The “I want to retire soon” thread (3 Viewers)

[bcat01]

Here's the average 401(k) balance by age

How does your nest egg stack up to others your age?

www.cnbc.com

If this is accurate, future American retirees are ****ed.

I wonder if it takes into account abandoned 401ks that have small balances. These would drag down the numbers considerably.

 

[matttyl]

Here's the average 401(k) balance by age

How does your nest egg stack up to others your age?

www.cnbc.com

If this is accurate, future American retirees are ****ed.

I wonder if it takes into account abandoned 401ks that have small balances. These would drag down the numbers considerably.

I’m not sure it does. Article says “average account balance”, though an individual could have multiple accounts. This study is from vanguard, so it would only know of accounts under vanguard, but wouldn’t count an account you may have under principal or Schwab.

Take my wife and I. I have my 401k, and a Roth IRA (I haven’t really changed jobs in 20+ years now). My wife has an old 403b, an IRA, a Roth IRA, an old (but comparatively large) 401k, and a new 401k at her current employer. Those are just the “retirement” accounts. We each also have our own HSAs, and a brokerage account.

 

[Sand]

Here's the average 401(k) balance by age

How does your nest egg stack up to others your age?

www.cnbc.com

If this is accurate, future American retirees are ****ed.

This isn't anything new and folks manage to retire. It is something that frustrates me that govt. refuses to touch (and fix) social security funding as most folks will be highly dependent on that program. Based on the above it can't be anything else putting food on the table. The 25% cut if money runs out will be catastrophic for a huge swath of people (and the earlier we fix the better off the program). Not political - this has been ignored for many, many years equally.

 

[-OZ-]

I’m not sure it does. Article says “average account balance”, though an individual could have multiple accounts. This study is from vanguard, so it would only know of accounts under vanguard, but wouldn’t count an account you may have under principal or Schwab.

Many couples have 4 accounts, plus any regular brokerage. If your accounts average about the same as the average 401k balance but have 5 accounts, you might just be okay.

 

[-OZ-]

Interesting episode today on the stacking Benjamin’s podcast discussing how a 5.5% withdrawal rate actually works.

I know I’m willing to use about that or slightly higher, but many others aren’t willing to forecast over 4%.

Is the 4% Rule In Play? (SB1702)

How much can you really spend in retirement without running out of money—or worse, running out of fun? In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of...

www.stackingbenjamins.com

 

[dgreen]

I’m not sure it does. Article says “average account balance”, though an individual could have multiple accounts. This study is from vanguard, so it would only know of accounts under vanguard, but wouldn’t count an account you may have under principal or Schwab.

Many couples have 4 accounts, plus any regular brokerage. If your accounts average about the same as the average 401k balance but have 5 accounts, you might just be okay.

Plus just the idea of "couples" gives a brighter picture since household income/balance is more important than the individual. Most retirees are married so some of these small balances might be for a spouse who worked a lot less and isn't a main piece of their retirement picture as a couple.

 

[Sand]

Interesting episode today on the stacking Benjamin’s podcast discussing how a 5.5% withdrawal rate actually works.

I know I’m willing to use about that or slightly higher, but many others aren’t willing to forecast over 4%.

Is the 4% Rule In Play? (SB1702)

How much can you really spend in retirement without running out of money—or worse, running out of fun? In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of...

www.stackingbenjamins.com

Way too aggressive for me. There is a good thread at Bogleheads that is doing a forward test of the VPW scheme. This is a dynamic scheme that's tuned toward drawing down (i.e. being efficient) with one's funds to fully utilize them. In that forward test they're below 4%. If that is under 4, a static scheme at 5.5% is going to be pretty darn brittle.

https://www.bogleheads.org/forum/viewtopic.php?t=284519&start=900

 

[-OZ-]

Interesting episode today on the stacking Benjamin’s podcast discussing how a 5.5% withdrawal rate actually works.

I know I’m willing to use about that or slightly higher, but many others aren’t willing to forecast over 4%.

