Definition of one more year (OMY).

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flyingaway
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Definition of one more year (OMY).

Post by flyingaway »

We have been discussing about one more year (OMY) many times, notably by The Timelord and others. I would like to have a clear definition of OMY if you don't mind.
First, you have to reach financial Independence (FI), with whatever your number is.
(1) If you have FI and do not want to retire, are you defautly considered as doing OMY?
Or, (2) if you have FI, are considering retirement, but for various reasons, decided to stay put. However, you may retire at any time or until reach certain buffers? In other words, you are delaying retirement on a year by year basis.
I'm in the second situation and consider that as OMY.
AlohaJoe
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Re: Definition of one more year (OMY).

Post by AlohaJoe »

There is no clear definition and I'm not sure why it matters that there is one.
sailaway
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Re: Definition of one more year (OMY).

Post by sailaway »

For us, we reached our original number, but decided we might not want to be so minimalist for another 40-50 years. And it is much easier to save more now than work menial jobs throughout our 60s.

However, for us, it is OMM, one more million. Or, as I say, we are transitioning from MMM to bogleheads.
Topic Author
flyingaway
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Re: Definition of one more year (OMY).

Post by flyingaway »

AlohaJoe wrote: Sat Feb 23, 2019 10:11 am There is no clear definition and I'm not sure why it matters that there is one.
I think the mindset is different.
KlangFool
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Re: Definition of one more year (OMY).

Post by KlangFool »

OP,

FI is not retirement. FI means that you do not need a job to sustain your current lifestyle.

You get to choose to

A) Keep a job.

B) Working part-time.

C) Not working

D) Working on a non-paying job.

OMY mean that you choose (A) when you are FI. It is your life and your choice. FI gives you the freedom to choose. What you choose is none of our business.

KlangFool
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Mike Scott
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Re: Definition of one more year (OMY).

Post by Mike Scott »

It seems to come up most often in discussions of postponing retirement dates whether it is moving the goal posts, a fear of risk, fear of change, not knowing how to actually cope with such a big life event... Everyone has their individual circumstances to consider and I don't see how hashing out a specific definition makes any difference.
KlangFool
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Re: Definition of one more year (OMY).

Post by KlangFool »

flyingaway wrote: Sat Feb 23, 2019 10:19 am
AlohaJoe wrote: Sat Feb 23, 2019 10:11 am There is no clear definition and I'm not sure why it matters that there is one.
I think the mindset is different.
flyingaway,

I disagreed. In my opinion and observation of my family members, it is more of a case of people that has nothing to retire to. Some folks occupied most of their lives working and they have nothing else to live for. They do not know what to do with their free time if they are not working.

A) My older brother and older sister early retired at 49 years old. They traveled all over the world and check out the foods and scenery.

B) One of my family member work in the finance industry. He is a frugal person. His children are going to inherit 7 figures. But, he has no hobby and nothing else to do with his lives. So, he keeps on working.

These OMY phenomena tend to infect folks working in the finance world. It is less prevalent among technical folks.

KlangFool
40% VWENX | 12.5% VFWAX/VTIAX | 11.5% VTSAX | 16% VBTLX | 10% VSIAX/VTMSX/VSMAX | 10% VSIGX| 40% Wellington 40% 3-funds 20% Mini-Larry
Topic Author
flyingaway
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Re: Definition of one more year (OMY).

Post by flyingaway »

Mike Scott wrote: Sat Feb 23, 2019 10:26 am It seems to come up most often in discussions of postponing retirement dates whether it is moving the goal posts, a fear of risk, fear of change, not knowing how to actually cope with such a big life event... Everyone has their individual circumstances to consider and I don't see how hashing out a specific definition makes any difference.
At least, those have FI and enjoy their work and do not plan to retire any time soon, are not doing OMY, IMHO.
averagedude
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Re: Definition of one more year (OMY).

Post by averagedude »

For alot of us blue collar types, OMY isn't a phenomenon unless it is for financial reasons. When you have worked at the lug nut factory for 40 years, you are ready to retire if you have the financial means to do so.
fposte
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Re: Definition of one more year (OMY).

