Thinking About Retiring Early

klim

Twelve Pointer
I’m 38 will be 39 in May. If the good lord lets me live to 52 and nothing crazy happens, I’m done working full-time. I’ll have 30 years in the county/state retirement system. Then I’m going to find me something part time and try to enjoy life a little bit more.
 
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Mr.Gadget

Old Mossy Horns
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.

Yep about the same for me.
I hit 50 last summer, looked at the big picture and was going to retire last fall.
Decided I wanted a new truck, boat and atv so I would not need to worry with that I decided to put it off for another year to build more funds and burn time I had.
Will look at it again this fall and see what I want to do.
No real bills helps out.
 

Natebonebusta

Eight Pointer
I’m 38 will be 39 in May. If the good lord lets me live to 52 and nothing crazy happens, I’m done working full-time. I’ll have 30 years in the county/state retirement system. Then I’m going to find me something part time and try to enjoy life a little bit more.

We've got about the same plan. I'm looking at 53, and I'll do a part-time gig when I need the cash or I need something to do.

I always enjoy threads like this. Interesting the different strategies and approaches. I think you can always glean a little information from how other people before you have accomplished their goals.
 

GSOHunter

Twelve Pointer
Contributor
The biggest fears I see of people retiring early is insurance costs. Since you have that taken care of through Tricare and VA that is one huge variable that you don't have to worry about.
 

Redeye

Administrator
Staff member
Contributor
I retired at 56. I decided the high stress leven of my job of over 32+ years wasn't worth it any more. Life is way to short to put up with the corporate rat race. I live fine on my small pension and military disability. I suplimenthink by working group a part time job that I enjoy. Fortunately my wife still works that covers insurance. I don't regret it one bit! I'm happy and healthy and able to enjoy the important things in life.
 

wcjones

Twelve Pointer
Contributor
I will retire as soon as my job lets me. For me that will be at 55. My wife will retire at 51. Now all that being said we both know we will be getting part time jobs...however those will be jobs in which we can leave work at work and not have to bring it home with us....only 23 years to go for me...20 for my wife...
 

Firefly

Old Mossy Horns
I would go for retirement, why work if you don't have too? I am 71, retired at 54 my Wife retired at 52 we have enjoyed many great years of retirement together.
 

Homebrewale

Old Mossy Horns
My wife has been at the same job all her life I think..... For real about 33 years.. She does not want to stop, so I guess that will put me in the same club in a year or so.......

You don't necessarily have to quit to enter the club. My wife's income is several times my income. I'm still working but much of what we own is due to her.
 

Nana

Big Ole Nanny
Contributor
Doing that math myself. I can go out at 56 with a good pension and health insurance. That is in three years. But I'm just not sure. My other half wants to work til 62 (12 more years). I am putting a pencil to it now. I have a decent 401k and am getting my side business up and running now. I also have the opportunity to contract with my current employer after I retire.

Right now I am thinking go in three years, work Dec to April on contract 20 yrs a week and run my taxidermy business. That should give me the flexibility I want and keep my income level up. I have my eye on doing away with debt these next few years.

I have heard few people say they wish they had worked longer........
 

aya28ga

Old Mossy Horns
Contributor
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.

Homebrewale, thanks for jogging my memory and reminding me that SS benefits are taxed differently than IRAs. After doing a little research yesterday, I realized that not only could our RMDs at 70 1/2 push up our marginal rate, but SS benefits are taxed at 50% the amount, whereas IRA withdrawals at taxed at 100%. In our situation, it probably makes sense from a tax standpoint to wait until 70 1/2 to start drawing SS.

And the wife and I made the final decision last night: First chance I can speak with the boss, I'm letting her know that Labor day is my last day.
 

poppop

Old Mossy Horns
Contributor
Sounds like you have a plan. As stated, medical insurance is the sticking point. It is our major concern even now. I am on a Medicare Advantage Plan and its pretty good compared to my employer insurance. My wife's insurance is the State Health Plan and the 20% co-pay kills us. She will have a Medicare Advantage Plan as soon as she is older. Good luck, you will never regret it. You will find out, that all the free time you think you will have retired, don't always seem to be there.

