This is sort of like a good news / bad news story. After 8 years, it didn't look like I had anywhere to go at my last company and I was getting bored. That was the bad news. The good news was I found a start-up near my home that made me a job offer. The bad news was they could offer me only 90% of what I was making. I took it anyways as I thought I could work hard, impress people and be on a higher trajectory than with the old company.

The bad news is after two months, the new boss kept forgetting decisions and events that he and I had. When I showed him the evidence, he would change the subject. Worst, he kept bringing the same things up and we would keep repeating the conversations. Even worst, he would get angry by shouting at me or glare at me. After 5 months of that and trying to manage, I did something that I would always advise against: quit without a job offer. This was back in February.

Second half of May, I wanted to have a better idea of how long I can go without any income. I had a pleasant surprise. If I keep my spending to what my average has been, adjusted for work-expenses like gas and clothing allowance, I can continue indefinitely based on a modest 3% stock market return. I had an accountant friend to validate my numbers and he said that worst case, I wouldn't be going to the poor house soon. If I hadn't quit, I would have been able to look at the numbers as work as always kept me busy for the last 12 years to keep track of our finances. I can't be jet-setting and living high on the hog but I should be able to live quietly and go on vacations once in a while with the wife.

At 59 years old, I am starting to enjoy not having to work for a company. Up until now, I thought I would have to work until I die which was pretty depressing. Got somewhat of a daily routine going which includes exercise and walking the dogs. Along with watching Netflix from a recent karma I won here. Just wanted to share the news with my forum friends.

Congrats!
Pick up a little part time job for extra cash and gun money.

It turns out I'm pretty good at doing nothing. Trouble is, I can't tell if I am actually doing, or merely procrastinating. The other problem is you are never sure when you have finished.

Congrats Rey HRH!

I too punched out early (at 59.5) and have never looked back. I wanted to be debt free when I retired but missed that by a whopping 3 months. LOL

I wish you good health because when all is said and done that is far more important. Ask me how I know.

And as for the Socialist Republik of Kalifornia, I left in '93 and have NEVER LOOKED BACK!

This message has been edited. Last edited by: bald1,

Congrats! I wish you a happy and healthy retirement.

At this time last year, I was working for a guy with short term memory loss who was both a micro-manager and narcissist. I was absolutely miserable. He wanted to know everything, but his narcissism made him turn every conservation about himself in 30 seconds. Even trying to be succinct and brief in 30 seconds didn't matter because of his short term memory loss. Following up a conversation with an e-mail didn't matter either because of his short term memory loss. He knew he had short term memory loss, and would take his frustration out on others. Like I said, I was absolutely miserable. My situation resolved itself differently as my boss' boss recognized what was happening and moved all my boss' direct reports to a different manager. My old boss has since retired, but should have done it 2 years sooner.

That's awesome! I envy you, my friend. Enjoy your new life.

Enjoy your retirement.

I'm starting mine the end of June. I waited a bit longer, 65. Somebody here told me in response to my question of how do you know when it's time, they said that I would know.

I know now, time has come.

quote:

Originally posted by JALLEN:
Trouble is, I can't tell if I am actually doing, or merely procrastinating.

Is it really procrastination, if you put of doing nothing?

Sounds like a good problem to have.

quote:

Originally posted by LDD:

quote:

Originally posted by JALLEN:
Trouble is, I can't tell if I am actually doing, or merely procrastinating.

Is it really procrastination, if you put of doing nothing?

Sounds like a good problem to have.

I'm determined to give it my all!

BTW, you may be interested in a new book, "Patient Procrastination" by yours truly. It will be available through Amazon.com if I ever get around to writing it

Just watch out for sequence of returns risk. Seems like youre sitting comfy til SS can kick in too

Congrats on the decision you made.

I understand how important family ties are, so take this with a grain of salt. If you relocated to a different local outside of the Bay Area you could live like a king. No kidding! I have a relative living there and she has shared her expenses with me and holy shit! How the hell do you do it. If you can afford to retire in that area you could cut your living expense in half if you moved to the right location. Just say'n.

Jim

quote:

Originally posted by Jimbo54:
Congrats on the decision you made.

I understand how important family ties are, so take this with a grain of salt. If you relocated to a different local outside of the Bay Area you could live like a king. No kidding! I have a relative living there and she has shared her expenses with me and holy shit! How the hell do you do it. If you can afford to retire in that area you could cut your living expense in half if you moved to the right location. Just say'n.

Jim

That's also in consideration. But it's a long term project. Have to find a place in a no or low tax free state, no extreme heat or snow, and close to medical services. And since it'll be a move, might as well be a gun rights state.