Post by fposte »

As I get closer to retirement, I can feel how my ambivalence could bring on OMY syndrome--I like my job, and I'll be retiring early mostly for health reasons. However, I have to give a year's notice for retirement and I'll have to handle the search for my replacement, since there's nothing else at my employer like it. I suspect that without that significant advance notice structure, I could end up delaying at the last minute.
DrGoogle2017
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Re: Definition of one more year (OMY).

Post by DrGoogle2017 »

KlangFool wrote: Sat Feb 23, 2019 10:30 am
flyingaway wrote: Sat Feb 23, 2019 10:19 am
AlohaJoe wrote: Sat Feb 23, 2019 10:11 am There is no clear definition and I'm not sure why it matters that there is one.
I think the mindset is different.
flyingaway,

I disagreed. In my opinion and observation of my family members, it is more of a case of people that has nothing to retire to. Some folks occupied most of their lives working and they have nothing else to live for. They do not know what to do with their free time if they are not working.

A) My older brother and older sister early retired at 49 years old. They traveled all over the world and check out the foods and scenery.

B) One of my family member work in the finance industry. He is a frugal person. His children are going to inherit 7 figures. But, he has no hobby and nothing else to do with his lives. So, he keeps on working.

These OMY phenomena tend to infect folks working in the finance world. It is less prevalent among technical folks.

KlangFool
There’s a difference in OMY results in $5 million or OMY results in $50k. This is one reason why the folks in the finance field has a hard time letting go.
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Svensk Anga
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Re: Definition of one more year (OMY).

Post by Svensk Anga »

One more year in some cases is a logical result of some employment specifics:

1.) OMY of accredited service on the pension. There is no credit for a half year.
2.) OMY to gain vesting service and another birthday to put one in a better place on the early retirement pension discount schedule.
3.) OMY to get to a logical retirement date. For example, the date that one earns another year's allotment of vacation.
4.) OMY to acquire another lump sum benefit: bonus, stock vesting, employer HSA contribution.
5.) OMY to get to the point where one can max out available tax advantaged plan space for the year.
6.) For some, employment is year to year, with mid-year retirement frowned upon. My DW as an educator was in this spot. It was always a given that she would retire at the end of a school year.

So I think for many, the retire or not decision comes down to doing it on the optimum date as defined above this year, or wait until that date next year, with little chance of it happening in between.
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flyingaway
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Re: Definition of one more year (OMY).

Post by flyingaway »

KlangFool wrote: Sat Feb 23, 2019 10:30 am
flyingaway wrote: Sat Feb 23, 2019 10:19 am
AlohaJoe wrote: Sat Feb 23, 2019 10:11 am There is no clear definition and I'm not sure why it matters that there is one.
I think the mindset is different.
flyingaway,

I disagreed. In my opinion and observation of my family members, it is more of a case of people that has nothing to retire to. Some folks occupied most of their lives working and they have nothing else to live for. They do not know what to do with their free time if they are not working.

A) My older brother and older sister early retired at 49 years old. They traveled all over the world and check out the foods and scenery.

B) One of my family member work in the finance industry. He is a frugal person. His children are going to inherit 7 figures. But, he has no hobby and nothing else to do with his lives. So, he keeps on working.

These OMY phenomena tend to infect folks working in the finance world. It is less prevalent among technical folks.

KlangFool
KlangFool,

I know you like to argue with people. I'm not talking about if one should do OMY or not.
I just want to know what is considered as OMY. For your example B, the person has no intention to retire any time soon, he is not doing OMY, in my opinion.
Marseille07
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Re: Definition of one more year (OMY).

Post by Marseille07 »

OMY can happen on all kinds of reasons.

I just updated (OMY'ed) myself upon realizing ACA portion was probably underestimated at 6k/year, now 10k/year.

Another big factor is inflation, as prices may have inflated between when you planned your estimates vs when you're actually retiring.
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flyingaway
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Re: Definition of one more year (OMY).

Post by flyingaway »

Marseille07 wrote: Wed Apr 07, 2021 7:13 pm OMY can happen on all kinds of reasons.

I just updated (OMY'ed) myself upon realizing ACA portion was probably underestimated at 6k/year, now 10k/year.

Another big factor is inflation, as prices may have inflated between when you planned your estimates vs when you're actually retiring.
It seems that you are not ready, since you are not financial independent.

I don't consider it to be OMY. If you retire, in my opinion, it would be pre-matured (based on your information that you don't have the needed 10k/year for ACA).
Marseille07
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Re: Definition of one more year (OMY).

