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Old 04-10-2016, 08:06 AM
 
Location: Tennessee
29 posts, read 62,830 times
Reputation: 81

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I have been working for the Feds since I was 19 with a small break in the private sector. I'm retiring June 30, 2016 after 34.6 years of service. We have lived in So Cal for the last 37 years with 20 of those in our current home. My mortgage is $1517 a month on a 226K balance. House will be listed at 421K but should garner 430K in the hot So Cal market.

Our plan is to eliminate debt and relocate to Tennessee. Leaving the oppressed state behind us with only cell phone and car insurance bills. My healthcare is covered through the government with me paying a smaller portion from my pension.

Initially we will have no home cost as we'll be staying with Mom (lol) and traveling for a bit with our toy hauler

Cash=
- Home Equity ~142.5K (Before paying down debt)

Debt-
- $0 ( Requires using a large portion of home equity listed )

Income
- 401K- $550K- Can elect to draw at MRA of 56 with no IRS penalty for under 59 1/2
- Pension- 41K/yr (Gross)

If we elect ot draw from 401K this is how the month should look (NET). This is after survivors, dental and health care cost are applied plus federal tax and life insurance. TN has no state income tax

NET MONTHLY ANNUITY $2,649.08
FERS Annuity Supplement: $1,370.00
*401k Monthly disbursement $1700

Total expected income- ~$5719

After we get tired of traveling and driving mom up the wall we may pick up a small part time job that passes the earnings test for the FERS annuity supplement. Then find us a small place to 'settle down' again

We started planning early and did many, many things. Our debt shows it. But we will clean the slate and start a new chapter in our lives. Glad I have many been there done thats so the bucket list isn't quite the pull it could have been otherwise

I had retirement pictured all wrong. I thought it would be a seamless process but not a chance. It is one of the most important decisions i have had to make in my life. Just like when you take a chance on that new job when you were content with previous ones.

Life is about living, not working every day until you die. And i have seen to many of my peers do just that after sticking around to 62

Not me.

WC
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Old 04-10-2016, 08:22 AM
 
7,977 posts, read 11,653,739 times
Reputation: 10473
Sounds good to me. I do think that it pays to look far into the future and be ready. But you seem to be willing to adjust your life to your monetary circumstances. By all means, live with Mom and help each other out with some off time traveling. A lot of people won't or don't want to do that, downsize, or downsize enough. They work and work.
Fine if that's what they want, but what your doing sounds fine too.
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Old 04-10-2016, 08:30 AM
 
Location: Tennessee
29 posts, read 62,830 times
Reputation: 81
Quote:
Originally Posted by Giesela View Post
Sounds good to me. I do think that it pays to look far into the future and be ready. But you seem to be willing to adjust your life to your monetary circumstances. By all means, live with Mom and help each other out with some off time traveling. A lot of people won't or don't want to do that, downsize, or downsize enough. They work and work.
Fine if that's what they want, but what your doing sounds fine too.
Thanks for the reply

I'm hearing from many at work "What are you going to do all day"? I answer- "The one thing I can tell you, is I wont be doing this!" That gets them thinking.

In my field, to many past co-workers have passed on due to things like tumors, cancer, and other things at an early age while still working. Then the ones who do stick around until 62 or beyond, die one year or so after retirement.

We sacrificed much (home upgrade across the tracks, etc) in our younger years to do what we're about to do. Very few of my life plans reached fruition. This one however, is on track. Even a blind squirrel finds an acorn every now and then.

WC
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Old 04-10-2016, 08:59 AM
 
Location: Loudon, TN
5,767 posts, read 4,825,615 times
Reputation: 19395
We were in very similar circumstances, which allowed us to retire at 51 and 56 and we are very happy with the result. We also moved from CA to eastern TN. We are very happy that we did what we did, when we did. We could have put it off to increase our pensions, but for both of us the time was right. Don't let the naysayers (co-workers) get you down. They have their own reasons they can't do it, adult kids sucking them dry, debt, fear of not having enough money. You have made your plan, you should be just fine.
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Old 04-10-2016, 09:15 AM
 
Location: In The Pacific
986 posts, read 1,178,255 times
Reputation: 1233
West Coasting,
That's OK retiring at 56, it's a happy medium for early retirement and your total expected income is OK too and should be enough to live on in Tennessee and or where ever.
I worked all my young and adult life in N. Calif. for the U.S. Government for 30 yrs and took a voluntary early retirement at age 49 due to medical reasons and with an initial meager Civil Service pension we immediately moved overseas.
18 yrs later we're still here and still enjoying our retirement lifestyle and more so when all of my other pensions (military & SSA) kicked in (only half going towards our monthly living expenses) at age 60 and 62 and our home is paid for and without any bills to worry about.
I'm now 67, my wife is a young 54 and our retirement lifestyle is better than ever before.
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Old 04-10-2016, 09:15 AM
 
