Laid Off - Want to Retire / Am I OK

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monkey_business
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Re: Laid Off - Want to Retire / Am I OK

Post by monkey_business » Fri Jul 26, 2019 4:00 pm

Some of the responses here to threads like this are what make regular folks think retirement is impossible. The average household income in the US is less than $60k a year. The OP has a net worth equal to over one hundred times the average annual income. He could see his portfolio increase 0% real for the rest of his life, and have the ability to live an average American lifestyle for the next century.

For crying out loud, YES, you can retire at the age of 51 with six million dollars. You'll be just fine.

harrychan
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Re: Laid Off - Want to Retire / Am I OK

Post by harrychan » Fri Jul 26, 2019 5:46 pm

bhsince87 wrote:
Thu Jul 25, 2019 10:45 pm
harrychan wrote:
Thu Jul 25, 2019 9:36 pm
ponyboy wrote:
Thu Jul 25, 2019 8:16 am
harrychan wrote:
Wed Jul 24, 2019 8:15 pm
I'm 39 and even I would retire (or at least semi retire) with that amount!
Im 36 and wife is 35...we wouldnt think about work ever again with those kinds of numbers, even at our age. Then again, our expenses are significantly lower than OP's.

Side question...is the cost of health insurance different in each state? Insurance that you're buying on your own? What would a family typically pay? $20k/year for insurance with a high deductible?
Right. Our current monthly spend is $80k. I'm not sure about state to state but there is ACA now. I can't imagine a world where health insurance is astronomical. I do have status in another country that has social medicine so I can always use that.
With a monthly spend of $80k, I expect you don't have many worries at all!
I mean $8k lol
This is not legal or certified financial advice but you know that already.

delamer
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Re: Laid Off - Want to Retire / Am I OK

Post by delamer » Fri Jul 26, 2019 6:00 pm

monkey_business wrote:
Fri Jul 26, 2019 4:00 pm
Some of the responses here to threads like this are what make regular folks think retirement is impossible. The average household income in the US is less than $60k a year. The OP has a net worth equal to over one hundred times the average annual income. He could see his portfolio increase 0% real for the rest of his life, and have the ability to live an average American lifestyle for the next century.

For crying out loud, YES, you can retire at the age of 51 with six million dollars. You'll be just fine.
What difference does it make to the OP if the average household income is less than $60K/year?

He wants to know if he can sustain his current spending given his assets.

Let’s say you make the average household income. If I told you that you should be able to live on $44,000/year because 40% of US households do so, would you agree with me?

Here’s the data: https://www.taxpolicycenter.org/statist ... -quintiles

bhsince87
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Re: Laid Off - Want to Retire / Am I OK

Post by bhsince87 » Fri Jul 26, 2019 6:01 pm

BGeste wrote:
Thu Jul 25, 2019 7:57 pm
All these replies are very helpful. My primary concern is sequence of risk, that is why I want to try and live on mostly dividends / income in the initial years. My current estimate of dividend and interest income is about 130K. The individual stocks I have pay above average dividends. So the rest will have to come from selling shares. My monthly mortgage payment is fixed at $3,400 so I do not want to pay off my mortgage (700K) because that will require me to sell income producing shares. I plan to leave my 401K / IRA balance untouched until I qualify for SS.
Knowing this, my perspective changes a bit. I'm usually not a proponent of paying off mortgages early, unless you are retired.

But this could be a big deal for you!

If I'm doing the math right, your yearly mortgage spend now is about $41k. Get rid of that, and your yearly total spend drops to close to $100k, right?

At that point, you could realistically be looking at ZERO federal taxes! There are threads on that here that you should check out.

And assuming $5.3 million left over, that takes you down around a 2% withdrawal rate. That is almost certainly "perpetual". You can probably get by on dividends and interest alone.

Health insurance still needs to be addressed. But even if that costs you $40k, you're still well below a 3% withdrawal rate on the $5.3 million.
"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace." Samuel Adams

konic
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Re: Laid Off - Want to Retire / Am I OK

Post by konic » Fri Jul 26, 2019 6:20 pm

bhsince87 wrote:
Fri Jul 26, 2019 6:01 pm
BGeste wrote:
Thu Jul 25, 2019 7:57 pm
All these replies are very helpful. My primary concern is sequence of risk, that is why I want to try and live on mostly dividends / income in the initial years. My current estimate of dividend and interest income is about 130K. The individual stocks I have pay above average dividends. So the rest will have to come from selling shares. My monthly mortgage payment is fixed at $3,400 so I do not want to pay off my mortgage (700K) because that will require me to sell income producing shares. I plan to leave my 401K / IRA balance untouched until I qualify for SS.
Knowing this, my perspective changes a bit. I'm usually not a proponent of paying off mortgages early, unless you are retired.

