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    How to enter retirement

    How did you decide to retire? Did you actively choose it or fall into it? I ask because we are entering a weird time in the economy and I wonder if there will be a lot of people "retiring" because they are forced to and can't find another job. Whether they can afford to or not. I just am curious that yes many people on here even if it's not perfect are "aware" of their financial situation and improving it. But those who haven't a clue?
    LivingAlmostLarge Blog

    #2
    Well I am about to tell my boss that I will be scaling down to 32hrs, and then 24hrs/week once stock/cash hits 5 million. And I will remain at 24hrs/week until the end of time because I need the insurance coverage and I'll be under 40 yo so got to get out of the house and still contribute to society. My wife will be working at 50% capacity as well , but she should do that starting now. This is our retirement plan and have a good chance starting the plan in 2-3 years.

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      #3
      Originally posted by Singuy View Post
      Well I am about to tell my boss that I will be scaling down to 32hrs, and then 24hrs/week once stock/cash hits 5 million. And I will remain at 24hrs/week until the end of time because I need the insurance coverage and I'll be under 40 yo so got to get out of the house and still contribute to society. My wife will be working at 50% capacity as well , but she should do that starting now. This is our retirement plan and have a good chance starting the plan in 2-3 years.
      If you do hit $5mil...why would you continue to work just for insurance? Health insurance isnt that much is it? $30k a year for a Cadillac plan. Even $1mil of your money earning 1% would cover 33% of your health coverage. Unless your spending habits are out of control...I dont see how health insurance would be a factor.

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        #4
        We're still a few years away - but we're actively planning our exit. Targeting a $5M portfolio at retirement and a move to sunnier climes. We'll still be fairly young (mid-50s) and have discussed working part-time or volunteering as a means to transition to full-retirement.

        Very low probability that we'll be forced to retire earlier, but certainly recognize that it does happen and could happen to us. I'd assume that most people that participate on this forum are aware of and working on their financial situation. With unemployment in excess of 10%, the near term expiration of enhanced unemployment benefits, and an uncertain path to economic recovery given the uneven response to dealing with the coronavirus, certainly seems that things will get worse for many before things get better. On a positive note, I read earlier this week that American's credit card balances are decreasing, which implies that many are working to improve their financial situation.

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          #5
          Originally posted by rennigade View Post

          If you do hit $5mil...why would you continue to work just for insurance? Health insurance isnt that much is it? $30k a year for a Cadillac plan. Even $1mil of your money earning 1% would cover 33% of your health coverage. Unless your spending habits are out of control...I dont see how health insurance would be a factor.
          Agree, only reason to still work, is just because you want to work.
          We've got a pretty decent ACA health insurance plan for $18,000 annually.

          Retirement works best when it's planned for.

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            #6
            Originally posted by rennigade View Post

            If you do hit $5mil...why would you continue to work just for insurance? Health insurance isnt that much is it? $30k a year for a Cadillac plan. Even $1mil of your money earning 1% would cover 33% of your health coverage. Unless your spending habits are out of control...I dont see how health insurance would be a factor.
            Because I can't read the future. If I stop working I am guaranteed to never work again. And my insurance at work is guaranteed to be available even WITH a pre-existing condition. I know Obamacare requires insurance companies to give health insurance to people with pre existing conditions as well but you never know if that policy can change or not in the future as there are so many attack vectors for government insurances. If insurance companies are in the verge of collapse due to that rule then they can take it away as a law to "protect jobs"..aka lobbying.

            Also what is there to do when your kids are in school? 3 days of work a week is a good balance.

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              #7
              Originally posted by Fishindude77 View Post

              We've got a pretty decent ACA health insurance plan for $18,000 annually.
              Let's just hope that the next administration is able to rebuild and strengthen the ACA so that this remains a viable option for years to come. The current administration has tried their best to chip away at it, unfortunately with some success.

              If the ACA goes away, retirement before 65 becomes far more difficult.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

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                #8
                Originally posted by Singuy View Post
                If I stop working I am guaranteed to never work again.
                What do you mean by that?
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

                Comment


                  #9
                  Originally posted by LivingAlmostLarge View Post
                  How did you decide to retire? Did you actively choose it or fall into it? I ask because we are entering a weird time in the economy and I wonder if there will be a lot of people "retiring" because they are forced to and can't find another job. Whether they can afford to or not. I just am curious that yes many people on here even if it's not perfect are "aware" of their financial situation and improving it. But those who haven't a clue?
                  I'm not retired so can't really answer that. If I lost my job tomorrow, we couldn't really afford for me to be retired yet. I'm not quite sure what we'd do. I suppose we'd have to sharply cut our spending and both of us would need to do whatever we could to generate income. Even if we couldn't get formal jobs, there are always ways to earn a buck if you're willing to put in the time and effort.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    Originally posted by disneysteve View Post

                    What do you mean by that?
                    Given the current saturation of my profession which is a pharmacist, there will be close to zero percent chance I get a job after a 8 year hiatus. Fresh new residency graduates are fighting for scraps today. And I do believe my profession will shrink further thanks to technology and automation.

