Author Topic: Think I've reached FI, but scared to pull the plug on job  (Read 15844 times)

Stache(Formerly)InAsia

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #50 on: September 09, 2017, 10:21:31 PM »
My life situation is different than yours, but I'm in a similar boat with regards to thinking I'm FI (I'm 99.99% sure I am...), and being afraid to pull the plug on the job. I've been actively taking steps recently that will prepare me to RE whenever I get the guts to do so (a big part of this involves clarifying a lot of uncertainties related to moving between countries as I've been working overseas for years). Taking these active steps is helping to calm the fear for me, at least somewhat.

I'll probably make a post here or in the Post-FI forum soon about my own situation and have people yell at me to just pull the plug :)

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #51 on: September 10, 2017, 06:30:47 AM »
Thanks everyone for the comments.  I went on a long hike yesterday and had a good talking with myself and came up with the following thoughts:  1) As Lazy Spartan mentioned, it's "later than I think" and I probably only have 30 good years left (which is consistent with an online life expectancy calculator I did recently);  2) I sat under a big shade tree and ran some reasonable worse case scenarios on my calculator (and in my spreadsheets when I got home).  Even spending 2.5 times what I expect, I still won't run out of money, even if I live past age 87;  3) I have a lot to do if I want to retire soon and I need to develop a schedule.

So, when I got home, I sat down and wrote up a schedule for myself.  I've done really well up till this point (sold my house, got rid of 98% of my stuff, downsized to an apartment, etc.), but realize I hadn't made firm plans past this (in my defense, I thought it would take many more months before the house sold, based on previous attempts to sell it, and all that consumed my time until now).  The plan includes things like visiting areas on my list of possible places to live, talking to realtors, looking at RV's, making final decision on house, apartment, condo, RV, etc.  Getting medical checkups and anything that needs to be done now, etc.  It's given me a direction to go forward along with dates I need to hit, which is what I think I've been missing.

I'll post back here when I start implementing some of these actions.  Thanks again;  I can't over emphasis how valuable all your comments have been!

pbkmaine

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #52 on: September 10, 2017, 07:51:59 AM »
The house/RV is not an either/or decision, you know. Lots of people buy a used RV to travel the country for a few years IN ORDER to find the place they want to settle.

pecunia

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #53 on: September 10, 2017, 10:38:05 AM »
HEY!  That's my problem too!

I just signed on to this website today.  I've been reading the Mr. Money Blogs for about a week now.  I kind of like the guy.  I have built a few buildings by myself, used to do a lot of cycling and am an electrical engineer.  I am also from the Northern Great Lakes region.  I can identify with the man.

I've been in a real cave.  About five years ago, a Wells Fargo banker told me I could retire based on what I had saved up.  Well - I was in my mid fifties and figured I was too young to retire.  I always figured people didn't retire early unless they were ill or had some other serious life altering experience.

Since then I've added a lot to my retirement savings and it has grown with the market. (Index Funds)  I also lucked on to this job where I've been able to save a lot.  It's been on the road, expenses have been paid and the paycheck has been largely banked.

Last month, I met with the Fidelity guy.  He gave me a 30 year analysis using significantly below average market conditions.  I'll have enough for 30 years.  He told me I could start that day.

I can't get my arms around it.  I grew up rather poor.  I can't envision this freedom.

Is it stupid to keep working another 10 months until I am 62?  I figure I can use this time to get my plans in order.  Too me, this is like an alternate reality, a dream.  I just don't want to wake up.


CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #54 on: September 10, 2017, 07:56:34 PM »
HEY!  That's my problem too!

I just signed on to this website today.  I've been reading the Mr. Money Blogs for about a week now.  I kind of like the guy.  I have built a few buildings by myself, used to do a lot of cycling and am an electrical engineer.  I am also from the Northern Great Lakes region.  I can identify with the man.

I've been in a real cave.  About five years ago, a Wells Fargo banker told me I could retire based on what I had saved up.  Well - I was in my mid fifties and figured I was too young to retire.  I always figured people didn't retire early unless they were ill or had some other serious life altering experience.

Since then I've added a lot to my retirement savings and it has grown with the market. (Index Funds)  I also lucked on to this job where I've been able to save a lot.  It's been on the road, expenses have been paid and the paycheck has been largely banked.

Last month, I met with the Fidelity guy.  He gave me a 30 year analysis using significantly below average market conditions.  I'll have enough for 30 years.  He told me I could start that day.