Post by Marseille07 »

flyingaway wrote: Wed Apr 07, 2021 11:13 pm
Marseille07 wrote: Wed Apr 07, 2021 7:13 pm OMY can happen on all kinds of reasons.

I just updated (OMY'ed) myself upon realizing ACA portion was probably underestimated at 6k/year, now 10k/year.

Another big factor is inflation, as prices may have inflated between when you planned your estimates vs when you're actually retiring.
It seems that you are not ready, since you are not financial independent.

I don't consider it to be OMY. If you retire, in my opinion, it would be pre-matured (based on your information that you don't have the needed 10k/year for ACA).
I appreciate your time, but I wasn't really asking for my portfolio review. I was just stating what could contribute to OMY.
sailaway
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Re: Definition of one more year (OMY).

Post by sailaway »

For us, it means we have achieved our stated goals, but don't feel particularly confident about our ability to predict the next few decades, either in terms of the economy nor our desires as we age.

I imagine this is harder for high income and for particularly young retirees. Each year still makes a significant impact and the golden handcuffs often do their job quite well. The next milestone is right over that ridge, surely we will walk away then...
humblecoder
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Re: Definition of one more year (OMY).

Post by humblecoder »

flyingaway wrote: Sat Feb 23, 2019 12:55 pm KlangFool,

I know you like to argue with people. I'm not talking about if one should do OMY or not.
I just want to know what is considered as OMY. For your example B, the person has no intention to retire any time soon, he is not doing OMY, in my opinion.
Maybe I am not one of the "cool kids", but I have no clue what is meant or implied by the phrase "one more year" other than the literal definition. That is, "I will be retiring in 365 days from now".

Am I missing something?
Marseille07
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Re: Definition of one more year (OMY).

Post by Marseille07 »

humblecoder wrote: Thu Apr 08, 2021 10:34 pm
flyingaway wrote: Sat Feb 23, 2019 12:55 pm KlangFool,

I know you like to argue with people. I'm not talking about if one should do OMY or not.
I just want to know what is considered as OMY. For your example B, the person has no intention to retire any time soon, he is not doing OMY, in my opinion.
Maybe I am not one of the "cool kids", but I have no clue what is meant or implied by the phrase "one more year" other than the literal definition. That is, "I will be retiring in 365 days from now".

Am I missing something?
Yes. The nuance here is your planned retirement date approaches and you decide not to retire and keep working for OMY. This is actually the opposite of counting down your retirement date and pulling the trigger on schedule.
Last edited by Marseille07 on Thu Apr 08, 2021 11:54 pm, edited 2 times in total.
crossbow
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Re: Definition of one more year (OMY).

Post by crossbow »

fposte wrote: Sat Feb 23, 2019 11:02 am As I get closer to retirement, I can feel how my ambivalence could bring on OMY syndrome--I like my job, and I'll be retiring early mostly for health reasons. However, I have to give a year's notice for retirement and I'll have to handle the search for my replacement, since there's nothing else at my employer like it. I suspect that without that significant advance notice structure, I could end up delaying at the last minute.
Really, would your company cease to exist if you decided not to/physically are unable to go in to work tomorrow? Interested to know what it is that you do 8-)
crossbow
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Re: Definition of one more year (OMY).

Post by crossbow »

DrGoogle2017 wrote: Sat Feb 23, 2019 11:46 am
KlangFool wrote: Sat Feb 23, 2019 10:30 am
flyingaway wrote: Sat Feb 23, 2019 10:19 am
AlohaJoe wrote: Sat Feb 23, 2019 10:11 am There is no clear definition and I'm not sure why it matters that there is one.
I think the mindset is different.
flyingaway,

I disagreed. In my opinion and observation of my family members, it is more of a case of people that has nothing to retire to. Some folks occupied most of their lives working and they have nothing else to live for. They do not know what to do with their free time if they are not working.

A) My older brother and older sister early retired at 49 years old. They traveled all over the world and check out the foods and scenery.

B) One of my family member work in the finance industry. He is a frugal person. His children are going to inherit 7 figures. But, he has no hobby and nothing else to do with his lives. So, he keeps on working.

These OMY phenomena tend to infect folks working in the finance world. It is less prevalent among technical folks.

