Author Topic: Think I've reached FI, but scared to pull the plug on job  (Read 4379 times)

CT1001

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Think I've reached FI, but scared to pull the plug on job
« on: August 29, 2017, 12:09:14 PM »
Hi,

I'm a 58 year old divorced male and I think I've reached FI, but something is holding me back from retiring (which has been a life long dream goal of mine).  Here's my situation:  Using the 4% rule, I can easily take out $40,000 a year ($1.4 million total, most in retirement accounts, but some cash on hand), which is all I think I'll need.  I did sale my home and almost everything in it recently and downsized to an apartment, so a home is not holding me back.  I have a grown son who has a business that's doing great, so he doesn't need support from me right now (who knows what the future holds though).

I'm not from this HCOL area (although I've lived here for over 20 years) and plan to move to a cheaper location when I retire.  Based on the numerous spreadsheets I've run, I think the $40,000 will work just fine and I should be able to buy a house or condo, or rent an apartment, for a fraction of the costs of homes where I'm at.  I have enough cash to buy a new place and live until I can draw from my retirement accounts and even maybe until I reach SS age.

Any thoughts on tips for moving on?  I don't hate my job, but there is no more future for me there.  I'm stuck in middle management and have little to no hope of advancing (in fact, because of company downsizing, some responsibilities have been moved to other departments).  Every time I turn around, I'm hearing about someone my age or younger getting sick or dying, so I do sense my own mortality.

Thanks in advance for any words of wisdom. 

lisa_mustache

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #1 on: August 29, 2017, 12:43:24 PM »
I'm pretty new to MMM, and still about a decade from FI, but what I get from this post is that you're missing a "what's next" goal or idea.  You've made it to your financial goal, but don't know where to go from here.  Is that about right?

What hobbies do you have or want to have, and where would be best to move to for pursuing those?  Do you want to travel and explore, or is your idea of a good time more like sitting by a lake reading a good thriller?  Maybe you need some time to soul search and come up with a bucket list, and then decide where to start!

Congratulations on hitting FI, and I wish you the best in figuring out which road to take from here! :)

Rufus.T.Firefly

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #2 on: August 29, 2017, 12:49:46 PM »
Yes, you're FI based on the numbers you provided. I'm not sure if that's exactly what you're asking, but I'm confirming that you're good to go. You can retire anytime you want.
"I have worked my way up from nothing to a state of extreme poverty"

~ Groucho Marx

JanF

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #3 on: August 29, 2017, 12:55:47 PM »
Something I read from 4 Hour Work Week: think about the worst thing that can happen and what you can do to get out of that situation. Most of the time it can be easily fixed and you had nothing to worry about at all!

Quote
Every time I turn around, I'm hearing about someone my age or younger getting sick or dying, so I do sense my own mortality.

Well now it's even more important to pull the plug and live a life that you enjoy!

koshtra

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #4 on: August 29, 2017, 12:57:16 PM »
No dependents and a million-and-some in the bank? Here's the text: "Dear Company: thanks so much. This is my two week notice."

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #5 on: August 29, 2017, 01:47:53 PM »
I'm pretty new to MMM, and still about a decade from FI, but what I get from this post is that you're missing a "what's next" goal or idea.  You've made it to your financial goal, but don't know where to go from here.  Is that about right?

What hobbies do you have or want to have, and where would be best to move to for pursuing those?  Do you want to travel and explore, or is your idea of a good time more like sitting by a lake reading a good thriller?  Maybe you need some time to soul search and come up with a bucket list, and then decide where to start!

Congratulations on hitting FI, and I wish you the best in figuring out which road to take from here! :)

Thanks for your reply and the best wishes (I'm relatively new to posting here as well).  Actually, I have a ton of hobbies and interests.  One of the main reasons I want to retire is to pursue them more.  I am torn on the travel aspect.  Part of me wants to buy an RV and travel the country and part of me wants to get a nice, smallish, comfortable house to really dive into some of my hobbies.  You are right about the soul searching - I think I need to better visualize my life post FIRE.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #6 on: August 29, 2017, 01:50:41 PM »
Yes, you're FI based on the numbers you provided. I'm not sure if that's exactly what you're asking, but I'm confirming that you're good to go. You can retire anytime you want.

Thanks Rufus.  I think maybe subconsciously that was part of my question.  I've run spreadsheets until I'm blue in the face and every scenario I look at (except maybe some extreme cases) says I'm FI and could retire now.  It's really good to get some confirmation from another MMM forum member!

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #7 on: August 29, 2017, 01:58:19 PM »
Something I read from 4 Hour Work Week: think about the worst thing that can happen and what you can do to get out of that situation. Most of the time it can be easily fixed and you had nothing to worry about at all!