Is the 4% Rule In Play? (SB1702)

How much can you really spend in retirement without running out of money—or worse, running out of fun? In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of...

www.stackingbenjamins.com

Way too aggressive for me. There is a good thread at Bogleheads that is doing a forward test of the VPW scheme. This is a dynamic scheme that's tuned toward drawing down (i.e. being efficient) with one's funds to fully utilize them. In that forward test they're below 4%. If that is under 4, a static scheme at 5.5% is going to be pretty darn brittle.

https://www.bogleheads.org/forum/viewtopic.php?t=284519&start=900

To each their own. Flexibility is key imo.
My first impression on the bogleheads post is to question the portfolio. A risk parity type works better for withdrawals.

 

[Sand]

Interesting episode today on the stacking Benjamin’s podcast discussing how a 5.5% withdrawal rate actually works.

I know I’m willing to use about that or slightly higher, but many others aren’t willing to forecast over 4%.

Is the 4% Rule In Play? (SB1702)

How much can you really spend in retirement without running out of money—or worse, running out of fun? In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of...

www.stackingbenjamins.com

Way too aggressive for me. There is a good thread at Bogleheads that is doing a forward test of the VPW scheme. This is a dynamic scheme that's tuned toward drawing down (i.e. being efficient) with one's funds to fully utilize them. In that forward test they're below 4%. If that is under 4, a static scheme at 5.5% is going to be pretty darn brittle.

https://www.bogleheads.org/forum/viewtopic.php?t=284519&start=900

To each their own. Flexibility is key imo.
My first impression on the bogleheads post is to question the portfolio. A risk parity type works better for withdrawals.

The portfolio there is plain jane 60/40. In general risk parity would mean leveraged bonds, yes? Not sure leverage is the right way to plan for a retirement portfolio composition.

 

[BeTheMatch]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

 

[-OZ-]

Interesting episode today on the stacking Benjamin’s podcast discussing how a 5.5% withdrawal rate actually works.

I know I’m willing to use about that or slightly higher, but many others aren’t willing to forecast over 4%.

Is the 4% Rule In Play? (SB1702)

How much can you really spend in retirement without running out of money—or worse, running out of fun? In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of...

www.stackingbenjamins.com

Way too aggressive for me. There is a good thread at Bogleheads that is doing a forward test of the VPW scheme. This is a dynamic scheme that's tuned toward drawing down (i.e. being efficient) with one's funds to fully utilize them. In that forward test they're below 4%. If that is under 4, a static scheme at 5.5% is going to be pretty darn brittle.

https://www.bogleheads.org/forum/viewtopic.php?t=284519&start=900

To each their own. Flexibility is key imo.
My first impression on the bogleheads post is to question the portfolio. A risk parity type works better for withdrawals.

The portfolio there is plain jane 60/40. In general risk parity would mean leveraged bonds, yes? Not sure leverage is the right way to plan for a retirement portfolio composition.

Maybe, but not always.
I’m surprised if we haven’t discussed it before, but Frank Vasquez does a better job explaining than I can here.

Podcast | Risk Parity Radio

www.riskparityradio.com

 

[-OZ-]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

Right. And this is the situation when 4% still worked (in the past obviously)

 

[Judge Smails]

Interesting episode today on the stacking Benjamin’s podcast discussing how a 5.5% withdrawal rate actually works.

I know I’m willing to use about that or slightly higher, but many others aren’t willing to forecast over 4%.

Is the 4% Rule In Play? (SB1702)

How much can you really spend in retirement without running out of money—or worse, running out of fun? In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of...

www.stackingbenjamins.com

I'm reading more and more that a 5+% withdrawal rate works vs 4%, especially if you are willing do a guardrail strategy. Take more when the market has an up year, scale back when it's down

 

[Judge Smails]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

 

[New Binky the Doormat]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

yeah, super not digging the 10% drop in the value of the dollar using that strategy (which I am) ...ugh

 

[BeTheMatch]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

Possibly, or even probably, but not definitely. In our situation, we're really just looking to avoid a huge calamity, and our strategy will do that. We're comfortable with the tradeoffs. I have no issue with someone else not seeing the need to be as conservative.