KlangFool
There’s a difference in OMY results in $5 million or OMY results in $50k. This is one reason why the folks in the finance field has a hard time letting go.
The person on a $5M salary would probably have a bigger nest egg than the one on a $50K salary. Probably 100x bigger. So... :confused
Tingting1013
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Re: Definition of one more year (OMY).

Post by Tingting1013 »

My father is 60 and has saved up a few million. He could retire tomorrow and be fine.

But he just joined the executive team of a startup and has options that could be worth $50M upon an IPO in 2-3 years. So he works.

You tell me, is that OMY?
GG1273
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Re: Definition of one more year (OMY).

Post by GG1273 »

I'm two weeks into my OMY!

Decision wasn't $ based to stay on it was WFH - I was tired of the office and all things associated with it. But WFH changed that and not being able to really go anywhere was second reason.

There is some talk of returning to office in Sept of this year. I want to see what that entails. It might end up being One More Half Year.
humblecoder
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Re: Definition of one more year (OMY).

Post by humblecoder »

Marseille07 wrote: Thu Apr 08, 2021 10:39 pm
humblecoder wrote: Thu Apr 08, 2021 10:34 pm
flyingaway wrote: Sat Feb 23, 2019 12:55 pm KlangFool,

I know you like to argue with people. I'm not talking about if one should do OMY or not.
I just want to know what is considered as OMY. For your example B, the person has no intention to retire any time soon, he is not doing OMY, in my opinion.
Maybe I am not one of the "cool kids", but I have no clue what is meant or implied by the phrase "one more year" other than the literal definition. That is, "I will be retiring in 365 days from now".

Am I missing something?
Yes. The nuance here is your planned retirement date approaches and you decide not to retire and keep working for OMY. This is actually the opposite of counting down your retirement date and pulling the trigger on schedule.
Thanks for the explanation. It would have been nice if the OP defined OMY up front!

So the original question is whether someone who technically could retire from a financial standpoint but they weren't planning on retiring. Are they considered to be a OMYer?

To be blunt, who cares? We are all individuals with our own motivations. The decision to work or retire is based upon our own unique circumstances. Why do we have to put them into these neat categories?
Marseille07
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Re: Definition of one more year (OMY).

Post by Marseille07 »

humblecoder wrote: Fri Apr 09, 2021 9:19 am So the original question is whether someone who technically could retire from a financial standpoint but they weren't planning on retiring. Are they considered to be a OMYer?
I think that would be FI but not OMY because OMY only happens on people planning to retire and couldn't / decided not to.
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Scott S
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Re: Definition of one more year (OMY).

Post by Scott S »

Tingting1013 wrote: Fri Apr 09, 2021 3:26 am My father is 60 and has saved up a few million. He could retire tomorrow and be fine.

But he just joined the executive team of a startup and has options that could be worth $50M upon an IPO in 2-3 years. So he works.

You tell me, is that OMY?
Would he have retired if it weren't for this new opportunity? It doesn't sound like it.

Saying that someone with no immediate plans to retire is doing "OMY" is pretty nonsensical.
"Worry is interest paid on trouble before it becomes due." -- William R. Inge
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BogleFanGal
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Re: Definition of one more year (OMY).

Post by BogleFanGal »

My OMY definition: you have enough, but you haven't yet had enough (of the BS, the grind, whatever) to confidently make the break you kinda, sorta, pretty much still want to make. :beer
"Life would be infinitely happier if we could only be born at the age of eighty and gradually approach eighteen." Mark Twain
Starfish
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Re: Definition of one more year (OMY).

Post by Starfish »

For me it's not OMY but OMM (one more million) in today's financial climate.
Tingting1013
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Re: Definition of one more year (OMY).

Post by Tingting1013 »

Scott S wrote: Fri Apr 09, 2021 11:53 am
Tingting1013 wrote: Fri Apr 09, 2021 3:26 am My father is 60 and has saved up a few million. He could retire tomorrow and be fine.

But he just joined the executive team of a startup and has options that could be worth $50M upon an IPO in 2-3 years. So he works.

You tell me, is that OMY?
Would he have retired if it weren't for this new opportunity? It doesn't sound like it.

Saying that someone with no immediate plans to retire is doing "OMY" is pretty nonsensical.
This is a complex question that requires further explication.