Location: Tennessee
29 posts, read 62,830 times
Reputation: 81
Quote:
Originally Posted by TheShadow View Post
We were in very similar circumstances, which allowed us to retire at 51 and 56 and we are very happy with the result. We also moved from CA to eastern TN. We are very happy that we did what we did, when we did. We could have put it off to increase our pensions, but for both of us the time was right. Don't let the naysayers (co-workers) get you down. They have their own reasons they can't do it, adult kids sucking them dry, debt, fear of not having enough money. You have made your plan, you should be just fine.
Thanks for the reply

Yes indeed, many have kids at home who are in their 30's and or are still paying for college for their kids they had later in life. Fortunately, our kids have been out for the last 3 years. Another issue for them is basing thier budget on OT. For instance, a GS-12 making a base of ~92K, and that when OT is applied, are pushing their income up to 125K/yr. When looking at their retirement of 70%-80% (older CRS retirement plan) of the base 92K, they are effectively looking at ~50% reduction in pay. They're trapped

One of the reasons I'm retiring is stress kills. My job (like everyone else) has it levels of stress. But my retirement will mitigate what I believe are unacceptable levels.

WC
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Old 04-10-2016, 09:20 AM
 
Location: Los Angeles area
14,018 posts, read 17,726,438 times
Reputation: 32304
Quote:
Originally Posted by West Coasting View Post
.................................Life is about living, not working every day until you die. And i have seen to many of my peers do just that after sticking around to 62

Not me.

WC
Quote:
Originally Posted by West Coasting View Post
.................
In my field, to many past co-workers have passed on due to things like tumors, cancer, and other things at an early age while still working. Then the ones who do stick around until 62 or beyond, die one year or so after retirement. ..............................
I see nothing wrong with your retirement plans but this business of so many colleagues dying at such young ages is positively bizarre. Longevity statistics do not support the idea of so many people dying before they even reach 65. Nor does my own experience, and I know hundreds of people personally. Over the past three years I have attended funerals or memorial services for seven ex-colleagues, all but one of whom died in their 80's. The "young" one was just days ago - age 76. Among my mother and her four siblings, the earliest age of death was mid-eighties. I retired at 61, almost 11 years ago, and I represent the rule, not the exception. (I am about to turn 72). I have four cousins older than I, although one cousin did die young at age 70.

Do you have an explanation for the unusal cluster of very early deaths among your co-workers?
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Old 04-10-2016, 09:22 AM
 
Location: Tennessee
29 posts, read 62,830 times
Reputation: 81
Quote:
Originally Posted by Art2ro View Post
West Coasting,
That's OK retiring at 56, it's a happy medium for early retirement and your total expected income is OK too and should be enough to live on in Tennessee and or where ever.
I worked all my young and adult life in N. Calif. for the U.S. Government for 30 yrs and took a voluntary early retirement at age 49 due to medical reasons and with an initial meager Civil Service pension we immediately moved overseas.
18 yrs later we're still here and still enjoying our retirement lifestyle and more so when all of my other pensions (military & SSA) kicked in (only half going towards our monthly living expenses) at age 60 and 62 and our home is paid for and without any bills to worry about.
I'm now 67, my wife is a young 54 and our retirement lifestyle is better than ever before.
Thanks for the reply,

We looked at Belize as it was intriguing. Glad to hear things worked out for you as planned. Enjoy the good times.

We are also considering a rental in Navarre Fl. Work gift shops after the kids go back to school. Also thinking of working the Amazon holiday push. They hire for 3 months or so to get all the packages and returns processed

I like having options instead of requirements

WC
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Old 04-10-2016, 09:22 AM
 
365 posts, read 305,761 times
Reputation: 443
How funny ... It's like I'm reading my own story. Retired at 55 after 35 years at the same company. Sold my house in SoCal and moved to Tennessee. Made the life change because we could and we were sick and tired of working the concrete jungle grind to bad health and death. We wanted to live good and happy the rest of our lives and now we are doing it. I laugh when people assume retired life is boredom. We are having the time of our life.
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Old 04-10-2016, 09:31 AM
 
Location: Tennessee
29 posts, read 62,830 times
Reputation: 81
Quote:
Originally Posted by Jumeby View Post
How funny ... It's like I'm reading my own story. Retired at 55 after 35 years at the same company. Sold my house in SoCal and moved to Tennessee. Made the live change because we could and we were sick and tired of working the concrete jungle grind to bad health and death. We wanted to live good and happy the rest of our lives and now we are doing it. I laugh when people assume retired life is boredom. We are having the time of our life.
Thanks For the Reply

I grew up in the South so its like going back home. Mom is on an old family tobacco farm my ggg grandpa built after being released from Vicksburg. We are struggling on who will assume it from mom. Managing a house 200 plus years old is a job that you pay for. We have to juggle the selfishness of our wants and needs vs becoming caretakers of the property. Me and my brothers will figure it out

WC
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