But this could be a big deal for you!

If I'm doing the math right, your yearly mortgage spend now is about $41k. Get rid of that, and your yearly total spend drops to close to $100k, right?

At that point, you could realistically be looking at ZERO federal taxes! There are threads on that here that you should check out.

And assuming $5.3 million left over, that takes you down around a 2% withdrawal rate. That is almost certainly "perpetual". You can probably get by on dividends and interest alone.

Health insurance still needs to be addressed. But even if that costs you $40k, you're still well below a 3% withdrawal rate on the $5.3 million.
This advice makes great sense. Reducing fixed expenses will allow you greater freedom to manage your withdrawals and maybe even take advantage of ACA subsidies for a family of 4.

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birdog
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Re: Laid Off - Want to Retire / Am I OK

Post by birdog » Sat Jul 27, 2019 8:26 am

msk wrote:
Fri Jul 26, 2019 4:56 am
My dumb approach: For reassurance, leave 5 years expenses in bonds, $750k, rest in stocks. Withdraw a max of 5% each year from the stocks portfolio balance, 95% gets reinvested. i.e. spending money starts off at 5% of $5.25million or $260k annually. Stocks portfolio will last forever since withdrawal is always <=5% of balance. Calamitous 50% stock market fall and you can consider withdrawing from bonds if $130k is not enough to cover expenses that year. The stock market has been delivering 5+% REAL terms for more than 100 years. I see no special reason why the next 100 will be much different. I would simply restrict myself to a max of 5% from the stocks portfolio in any year and I would feel much safer than a blind 4% or 3% withdrawal that I inflate regardless of market falls and rises. At age 51 my only yardstick is that my portfolio lasts "forever" and for that I have to cap the withdrawal percent of balance. 5% of the initial $6 million leaves plenty of breathing room, and for splurging when the markets do well, belt tightening when disaster strikes.
My approach is very similar. I think once you get to a large number, like say $6M, a traditional stock/bond split can start to be replaced with an approach that focuses on a number of years (say 5 or 6) of expenses in bonds. I like this approach for a higher net worth portfolio.

As for the OP, yes I certainly believe you can retire now. And remember that your yearly portfolio withdrawals will initially be from your taxable account so if you can avoid short term capital gains (don't sell anything for a gain that you've owned for only a year or less) and keep your ordinary dividends plus any other income below about $79K (I think the total stock market index fund from Vanguard has over 90% of it's dividends listed as qualified), then the tax rate on your qualified dividends and long term capital gains are zero. These don't count towards income.

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monkey_business
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Re: Laid Off - Want to Retire / Am I OK

Post by monkey_business » Sat Jul 27, 2019 8:45 am

delamer wrote:
Fri Jul 26, 2019 6:00 pm
monkey_business wrote:
Fri Jul 26, 2019 4:00 pm
Some of the responses here to threads like this are what make regular folks think retirement is impossible. The average household income in the US is less than $60k a year. The OP has a net worth equal to over one hundred times the average annual income. He could see his portfolio increase 0% real for the rest of his life, and have the ability to live an average American lifestyle for the next century.

For crying out loud, YES, you can retire at the age of 51 with six million dollars. You'll be just fine.
What difference does it make to the OP if the average household income is less than $60K/year?

He wants to know if he can sustain his current spending given his assets.

Let’s say you make the average household income. If I told you that you should be able to live on $44,000/year because 40% of US households do so, would you agree with me?

Here’s the data: https://www.taxpolicycenter.org/statist ... -quintiles
The difference is that the OP, if need be, can easily scale back his expenses, and still live really well. That's the nice thing about having a $6M net worth. Yes, he can retire. Yes, he's gonna be OK. End of story.

tibbitts
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Re: Laid Off - Want to Retire / Am I OK

Post by tibbitts » Sat Jul 27, 2019 9:31 am

8foot7 wrote:
Wed Jul 24, 2019 4:13 pm
JoeRetire wrote:
Wed Jul 24, 2019 4:12 pm
BGeste wrote:
Wed Jul 24, 2019 12:21 pm
Is it safe for me to retire now and live on my investments?
Financially it's safe. But talk to your wife first.
His wife is really going to make him go find another job?
I understand a discussion about quitting, but that ship has sailed.
Maybe not, but she could divorce him, possibly leaving us discussing the prospects of his retiring on $3M vs. $6M.

I'm guessing the point is that some relationships work better when people aren't together 24/7.

