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Old 04-12-2016, 07:36 PM
Q44
 
Location: Hudson Valley, NY
895 posts, read 765,504 times
Reputation: 1761

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We have a lot of similarities on the finances, i.e. comparable 401 and pensions. There a few differences that keep me working.

I'm only 57, wife is younger and working. We're planning to retire together in 4 years. I have 2 big expenses I want to take care of. One is getting all 3 kids through college and the other is the house/mortgage. House is valued at $450k and I still owe about a third of that. Always assumed we'd sell and relocate so we would just put the equity to the house we retire to. After looking in 3 other states we've decided we love our area of NY and we love our house and we're going to stay put for a while. So I want to hit the mortgage aggressively and get it down as much as possible in the next 4 years.

That said, I get paid very well and for years I loved my job. Now, not so much. In fact it sucks. I recently took some time off and had zero desire to get back in to the office. But if I was your age 59.5 maybe pushing 60 I would still go back in for 1 year.

I think about 2 things in situations like this. The first is sticking it out for a year is financially worth it. It's an additional year of salary, it's an additional year of 401 contributions and it's one less year you need to draw from your savings. The other thing is it's amazing how fast a year goes by. Maybe it's because we're getting older? I know getting out of a job you no longer care for and starting the next phase of life is what we all are looking for, but it's 1 year.
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Old 04-12-2016, 07:48 PM
 
6 posts, read 5,586 times
Reputation: 10
Quote:
Originally Posted by Q44 View Post
We have a lot of similarities on the finances, i.e. comparable 401 and pensions. There a few differences that keep me working.

I'm only 57, wife is younger and working. We're planning to retire together in 4 years. I have 2 big expenses I want to take care of. One is getting all 3 kids through college and the other is the house/mortgage. House is valued at $450k and I still owe about a third of that. Always assumed we'd sell and relocate so we would just put the equity to the house we retire to. After looking in 3 other states we've decided we love our area of NY and we love our house and we're going to stay put for a while. So I want to hit the mortgage aggressively and get it down as much as possible in the next 4 years.

That said, I get paid very well and for years I loved my job. Now, not so much. In fact it sucks. I recently took some time off and had zero desire to get back in to the office. But if I was your age 59.5 maybe pushing 60 I would still go back in for 1 year.

I think about 2 things in situations like this. The first is sticking it out for a year is financially worth it. It's an additional year of salary, it's an additional year of 401 contributions and it's one less year you need to draw from your savings. The other thing is it's amazing how fast a year goes by. Maybe it's because we're getting older? I know getting out of a job you no longer care for and starting the next phase of life is what we all are looking for, but it's 1 year.

I am really torn. I have been planning this retirement for quite a while and now that's its upon me, and I am a little low on cash, I am re-thinking it......really torn. Must decide within the next couple weeks. Thanks for your advice

ps - put my two kids thru college....best $300K I spent and I am proud of it
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Old 04-12-2016, 09:43 PM
 
Location: SoCal
13,225 posts, read 6,320,879 times
Reputation: 9827
You need to look at how much you spend a month/ year. It's hard to tell. But I would think of yourself as retire already and don't get too stressed. Stress can kill. Relax.
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Old 04-12-2016, 11:01 PM
 
1,440 posts, read 722,050 times
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I've posted it before and it's one of my favorite quotes that says it all:

From "Fight Club": (sound of clock ticking....) "This is your life.....and it's ending one minute at a time"

If you wanna spend it at a job you can't stand and with the added stress that's your call but whatever time you do is one less minute, one less hour, one less day, etc. you'll enjoy your retirement (plus who knows if the stress will aggravate your health issues or wind up shortening your lifespan).
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Old 04-13-2016, 02:08 AM
 
Location: Los Angeles area
14,018 posts, read 17,732,288 times
Reputation: 32304
Quote:
Originally Posted by Alcar View Post
Quick Summary:

59.5 this June. Married. We have 1.2M in 401K type accts. including a pension lump sum. Financial advisor has a plan for us to net close to $100K/yr after taxes, with 95% probability for 30+ yrs (this plan includes SS and my wife's salary for a couple more years).