1. Someone who could retire financially but chooses to work for non-financial reasons
2. Someone who could retire financially but chooses to work for a lottery-like payoff
3. Someone who could retire but chooses to work to pad out the nest egg just a little bit

OMY is often thought of as just #3 but I submit there are at least these other two flavors as well.
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Scott S
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Re: Definition of one more year (OMY).

Post by Scott S »

Tingting1013 wrote: Fri Apr 09, 2021 12:48 pm
Scott S wrote: Fri Apr 09, 2021 11:53 am
Tingting1013 wrote: Fri Apr 09, 2021 3:26 am My father is 60 and has saved up a few million. He could retire tomorrow and be fine.

But he just joined the executive team of a startup and has options that could be worth $50M upon an IPO in 2-3 years. So he works.

You tell me, is that OMY?
Would he have retired if it weren't for this new opportunity? It doesn't sound like it.

Saying that someone with no immediate plans to retire is doing "OMY" is pretty nonsensical.
This is a complex question that requires further explication.

1. Someone who could retire financially but chooses to work for non-financial reasons
2. Someone who could retire financially but chooses to work for a lottery-like payoff
3. Someone who could retire but chooses to work to pad out the nest egg just a little bit

OMY is often thought of as just #3 but I submit there are at least these other two flavors as well.
If the person doesn't plan to retire in a year, NONE of them apply. That's the whole thrust of the phrase: "I'll work for one more year, then I'll retire."

Warren Buffett isn't OMY, Charlie Munger isn't OMY, Ray Dalio isn't OMY, Tim Cook isn't OMY, they're just working.
"Worry is interest paid on trouble before it becomes due." -- William R. Inge
Marseille07
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Re: Definition of one more year (OMY).

Post by Marseille07 »

Scott S wrote: Fri Apr 09, 2021 1:00 pm
Tingting1013 wrote: Fri Apr 09, 2021 12:48 pm
Scott S wrote: Fri Apr 09, 2021 11:53 am
Tingting1013 wrote: Fri Apr 09, 2021 3:26 am My father is 60 and has saved up a few million. He could retire tomorrow and be fine.

But he just joined the executive team of a startup and has options that could be worth $50M upon an IPO in 2-3 years. So he works.

You tell me, is that OMY?
Would he have retired if it weren't for this new opportunity? It doesn't sound like it.

Saying that someone with no immediate plans to retire is doing "OMY" is pretty nonsensical.
This is a complex question that requires further explication.

1. Someone who could retire financially but chooses to work for non-financial reasons
2. Someone who could retire financially but chooses to work for a lottery-like payoff
3. Someone who could retire but chooses to work to pad out the nest egg just a little bit

OMY is often thought of as just #3 but I submit there are at least these other two flavors as well.
If the person doesn't plan to retire in a year, NONE of them apply. That's the whole thrust of the phrase: "I'll work for one more year, then I'll retire."

Warren Buffett isn't OMY, Charlie Munger isn't OMY, Ray Dalio isn't OMY, Tim Cook isn't OMY, they're just working.
That's my understanding as well. What the poster above described is FI, not OMY.
jeroly
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Re: Definition of one more year (OMY).

Post by jeroly »

My take on OMY is that somebody has made a plan to retire at point in time X, but when they get close to X they get nervous or more conservative than when they made their original plan and revise the plan to retire at X+1.

They could be thinking "Oh, now things are different and I can't rely on 4% being a SWR anymore - I need to get my nest egg bigger so I can do a 3.5% WR"

They could be thinking "I now want to leave an estate of size Y for my heirs, so I need an extra Z in the bank before I retire"

They could be thinking "I have underestimated A, B, or C expenses, so I need to save more to cover them"

They could be thinking "I am now worried about the market crashing right after I retire - I need to have a bigger buffer"

etc.
Last edited by jeroly on Fri Apr 09, 2021 1:53 pm, edited 1 time in total.
fposte
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Re: Definition of one more year (OMY).