 

[-OZ-]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

Frank addresses this frequently. It isn’t really the 3 year down turn that brings the biggest risk, it’s the decade long flat or downturn that can crush many.
“That doesn’t happen” - until it does, like Japan.

 

[dgreen]

Fed retirement news...

As I expected, the retirement pension contribution won't change. There was talk of changing everyone to 4.4% per paycheck, but that's not happening. So, that's good news.

It sounds like High 3 will change to High 5. I don't see that having a big impact on me.

But, I think most of us will be losing the FERS supplement. That's a big one. I've been estimating that as a $27k/year benefit for me from age 57 to 62. This was a big reason why I've been almost 100% sure that I would be retiring at 57. I've seen some unclear and conflicting info on who the exemptions apply to, but most are interpreting the legislation as only exempting certain people in law enforcement, firefighters, and air traffic controllers. I'm hoping the Senate either expands the exemptions or removes this change altogether. If not, my main hope here is that the change doesn't go into affect until 1/1/2028 so maybe there's time for another bill to overturn it.

The Senate removed just about everything that would affect federal employees.

 

[Nugget]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

I’m buying my 10K in I-bonds again this fall. And another 10K in the spring. I want more money outside of my retirement accounts that serve as a shock absorber for future market risk.

 

[Sand]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

yeah, super not digging the 10% drop in the value of the dollar using that strategy (which I am) ...ugh

At least right now you can easily get ~4% on cash, so it may bleed a hair, but I doubt you're losing 10% here. If you're truly worried about that a TIPS ladder may work (though I'd probably just default to a treasury ladder).

 

[Orange&Blue]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

I’m buying my 10K in I-bonds again this fall. And another 10K in the spring. I want more money outside of my retirement accounts that serve as a shock absorber for future market risk.

how close to retirement are you?

 

[Nugget]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

I’m buying my 10K in I-bonds again this fall. And another 10K in the spring. I want more money outside of my retirement accounts that serve as a shock absorber for future market risk.

how close to retirement are you?

I'm 49 - current target is 60. Could go 55-62 depending on health care environment.

 

[Judge Smails]

63 and 3 months. Have to decide in the next week or so to do one more run or hang it up. Interviewing now to keep options open. Leaning towards the latter. I don’t want to work past 65 no matter what so it would just be salary and bonus for basically a year and a half - equity wouldn’t factor in. Think I value my time/freedom more. Especially after a widow maker and cancer. Haven’t heard one person regret retiring if they had enough $

 

[gianmarco]

63 and 3 months. Have to decide in the next week or so to do one more run or hang it up. Interviewing now to keep options open. Leaning towards the latter. I don’t want to work past 65 no matter what so it would just be salary and bonus for basically a year and a half - equity wouldn’t factor in. Think I value my time/freedom more. Especially after a widow maker and cancer. Haven’t heard one person regret retiring if they had enough $

That would easily be my choice in your shoes.

 

[Gally]

Think I value my time/freedom more.

This is the correct answer.

 

[fruity pebbles]

Hang it up man.

 

[matttyl]

My plan is to have something in the neighborhood of 50% stock funds and 50% bonds/cash as I enter retirement. Perhaps the biggest threat to these retirement plans working out is sequence of returns. I want to have enough in bonds/cash so that if the market crashes during my first few years of retirement, I can pull from the cash/ bonds side and leave my stocks alone. Being forced to sell loser stocks (funds) during a down market would be something very hard to overcome.

2-3 years worth of cash works to protect from sequence of returns.

I’m buying my 10K in I-bonds again this fall. And another 10K in the spring. I want more money outside of my retirement accounts that serve as a shock absorber for future market risk.

how close to retirement are you?

I'm 49 - current target is 60. Could go 55-62 depending on health care environment.

If I’m understanding your situation correctly, you have a ~10 year window to accumulate non market-correlated assets for retirement. And you’re happy with the current 3.98% rate ibonds have, which is taxable (at the federal level).

I know ibonds were paying like 10% just 3 years ago, but they were also paying under 2% just last year.