Quote
Every time I turn around, I'm hearing about someone my age or younger getting sick or dying, so I do sense my own mortality.

Well now it's even more important to pull the plug and live a life that you enjoy!

Jan - really good advice.  I was listening to a Ted Talk the other day along a similar line.  Basically, the presentator (I believe his name is Tim Ferriss, but not sure) was talking about "Fear Setting" instead of "Goad Setting".  Basically, figure out what the worst case scenario is and then what you could do to mitigate those consequences and remedy them if they do happen.  Really interesting way to look at it.  Here is a link to that talk:  https://www.ted.com/talks/tim_ferriss_why_you_should_define_your_fears_instead_of_your_goals 

Yep, you're right - it probably is the right time to pull the plug!  I better get to it!

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #8 on: August 29, 2017, 02:04:45 PM »
No dependents and a million-and-some in the bank? Here's the text: "Dear Company: thanks so much. This is my two week notice."

Thanks Koshtra!  Wow, it's incredibly inspiration to hear someone actually say this to me!  I don't know how to describe it, but it really helps.  I think part of my problem is my Dad worked until he was 80 and didn't want to retire then (he has no hobbies and interests), so whenever I mention retiring to him, he thinks I'm off my rocker, no matter how much money I have saved up.  He thinks everyone should work until the ambulance or hearse hauls you away.  Luckily, I don't share his views on this aspect of life :)

It's really good to get some insight from other like-minded folks.
« Last Edit: August 29, 2017, 02:06:32 PM by CT1001 »

JanF

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #9 on: August 29, 2017, 02:21:54 PM »
Something I read from 4 Hour Work Week: think about the worst thing that can happen and what you can do to get out of that situation. Most of the time it can be easily fixed and you had nothing to worry about at all!

Quote
Every time I turn around, I'm hearing about someone my age or younger getting sick or dying, so I do sense my own mortality.

Well now it's even more important to pull the plug and live a life that you enjoy!

Jan - really good advice.  I was listening to a Ted Talk the other day along a similar line.  Basically, the presentator (I believe his name is Tim Ferriss, but not sure) was talking about "Fear Setting" instead of "Goad Setting".  Basically, figure out what the worst case scenario is and then what you could do to mitigate those consequences and remedy them if they do happen.  Really interesting way to look at it.  Here is a link to that talk:  https://www.ted.com/talks/tim_ferriss_why_you_should_define_your_fears_instead_of_your_goals 

Yep, you're right - it probably is the right time to pull the plug!  I better get to it!

Tim Ferriss is the author of 4 Hour Work Week. What a coincident! Definitely sign to pull the plug :)

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #10 on: August 29, 2017, 02:35:15 PM »
Something I read from 4 Hour Work Week: think about the worst thing that can happen and what you can do to get out of that situation. Most of the time it can be easily fixed and you had nothing to worry about at all!

Quote
Every time I turn around, I'm hearing about someone my age or younger getting sick or dying, so I do sense my own mortality.

Well now it's even more important to pull the plug and live a life that you enjoy!

Jan - really good advice.  I was listening to a Ted Talk the other day along a similar line.  Basically, the presentator (I believe his name is Tim Ferriss, but not sure) was talking about "Fear Setting" instead of "Goad Setting".  Basically, figure out what the worst case scenario is and then what you could do to mitigate those consequences and remedy them if they do happen.  Really interesting way to look at it.  Here is a link to that talk:  https://www.ted.com/talks/tim_ferriss_why_you_should_define_your_fears_instead_of_your_goals 

Yep, you're right - it probably is the right time to pull the plug!  I better get to it!

Tim Ferriss is the author of 4 Hour Work Week. What a coincident! Definitely sign to pull the plug :)

Wow, that is a coincidence.  Although, when I think about it, I might have found the link to that Ted Talk somewhere here on the MMM site a few days ago, so maybe not quite as miraculous as we thought :)  Still, I'm taking it as a sign to pull that plug!  I'm going to do some soul searching this week and see if I can't come up with a hard date to call it quits.

SimpleSpartan

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #11 on: August 29, 2017, 03:29:00 PM »
Fuck your corporate job OP. Work is a tool to earn money so that you can live your life. Your life does not revolve around your work. Pursue your hobbies full time and  you will be much happier than sitting in a cube. To come out of a divorce and save 1.4 million is remarkable. Bask in your hard work and enjoy it.

Uturn

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #12 on: August 29, 2017, 07:24:38 PM »
Can you cut back on work hours and ease into retirement?  It will free up some time and let you dabble into things that you might like to do.  The Internet retirement police will call you out, but there is nothing wrong with quitting your job, do <something fun>, then take a contract or part time work until you find <something fun> again. 
It's not about money, it's about mindset

retiringearly

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #13 on: August 29, 2017, 08:05:45 PM »
I am in the same situation, but I hate my job.

