Not sure I’m gonna make it another 5 years…

[Anonymous]

I’m in my early 50s, a recent empty nester w kids in college, and have worked at my large local private company for the past 15+ years. In my mind I will stay here until I retire, unless of course it is out of my control.

My job is one where, if you had to have a job it’s not bad, but I’ve moved up and done a lot of this stuff before. I’m so over the politics and corporate shenanigans.

Spouse is mid 50s and works for a local non profit and makes 125k. I make around $220k, with bonus, not including stock.

I had planned to retire in my late 50s, no later than 60. Retirement savings is $2.5m, kids college is mostly paid for in $529. Of course it would be higher if we continued to work.

I’ve started to reallly really hate my job and am obsessively doing retirement calculators and wondering if I can retire in 2 years or less.

Anyone else in the same boat? Should I see a retirement planner or something? I want together off this highway to hell….

[Anonymous]

Could you do consulting or find a part time job? Or a less stressful job? You're in a pretty good position if you keep your expenses really low and especially if your spouse has healthcare. But would be good to have a little money coming in

[Anonymous]

You could do a budget. 4 percent of 2.5 million is 100K that you can use without eating your principal amount. You'll have a penalty on IRA withdrawls though. And have to consider whether you have a mortgage and what your expenses are.

[Anonymous]

You can absolutely retire in 2 years, probably even now IF your spouse continues to work. Do they like their job? Is their job secure?

[Anonymous]

OP here. My spouse does not love their job either. Ha ha. Don’t think they would want me to retire and have them still work.

Also we know we would have to pay for healthcare for around 10 years, and I’m sure it would mean a more basic retirement.

Just not sure I can put up with this stupid stupid stupid job anymore. Fantasizing way too much about winning the lottery.

[Anonymous]

Is there a way you can take a break/sabbatical? Even 2 weeks. Reset. Map out options?

[Anonymous]

72t SEPP OP look it up, move some money to higher yield etfs to support the withdrawals. No penalty. Leave the rest of your money to grow. Then pick a part time job to supplement and fill your bucket for 5-7 moreyears. You actually have freedom at 50, you just haven’t done enough research and math.

[Anonymous]

If you’re an empty nester - you could downsize your home and buy in a cheaper area (either locally or out of state) to give you some extra cash for retirement. You can also definitely retire today on $2.5M if you’re willing to live “modestly” (most people retire and survive with much less).

Your main consideration should be healthcare for you, your spouse, and (possibly) your kids until they’re 26/start working full time.

I’d suggest trying to stick it out a few more years (you’ve been working long enough to know that tough times pass and chill out eventually) but if you and your spouse really wanted to retire today, you absolutely could.

[Anonymous]

The 2.5 is joint retirement savings for you both? Do you have other savings or investments? How much house equity? Do you plan to stay in your home or move?

You could easily quit if your spouse is still working. He covers the health insurance and brings in some cash. You spend your time making that money stretch and perhaps pick up a part time job.

This would be tight for both of you to stop working though. You need enough income to get you to 59 until you can take out retirement money without penalty.

If you're serious about it Id consider a budget on just your husband's salary, including ways to beef up your cash reserves. If this goes well for 2 years you can consider next steps.

[Anonymous]

Anonymous wrote:72t SEPP OP look it up, move some money to higher yield etfs to support the withdrawals. No penalty. Leave the rest of your money to grow. Then pick a part time job to supplement and fill your bucket for 5-7 moreyears. You actually have freedom at 50, you just haven’t done enough research and math.

Or also the Rule of 55, which is more flexible than 72t provided you have enough money in your 401k with your current employer.

Ultimately none of us can answer this question though. There isn’t enough information provided.

[Anonymous]

The math is reasonably simple but you have to be able to realistically estimate your yearly spending, including health insurance. Have you done that? If I had 2.5 million I could retire tomorrow, but our HHI is lower and our spending is probably lower as well.

[Anonymous]

Anonymous wrote:You could do a budget. 4 percent of 2.5 million is 100K that you can use without eating your principal amount. You'll have a penalty on IRA withdrawls though. And have to consider whether you have a mortgage and what your expenses are.

that is NOT what 4% rule means

[Anonymous]

Anonymous wrote:

Anonymous wrote:You could do a budget. 4 percent of 2.5 million is 100K that you can use without eating your principal amount. You'll have a penalty on IRA withdrawls though. And have to consider whether you have a mortgage and what your expenses are.

that is NOT what 4% rule means

Different poster and that is exactly the 4% rule.

[Anonymous]

Anonymous wrote:The 2.5 is joint retirement savings for you both? Do you have other savings or investments? How much house equity? Do you plan to stay in your home or move?

You could easily quit if your spouse is still working. He covers the health insurance and brings in some cash. You spend your time making that money stretch and perhaps pick up a part time job.

This would be tight for both of you to stop working though. You need enough income to get you to 59 until you can take out retirement money without penalty.

If you're serious about it Id consider a budget on just your husband's salary, including ways to beef up your cash reserves. If this goes well for 2 years you can consider next steps.

The $2.5M is both our retirements, but not including $1m in home equity. We don’t plan to move, our house is very livable for retirement. and kids will probably settle back here in the area after college, at least at first.

I like the idea of living on more of spouse’s salary for a bit, saving more cash, and seeing how it goes.

Also I think I need a big distraction or hobby from work. Not sure what that is. I already work out a lot and travel when we can.

[Anonymous]

What will you do for health insurance?