Anyway, I know this will likely be scoffed at, but if you already have term life insurance and you’re still relatively healthy (and still have an insurable need), have you looked into a limited pay while life policy? I just illustrated a policy that has 10 years of premium (of $20k, your numbers above). Initial death benefit is $260k, grows to $333k after 10 years and continues to grow thereafter. At that 10 year make the cash value is just over $210k, which I get is a rate of return of nearly nothing - but if you are already paying for a term policy you’d back that out of the $20k and your ROR is a tick better. The real difference is the cash growth from year 10 onward when you’re no longer paying premium. It grows that first year (year 11) from $210k to just under $223k. That’s a ROR of 5.87%, tax free.

In retirement, if the market is down and taxes are up, there’s likely no batter place to access cash than cash value life insurance. Live off an income stream from that cash value and give your market correlated assets time to recover. Could be something to consider.

 

[BeTheMatch]

63 and 3 months. Have to decide in the next week or so to do one more run or hang it up. Interviewing now to keep options open. Leaning towards the latter. I don’t want to work past 65 no matter what so it would just be salary and bonus for basically a year and a half - equity wouldn’t factor in. Think I value my time/freedom more. Especially after a widow maker and cancer. Haven’t heard one person regret retiring if they had enough $

Retire!

 

[Desert_Power]

Interesting episode today on the stacking Benjamin’s podcast discussing how a 5.5% withdrawal rate actually works.

I know I’m willing to use about that or slightly higher, but many others aren’t willing to forecast over 4%.

Is the 4% Rule In Play? (SB1702)

How much can you really spend in retirement without running out of money—or worse, running out of fun? In this deeper-than-usual dive, Joe Saul-Sehy and OG examine the classic 4% retirement rule and whether it’s time for an upgrade. With new commentary from Bill Bengen, the original architect of...

www.stackingbenjamins.com

I've heard the 4% guy going around about the new rate being higher but I look at the elevated levels of uncertainty and am not sure it is a great time to bump up my rate. We've had a really good period for equities.

 

[fruity pebbles]

Can’t believe it’s been almost two years since starting this thread. Still hoping to quit nursing at 56.

 

[Yo Mama]

Can’t believe it’s been almost two years since starting this thread. Still hoping to quit nursing at 56.

Awesome discussion and insights in here - thanks for starting this up.

 

[Peggy]

Think I value my time/freedom more.

This is the correct answer.

All the money in the world can't buy more time dude.

 

[-OZ-]

Think I value my time/freedom more.

This is the correct answer.

All the money in the world can't buy more time dude.

But it can change what you do with the time.

 

[Judge Smails]

Think I value my time/freedom more.

This is the correct answer.

All the money in the world can't buy more time dude.

But it can change what you do with the time.

It can. To a point. But saw a poll where people had 1,2,3,5,10M. When asked how much would be enough and they would be comfortable with the overwhelming answer was 2X what they had. No matter the number. Comparison is the thief of joy. I’m not going to be renting yachts on the Mediterranean every summer but more than enough to do what I want including golf at my club, travel extensively the first decade etc. And, with more time for self care, working out, more sleep and less stress I’m putting the odds in my favor of longer to enjoy it. Plus the freedom to go see the kids and grandkids any time I want vs everything navigated around a busy work schedule is worth a lot

 

[NutterButter]

63 and 3 months. Have to decide in the next week or so to do one more run or hang it up. Interviewing now to keep options open. Leaning towards the latter. I don’t want to work past 65 no matter what so it would just be salary and bonus for basically a year and a half - equity wouldn’t factor in. Think I value my time/freedom more. Especially after a widow maker and cancer. Haven’t heard one person regret retiring if they had enough $

If you're really gonna stick to that 65 cutoff, then just do it now. I'd only keep working if you got satisfication from it, it didn't adversely affect your quality of life and it still allowed you to do everything else you desired. I guess you gotta hang it up at some point but if all those conditions were met, I don't see the point of putting an arbitrary end date to it.

 

[Peggy]

Think I value my time/freedom more.

This is the correct answer.

All the money in the world can't buy more time dude.

But it can change what you do with the time.