Post by fposte »

crossbow wrote: Thu Apr 08, 2021 11:51 pm
fposte wrote: Sat Feb 23, 2019 11:02 am As I get closer to retirement, I can feel how my ambivalence could bring on OMY syndrome--I like my job, and I'll be retiring early mostly for health reasons. However, I have to give a year's notice for retirement and I'll have to handle the search for my replacement, since there's nothing else at my employer like it. I suspect that without that significant advance notice structure, I could end up delaying at the last minute.
Really, would your company cease to exist if you decided not to/physically are unable to go in to work tomorrow? Interested to know what it is that you do 8-)
Funny you posted this today—I actually had a meeting this morning about the likelihood of closing the place down with my retirement, which I’ve given a hard date for of the end of July. It’s not a company but a long term unit in a university with a respected product in the field; it’s no longer able to be self-supporting and COVID budgets make new support unlikely. The decision will be made (above my level) in a month or two, which isn’t ideal, as if they do decide to hire a successor they won’t be in place by the time I go.
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Re: Definition of one more year (OMY).

Post by radiowave »

flyingaway wrote: Sat Feb 23, 2019 10:10 am We have been discussing about one more year (OMY) many times, notably by The Timelord and others. I would like to have a clear definition of OMY if you don't mind.
First, you have to reach financial Independence (FI), with whatever your number is.
(1) If you have FI and do not want to retire, are you defautly considered as doing OMY?
Or, (2) if you have FI, are considering retirement, but for various reasons, decided to stay put. However, you may retire at any time or until reach certain buffers? In other words, you are delaying retirement on a year by year basis.
I'm in the second situation and consider that as OMY.
OP, I agree with the general sentiment above, that OMY is the ability to retire and have the financial resources to maintain same lifestyle with a combination of SS, pensions and portfolio drawdown. The OMY implies additional financial or profession goals to achieve.

I am an n=1 so not sure how actionable my answer will be but my extra past year allowed me to achieve additional goals:

- pay off the mortgage
- reduce my retirement healthcare costs by becoming Medicare eligible
- defer SS to point where SSx2 + pensions x 2 will cover all expected baseline expenses
- achieve a SWR of close to 0
- added an addition year to accumulation phase to improve investments and cash position

As stated above, this is a set of goals unique to my spouse and I, but does illustrate a threshold concept that allowed us to achieve the above goals that added additional value to retirement opposed to retiring a year or so earlier which I could have done. As of today, I retire in 7 weeks.
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hi_there
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Re: Definition of one more year (OMY).

Post by hi_there »

crossbow wrote: Thu Apr 08, 2021 11:54 pm
DrGoogle2017 wrote: Sat Feb 23, 2019 11:46 am
KlangFool wrote: Sat Feb 23, 2019 10:30 am
flyingaway wrote: Sat Feb 23, 2019 10:19 am
AlohaJoe wrote: Sat Feb 23, 2019 10:11 am There is no clear definition and I'm not sure why it matters that there is one.
I think the mindset is different.
flyingaway,

I disagreed. In my opinion and observation of my family members, it is more of a case of people that has nothing to retire to. Some folks occupied most of their lives working and they have nothing else to live for. They do not know what to do with their free time if they are not working.

A) My older brother and older sister early retired at 49 years old. They traveled all over the world and check out the foods and scenery.

B) One of my family member work in the finance industry. He is a frugal person. His children are going to inherit 7 figures. But, he has no hobby and nothing else to do with his lives. So, he keeps on working.

These OMY phenomena tend to infect folks working in the finance world. It is less prevalent among technical folks.

KlangFool
There’s a difference in OMY results in $5 million or OMY results in $50k. This is one reason why the folks in the finance field has a hard time letting go.
The person on a $5M salary would probably have a bigger nest egg than the one on a $50K salary. Probably 100x bigger. So... :confused
Usually more than that. The $50k would typically save 0% to 10% of take home pay. The $5 million guy can afford to invest a much higher percentage after tax.
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Shackleton
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Re: Definition of one more year (OMY).

Post by Shackleton »

Marseille07 wrote: Wed Apr 07, 2021 7:13 pm OMY can happen on all kinds of reasons.

I just updated (OMY'ed) myself upon realizing ACA portion was probably underestimated at 6k/year, now 10k/year.

Another big factor is inflation, as prices may have inflated between when you planned your estimates vs when you're actually retiring.
What made you decide to resurrect a 2 year old thread that had little original value and had run its short course, and add absolutely nothing new or of value to it? I’m genuinely curious of the mindset that does this.
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton
Marseille07
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Re: Definition of one more year (OMY).