If anyone's got recommendations, I'm open. :-)

quote:

Originally posted by Deqlyn:
Just watch out for sequence of returns risk. Seems like youre sitting comfy til SS can kick in too

That's my next number crunching sequence. I know the average stock market return is 10% with a standard deviation of 15%.

I plan to create an Excel macro to run random returns with the standard deviation of 15% at given average returns and monthly withdrawals through each year until 105 years old. Run it 1000 times for each given average return and monthly withdrawals and see what year it goes to zero and what the balances are at age 65, 70, etc. until age 90. That should give me a certain level of insight.

Interestingly enough, I have two pensions (nothing really big) but at first I thought it would be best to take those along with social security as soon as possible. What I found out is that it was really better to wait until full pension. The internal rate of return waiting for the full pension was like 20% and 30%. And the cash flow projection was better waiting.

It was counterintuitive for me as I thought it was better to preserve my IRA and get the pensions and SS sooner but I would have to earn an unrealistic rate of return to match the results of waiting to get the full pensions.

yes, Congrats. That is awesome. If i might ask. How much $ are you figuring you need per month?

1. Look at Arizona, talk to NHTagmember.
2. Sorry to tell you this, but average S&P return of 10%/year probably is far too generous for making future projections, even for holding long-term. I know that's been close to historically correct per Case and Schiller (recommend his book Irrational Exuberance); but I think the opportunity for those kind of gains long term is less than expected.
I would think 7-8% would be more reasonable, maybe even optimistic.

quote:

Originally posted by Rey HRH:

quote:

Originally posted by Deqlyn:
Just watch out for sequence of returns risk. Seems like youre sitting comfy til SS can kick in too

That's my next number crunching sequence. I know the average stock market return is 10% with a standard deviation of 15%.

I plan to create an Excel macro to run random returns with the standard deviation of 15% at given average returns and monthly withdrawals through each year until 105 years old. Run it 1000 times for each given average return and monthly withdrawals and see what year it goes to zero and what the balances are at age 65, 70, etc. until age 90. That should give me a certain level of insight.

Interestingly enough, I have two pensions (nothing really big) but at first I thought it would be best to take those along with social security as soon as possible. What I found out is that it was really better to wait until full pension. The internal rate of return waiting for the full pension was like 20% and 30%. And the cash flow projection was better waiting.

It was counterintuitive for me as I thought it was better to preserve my IRA and get the pensions and SS sooner but I would have to earn an unrealistic rate of return to match the results of waiting to get the full pensions.

You just described a Monte Carlo Analysis, commonly done by financial advisors using Money Guide Pro or whatever software their firm uses.

https://www.personalcapital.com/ has one in their tools section you can use for free, along with other variables you can use to test out your plan.

About your pension. Make sure you look long and hard at the long term viability of your pension plan and it's financials before deciding how long they get to keep your money before you start to get it back.

quote:

Originally posted by Rey HRH:

quote:

Originally posted by Deqlyn:
Just watch out for sequence of returns risk. Seems like youre sitting comfy til SS can kick in too

That's my next number crunching sequence. I know the average stock market return is 10% with a standard deviation of 15%.

I plan to create an Excel macro to run random returns with the standard deviation of 15% at given average returns and monthly withdrawals through each year until 105 years old. Run it 1000 times for each given average return and monthly withdrawals and see what year it goes to zero and what the balances are at age 65, 70, etc. until age 90. That should give me a certain level of insight.

Interestingly enough, I have two pensions (nothing really big) but at first I thought it would be best to take those along with social security as soon as possible. What I found out is that it was really better to wait until full pension. The internal rate of return waiting for the full pension was like 20% and 30%. And the cash flow projection was better waiting.

It was counterintuitive for me as I thought it was better to preserve my IRA and get the pensions and SS sooner but I would have to earn an unrealistic rate of return to match the results of waiting to get the full pensions.

There's a 228 as a sweetener if you leave CA.

Congragulations on your happy surprise.

Congrats on your retirement Rey HRH!

I retired when I was 60. Best thing to ever happen to me.

Congrats on making it to the finish line in your 50s, that is commendable. I've got about another 20 years of work to go, but I hope to be on the same trajectory that you are now.

quote:

Originally posted by Wino:You just described a Monte Carlo Analysis, commonly done by financial advisors using Money Guide Pro or whatever software their firm uses.

I understand the theory behind those predictions, but not sure they are of much practical value. Applying long term statistics to an individual still comes down to a wide range of possibilities that ultimately come down to risk tolerance.