It can. To a point. But saw a poll where people had 1,2,3,5,10M. When asked how much would be enough and they would be comfortable with the overwhelming answer was 2X what they had. No matter the number. Comparison is the thief of joy. I’m not going to be renting yachts on the Mediterranean every summer but more than enough to do what I want including golf at my club, travel extensively the first decade etc. And, with more time for self care, working out, more sleep and less stress I’m putting the odds in my favor of longer to enjoy it. Plus the freedom to go see the kids and grandkids any time I want vs everything navigated around a busy work schedule is worth a lot

100% I was in my money making years, could essentially bank another 400K for each extra year. What's one more year for a much bigger house? What's another for all new cars? Trips around the world. On and on. I got out as soon as I felt comfortable based on running the numbers without working any of those extra years. I think it was the book Die With Zero by Bill Perkins helped me come to grips with that. It was tough, my company put those incentives in for a reason, but I saw way too many colleagues wait too long and then get sick soon after pulling the plug.

 

[fruity pebbles]

Think I value my time/freedom more.

This is the correct answer.

All the money in the world can't buy more time dude.

But it can change what you do with the time.

It can. To a point. But saw a poll where people had 1,2,3,5,10M. When asked how much would be enough and they would be comfortable with the overwhelming answer was 2X what they had. No matter the number. Comparison is the thief of joy. I’m not going to be renting yachts on the Mediterranean every summer but more than enough to do what I want including golf at my club, travel extensively the first decade etc. And, with more time for self care, working out, more sleep and less stress I’m putting the odds in my favor of longer to enjoy it. Plus the freedom to go see the kids and grandkids any time I want vs everything navigated around a busy work schedule is worth a lot

100% I was in my money making years, could essentially bank another 400K for each extra year. What's one more year for a much bigger house? What's another for all new cars? Trips around the world. On and on. I got out as soon as I felt comfortable based on running the numbers without working any of those extra years. I think it was the book Die With Zero by Bill Perkins helped me come to grips with that. It was tough, my company put those incentives in for a reason, but I saw way too many colleagues wait too long and then get sick soon after pulling the plug.

Yeah, it’s tough to not do “one more year” when you are making the best money of your life. Good for you for getting out. It’s the early retirement years that are the most valuable. That’s when most do the traveling, are still active etc.

 

[-OZ-]

Think I value my time/freedom more.

This is the correct answer.

All the money in the world can't buy more time dude.

But it can change what you do with the time.

It can. To a point. But saw a poll where people had 1,2,3,5,10M. When asked how much would be enough and they would be comfortable with the overwhelming answer was 2X what they had. No matter the number. Comparison is the thief of joy. I’m not going to be renting yachts on the Mediterranean every summer but more than enough to do what I want including golf at my club, travel extensively the first decade etc. And, with more time for self care, working out, more sleep and less stress I’m putting the odds in my favor of longer to enjoy it. Plus the freedom to go see the kids and grandkids any time I want vs everything navigated around a busy work schedule is worth a lot

100% I was in my money making years, could essentially bank another 400K for each extra year. What's one more year for a much bigger house? What's another for all new cars? Trips around the world. On and on. I got out as soon as I felt comfortable based on running the numbers without working any of those extra years. I think it was the book Die With Zero by Bill Perkins helped me come to grips with that. It was tough, my company put those incentives in for a reason, but I saw way too many colleagues wait too long and then get sick soon after pulling the plug.

Yeah, it’s tough to not do “one more year” when you are making the best money of your life. Good for you for getting out. It’s the early retirement years that are the most valuable. That’s when most do the traveling, are still active etc.

Agreed. For now I’m content taking a few vacations with the kids and they wouldn’t want to travel a whole lot more often anyway but you’re absolutely right.

 

[skol asylum]

Obviously wish it were more but between my wife and I we surpassed the one million mark in total between our 401Ks yesterday. That's a nice feeling. I'm 51 and she's 48. Next target is two million before retirement. Hopefully.

 

[Judge Smails]

Think I value my time/freedom more.

This is the correct answer.

All the money in the world can't buy more time dude.

But it can change what you do with the time.