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billthecat
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Re: Laid Off - Want to Retire / Am I OK

Post by billthecat » Sat Jul 27, 2019 10:03 am

tibbitts wrote:
Sat Jul 27, 2019 9:31 am
8foot7 wrote:
Wed Jul 24, 2019 4:13 pm
JoeRetire wrote:
Wed Jul 24, 2019 4:12 pm
BGeste wrote:
Wed Jul 24, 2019 12:21 pm
Is it safe for me to retire now and live on my investments?
Financially it's safe. But talk to your wife first.
His wife is really going to make him go find another job?
I understand a discussion about quitting, but that ship has sailed.
Maybe not, but she could divorce him, possibly leaving us discussing the prospects of his retiring on $3M vs. $6M.

I'm guessing the point is that some relationships work better when people aren't together 24/7.
And his expenses would increase because he would have to support himself and pay her a pension. Ouch.

On the other hand, if he just does whatever she demands, she will lose respect for him and divorce him anyway. Quite the dilemma.
We cannot direct the winds but we can adjust our sails.

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CyclingDuo
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Re: Laid Off - Want to Retire / Am I OK

Post by CyclingDuo » Sat Jul 27, 2019 10:42 am

BGeste wrote:
Thu Jul 25, 2019 7:57 pm
All these replies are very helpful. My primary concern is sequence of risk, that is why I want to try and live on mostly dividends / income in the initial years. My current estimate of dividend and interest income is about 130K. The individual stocks I have pay above average dividends. So the rest will have to come from selling shares. My monthly mortgage payment is fixed at $3,400 so I do not want to pay off my mortgage (700K) because that will require me to sell income producing shares. I plan to leave my 401K / IRA balance untouched until I qualify for SS.
Sequence of risk is a concern for all of us - regardless of the portfolio value. Rest assured you are not alone with that concern.

Dividends and interest may indeed ebb and flow, so are your annual expenses and household budget flexible enough to cover a broader range than a fixed $145K annual need?

Do you have the opportunity or chance to do some transition into retirement work via consulting or part-time work within your field to help alleviate your concern for those first few initial years and perhaps bring in some extra income to account for the ebb and flow of dividends/interest that may occur? Many others have spoken about the greater peace of mind that might provide in various threads - at least in the initial year or years to alleviate concerns until that cloud is lifted.

Although not specific to your well established financial situation outside of being in your 50's, I did suffer being laid off last year and wrote about those in their 50's that suffer a job loss in this post which many BH's contributed excellent posts regarding the subject...

viewtopic.php?f=2&t=273092
"Everywhere is within walking distance if you have the time." ~ Steven Wright

blahblahsunshine
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Re: Laid Off - Want to Retire / Am I OK

Post by blahblahsunshine » Sun Jul 28, 2019 10:31 am

You can certinly retire. If you have any doubt you should go to the social security website, get your earnings record and then put them in the physician on fire SSA calculator spreadsheet and see what you have coming to you. I am coming up on 50 with an older partner and we both are entitled to >30K at age 70. Put that into your analysis.

Your chance of portfolio failure is dwarfed by the chances of your death. An interesting question to consider is what the future you at age 80 would pay for a year doing whatever at age 51.

Re:lay-off, I am not going to say I am sorry for you. You have inadvertently done what I have been trying to do for two years. So, Congrats on an epic exit! :sharebeer

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5th_Dimension
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Re: Laid Off - Want to Retire / Am I OK

Post by 5th_Dimension » Sun Jul 28, 2019 10:46 am

blahblahsunshine wrote:
Sun Jul 28, 2019 10:31 am
Re: lay-off, I am not going to say I am sorry for you. You have inadvertently done what I have been trying to do for two years. So, Congrats on an epic exit! :sharebeer
This is the way I feel about it too. I was let go from a job years ago. I had been doing more and more independent consulting at the time and it was becoming more difficult to do both. My boss made the decision for me that I had been afraid to make myself and it worked out very well in the long run.

So you weren't laid off, you were set free! Congratulations :happy
Sometimes I feel like I'm waltzing in a 4/4 world.