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                      #11
                      Originally posted by Singuy View Post

                      Given the current saturation of my profession which is a pharmacist, there will be close to zero percent chance I get a job after a 8 year hiatus. Fresh new residency graduates are fighting for scraps today. And I do believe my profession will shrink further thanks to technology and automation.
                      Oh, so you don't think you could find another job in your exact position, but that doesn't mean you're guaranteed to never work again. Maybe you could get work with an insurance company. Maybe law firms employ pharmacists to review information in malpractice cases. Maybe a pharmaceutical company could use you. I know a podiatrist who became a pharma sales rep. There are lots of options besides just being behind the counter filling prescriptions. And maybe you'd get a job doing something entirely different.

                      I have absolutely no doubt that if I were to lose my job, I could find other work. It may or may not involve clinical medical practice. It might have nothing at all to do with medicine. But there is always work to be had.
                      Steve

                      * Despite the high cost of living, it remains very popular.
                      * Why should I pay for my daughter's education when she already knows everything?
                      * There are no shortcuts to anywhere worth going.

                      Comment


                        #12
                        Originally posted by disneysteve View Post

                        Oh, so you don't think you could find another job in your exact position, but that doesn't mean you're guaranteed to never work again. Maybe you could get work with an insurance company. Maybe law firms employ pharmacists to review information in malpractice cases. Maybe a pharmaceutical company could use you. I know a podiatrist who became a pharma sales rep. There are lots of options besides just being behind the counter filling prescriptions. And maybe you'd get a job doing something entirely different.

                        I have absolutely no doubt that if I were to lose my job, I could find other work. It may or may not involve clinical medical practice. It might have nothing at all to do with medicine. But there is always work to be had.
                        My work currently is perhaps the best pharmacy has to offer. I am in a hospital doing in patient care with access to a variety of roles most pharmacist can only dream of. As for quality of life as a pharmacist, it probably can't get better than my job. Filling prescriptions behind a counter was my job post graduation and was terrible. I wouldn't want that job even if there's an opening.

                        So yeah I choose to work because the job is the best my career has to offer. And if I let this one go then it's down hill from here.

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                          #13
                          It's a good question. This is how my parents came to retire. The great recession forced cuts of high earning, senior employees at both their companies. They were both just over 60, not their target retirement age of 65. Briefly they pondered trying to find less-stressful or even part-time work just to fill the time, but jobs were scarce anyhow. So they decided to delve fully into retirement, and I think it's one of the best things they ever did for themselves.

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                            #14
                            Originally posted by LivingAlmostLarge View Post
                            How did you decide to retire? Did you actively choose it or fall into it? I ask because we are entering a weird time in the economy and I wonder if there will be a lot of people "retiring" because they are forced to and can't find another job. Whether they can afford to or not. I just am curious that yes many people on here even if it's not perfect are "aware" of their financial situation and improving it. But those who haven't a clue?
                            I decided to retire when I had enough income coming in to replace what I had when I was working. I planned for it several years in advance. When my target date came up, I did end up delaying my retirement by a few months to finish a project I was working on. This was about 9 years ago and I have not regretted it. My spouse has had some thoughts on retiring, but he keeps coming down with OMY-itis. I thought I had him all to myself this year for sure, but then the pandemic hit and he couldn't see any point in retiring (and not being able to go anywhere or do anything) that he delayed retirement again.

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                              #15
                              Originally posted by Like2Plan View Post

                              I decided to retire when I had enough income coming in to replace what I had when I was working. I planned for it several years in advance. When my target date came up, I did end up delaying my retirement by a few months to finish a project I was working on. This was about 9 years ago and I have not regretted it. My spouse has had some thoughts on retiring, but he keeps coming down with OMY-itis. I thought I had him all to myself this year for sure, but then the pandemic hit and he couldn't see any point in retiring (and not being able to go anywhere or do anything) that he delayed retirement again.
                              This sums up my deciding factor and strategy pretty well, with the additional personal pressure that I want to achieve FI by the time DD graduates so I won't be tied to this area any longer when she leaves me I've been working toward my goal since about 22 and am on track to hit my goal by 40-42 which is 6-8 years for me. Everything is pretty much on auto-pilot at this point and I now spend far more time trying to figure out what post-retirement looks like than how to get there; however, now that I'm taking my company's WFH option, it really took the deadline pressure off because technically I now could continue to work my same job without being tied to this location. I'd have no issue at all staying on a while longer if I could do my job from a beach hut in central america. Really isn't so much that I don't want to work anymore as it is that I don't want to be tied down. Feels a bit freeing in that maybe I can loosen the purse strings some and enjoy more now while DD is still living at home instead of being so focused on how I'm going to cope when she's off on her own.

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