We only have about 30-40K in cash accts. No liabilities, all loans paid. A house worth $550K on today's market (but we plan to stay in it a long time).

Question: I was planning to retire in June, but my salary and bonus for the next year is great......I cant stand working....do I do stay another year and bump up my cash/liquidity??? Did I mention I hate this job?
.................
Quote:
Originally Posted by Alcar View Post
I am really torn. I have been planning this retirement for quite a while and now that's its upon me, and I am a little low on cash, I am re-thinking it......really torn. Must decide within the next couple weeks. Thanks for your advice

..........
"Low" is a relative term. Your cash situation should be put into the context of the total situation. Since you are going "to net close to $100K/yr after taxes" I am not sure what the worry about having "only" 30-40K in cash accts. is all about. That much cash is a pretty reasonable cushion.

In your summary of your financial situation, the one thing you did not share with us is your spending habits/patterns. They must be sky high if you are worried about retiring at this point. Ah, the problems of the affluent!

If I were in your shoes, I would retiire now. But I am not in your shoes. Other posters have written about the stress of continuing in a job you hate being bad for your health (and they are right), but if you are going to be stressed and worried about your cash reserves, that could be just as bad, depending on how you personally react to each kind of stress. In one more year you will still be pretty young. Yet a year of enhanced enjoyment of life is nothing to sneeze at.
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Old 04-13-2016, 03:43 AM
 
71,520 posts, read 71,694,121 times
Reputation: 49105
retirement is not stress free , especially with no pension covering the bills . you go from job stress while working to market and interest rate stress as you burn principal in down years or crappy years .

with no steady income many sweat the next unexpected bills .

i know we saw 10k in bills come out of left field the last 90 days .

my wifes medicare premium got increased by 3500 a year , she needs 1 hearing aid which is not covered and we both need dental work and new lenses . she is going today for dental implants

10k out of no where .

so stresses just change and you worry about different things in retirement .
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Old 04-13-2016, 03:55 AM
 
Location: Backwoods of Maine
7,112 posts, read 8,150,955 times
Reputation: 18746
Quote:
Originally Posted by luckyram View Post
From "Fight Club": (sound of clock ticking....) "This is your life.....and it's ending one minute at a time"
Quote:
Originally Posted by Escort Rider View Post
If I were in your shoes, I would retiire now.
When we come into this world, we have nothing, except time. When we leave, it's all used up.

You can lose all your money, and make it back. But when you run out of time, all the money in the world won't buy you another nano-second.

Sounds like you have a good nest egg. Don't trade time for more money. It's a fool's bet.
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Old 04-13-2016, 04:04 AM
 
Location: Tennessee
29 posts, read 62,844 times
Reputation: 81
Continue working for what gain? And if you stay a year after that, and so on?

IMO- It's not about how much you need in retirement, but how much you plan to spend

As someone said above, Essentially, dead men tell no tales.

Like my old man says "Don't strive to be the richest man in the graveyard"

-WC
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Old 04-13-2016, 04:07 AM
 
71,520 posts, read 71,694,121 times
Reputation: 49105
the problem with money in retirement is what appears to be sizable shrinks drastically when the story is only about the income it generates .

when you figure out just what the extra money working another year actually generates in difference it may not be worth it . even figuring spending down the additional year in the mix, it still may not influence a thing .
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Old 04-13-2016, 06:21 AM
 
86 posts, read 56,756 times
Reputation: 409
You are basically trading time for money if you stay. Is it worth it to you? Sounds like you are in a pretty good financial situation. I will be leaving my own job next year (when I am first eligible for retirement). With a small pension and a 401K that has about $250K in it, a "bridge to SS" which the fed. gov. provides us until age 62. House will be paid off. I think my time is worth more than the money, specially if you hate your job, as stated.
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