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birdog
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Re: Laid Off - Want to Retire / Am I OK

Post by birdog » Sun Jul 28, 2019 2:52 pm

blahblahsunshine wrote:
Sun Jul 28, 2019 10:31 am
Your chance of portfolio failure is dwarfed by the chances of your death. An interesting question to consider is what the future you at age 80 would pay for a year doing whatever at age 51.
I seem to recall Warren Buffett saying he would give up his entire fortune to be 25 again, or something like that.

scorcher31
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Re: Laid Off - Want to Retire / Am I OK

Post by scorcher31 » Sun Jul 28, 2019 8:48 pm

6 million will probably be like 2 million when you hit your 80's, and we all know a million today isn't even close to what a million used to be. Plus LTC costs are going through the roof, heck you might run out of money and need to get transferred to a *shudder* medicaid nursing home. I would say work at least another 30 years and then reassess where things are at.

scorcher31
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Re: Laid Off - Want to Retire / Am I OK

Post by scorcher31 » Sun Jul 28, 2019 8:59 pm

In the event you seriously have doubts about retiring, I'll be more serious. Your expenses are 145k including a mortgage which is presumably a good chunk your your expenses. You are making 130k a year in dividends. Likely your social security and dividends will cover these expenses including health insurance for life and go far beyond that once you get your mortgage paid off. Yes you may have to drain a bit out of your account while you wait for social security but even if the market tanks, if you just let it ride you should be fine. If your really anxious then just cut back 30k or 40k if the market tanks in the next couple years until it recovers.

bhough
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Re: Laid Off - Want to Retire / Am I OK

Post by bhough » Sun Jul 28, 2019 9:56 pm

OP,

You can retire financially. Take 3 months off. Do all the golfing/travelling/sleeping in late that you want to.

After 3 months, you will need something to do. You don't have to think about it now. But I would recommend sometime during those 3 months you think about doing something during the day that is interesting to you and useful to society. It doesn't feel good to do nothing all day when everyone else is working, especially if you are young enough to contribute.

Just my two cents.

Nice job on the accumulation.

b

Bacchus01
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Re: Laid Off - Want to Retire / Am I OK

Post by Bacchus01 » Sun Jul 28, 2019 10:10 pm

scorcher31 wrote:
Sun Jul 28, 2019 8:48 pm
6 million will probably be like 2 million when you hit your 80's, and we all know a million today isn't even close to what a million used to be. Plus LTC costs are going through the roof, heck you might run out of money and need to get transferred to a *shudder* medicaid nursing home. I would say work at least another 30 years and then reassess where things are at.
Good one

bhsince87
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Re: Laid Off - Want to Retire / Am I OK

Post by bhsince87 » Sun Jul 28, 2019 10:17 pm

bhough wrote:
Sun Jul 28, 2019 9:56 pm
OP,

You can retire financially. Take 3 months off. Do all the golfing/travelling/sleeping in late that you want to.

After 3 months, you will need something to do. You don't have to think about it now. But I would recommend sometime during those 3 months you think about doing something during the day that is interesting to you and useful to society. It doesn't feel good to do nothing all day when everyone else is working, especially if you are young enough to contribute.

Just my two cents.

Nice job on the accumulation.

b
I've been retired 7 months, at age 53/54, and I have yet to experience this feeling.

I actually enjoy "doing nothing all day".
"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace." Samuel Adams

coffeeblack
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Re: Laid Off - Want to Retire / Am I OK

Post by coffeeblack » Sun Jul 28, 2019 11:47 pm

bhsince87 wrote:
Sun Jul 28, 2019 10:17 pm
bhough wrote:
Sun Jul 28, 2019 9:56 pm
OP,

You can retire financially. Take 3 months off. Do all the golfing/travelling/sleeping in late that you want to.

After 3 months, you will need something to do. You don't have to think about it now. But I would recommend sometime during those 3 months you think about doing something during the day that is interesting to you and useful to society. It doesn't feel good to do nothing all day when everyone else is working, especially if you are young enough to contribute.

Just my two cents.

Nice job on the accumulation.

b
I've been retired 7 months, at age 53/54, and I have yet to experience this feeling.

I actually enjoy "doing nothing all day".
:sharebeer

am
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Re: Laid Off - Want to Retire / Am I OK

Post by am » Mon Jul 29, 2019 3:03 am

Classic humblebrag post where OP has way more than he needs. When you expenses are 100k+, in the worst 1% of outcomes, can always lower spending. But shouldn’t be an issue with 6 mil assets and SS.

rossington
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Re: Laid Off - Want to Retire / Am I OK

Post by rossington » Mon Jul 29, 2019 3:28 am

You now have all the time you need to concentrate on your portfolio every day...this will prove invaluable.
"Success is going from failure to failure without loss of enthusiasm." Winston Churchill.

moneywise3
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Re: Laid Off - Want to Retire / Am I OK

Post by moneywise3 » Mon Jul 29, 2019 5:13 am

You could have retired at 48, or 45 if you had planned ahead of time 😆😆

moneywise3
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Re: Laid Off - Want to Retire / Am I OK

Post by moneywise3 » Mon Jul 29, 2019 5:17 am

"doing nothing all day" is generally a transition phase. You enjoyed doing nothing all day on days off work from your current job. But when you don't have that job, "doing nothing all day" is not the same thing. Look for some volunteer work to start with, and let your internal GPS guide you.

