Thinking About Retiring Early

aya28ga

aya28ga

Old Mossy Horns
Contributor
I've been planning for a few years now on retiring at 62, but with the pressure at work escalating and after crunching numbers this past week, I'm starting to believe I may take an early exit this Fall when I turn 61.

All our finances look good, no debt, we own our home free and clear, & with two military retirements we should be able to live within our means w/o signing onto Social Security until we reach full eligibility age, and won't touch our IRAs until we're required to at age 70 1/2. Every time I do the numbers, they show the same result: we'll have more money in our later retirement than we currently have now.

Wife's fully onboard with it, and she's expecting to receive a settlement from her parent's estate in the near future. It's not "Megabucks Money", but it'll be sizable.

Most of the older members of my family have lived into their 80's (even 90s), but my dad died at 66 and never got to enjoy any retirement, and I guess that's always in the back of my mind.

I guess what I'm reaching out for is advice from those of you who are retired; any advice on things to look out for or something I may have missed?
 
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roundball

roundball

Old Mossy Horns
Contributor
The main possible risk / question that came to my mind reading your background would be medical insurance.
If your military retirements give you guys solid coverage then it sounds like you're pretty well set.
Otherwise, leaving any good employer based insurance coverage until you're able to get Medicare related coverage might leave you exposed so be sure you have strong policy coverage in the interim.
 
lasttombstone

lasttombstone

Kinder, Gentler LTS
Not one to give advise but will share my circumstances. I had always said when I hit the retirement formula with the state I was out the door as long as the numbers worked out. Well, that was over 20 years ago, when I was 50. We were debt free and didn't intend to go into debt for any reason. Mine wasn't much of a state job with the prison dept. and the wife was with the state at that time but would have to go on for a few more years before retirement to maintain her insurance. I got out of there and never looked back. So far I have had 20 years of doing exactly what I wanted to do without answering to anyone. Took my SSI at the earliest age and don't regret that. It will be a while before it catches up to what I have drawn already and the way I looked at it, I probably will need less money later than I do now. That has worked for me so I figure, if you have run your numbers, you know your needs and risks better than anyone. Good luck with the decision.
 
aya28ga

aya28ga

Old Mossy Horns
Contributor
roundball said:
The main possible risk / question that came to my mind reading your background would be medical insurance.
If your military retirements give you guys solid coverage then it sounds like you're pretty well set.
Otherwise, leaving any good employer based insurance coverage until you're able to get Medicare related coverage might leave you exposed so be sure you have strong policy coverage in the interim.
Click to expand...

Well, the wife is qualified as partially-disabled due to military service, so she uses the VA. I've been using the military retiree insurance (Tricare), never used the employer-based coverage. We're both in reasonably good health (knock on wood).
 
Papa_Smurf

Papa_Smurf

Twelve Pointer
Contributor
From what youve stated here I know what my decision would be......and it would allow a lot more hunting time in the fall [emoji106]

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hunter

Eight Pointer
Contributor
Looks like you have a good strategy in the works! You may want to take a look at your pay check and see what is exempted from taxes currently and compare to what you will receive in retirement. Some folks have it work out where their overall retirement income is similar to their working income but actually end up paying more tax on their retirement income than on their working income. This can be due to all the exempt parts of their working income (e.g., SS, Medicare, 401k, medical savings accounts, etc.) not being present anymore. Doesn't seem as this might be the case for you from what you describe but it is worth checking as some people get surprised by it. Especially if there is additional part time income in retirement. Basically, in some scenarios folks may end up with more taxable income in retirement than they are expecting.
 

Zach's Grandpa

Old Mossy Horns
I tried it early and realized that it wasn’t about the financial part. It was about the “working/business/entrepreneurial “ side of me that I wasn’t happy letting go. So after a year or so I started doing consulting and that has kept me busy and allowed more business opportunities than ever. I’ll work as long as I’m able, it’s just what I do.


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aya28ga

aya28ga

Old Mossy Horns
Contributor
Zach's Grandpa said:
I tried it early and realized that it wasn’t about the financial part. It was about the “working/business/entrepreneurial “ side of me that I wasn’t happy letting go. So after a year or so I started doing consulting and that has kept me busy and allowed more business opportunities than ever. I’ll work as long as I’m able, it’s just what I do.


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Click to expand...

I've been considering that aspect of it too. I had a coworker who retired a couple of years ago who had no wife & family, no hobbies and lived in a townhouse in Cary. He got bored within 6 months and went back to work. I've got an active wife whose hobby is gardening the 4 acres around our home, several hobbies I'd like to indulge more in and 100+ acres to tend to / play in. I think I can stay busy...........
 

firemedic54

Ten Pointer
aya28ga said:
I've been planning for a few years now on retiring at 62, but with the pressure at work escalating and after crunching numbers this past week, I'm starting to believe I may take an early exit this Fall when I turn 61.