Post by Marseille07 »

Shackleton wrote: Fri Apr 09, 2021 3:24 pm
Marseille07 wrote: Wed Apr 07, 2021 7:13 pm OMY can happen on all kinds of reasons.

I just updated (OMY'ed) myself upon realizing ACA portion was probably underestimated at 6k/year, now 10k/year.

Another big factor is inflation, as prices may have inflated between when you planned your estimates vs when you're actually retiring.
What made you decide to resurrect a 2 year old thread that had little original value and had run its short course, and add absolutely nothing new or of value to it? I’m genuinely curious of the mindset that does this.
? I added new contributing factors of OMY to the thread. If you think they're nothing, to each their own. I don't respect your opinion.
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Bogle7
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Seriously?

Post by Bogle7 »

In other pressing issues.
How many angels can you fit on the head of a pin?

Me, I am more of a one-more-month guy.
Last edited by Bogle7 on Fri Apr 09, 2021 11:47 pm, edited 1 time in total.
Old fart who does three index funds, baby.
NancyABQ
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Re: Definition of one more year (OMY).

Post by NancyABQ »

Svensk Anga wrote: Sat Feb 23, 2019 12:34 pm One more year in some cases is a logical result of some employment specifics:

1.) OMY of accredited service on the pension. There is no credit for a half year.
2.) OMY to gain vesting service and another birthday to put one in a better place on the early retirement pension discount schedule.
3.) OMY to get to a logical retirement date. For example, the date that one earns another year's allotment of vacation.
[...]

So I think for many, the retire or not decision comes down to doing it on the optimum date as defined above this year, or wait until that date next year, with little chance of it happening in between.
FWIW, at my previous employer (a national lab with a nice pension plan which has since been cut back) we used to call it "WOTM" which stood for "Working On The Multiplier". It applied to people who were pension/retirement eligible, but were still working in order to bulk up the pension numbers. Generally it also meant that person wasn't working very hard, since it was highly unlikely they would get fired for poor performance (hence saying somebody was in WOTM mode was not a compliment...). People almost always retired at the beginning of the new year, right after the yearly raises kicked in, and right after the new allotment of vacation accrual.


I am officially in "One More Year" mode, because financially I could have retired a couple years ago, but I am currently working part-time from home (different employer) in a low-stress job. So I haven't really found a reason to pull the ripcord. And then with COVID, I wouldn't be able to do many of the things I'd like to do anyway, so why rush it? And then if I let it get past ~mid-year, there is a year-end bonus it would be silly to give up. This might be the year though. Been giving it a lot of thought.... I am front-loading the 401K to max it out by ~July....
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flyingaway
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Re: Definition of one more year (OMY).

Post by flyingaway »

I think I am also officially in OMY. I am considering to retire at the end of this year or next year. My unemployed son makes my situation a little bit complicated. One voice tells me to get out to enjoy life, another void tells me that the market is going to tank soon. So I re-evaluate my situation almost day by day.
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flyingaway
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Re: Definition of one more year (OMY).

Post by flyingaway »

humblecoder wrote: Thu Apr 08, 2021 10:34 pm
flyingaway wrote: Sat Feb 23, 2019 12:55 pm KlangFool,

I know you like to argue with people. I'm not talking about if one should do OMY or not.
I just want to know what is considered as OMY. For your example B, the person has no intention to retire any time soon, he is not doing OMY, in my opinion.
Maybe I am not one of the "cool kids", but I have no clue what is meant or implied by the phrase "one more year" other than the literal definition. That is, "I will be retiring in 365 days from now".

Am I missing something?
OMY means that you have enough, but you hesitate to retire. Not necessarily work for another 365 days.
Nekrotok
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Re: Definition of one more year (OMY).

Post by Nekrotok »

OMY to me means you are able to either retire or continue working, so you are faced with the following dilemma:

1. Retire and you can spend, for example, $50k/yr + inflation for the rest of your life with no more potential upside.

2. Work one more year and you can spend $70k this year and/or increase your net worth so that next year you could retire and spend $55k/yr for the rest of your life, and also who knows, maybe you could get a big promotion or big bonus or get a new job with even more potential upside.

Faced with this dilemma, OMY syndrome may persuade you to keep picking option 2 year after year and never retire.
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