It can. To a point. But saw a poll where people had 1,2,3,5,10M. When asked how much would be enough and they would be comfortable with the overwhelming answer was 2X what they had. No matter the number. Comparison is the thief of joy. I’m not going to be renting yachts on the Mediterranean every summer but more than enough to do what I want including golf at my club, travel extensively the first decade etc. And, with more time for self care, working out, more sleep and less stress I’m putting the odds in my favor of longer to enjoy it. Plus the freedom to go see the kids and grandkids any time I want vs everything navigated around a busy work schedule is worth a lot

100% I was in my money making years, could essentially bank another 400K for each extra year. What's one more year for a much bigger house? What's another for all new cars? Trips around the world. On and on. I got out as soon as I felt comfortable based on running the numbers without working any of those extra years. I think it was the book Die With Zero by Bill Perkins helped me come to grips with that. It was tough, my company put those incentives in for a reason, but I saw way too many colleagues wait too long and then get sick soon after pulling the plug.

I’ve also run the numbers based on a variety of factors. How much I would actually net after taxes. Basically 50% living in California at the W2 I am making. Seems like I work to write big estimated tax checks every quarter. Sure - there’s some banked after that but nowhere near the gross Then the sizeable Roth Conversions I couldn’t make based on higher tax brackets. Net net, it wouldn’t change my net worth all that much working 18 months or so. It’s all compounded growth now. We’ve totally remodeled the house inside and out the last 2 years. Both newer, nice cars. Several vacations already mostly paid for later this year. So don’t have any big expense in the foreseeable future. Just don’t think I’ll be missing out on anything. And I’m just trying to be realistic about life expectancy. 2 big scares. No longevity on my Dad’s side. I don’t want stress, a commute or anything that takes time away from my health program. Just think it’s the right time.

 

[kutta]

I’m seriously considering it.
Got divorced three years ago so half my nest egg is gone (not complaining , she deserves it. Just stating facts)
I’m sure I’d be totally fine, but I still (kind of) enjoy working, and I make a crap ton of money, so I feel like I should keep going and amass what I can.

But, a coworker I’ve known and loved for 15 years died of a heart attack last Christmas. My best friend and brother in law has early onset Alzheimer’s (at 59), another good buddy just got diagnosed with prostate cancer.

It’s really getting to be the time where I worry about what I want and what I want to do. I love the , but I’m certain I have enough.

We’ll see…

 

[djmich]

How old are you guys…kutta, smails, peggy(when you retired).

The prime earnings years is a double edged sword for sure. I’m 53, could retire but my colleagues would all think I’m crazy and it feels too early when I can still bank meaningful $. I’m thinking for sure by 60, but am sort of taking it year by year.

 

[Peggy]

How old are you guys…kutta, smails, peggy(when you retired).

The prime earnings years is a double edged sword for sure. I’m 53, could retire but my colleagues would all think I’m crazy and it feels too early when I can still bank meaningful $. I’m thinking for sure by 60, but am sort of taking it year by year.

Anytime I hear "you're too young to retire" I remind them that retirement isn't an age, it's a dollar amount. And that goes for passing up on making more money too. When you reach financial independence you can do whatever you want to when you wake up in the morning. That's the goal. If you love your job and desire to go to work in the morning, or getting even more money is what is important to you, that's great. Just concentrate on what you want and not what others think.

I had just turned 55. Original goal was to reach financial independence by age 50, but, things didn't go perfectly.

 

[Alex P Keaton]

How old are you guys…kutta, smails, peggy(when you retired).

The prime earnings years is a double edged sword for sure. I’m 53, could retire but my colleagues would all think I’m crazy and it feels too early when I can still bank meaningful $. I’m thinking for sure by 60, but am sort of taking it year by year.

Anytime I hear "you're too young to retire" I remind them that retirement isn't an age, it's a dollar amount. And that goes for passing up on making more money too. When you reach financial independence you can do whatever you want to when you wake up in the morning. That's the goal. If you love your job and desire to go to work in the morning, or getting even more money is what is important to you, that's great. Just concentrate on what you want and not what others think.

I had just turned 55. Original goal was to reach financial independence by age 50, but, things didn't go perfectly.

Yeah, this is how I think of it too. The age part is irrelevant. Ditto for what others might think about my decision.