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8foot7
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Re: Laid Off - Want to Retire / Am I OK

Post by 8foot7 » Mon Jul 29, 2019 8:10 am

If I may, but especially if you happen to end up one of those folks with $6-7 million in assets (a) getting a large subsidy from Obamacare and (b) paying close to zero federal taxes, it is almost certainly a good idea to have at least a portion of your days dedicated to volunteer work and charity. I blame no one for engineering their finances around the tax code--that's just smart. But many worthy places need help, and not just monetarily--they need time and effort, and perhaps even smart leadership (that's willing for work for nothing), and you have a lot of human capital left in your early 50s. The giving back in earnest can begin.

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birdog
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Re: Laid Off - Want to Retire / Am I OK

Post by birdog » Mon Jul 29, 2019 10:00 am

8foot7 wrote:
Mon Jul 29, 2019 8:10 am
If I may, but especially if you happen to end up one of those folks with $6-7 million in assets (a) getting a large subsidy from Obamacare and (b) paying close to zero federal taxes, it is almost certainly a good idea to have at least a portion of your days dedicated to volunteer work and charity. I blame no one for engineering their finances around the tax code--that's just smart. But many worthy places need help, and not just monetarily--they need time and effort, and perhaps even smart leadership (that's willing for work for nothing), and you have a lot of human capital left in your early 50s. The giving back in earnest can begin.
I agree wholeheartedly with this sentiment. In the end, you only get to keep that which you give away.

CoastalWinds
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Re: Laid Off - Want to Retire / Am I OK

Post by CoastalWinds » Mon Jul 29, 2019 10:13 am

JoeRetire wrote:
Wed Jul 24, 2019 4:28 pm
8foot7 wrote:
Wed Jul 24, 2019 4:21 pm
JoeRetire wrote:
Wed Jul 24, 2019 4:17 pm
8foot7 wrote:
Wed Jul 24, 2019 4:13 pm
JoeRetire wrote:
Wed Jul 24, 2019 4:12 pm

Financially it's safe. But talk to your wife first.
His wife is really going to make him go find another job?
I understand a discussion about quitting, but that ship has sailed.
He was laid off. How is quitting relevant here? :confused
That is what I meant. What is the discussion with the wife about? Is she really going to say, "no, honey, I don't want you to retire, I want you to go find another job?" The way you phrased it sounded like he needed his wife's approval to not have a job anymore, and my point was that I could understand why you would have a discussion about potentially quitting a job in order to retire, but since he already was laid off and doesn't have a job, there's very little to discuss.
Marriage is a partnership, IMHO. And all important decisions need to be discussed between partners (again IMHO). Choosing to retire is an important decision, IMHO.

I would never suggest anyone, without regard to their wealth, go to their spouse and say "I've decided that I am now retired. End of discussion."

Your mileage may vary.
I agree with what you’re saying in concept. But if wife doesn’t work, and kids are well past needing a SAHM, I don’t think its a decision that needs mutual consensus.

zlandar
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Re: Laid Off - Want to Retire / Am I OK

Post by zlandar » Mon Jul 29, 2019 10:26 am

Health insurance is the major concern. You have 14 years before you are eligible for Medicare.

If the individual options are not palatable consider getting a part-time job that offers health benefits.

ncbill
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Re: Laid Off - Want to Retire / Am I OK

Post by ncbill » Mon Jul 29, 2019 10:43 am

bhsince87 wrote:
Thu Jul 25, 2019 2:17 pm
bampf wrote:
Thu Jul 25, 2019 11:48 am
bhsince87 wrote:
Wed Jul 24, 2019 3:59 pm

Yes, you can probably afford to retire now.
Probably? $6MM and only probably? Assuming zero growth/downturn he can withdraw $16,666 a month or $200K a year for the next 30 years. That's if it stays flat. At even nominal growth OP can do better than that. It baffles me when someone with $6MM in assets is warned about the risk. There is no probably about it.
There is simply not enough information given.

How conservative is the OP? Personally, I'm going with a 3% withdrawal rate at age 54. Maybe he feels the same.

What about health insurance and health care expenses? I'd ballpark that at maybe $35k per year, with two daughters to potentially cover for the next 6-10 years...
It's often cheaper to use the school health plan once the kids are in undergrad...under $120/month for a gold-level ACA plan at our kid's school.

We save more than that dropping coverage from "family" to "employee & spouse" on our employer-provided health insurance.

And yes, all the doctors we use here at home are in-network on the out-of-state school plan.

