But risk is a double edged sword. You could live to be 100 and run out of money, but you could also die tomorrow and never get to enjoy everything you saved for. No matter what you decide, life will still be risky, because it is...well...life.

Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright in a VHCOLA worth $650k that id like to sell and move to a lower cost area, or keep as an inflation hedge and pied a terre.

Selling and moving to a lower cost area that you like is a great idea if you retire.

Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70.

That's not bad at all. If I were in your situation and wanted tp retire I would consider putting a good chunk of my savings in something like a TIPS ladder for expenses until you collect SS...the big one will be health insurance. Your biggest enemy would be unexpected high inflation, which is why I suggest a TIPS ladder now that yields are good.

I imagine the increased expenses from $40K to 90K might have something to do with living in a VHCOL community? You should be able to get that way down if you move, and without kids you have a lot of flexibility.

my NW totals $2.2 Mil.

That is a substantial nest egg if you live relatively frugally. You are richer than 97.7% of American households....and you don't have kids to support.

My main thing is, help me decide to keep working at least for another few years. Don’t tell me to retire since I am so tempted.

If you are tempted, retire. What the hell? You seem sensible. You will be ok.
The best reason to retire is because you want to. And you seem to want to.

[Sandtrap]

Every life needs three things: meaning, purpose and joy. When you start finding more of these outside of work then you know it is time to retire TO a new life as well as FROM your former life.

+1000
perfect!!!!

j

[nedsaid]

I once was very involved in an organization dominated by retired people. I found that the people who stayed active by working in their businesses fared better than those who didn't. Something about work that is good for you.

Anytime I hear something like that, I think that correlation is not causation. There may have been a reason that these people retired, which you’re seeing.

Anyway, it is entirely possible to stay alert and relevant well into retirement. The difference is that you choose what you want to do, rather than doing what someone is paying you to do.

The group of people that I observed were conscientious and had good health habits. I think there is more to it than people working because they are healthy and people who retired were folks who weren't so healthy. The thinking behind my observation is that you use it or you lose it. I also pointed out that it is possible to stay active in retirement without having
a career by staying connected with people, having hobbies, and volunteering for worthwhile causes.

[Sandtrap]

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.

But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long.

You know my stats:

Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright in a VHCOLA worth $650k that id like to sell and move to a lower cost area, or keep as an inflation hedge and pied a terre. Small cola’d pension that I can take now or defer until later, around $25k now, only around $35k if I work 3 more years.
40-45k SS if I defer until 70. No debt, dependents. Very good insurance, pretty good health. Expenses moved up this year from $40k to $90k (housing, inflation and car related). Taxes are $85k.

My investment details are elsewhere so I don’t want to bore the readership with that again. I have and max out my 401k, IRA and catch ups, as well as I bonds. I have some CDs and t bills also and a taxable brokerage but my NW totals $2.2 Mil.

My main thing is, help me decide to keep working at least for another few years. Don’t tell me to retire since I am so tempted.

to op:
net worth including home and assets matters not
...
net monthly income stream vs all retirement expenses is what matters.
.......
the better this ratio the more options you have at the start and throughout retirement when you no longer have an employee income stream
... size of index fund portfolio helps endure "sequence of returns risk" etc etc etc
........
for many, what seems just adequate to FIRE ends up being marginal in the longer run.......

there is a right timing to all things for each person that is less than 1% quantifiable. You have to have a sense and sureness deep inside about the 99% part.
j

[Normchad]

You’re a terrific contributor here. It’s taking me several years to wrap my mind around the future and retirement.

I think I have it figured out now.

For me, right now, I can do everything I want to do, while still working. So I’m going to keep working until that changes.

I do honestly fear that maybe work is more important to my mental well being than I realize. So I’ll keep on chugging.

But I am FI now. So my mental attitude has shifted a bit. Now every paycheck is gravy. So I’m loosening up a lot on the spending on the search for additional life experiences and fun.

[JDCarpenter]

The decumulation phase, not matter how much money you have, is not nearly as fun as the accumulation phase. If you're in a satisfying career, then keep going until you just can't do it anymore.

Disagree with this, but everyone is different. DW and I truly enjoyed our careers, even in the last years/months. BUT, decades of insufficient time together due to our professional demands, and inability to do long trips (think a week, rather than the desired 2 or 3 months....). So in our mid-50s, we quit cold turkey from commercial litigation and OBGyn worlds to travel the world.

To the OP: accumulating more can be a good thing. Both of our closest couple friends chose that route to ensure that they'd have absolutely no money worries (nor, for that matter, are their kids and grandkids likely to have money issues...). So too, we worked several years longer than we originally planned to minimize long-term risks of pinched budgets. What do you think you'll spend in retirement? Are you certain of that? As planned, our post-tax spending doubled, due solely to travel. But, we are unusual--particularly in keeping at that pace through covid and into what is now our 7th year of travel.

[southernlucky]

Hi OP. Here is another reason to tough it out a few more years I did not see listed. Social Security uses your highest 35 years income to calculate retirement benefits. If you retire early with fewer years they fill in with zeros. If you started working at age 22 then age 57 minimum needed. However, I believe I saw in another post you are a lawyer. If so then you likely started working at a later age so even more zeros if you leave too soon. You can play around with the numbers on ssa.gov to see the $ difference for various scenarios. Probably not a huge amount but something to consider to add to your list. Good luck in whatever you decide!

[celia]

The decumulation phase, not matter how much money you have, is not nearly as fun as the accumulation phase. If you're in a satisfying career, then keep going until you just can't do it anymore.

+1 If you work long enough, there will start to be things at work that are awkward or unpleasant: younger people want to do things differently, your new boss will be younger and not have much experience, rules and regulations can be imposed which don't make sense, and you start to dread going to work. That's when you finally decide to leave.

You're not there yet.

Besides, you don't sound like you know where you would move to (to enjoy a lower cost of living). It's so much better to retire TO places or things you WANT to experience than to leave an unsatisfying situation.

You're not there yet. Just look at the thread title.

[marcopolo]

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls.

My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant.

....


Don’t tell me to retire since I am so tempted.

You definitely should NOT retire if that is what you envision retirement like would be for you. I can assure there is no reason it needs to be.

By the way, I don't believe the last statement for a second.
Pretty much all your post on the topic clearly indicate you think retirement is completely an undesirable state. You seem to be looking for more validation of your belief. For you, it is quite likely true. Retirement, especially an early one, is not suited for everyone. No need to feel you need to do it just because you read about others that are.

[marcopolo]

The decumulation phase, not matter how much money you have, is not nearly as fun as the accumulation phase. If you're in a satisfying career, then keep going until you just can't do it anymore.

Can you define "fun" in thus context?

[protagonist]

You definitely should NOT retire if that is what you envision retirement like would be for you. I can assure there is no reason it needs to be.

By the way, I don't believe the last statement for a second.

Interesting. I read just the opposite into Annette's comments.
That said, I tend to take things at face value. If she says she is tempted I believe that is what she really wants to do.
I agree that if you are right she shouldn't retire. If I am right she should.
She has to decide for herself and not do what some random strangers, like you and I, tell her to do based on a few paragraphs convincing us that we know what she is all about. People are way more complex than that.