I turned 50 a couple months ago. *Should* be all set to retire next April but it depends on factors outside my control (company stock price, what happens with other investments, where my kids go to college). Both kids will be seniors this year, so we should know by February where they are going (if anywhere). I’m concerned about market valuations that are at/near historic highs, and thus would like a bit more cushion than most objective parties would recommend.

Appreciate all the folks who post in here, this thread has helped me think about all aspects of retirement.

 

[JohnnyU]

How old are you guys…kutta, smails, peggy(when you retired).

The prime earnings years is a double edged sword for sure. I’m 53, could retire but my colleagues would all think I’m crazy and it feels too early when I can still bank meaningful $. I’m thinking for sure by 60, but am sort of taking it year by year.

Anytime I hear "you're too young to retire" I remind them that retirement isn't an age, it's a dollar amount. And that goes for passing up on making more money too. When you reach financial independence you can do whatever you want to when you wake up in the morning. That's the goal. If you love your job and desire to go to work in the morning, or getting even more money is what is important to you, that's great. Just concentrate on what you want and not what others think.

I had just turned 55. Original goal was to reach financial independence by age 50, but, things didn't go perfectly.

Yeah, this is how I think of it too. The age part is irrelevant. Ditto for what others might think about my decision.

I turned 50 a couple months ago. *Should* be all set to retire next April but it depends on factors outside my control (company stock price, what happens with other investments, where my kids go to college). Both kids will be seniors this year, so we should know by February where they are going (if anywhere). I’m concerned about market valuations that are at/near historic highs, and thus would like a bit more cushion than most objective parties would recommend.

Appreciate all the folks who post in here, this thread has helped me think about all aspects of retirement.

I’m 66 and just retired. I think back on my life and what I had to do to prepare myself for a career, then live it, then see it come to an end. It’s a surreal feeling. I suppose if there is one thing I miss is the feeling of accomplishment. As a software developer I really liked how it made me feel to develop a well thought out software application. The latter part of my career I did data engineering projects. But I don’t miss this to the degree that I would rather be doing that instead of being retired. I hear some of you talking about retiring in your early 50s. That’s great if you can do it, but for me that would have meant leaving a lot of earnings on the table. Plus, professionally I wouldn’t have wanted to give it up in my early 50s. Then one day before my 65th birthday it hit me square in the face that it was time. It really does works that way. One day you’re working, and the next day something inside you tells you it’s time.

 

[kutta]

How old are you guys…kutta, smails, peggy(when you retired).

The prime earnings years is a double edged sword for sure. I’m 53, could retire but my colleagues would all think I’m crazy and it feels too early when I can still bank meaningful $. I’m thinking for sure by 60, but am sort of taking it year by year.

I’ll be 60 in February.
I sold my company 10 years ago and could have retired then. But I wanted to stay on for a while to see things through. 10 years later I’m still here.

For the most part they’ve let me still run it how I want, but last 2 years they been getting deeper and deeper into our shorts, and it’s not something I enjoy. That would be one big reason for me to just be done and retire.

 

[djmich]

How old are you guys…kutta, smails, peggy(when you retired).

The prime earnings years is a double edged sword for sure. I’m 53, could retire but my colleagues would all think I’m crazy and it feels too early when I can still bank meaningful $. I’m thinking for sure by 60, but am sort of taking it year by year.

Anytime I hear "you're too young to retire" I remind them that retirement isn't an age, it's a dollar amount. And that goes for passing up on making more money too. When you reach financial independence you can do whatever you want to when you wake up in the morning. That's the goal. If you love your job and desire to go to work in the morning, or getting even more money is what is important to you, that's great. Just concentrate on what you want and not what others think.

I had just turned 55. Original goal was to reach financial independence by age 50, but, things didn't go perfectly.

Yeah, this is how I think of it too. The age part is irrelevant. Ditto for what others might think about my decision.

I turned 50 a couple months ago. *Should* be all set to retire next April but it depends on factors outside my control (company stock price, what happens with other investments, where my kids go to college). Both kids will be seniors this year, so we should know by February where they are going (if anywhere). I’m concerned about market valuations that are at/near historic highs, and thus would like a bit more cushion than most objective parties would recommend.