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Tamarind
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Re: Laid Off - Want to Retire / Am I OK

Post by Tamarind » Mon Jul 29, 2019 10:49 am

birdog wrote:
Mon Jul 29, 2019 10:00 am
8foot7 wrote:
Mon Jul 29, 2019 8:10 am
If I may, but especially if you happen to end up one of those folks with $6-7 million in assets (a) getting a large subsidy from Obamacare and (b) paying close to zero federal taxes, it is almost certainly a good idea to have at least a portion of your days dedicated to volunteer work and charity. I blame no one for engineering their finances around the tax code--that's just smart. But many worthy places need help, and not just monetarily--they need time and effort, and perhaps even smart leadership (that's willing for work for nothing), and you have a lot of human capital left in your early 50s. The giving back in earnest can begin.
I agree wholeheartedly with this sentiment. In the end, you only get to keep that which you give away.
+100

OP, congratulations on your retirement!

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8foot7
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Re: Laid Off - Want to Retire / Am I OK

Post by 8foot7 » Mon Jul 29, 2019 10:57 am

CoastalWinds wrote:
Mon Jul 29, 2019 10:13 am
JoeRetire wrote:
Wed Jul 24, 2019 4:28 pm
8foot7 wrote:
Wed Jul 24, 2019 4:21 pm
JoeRetire wrote:
Wed Jul 24, 2019 4:17 pm
8foot7 wrote:
Wed Jul 24, 2019 4:13 pm


His wife is really going to make him go find another job?
I understand a discussion about quitting, but that ship has sailed.
He was laid off. How is quitting relevant here? :confused
That is what I meant. What is the discussion with the wife about? Is she really going to say, "no, honey, I don't want you to retire, I want you to go find another job?" The way you phrased it sounded like he needed his wife's approval to not have a job anymore, and my point was that I could understand why you would have a discussion about potentially quitting a job in order to retire, but since he already was laid off and doesn't have a job, there's very little to discuss.
Marriage is a partnership, IMHO. And all important decisions need to be discussed between partners (again IMHO). Choosing to retire is an important decision, IMHO.

I would never suggest anyone, without regard to their wealth, go to their spouse and say "I've decided that I am now retired. End of discussion."

Your mileage may vary.
I agree with what you’re saying in concept. But if wife doesn’t work, and kids are well past needing a SAHM, I don’t think its a decision that needs mutual consensus.
That was my point, which I obviously stumbled in communicating. OP shouldn't hide the layoff, but that ought to be a "honey, I actually think I don't need to look for work. I think we're secure and here's why" and walk through the numbers of scenarios.

Bacchus01
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Re: Laid Off - Want to Retire / Am I OK

Post by Bacchus01 » Mon Jul 29, 2019 11:45 am

8foot7 wrote:
Mon Jul 29, 2019 8:10 am
If I may, but especially if you happen to end up one of those folks with $6-7 million in assets (a) getting a large subsidy from Obamacare and (b) paying close to zero federal taxes, it is almost certainly a good idea to have at least a portion of your days dedicated to volunteer work and charity. I blame no one for engineering their finances around the tax code--that's just smart. But many worthy places need help, and not just monetarily--they need time and effort, and perhaps even smart leadership (that's willing for work for nothing), and you have a lot of human capital left in your early 50s. The giving back in earnest can begin.
That's one opinion.

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JoeRetire
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Re: Laid Off - Want to Retire / Am I OK

Post by JoeRetire » Mon Jul 29, 2019 12:22 pm

CoastalWinds wrote:
Mon Jul 29, 2019 10:13 am
I agree with what you’re saying in concept. But if wife doesn’t work, and kids are well past needing a SAHM, I don’t think its a decision that needs mutual consensus.
You and I clearly have very different views on marriage.

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mrspock
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Re: Laid Off - Want to Retire / Am I OK

Post by mrspock » Mon Jul 29, 2019 1:43 pm

The answer here is most certainly yes, it’s just a matter of getting your expenses aligned with your VERY healthy retirement income (and 3 or 3.5 pct SWR). By my eye, it appears to already be the case.

Congrats on a job well done saving for retirement, and enjoy the well deserved freedom.

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BGeste
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Re: Laid Off - Want to Retire / Am I OK

Post by BGeste » Fri Aug 09, 2019 4:31 pm

A few weeks in and all these replies have been great for context. A couple of updates and one question.

1) I secured a high deductible health plan for all four from Golden Rule (United Health Care). Deductible is $12,500. 2 million in coverage after deductible is met, per person.

2) Looked into annuities but costs are too high. Will live on dividends and interest and withdraw additional if necessary.

3) Not sure I want to return to work because that will require relocation at my level. What are ideas for finding consulting or other forms of part time work, if I decide at some point I want to do that? How do I overcome being considered overqualified?