I can't get my arms around it.  I grew up rather poor.  I can't envision this freedom.

Is it stupid to keep working another 10 months until I am 62?  I figure I can use this time to get my plans in order.  Too me, this is like an alternate reality, a dream.  I just don't want to wake up.

Hi Pecunia - Glad I'm not the only one in this boat.  I'm wondering the same thing about working the extra few months.  It's a tough decision, but if I were you and I had something that I've been wanting to do in retirement, I wouldn't wait - who knows how much longer any of us have.  However, if I didn't have anything pressing, I would keep working for a few months until I was ready.  For me, I realized that there are several things that I need to do before I'm really ready, so I'm going to take the next several months to get my "ducks in a row" and then decide when.

It helped me to sit down and write out a schedule and include all the things I needed to get done beforehand.  I feel now that I have a definite time in mind and a plan to achieve that goal, it's eased my mind to some degree.  I'm looking forward to seeing how you handle it, so maybe it will inspire me to accelerate my own plan.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #55 on: September 10, 2017, 07:58:22 PM »
The house/RV is not an either/or decision, you know. Lots of people buy a used RV to travel the country for a few years IN ORDER to find the place they want to settle.

Good point pbkmaine - There are many different possibilities.  I've also thought about getting a small house or condo (mainly to house my hobbies) and get a truck camper or van to travel when I want.  Still weighing all the possibilities right now.

pbkmaine

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #56 on: September 10, 2017, 08:12:33 PM »
Or you could get a storage unit for your hobbies.

pecunia

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #57 on: September 13, 2017, 07:12:54 PM »
CT 1001 stated:

"It helped me to sit down and write out a schedule and include all the things I needed to get done beforehand.  I feel now that I have a definite time in mind and a plan to achieve that goal, it's eased my mind to some degree.  I'm looking forward to seeing how you handle it, so maybe it will inspire me to accelerate my own plan."

Yes - I need to plan it out better.  I had an added incentive from a co-worker describing this current job today.  He stated, "This is a good horse.  I'm going to ride it as long as I can."  Given the opportunity, I think I'll ride until sometime next year and then I'll ride another horse to better grazing.  Jobs can be a trap.

civil4life

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #58 on: October 07, 2017, 05:59:25 PM »
Sounds like you have been in analysis paralysis.  You have the confirmation that you can FIRE.  Now it is time to just jump in.  Explore as you go.  If something does not work move on to the next thing.  Good Luck!

MrThatsDifferent

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #59 on: October 08, 2017, 01:24:00 AM »
4% of 1.4m is $56k and you only need $40k. You’re absolutely fine. Enjoy your life, be free.

pecunia

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #60 on: October 09, 2017, 07:41:40 PM »
By MrThatsDifferent,
Quote
4% of 1.4m is $56k and you only need $40k. You’re absolutely fine. Enjoy your life, be free.

Where is this 1.4 million?  Is it in index funds?  I've been told that they follow the market.  In 1987 the market dropped by half.

In 2008:
Quote
The Dow hit its pre-recession high on October 9, 2007, closing at 14,164.43. Less than 18 months later, it had dropped more than 50 percent to 6,594.44 on March 5, 2009.

https://www.thebalance.com/stock-market-crash-of-2008-3305535

So with 1.4million and 1 million needed, you are safe by a factor of 1.4

Both 2008 and 1987 can be considered like 1929.  They can be considered odd examples.  I've been told to consider the days of 2001 - 2002-2003 as a real example of market drop by a Fidelity guy.

Dow Jones Industrial Average

    In 2000, the Dow lost 6.17% of its value (11,497.10 to 10,788.00)
    In 2001, the Dow lost 5.35% of its value (10,788.00 to 10,021.60)
    In 2002, the Dow lost 16.76% of its value (10,021.60 to 8,341.63)

https://en.wikipedia.org/wiki/Stock_market_downturn_of_2002

2000 - Starting with a value of 100, this drops to 100-6.17 = 93.83
2001 - (100-5.35) / 100 X 93.83 = 88.81
2002 - (100-16.76) / 100 X 88.81 = 73.92

You want this value of 73.92 to represent your million dollars that you need for survival.  So how much margin do you need?

100 / 73.92 = 1.35

Looks like MrThatsDifferent was certainly correct.  If you include a 40% margin, you should be able to weather the anticipated future stock market storms.

Am I off base?