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Old 09-27-2018, 07:23 PM
Q44 Q44 started this thread
 
Location: Hudson Valley, NY
895 posts, read 768,264 times
Reputation: 1761

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Well now .... I've posted a few times over the past few years that I've been planning my retirement since I was 24 years old. I just turned 59 this month and am still involved in the same type of work I've been doing for close to 30 years. My plan for a while has been to retire at age 62, in 3 years.

Three years has just become 3 months! If you read the business or financial news you may have read that Verizon has just made a voluntary separation offer to their managers. I will be submitting my retirement papers in a few weeks and will be retired by year's end.

I'm still in a semi state of shock. The package is definitely fair if not generous and includes provisions for health coverage. Vz eliminated the management pension over a decade ago but I was grandfathered in to my level at the time. I plan on taking the lump sum and adding it to my 401k as I roll them to an IRA.

My wife is 2 years younger and is going to work for 3 more years. She is still kind of unsure about this sudden turn of events and giving up my salary. I've showed her that the only changes we may need are a small decrease in discretionary spending and I may delay Social Security only to my FRA and not age 70. Her other concern is that we still have a mortgage. We crunched the numbers regarding expenses and discretionary spending earlier this year to see how we are doing and obviously had the monthly mortgage payment included. I explained at the time, the mortgage expense once paid off becomes extra discretionary spending and as such is also a hedge against inflation. Now that retirement is imminent I've also explained we could, if it made her feel better, just pay it off. I told her all we're actually accomplishing if we do that is moving money from savings to home equity. I'd just rather pay it off gradually without the tax hit.

Bottom line, I will be retired in 3 short months. I still can't believe I'll be retired at 59. Years of planning, working hard, going back to college, grad school, investing.... I'm already thinking about things to keep me busy or at least out of trouble.
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Old 09-27-2018, 07:38 PM
 
6,347 posts, read 5,085,406 times
Reputation: 12907
Congratulations!
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Old 09-27-2018, 07:43 PM
 
Location: Texas of course
568 posts, read 269,912 times
Reputation: 2920
Congratulations!!
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Old 09-27-2018, 08:17 PM
 
Location: VT; previously MD & NJ
2,229 posts, read 1,362,793 times
Reputation: 6441
You can pay off your mortgage quicker by increasing your payment each month (applied to principle). I did that. You save on interest that was as well. With the new tax law, you might not have as much of a mortgage interest deduction as before anyway.
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Old 09-27-2018, 10:47 PM
 
1 posts, read 955 times
Reputation: 15
Hi, fellow V Teamer here. The volunteer severance package was indeed a fortuitous event for those of us planning to leave the company within the next couple years. I'm curious, how do you know for certain you'll be selected? We volunteer starting Oct 1st, window to volunteer closes Nov 10th and we find out if we're selected (and our off-payroll date) on Dec 10th. You seem very sure you'll be gone by year-end. You don't have concerns about not being selected? Is that because of your long tenure with the company? I'm only at 16 years tenure but it's well past time that I move on, so really hoping I get selected.
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Old 09-28-2018, 02:00 AM
Q44 Q44 started this thread
 
Location: Hudson Valley, NY
895 posts, read 768,264 times
Reputation: 1761
Quote:
Originally Posted by ClearSky_CalmSeas View Post
Hi, fellow V Teamer here. The volunteer severance package was indeed a fortuitous event for those of us planning to leave the company within the next couple years. I'm curious, how do you know for certain you'll be selected? We volunteer starting Oct 1st, window to volunteer closes Nov 10th and we find out if we're selected (and our off-payroll date) on Dec 10th. You seem very sure you'll be gone by year-end. You don't have concerns about not being selected? Is that because of your long tenure with the company? I'm only at 16 years tenure but it's well past time that I move on, so really hoping I get selected.
I guess there are no certanties but there are reasons I'm being very optimistic. The wording of the offer indicates those within a work group with the most service will generally be accepted first. The nature of the work we do and the role technology has on it as well as location is another consideration the gives me hope. There are a few other factors that have me believing this will happen. I've seen voluntary offers way back when and this feels comparable. Time is right for me and I hope you get it so you can move on. Good luck.
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Old 09-28-2018, 02:21 AM
 
71,910 posts, read 71,971,035 times
Reputation: 49452
way to go
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Old 09-28-2018, 05:06 AM
 
Location: the Old Dominion
297 posts, read 151,099 times
Reputation: 1387
Default ...here comes Upset...

Quote:
Originally Posted by Q44 View Post
Well now .... I've posted a few times over the past few years that I've been planning my retirement since I was 24 years old. I just turned 59 this month and am still involved in the same type of work I've been doing for close to 30 years. My plan for a while has been to retire at age 62, in 3 years.

Three years has just become 3 months! If you read the business or financial news you may have read that Verizon has just made a voluntary separation offer to their managers. I will be submitting my retirement papers in a few weeks and will be retired by year's end.

I'm still in a semi state of shock. The package is definitely fair if not generous and includes provisions for health coverage. Vz eliminated the management pension over a decade ago but I was grandfathered in to my level at the time. I plan on taking the lump sum and adding it to my 401k as I roll them to an IRA.

My wife is 2 years younger and is going to work for 3 more years. She is still kind of unsure about this sudden turn of events and giving up my salary. I've showed her that the only changes we may need are a small decrease in discretionary spending and I may delay Social Security only to my FRA and not age 70. Her other concern is that we still have a mortgage. We crunched the numbers regarding expenses and discretionary spending earlier this year to see how we are doing and obviously had the monthly mortgage payment included. I explained at the time, the mortgage expense once paid off becomes extra discretionary spending and as such is also a hedge against inflation. Now that retirement is imminent I've also explained we could, if it made her feel better, just pay it off. I told her all we're actually accomplishing if we do that is moving money from savings to home equity. I'd just rather pay it off gradually without the tax hit.

Bottom line, I will be retired in 3 short months. I still can't believe I'll be retired at 59. Years of planning, working hard, going back to college, grad school, investing.... I'm already thinking about things to keep me busy or at least out of trouble.
Congratulations Q44. You are nearing the finish line. It sounds like you are already smart with your money. Still, start your decrease in spending now. As many on here will attest, most of retirement is psychological, and that includes money management and how you view money: before you have it (as a child), while you are actively earning it (as a toiler in society), and as a retiree (how what is yours holds its value against the onslaught of inflation and those who seek to take it from you (relations, friends and charities).
Your wife's reaction is normal. Remember, this is an unexpected event, albeit a windfall. Also, she may be feeling somewhat "left behind". Be patient with her feelings on this.
Without deliberating on it, I found myself paring back a couple of years before my retirement.
Having planned for retirement in your early working years, you are likely more prepared than most.
In re of the bold print, you can get a part time job if needed. I am confident your wife and you will do fine.
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Old 09-28-2018, 05:30 AM
 
Location: Mount Airy, Maryland
10,488 posts, read 5,952,316 times
Reputation: 16207
I'm 59 and am still working. Bite me.

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Old 09-28-2018, 05:59 AM
 
111 posts, read 44,515 times
Reputation: 213
The offer of a separation package is what many dream of - congratulations!! We have quite a few friends who are 5-10 years older than we are and all have said that there was a bit of a shock when the regular paycheck stopped. They don't deny missing it, but they've all said that it's worked out fine - that they spend less in retirement than they did while employed, as many costs were eliminated. Hope that is the case for you and that you love retirement life, as everyone we know does!!
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