Grt2bOutdoors
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Re: Laid Off - Want to Retire / Am I OK

Post by Grt2bOutdoors » Fri Aug 09, 2019 6:59 pm

BGeste wrote:
Fri Aug 09, 2019 4:31 pm
A few weeks in and all these replies have been great for context. A couple of updates and one question.

1) I secured a high deductible health plan for all four from Golden Rule (United Health Care). Deductible is $12,500. 2 million in coverage after deductible is met, per person.
If the deductible is $12.5K per family, great. If it's per person, then not so great. Assume you will spend $12.5K each year and count it as part of your annual expense budget, if you don't spend it, then add it back to portfolio, don't increase spend in other categories.
2) Looked into annuities but costs are too high. Will live on dividends and interest and withdraw additional if necessary.
Consider annuities when you are in late 60's, mid 70's to capture mortality credits. At your current age, annuities will offer you low rates of return per dollar because annuity company will be paying you for longer period of time. Lower yields in the market also affect the rates offered.
3) Not sure I want to return to work because that will require relocation at my level. What are ideas for finding consulting or other forms of part time work, if I decide at some point I want to do that? How do I overcome being considered overqualified?
Have you considered networking with other professionals in your field who are consulting now? If you are not on LinkedIn, get on it. It might take time, maybe alot of time to get the opportunities you seek, the best time to start looking is when you don't need a job.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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BGeste
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Re: Laid Off - Want to Retire / Am I OK

Post by BGeste » Sat Aug 10, 2019 8:12 am

:happy

GmanJeff
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Re: Laid Off - Want to Retire / Am I OK

Post by GmanJeff » Sat Aug 10, 2019 11:25 am

BGeste wrote:
Fri Aug 09, 2019 4:31 pm
A few weeks in and all these replies have been great for context. A couple of updates and one question.

3) Not sure I want to return to work because that will require relocation at my level. What are ideas for finding consulting or other forms of part time work, if I decide at some point I want to do that? How do I overcome being considered overqualified?
As Grt2b says, above, leverage your LinkedIn profile to make it clear that you are a consultant in your field. Your profile should describe the types of engagements you are open to, and should contain language likely to be used by recruiters and others as search terms when looking for people like you.

If you belong to professional associations, consider whether their publications or meetings offer opportunities to publicize your availability, and/or to look for part-time or consulting roles which can be done on a remote basis.

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Re: Laid Off - Want to Retire / Am I OK

Post by visualguy » Sat Aug 10, 2019 12:45 pm

GmanJeff wrote:
Sat Aug 10, 2019 11:25 am
BGeste wrote:
Fri Aug 09, 2019 4:31 pm
A few weeks in and all these replies have been great for context. A couple of updates and one question.

3) Not sure I want to return to work because that will require relocation at my level. What are ideas for finding consulting or other forms of part time work, if I decide at some point I want to do that? How do I overcome being considered overqualified?
As Grt2b says, above, leverage your LinkedIn profile to make it clear that you are a consultant in your field. Your profile should describe the types of engagements you are open to, and should contain language likely to be used by recruiters and others as search terms when looking for people like you.

If you belong to professional associations, consider whether their publications or meetings offer opportunities to publicize your availability, and/or to look for part-time or consulting roles which can be done on a remote basis.
It is depressing that even with $6M one still needs to be in the rat race and hustle for more gigs.

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JoeRetire
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Re: Laid Off - Want to Retire / Am I OK

Post by JoeRetire » Sat Aug 10, 2019 12:59 pm

visualguy wrote:
Sat Aug 10, 2019 12:45 pm
It is depressing that even with $6M one still needs to be in the rat race and hustle for more gigs.
One doesn't need to still be in the rat race. One makes one's own choices...

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Re: Laid Off - Want to Retire / Am I OK

Post by Grt2bOutdoors » Sat Aug 10, 2019 2:30 pm

visualguy wrote:
Sat Aug 10, 2019 12:45 pm
GmanJeff wrote:
Sat Aug 10, 2019 11:25 am
BGeste wrote:
Fri Aug 09, 2019 4:31 pm
A few weeks in and all these replies have been great for context. A couple of updates and one question.

3) Not sure I want to return to work because that will require relocation at my level. What are ideas for finding consulting or other forms of part time work, if I decide at some point I want to do that? How do I overcome being considered overqualified?
It is depressing that even with $6M one still needs to be in the rat race and hustle for more gigs.
The OP chooses to keep their options open. That is the best plan, to do things on your timetable as opposed to someone else’s. If the OP cut his spending to $100k, his portfolio could become perpetual. If he relocated, he could live on a lot less. Again, it’s a choice.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

BarbK
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Re: Laid Off - Want to Retire / Am I OK

Post by BarbK » Sat Aug 10, 2019 3:49 pm

BGeste wrote:
Fri Aug 09, 2019 4:31 pm
A few weeks in and all these replies have been great for context. A couple of updates and one question.

