Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My husband is 43 years old and is contemplating retiring early. We are unsure whether to do so because of the economy. He has a pension from retirement from a previous job. It's about $80,000 a year. We know that we can live on that amount but he just got a raise and will be making about $100,000 there. We know that money isn't everything and may be willing to walk away from this job but we are a little apprehensive. We have a child currently in college and a 15 year old who will be going to college in the near future. We also have a mortgage payment of $1,200. We do not have any credit card debt or any car payments. We love to travel and eat out but we save money as much as we can. We do have 401's and savings so we are ok there as well. We also have medical insurance from his retirement. Just want to make sure that walking away from a job now won't come back to haunt us.
What do you guys think? What would you do?
Retire. One can always go back to work. I've been retired almost three years and I've just picked up a few engagements because I'm bored. You can only read so many books, only do so much charitable work (now I just write checks), only bake and cook just so much. I'm 46 and at my age, I'm realizing I still have a lot of "work" left in me. If you simply call it a Sabbatical then you can leave it open. Only my opinion, of course.
My husband is 43 years old and is contemplating retiring early. We are unsure whether to do so because of the economy. He has a pension from retirement from a previous job. It's about $80,000 a year. We know that we can live on that amount but he just got a raise and will be making about $100,000 there. We know that money isn't everything and may be willing to walk away from this job but we are a little apprehensive. We have a child currently in college and a 15 year old who will be going to college in the near future. We also have a mortgage payment of $1,200. We do not have any credit card debt or any car payments. We love to travel and eat out but we save money as much as we can. We do have 401's and savings so we are ok there as well. We also have medical insurance from his retirement. Just want to make sure that walking away from a job now won't come back to haunt us.
What do you guys think? What would you do?
First, you didn't say if you worked, and if he or both of you still enjoy your jobs. Second, your husband's pension is very impressive, but make sure it is adjusted for inflation. When you are 83, bread may cost $40/loaf. Third, you didn't say what activities you plan to spend your 40 years of retirement doing. If they are expensive hobbies, you may need to accumulate more assets.
My personal approach would be to either:
1. Work another 3 to 5 years, pay off your house and set aside enough
to fully fund your daughter's college OR
2. Cut back to half-time, and test how you like two weeks/month of
complete leisure. If you aren't bored, move on to retirement.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,690 posts, read 57,994,855 times
Reputation: 46166
sounds like you need a strategy planning weekend away to mutually determine this
do your home work as mentioned above:
project costs / activities / your 'roosting' location for different periods into your future.
Have a plan B & C for the above. & add in a couple catastrophes for good measure
Cut expenses BEFORE retirement (as close to zero as possible)
I'd do it if you have some type of plan, or at least be planning (and acting) during the next few years to pull the plug at your 15 yr old's graduation party. (they might enjoy 'home schooling' and traveling with you till graduation. We did that with ours till they were Jr's in HS, then they went to college as Jr and Sr in HS)
Think of some reduced cash flow options. I'm a firm believer in having my kids getting their own student loans for college. After college we 'gifted' them amounts to cover college & they got their real estate equity out of some houses they built while home schooling. They each had ROTH IRA's since age 12 that they could have used to fund college. They went the loan route (Giving them more incentive to complete school and get jobs (good idea). They consolidated school loans at 2.7 and 4.7% and continue to invest their principle. It is a good idea to pay back school with deflated $$ on low interest (For yourself OR your kids)
you don't say where you live, but as a naturelvr you might consider hopping around to National Parks as volunteers. I have met many who do that, and get a free place to park their RV + good training and opportunities to meet interesting people and see great places. The NFS has some neat programs to, where you can staff remote cabins and aid folks on backpacking trips and maintain trails... but you mentioned retirement, not working post retirement. We have been doing it since age 49 on far less than 1/2 your projected income while paying a fortune for medical and property taxes. (having been laid off 6 wks before retirement)
Last edited by StealthRabbit; 02-13-2009 at 11:29 AM..
Location: In the North Idaho woods, still surrounded by terriers
2,179 posts, read 7,016,755 times
Reputation: 1014
No one can answer that question for you except for yourselves. If you want to retire and you can afford to retire, then retire! Especially if you have another "life" you would like to experience. In my forties I was still a long way from being able to think about it...but now, at 62, I just retired and I am so ready to try my new life on for size!
Do what you feel is right. There is no sense in having dreams if you do not follow them!
Hmm very curious how he got such a handsome pension at 43.
Having said that, I did a lot of travel in my early 40s. I mean everywhere and mostly on cheap tickets. I went somewhere probably once a month. I would however either stay a night or two in the best hotel in town (even Paris) or if I didn't do that I would visit the bar there just to get a taste. Did lots of those bus tours around cities. Visited every museum possible. Went to a lot of operas, plays and musicals. Even the Vienna Opera.
I was still working then but I had a flexible schedule and looking back, I really don't know how I did it. But I am glad I did it and here is my point. You should travel while you are younger to get the education and experience (and before your knees go creaky and you can't walk around places like Machu Picchu). It will bring you a lot of confidence and contentment. That will last you through your middle age and into your golden years (I think - I am only 50 now).
So I say do it while things are cheap and everyone else is staying home.
I'll bet you will want to go back to work once you get it out of your system.
Hmm very curious how he got such a handsome pension at 43.
Having said that, I did a lot of travel in my early 40s. I mean everywhere and mostly on cheap tickets. I went somewhere probably once a month. I would however either stay a night or two in the best hotel in town (even Paris) or if I didn't do that I would visit the bar there just to get a taste. Did lots of those bus tours around cities. Visited every museum possible. Went to a lot of operas, plays and musicals. Even the Vienna Opera.
I was still working then but I had a flexible schedule and looking back, I really don't know how I did it. But I am glad I did it and here is my point. You should travel while you are younger to get the education and experience (and before your knees go creaky and you can't walk around places like Machu Picchu). It will bring you a lot of confidence and contentment. That will last you through your middle age and into your golden years (I think - I am only 50 now).
So I say do it while things are cheap and everyone else is staying home.
I'll bet you will want to go back to work once you get it out of your system.
Excellent advice. Even on a budget, I couldn't afford to take time off and travel when I was young. My knees went creaky long ago and I can barely walk to the mailbox. Do it now if you can!
The answer is simple: Retirement allows you to do what you want with your time. It is worth more than money. As long as you are willing to live within your means....the sooner the better. None of us know what our health will be in 5 or 10 years. Reduce stress, enjoy life. Retirement is bliss. Do it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