All our finances look good, no debt, we own our home free and clear, & with two military retirements we should be able to live within our means w/o signing onto Social Security until we reach full eligibility age, and won't touch our IRAs until we're required to at age 70 1/2. Every time I do the numbers, they show the same result: we'll have more money in our later retirement than we currently have now.

Wife's fully onboard with it, and she's expecting to receive a settlement from her parent's estate in the near future. It's not "Megabucks Money", but it'll be sizable.

Most of the older members of my family have lived into their 80's (even 90s), but my dad died at 66 and never got to enjoy any retirement, and I guess that's always in the back of my mind.

I guess what I'm reaching out for is advice from those of you who are retired; any advice on things to look out for or something I may have missed?
Click to expand...

If you can do it, congratulations, you worked your time, sound responsible with finances. Hit the road and live for you, not for work. I have approx 9 years to go, (I will be 52-53) and they can have it.
 

lbksmom

Banned
Congrats, go for it a lot less stress more fun for yourselves to enjoy life. I had a VA encounter in Fayetteville emergency room July 2013 disabled me a little. Your wife should be able to go to local social security office to apply, then once approved, she will get ss disability,1 year later will qualify for medicare. That would put both of you more ahead of the game. She deserves it for serving our country, God bless and good luck to both.
 
Firedog

Firedog

Old Mossy Horns
Contributor
I would not consider 61 as early, my goal is 55, or earlier. I know the math, as soon as x and Y balance,they no loner have my services.
 
Winnie 70

Winnie 70

Ten Pointer
I retired at almost 55 with like 31-32 yrs service, had the VA for my medical and have been healthy so far. My wife worked till full retirement and we are debt free and good health. I have lived off income from SS, my 401K, a pension fund, brother and I collect from a cell tower, and income from a rental house. As of now, I have more money in my 401K than I did when I retired so that a plus. Now, let me say this, if I had continued to work and the investments had grown at a normal rate, I would have been dollar wise better off today, but that would have required 40-50 hour work weeks and lot of stress and who knows what my health would be. I have not regretted my move because the day you retire you will realize the freedom you have from day one and like I told a little old lady in my church when she asked me what I am going to do now that I have retired, I told her "I am going to do a lot of hunting and fishing...she said "That is what you always have done"...I told her "Yea, but I am about to get serious with it". You cannot bring back those younger years and you either give them to working time or enjoying all those years...you cannot do both.
 
aya28ga

aya28ga

Old Mossy Horns
Contributor
Winnie 70 said:
I retired at almost 55 with like 31-32 yrs service, had the VA for my medical and have been healthy so far. My wife worked till full retirement and we are debt free and good health. I have lived off income from SS, my 401K, a pension fund, brother and I collect from a cell tower, and income from a rental house. As of now, I have more money in my 401K than I did when I retired so that a plus. Now, let me say this, if I had continued to work and the investments had grown at a normal rate, I would have been dollar wise better off today, but that would have required 40-50 hour work weeks and lot of stress and who knows what my health would be. I have not regretted my move because the day you retire you will realize the freedom you have from day one and like I told a little old lady in my church when she asked me what I am going to do now that I have retired, I told her "I am going to do a lot of hunting and fishing...she said "That is what you always have done"...I told her "Yea, but I am about to get serious with it". You cannot bring back those younger years and you either give them to working time or enjoying all those years...you cannot do both.
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What you say in that statement is the only serious downside I can come up with so far against retiring now, and for me its not a strong enough argument. I know the financial planners say keep working and pile up the money, ( my BIL plans on working until 70), but life is about time well-spent as well. I'm looking at retiring this upcoming Labor Day, and spending the whole Fall hunting when I want to!:)
 
Winnie 70

Winnie 70

Ten Pointer
Exactly aya28ga, if you run the numbers and they look favorable to retiring with a reasonable income, and only you know what that is, you best go for it. I did, and have never looked back. Heck, you have your youth now and can go back to work if you want. But, by continuing to work and your 401 growing big time...what you got left when you reach 65 -75 years old...nothing but an old body, worn out, and the desire grows less to enjoy life at its fullest the older you get. I still am amazed at the energy level at each passing year and you will too if you reach those later years. I still climb those mountains, fish those bays, and do all I can to stay active, but you cannot go back in time to those youthful years, cannot buy back your good health, and we never know what tomorrow brings. Grab all you can while you can still grab guess what I am trying to say.
 
Jack's PA

Jack's PA

Twelve Pointer
Contributor
The way I got it figured with a kid still in high school, I can't retire until at least two years after I'm dead!
 

Homebrewale

Old Mossy Horns
Go for it. I am planning to retire at 58. I will leave as soon as the math says I can.