1) I secured a high deductible health plan for all four from Golden Rule (United Health Care). Deductible is $12,500. 2 million in coverage after deductible is met, per person. My husband got this policy for 2019, he paid the entire year's premium up front and saved 25%. Total premium was $7K less than his Bronze level ACA plan that had a really limited network. Also, note if any of you get sick, a trip to Urgent Care is just $75 which is really good.

2) Looked into annuities but costs are too high. Will live on dividends and interest and withdraw additional if necessary.
Also, you can have about $100K of qualified income and not pay any taxes; maybe more since you have 2 dependents. I don't think your taxes are going to be very high unless you have high state taxes.

3) Not sure I want to return to work because that will require relocation at my level. What are ideas for finding consulting or other forms of part time work, if I decide at some point I want to do that? How do I overcome being considered overqualified?


Good luck; I think you will enjoy early retirement.

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BGeste
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Re: Laid Off - Want to Retire / Am I OK

Post by BGeste » Sat Aug 10, 2019 6:26 pm

I agree with the poster above that writes it's depressing that I should want side hustles with a net worth of $6 million at 51. But working and making money is all I have ever known and it feels weird to just start living on investments. Maybe I will get used to it.

LiveFor30
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Re: Laid Off - Want to Retire / Am I OK

Post by LiveFor30 » Sat Aug 10, 2019 8:35 pm

BGeste wrote:
Sat Aug 10, 2019 6:26 pm
I agree with the poster above that writes it's depressing that I should want side hustles with a net worth of $6 million at 51. But working and making money is all I have ever known and it feels weird to just start living on investments. Maybe I will get used to it.
My first time posting here. I'm a little older than you (63) but know the feeling of always having worked and been productive/profitable. I sold my business 2 years ago and it is a little strange not working full-time but you do get used to it and it is nice. I still work 13-17 hours a week in my former capacity for the new owner which is enough to more than cover my meager costs of living. I continue to see clients that have seen me for years. I don't have any managerial responsibilities other than as a mentor and advisor to the new owner who is a sharp guy. I can take a week off for travel any time I want and that is nice.

I really enjoy that amount of work and having the off days/hours to do other activities, workout, read financial blogs, ski, hike, etc. Being able to keep a good paying job with just reduced hours is a nice transition. I get a nice hourly rate, they cover my insurance costs and everyone there still "loves me". LOL I think you are probably the kind of guy (like me) that still wants some of that positive work acknowledgement.

Financially I think you are fine to retire but doing some part-time work in YOUR field (not as a barista lol) would probably be good for you if you love your work like I do. If I didn't love it I would have retired a few years ago. Working part-time, in a high paying field, gives you a continued feeling of productivity and extends you finances as to not have a worry when you get to your 60s.

Good luck with everything and congratulations on planning well and working hard to get there.

blahblahsunshine
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Re: Laid Off - Want to Retire / Am I OK

Post by blahblahsunshine » Sun Aug 11, 2019 9:05 am

BGeste wrote:
Sat Aug 10, 2019 6:26 pm
I agree with the poster above that writes it's depressing that I should want side hustles with a net worth of $6 million at 51. But working and making money is all I have ever known and it feels weird to just start living on investments. Maybe I will get used to it.
I am about your age, still working but goaling on where you have landed. Another way to look at your situation is that you have the opportunity to find something new about yourself and explore something new. The easiest thing for someone to do who has been habituated to work, work, working over the last 30 years is go back to work. The sirens call to the familiar is no doubt comforting, but ask yourself if that is what you really want to do with your remaining clock time; if it is no shame going back to your old line of work. If you are up for a different adventure and a challenge be on the lookout for something to grab your attention over the next year or so.

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BGeste
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Re: Laid Off - Want to Retire / Am I OK

Post by BGeste » Tue Aug 13, 2019 5:25 pm

Thanks. My wife wants me to retire completely and give up searching for a new job! Her plan is for us to travel more and relax.

Bfwolf
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Re: Laid Off - Want to Retire / Am I OK

Post by Bfwolf » Tue Aug 13, 2019 7:02 pm

BGeste wrote:
Tue Aug 13, 2019 5:25 pm
Thanks. My wife wants me to retire completely and give up searching for a new job! Her plan is for us to travel more and relax.
Smart woman! I recommend following her advice.

Any good ideas for a first trip in your well-deserved retirement?

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