passiton

Early Retirement

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Who has taken their "retirement" and made a complete career change?  Giving it very serious thought.  I have 25 years in my pension system in September of 2019.  I'll turn 48 a month later, which means I take a serious hit on my pension for leaving early.  Coming off a contracted job with almost infinite security and clear parameters is a little scary. 

 

Balls to the wall, pushing myself to work 60 hours a week, I've built a very successful side business as a counselor.  I'm 95% confident that I can earn more money doing that in my first year of retirement than I've ever made in school.  I'd be home every morning with my wife for coffee (miss her like hell every day I'm out until 9 or 10 at night), chasing fish when the fishing is good, playing with my granddaughter more, and would be my own boss.  I get to do a lot of good, although that's true in my current full time gig as well. 

 

When I hit 67 I will break even on the reduced pension versus collecting an extra 7 years formula.  That gives me almost 20 years of time to enjoy myself more while I'm physically able to enjoy the more rigorous things I call fun, like walking miles on beaches while wearing waders or pushing through heavy current in chest deep water on the Cape Cod flats.  I will miss the extra money I would have had for staying in the system from 67 and up, but theoretically will offset that with SS and the return from the investments I will continue to make until I take true retirement around that time. 

 

Am I nuts for walking off to do this? 

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You've quite obviously run the numbers and the answer is pretty clear ... you can spend the next 20 years losing sleep every night over whether you should have made the call back in 2019 ... or ... you can lose the odd night's sleep wondering whether you'll cover the monthly nut or not. :th:

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Tough call but it's your to make. Quality of life is important but part of that "quality" whether some people want to admit it or not is financial security for the family. 20 years is a long time to wonder about the economy and social security as it exist today. Might be tough to make up that "hit" you would be taking in a couple of years.

 

Good luck in whatever you do.

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You've got 25 years in, you're only 48, and you already have a side biz up and running - I say go for it.

Very few people have that combo, you should take advantage of it.

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Congrats on being in a position to consider at a younger age. 

 

So your side business becomes your main source of income. 

 

Things to consider....

-Health care for you and family.

-Will you get the supplemental health care insurance from your current job at 65?

- Creating and contributing to a SEP.

- income security

 

If you feel good about your those items, then go for it.

 

Its my current 3 part plan..

401k

SS

Government pension 

 

Im done at 63.

Edited by Lagerhead

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It sounds like a great plan so for the sake of playing devils advocate, have you considered how much time your part time side gig is going to consume once it becomes your full time gig?

 

I know you to be a person very able to do more with less, so frim that perspective, i think you will be fine.  But can you still do the things you are setting out to do and build the business to make up the financial difference needed to do the you want to do?

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9 hours ago, passiton said:

Who has taken their "retirement" and made a complete career change?  Giving it very serious thought.  I have 25 years in my pension system in September of 2019.  I'll turn 48 a month later, which means I take a serious hit on my pension for leaving early.  Coming off a contracted job with almost infinite security and clear parameters is a little scary. 

 

Balls to the wall, pushing myself to work 60 hours a week, I've built a very successful side business as a counselor.  I'm 95% confident that I can earn more money doing that in my first year of retirement than I've ever made in school.  I'd be home every morning with my wife for coffee (miss her like hell every day I'm out until 9 or 10 at night), chasing fish when the fishing is good, playing with my granddaughter more, and would be my own boss.  I get to do a lot of good, although that's true in my current full time gig as well. 

 

When I hit 67 I will break even on the reduced pension versus collecting an extra 7 years formula.  That gives me almost 20 years of time to enjoy myself more while I'm physically able to enjoy the more rigorous things I call fun, like walking miles on beaches while wearing waders or pushing through heavy current in chest deep water on the Cape Cod flats.  I will miss the extra money I would have had for staying in the system from 67 and up, but theoretically will offset that with SS and the return from the investments I will continue to make until I take true retirement around that time. 

 

Am I nuts for walking off to do this? 

 

I say you're nuts if you don't do it...

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I say you quit everything, give away all your stuff, live in a van down by the river, and drop acid and listen to Foghat records all day. :th: 

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5 mins ago, HugeDinghy said:

how old was your old man when he died?

 

how old were your grandfathers?

A guy I know just retired early for this reason. He's got good genes, but came up craps on the heart thing: he was diagnosed with heart problems (very slow-moving congestive heart failure, basically) at 42. He may live a long life -- there's no guarantee that the heart thing will do him in -- but his doctors have told him that odds are against it. 

 

He's 56 now, and retired a year ago, and when someone asks him what will happen if he runs out of money, he says, basically, that he'll be thrilled: he's got enough loot to last him till he's in his early 70s, and if he's still alive when he runs out, he'll be thrilled. 

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