It seems you've run the numbers. If you had not done so, you could look at delaying SS to 70 and take distributions from your IRAs instead. Each year you delay your SS, you're expected monthly SS check goes up 8%. At 70.5 years old, your RMDs start which possibly could push up your marginal tax rate. One technique is to take IRA distributions earlier to reduce your IRA so RMDs are not as large and the delay in SS pushes up your monthly amount.
 

oldest school

Old Mossy Horns
i seldom hear anyone complain of retiring too soon. :)

You seem in fine shape looking at your numbers AYA28ga.

Congratulations!
 

Dead Eye-NC

Eight Pointer
Homebrewale said:
Go for it. I am planning to retire at 58. I will leave as soon as the math says I can.

It seems you've run the numbers. If you had not done so, you could look at delaying SS to 70 and take distributions from your IRAs instead. Each year you delay your SS, you're expected monthly SS check goes up 8%. At 70.5 years old, your RMDs start which possibly could push up your marginal tax rate. One technique is to take IRA distributions earlier to reduce your IRA so RMDs are not as large and the delay in SS pushes up your monthly amount.
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If u pass before u take ur SS, does your spouse get ur full benefit? If spouse is due SS do u get to combine them? Or SOL?


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Zach's Grandpa

Old Mossy Horns
I think it all comes down to doing what you enjoy. I’m in a different work environment than when “holding” a job. I call the shots and within reason take time off when I want to. I enjoy being connected to the business world, starting new businesses, and helping small companies grow. I’ll work until the desire isn’t there, no time limit set.


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Homebrewale

Old Mossy Horns
Dead Eye-NC said:
If u pass before u take ur SS, does your spouse get ur full benefit? If spouse is due SS do u get to combine them? Or SOL?


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Click to expand...

The spouse only gets one benefit. Each person needs to make guesses on longevity. I like to look at the lifespans of my family instead of some actuary table. Many members die in their 80s and 90s with several over 100. My great-grandmother lived to 107. So for me, I'm planning for a long retirement and trying to maximize my money for that. If many members of your family die in their 60s and early 70s, I'd be taking SS at 62.
 

Dead Eye-NC

Eight Pointer
Homebrewale said:
The spouse only gets one benefit. Each person needs to make guesses on longevity. I like to look at the lifespans of my family instead of some actuary table. Many members die in their 80s and 90s with several over 100. My great-grandmother lived to 107. So for me, I'm planning for a long retirement and trying to maximize my money for that. If many members of your family die in their 60s and early 70s, I'd be taking SS at 62.
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Thx. If spouse is not eligible for SS due to age and you r eligible and pass away, does spouse still wait for hers? Is there a 1 time death benefit?


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aya28ga

aya28ga

Old Mossy Horns
Contributor
Homebrewale said:
Go for it. I am planning to retire at 58. I will leave as soon as the math says I can.

It seems you've run the numbers. If you had not done so, you could look at delaying SS to 70 and take distributions from your IRAs instead. Each year you delay your SS, you're expected monthly SS check goes up 8%. At 70.5 years old, your RMDs start which possibly could push up your marginal tax rate. One technique is to take IRA distributions earlier to reduce your IRA so RMDs are not as large and the delay in SS pushes up your monthly amount.
Click to expand...
Yes, I'm pondering IRA withdrawals vs starting SS at age 66 1/2, but I've got 6 years to decide on that. We'll be living on our military retirements & a 401k from age 61 to 66.......

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lasttombstone

lasttombstone

Kinder, Gentler LTS
Have you been to the SS office yet? You can go talk with someone there and they can give you all the options available with an estimated payout.
 
aya28ga

aya28ga

Old Mossy Horns
Contributor
lasttombstone said:
Have you been to the SS office yet? You can go talk with someone there and they can give you all the options available with an estimated payout.
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No I haven't been to the SS office, but the wife & I are signed up on SS's website and we've been able to see our work histories, estimate our monthly benefits, and get some questions answered that way.

I'd recommend that everyone go to the Social Security website and create an account, especially if your nearing retirement.
 
Mechanic Bob

Mechanic Bob

Eight Pointer
I retired at 59 with no "Retirement" funds other than our savings. Never looked back. Too many people I know retired because they could not work and therefore could not enjoy retirement. You work to enjoy life. I retired while I still have my health and can enjoy life. More time for fishing for me.
Oh yes there are some slow boring days, but the ability to go where and when you want if well worth the boring days.
Volunteer or get a part time job to fill the idle time.
 
QBD2

QBD2

Old Mossy Horns
If I knew for a fact that my returns would hold steady...I'd be done today at 36 lol
 

Homebrewale

Old Mossy Horns
MJ74 said:
That won't be a problem for me......I have never had the desire to work [emoji13]
Laziness runs deep in me.

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My coworkers says if work was fun, they would call it fun, not work.

I've had a number of people say over the years that I just have not found my passion in life. If I found the right job, I'd love to work. My passion is not working.
 
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