I took full state retirement a couple of months after I turned 54. I had to pay for my medical insurance until I became eligible for Medicare. I ran the numbers also, and saw that if I didn't retire when I became eligible I would be working for less than $5 an hour. To explain, I figured if I was going to get X number of dollars based on me working 2080 hours per year. That yearly retirement money was mine if I didn't go back to work. My way of thinking was, if I was getting say $50,000 a year retired, then if I went back to work, I would already be $50,000 in the hole, since I was drawing that if I retired. So, working the 2080 hours I would divide that into what I made over $50,000 for my hourly rate. It would have been nice, if I could draw the hypothetical $50,000 and go back to work at full salary, but the state don't allow that.
 

Soilman

Old Mossy Horns
Contributor
I've got 29 years in as of this past Monday. I'll be eligible in 2 years...BUT, eligible isn't the same as able. I've gone through several retirement seminars offered by my agency in the past 2 years, and have a decent idea of where I stand and where I want to be at retirement. I'm always telling people that when I retire, I want to THRIVE, not just survive. I'm aiming for retirement at 62, (8 more years) or as close to it as I can stand to work. If I work until 62, I will get 1.1 percent on my pension for each year worked vs. 1% if I go before 62. However, my job has changed quite a bit from what it was originally, and I don't enjoy it nearly as much. I have the promise of another position that I would enjoy a good bit more, and would be a promotion, but all hiring for our agency has been on hold for over a year.:mad: I'm currently topped out in my position as far as salary goes, so a promotion would go a long way towards reaching retirement goals sooner if I decide I can't take the crap anymore and go out before 62.

As for retirement itself, if you are satisfied with what you will get, and are mentally ready, definitely go for it! I have seen LOTS of coworkers retire, and I've not heard even one of them regret it.
 
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30/06

Twelve Pointer
Sounds like you’ve done the math and thought it through. I’d go for it, there’s also no rule that says you can’t go back to work if you decide that’s what you want to do. If you’re not happy with the job life’s too short to put up with it if you don’t have to.
 

Triggernosis

Ten Pointer
Sounds like you have a plan. As stated, medical insurance is the sticking point. It is our major concern even now. I am on a Medicare Advantage Plan and its pretty good compared to my employer insurance. My wife's insurance is the State Health Plan and the 20% co-pay kills us. She will have a Medicare Advantage Plan as soon as she is older. Good luck, you will never regret it. You will find out, that all the free time you think you will have retired, don't always seem to be there.

I took full state retirement a couple of months after I turned 54. I had to pay for my medical insurance until I became eligible for Medicare. I ran the numbers also, and saw that if I didn't retire when I became eligible I would be working for less than $5 an hour. To explain, I figured if I was going to get X number of dollars based on me working 2080 hours per year. That yearly retirement money was mine if I didn't go back to work. My way of thinking was, if I was getting say $50,000 a year retired, then if I went back to work, I would already be $50,000 in the hole, since I was drawing that if I retired. So, working the 2080 hours I would divide that into what I made over $50,000 for my hourly rate. It would have been nice, if I could draw the hypothetical $50,000 and go back to work at full salary, but the state don't allow that.
poppop, I'm not sure I follow your logic here, but whatever.... Anyway, can you explain the "had to pay for my medical insurance" part. If you retired from the State, wouldn't your medical insurance be paid for, unless you had kids/family on it?
 

aya28ga

Old Mossy Horns
Contributor
Hmmm, to put the cherry on top of the sundae, I had forgot about the company's pension plan that they closed out some years ago. I've got a little money there also, not much, but enough to fund 6 months or so.

Happy Days!!!!!
 
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