Appreciate all the folks who post in here, this thread has helped me think about all aspects of retirement.

I’m 66 and just retired. I think back on my life and what I had to do to prepare myself for a career, then live it, then see it come to an end. It’s a surreal feeling. I suppose if there is one thing I miss is the feeling of accomplishment. As a software developer I really liked how it made me feel to develop a well thought out software application. The latter part of my career I did data engineering projects. But I don’t miss this to the degree that I would rather be doing that instead of being retired. I hear some of you talking about retiring in your early 50s. That’s great if you can do it, but for me that would have meant leaving a lot of earnings on the table. Plus, professionally I wouldn’t have wanted to give it up in my early 50s. Then one day before my 65th birthday it hit me square in the face that it was time. It really does works that way. One day you’re working, and the next day something inside you tells you it’s time.

These posts here are a perfect example of the bookends of decisions. On one end its you retire as soon as you "can", which I suppose could be 40 or 30 for that matter for some. On the other its a sense of at least some level of job satisfaction/accomplishment as well as financial impact. Its all about the magnitude of the variables and ones internal dna I suppose.

For me, 53 might as well be 43. While financially I'm in a different spot now than when I was 43 and have more options...I don't feel old, it would be really strange to retire as I approach my career peak. For me it can't be about a basic if X>$M then retire, there's still some bigger calculus that I don't know exactly but still is on the keep going side of equation. As each year passes the $ side becomes less meaningful (as it grows) and the age side becomes more meaningful (as it grows). The randomness of life (and death) once your turn 50 definitely starts to mess with the simple math of the equation. I'll be chugging along for a bit I suppose lol.

 

[-OZ-]

These posts here are a perfect example of the bookends of decisions. On one end its you retire as soon as you "can", which I suppose could be 40 or 30 for that matter for some. On the other its a sense of at least some level of job satisfaction/accomplishment as well as financial impact. Its all about the magnitude of the variables and ones internal dna I suppose.

Yep.
My wife doesn’t like it but I’ll occasionally tell her she’s living the life I want when I retire. Part time work she values but is definitely not about the money, she volunteers, advocates for patient care, mentors st Jude parents, etc. Last week she found herself on stage at the old dominion concert when they called our daughter up who was holding a st Jude’s sign. Our daughter gave them all bracelets which they wore.
This is the kind of stuff you can do when things fall in place and you have the time.

 

[JohnnyU]

These posts here are a perfect example of the bookends of decisions. On one end its you retire as soon as you "can", which I suppose could be 40 or 30 for that matter for some. On the other its a sense of at least some level of job satisfaction/accomplishment as well as financial impact. Its all about the magnitude of the variables and ones internal dna I suppose.

Yep.
My wife doesn’t like it but I’ll occasionally tell her she’s living the life I want when I retire. Part time work she values but is definitely not about the money, she volunteers, advocates for patient care, mentors st Jude parents, etc. Last week she found herself on stage at the old dominion concert when they called our daughter up who was holding a st Jude’s sign. Our daughter gave them all bracelets which they wore.
This is the kind of stuff you can do when things fall in place and you have the time.

I plan on doing volunteer work for myself in retirement.

 

[Gatorade]

These posts here are a perfect example of the bookends of decisions. On one end its you retire as soon as you "can", which I suppose could be 40 or 30 for that matter for some. On the other its a sense of at least some level of job satisfaction/accomplishment as well as financial impact. Its all about the magnitude of the variables and ones internal dna I suppose.

Yep.
My wife doesn’t like it but I’ll occasionally tell her she’s living the life I want when I retire. Part time work she values but is definitely not about the money, she volunteers, advocates for patient care, mentors st Jude parents, etc. Last week she found herself on stage at the old dominion concert when they called our daughter up who was holding a st Jude’s sign. Our daughter gave them all bracelets which they wore.
This is the kind of stuff you can do when things fall in place and you have the time.

I plan on doing volunteer work for myself in retirement.

Seems like most of my work in retirement is whatever my wife wants done.