I am simply fearful of taking the next step.

I have been conditioned since birth to buy into the get an education, go for a well-paying career, work until 65 bull shit.

I am struggling with it right now.

deborah

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #14 on: August 29, 2017, 08:35:46 PM »
I'm actually going to suggest that you gradually get to FIRE, and don't put in your resignation tomorrow, although it sounds like you could.

First off, work out how you are going to finance retirement if it happens tomorrow. When I retired, my stash was already earning the amount I wanted to live on, so I knew it was sufficient from day one. Some people have their stash all in cash, or investments they can't access immediately. In that case, you may need to reorganise things so that you really will get the amount you need when you need it. Actually, I lied - I actually had 3 years cash sitting there, so I could use that for the first 3 years until I could access the rest of my stash (which was already earning the amount I wanted to live on) without penalties.

Secondly, look at the Pre-fire checklist https://forum.mrmoneymustache.com/post-fire/pre-fire-checklist/ and/or work through a retirement book that includes working through your goals and structure for retirement. I did this before I retired (I recommend What Color is Your Parachute for Retirement), and by the time I retired, I was quite comfortable with my plans. It no longer felt like jumping off a cliff into the vast unknown.

When you retire, allow some time to unbend - popular opinion says at least 6 months - and don't commit to doing anything in that time.

Dicey

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #15 on: August 29, 2017, 10:54:14 PM »
Here, I'm going to lend you my pre-FIRE mantra:

"Retiring too early is a mistake you can recover from. Too late and there is no recovery."

You can keep it as long as you need it, but hurry up, you won't regret it ;-)
I did it! I have a journal!
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Playing with Fire UK

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #16 on: August 30, 2017, 05:52:02 AM »
Thanks for your reply and the best wishes (I'm relatively new to posting here as well).  Actually, I have a ton of hobbies and interests.  One of the main reasons I want to retire is to pursue them more.  I am torn on the travel aspect.  Part of me wants to buy an RV and travel the country and part of me wants to get a nice, smallish, comfortable house to really dive into some of my hobbies.  You are right about the soul searching - I think I need to better visualize my life post FIRE.

How active are your hobbies and how much do they rely on good health (eyesight, joints, hearing)?

If you knew you only had two years left what would you do?

It's only too late if you don't start now.

happy

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #17 on: August 30, 2017, 06:15:56 AM »
OP, you are FI and can retire.
As Deborah says make sure you know who you are going to manage your cashflow and plan accordingly before you pull the plug.
Journalling at Happy Aussie Downshifter

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #18 on: August 30, 2017, 08:37:38 AM »
Fuck your corporate job OP. Work is a tool to earn money so that you can live your life. Your life does not revolve around your work. Pursue your hobbies full time and  you will be much happier than sitting in a cube. To come out of a divorce and save 1.4 million is remarkable. Bask in your hard work and enjoy it.

Thanks - it wasn't easy after the divorce, but I cut out a lot of stuff, paid my house down, etc.  Also, you're right.  I feel that I need to start managing my life instead of things for some corporate organization.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #19 on: August 30, 2017, 08:39:55 AM »
Can you cut back on work hours and ease into retirement?  It will free up some time and let you dabble into things that you might like to do.  The Internet retirement police will call you out, but there is nothing wrong with quitting your job, do <something fun>, then take a contract or part time work until you find <something fun> again.

I probably couldn't continue in the profession I'm in now, but I have some hobbies that I make some money in every once in awhile that I could focus on.  In fact, I don't see retirement as doing nothing, but pursuing my interests, some of which may make me a little extra money along the way.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #20 on: August 30, 2017, 08:43:06 AM »
I am in the same situation, but I hate my job.

I am simply fearful of taking the next step.

I have been conditioned since birth to buy into the get an education, go for a well-paying career, work until 65 bull shit.

I am struggling with it right now.

I think we are very much in the same boat.  I don't think it's finances, or lack of interests, or anything like that.  There is something in my conditioning that holds me back.  Part of it may be because I come from a lower middle class background, that it's hard to walk away from money.  But, the older I get, I have more money, but less time in life to spend it, so it's not logical to keep "polishing the cannonball".

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #21 on: August 30, 2017, 08:50:13 AM »
I'm actually going to suggest that you gradually get to FIRE, and don't put in your resignation tomorrow, although it sounds like you could.

First off, work out how you are going to finance retirement if it happens tomorrow. When I retired, my stash was already earning the amount I wanted to live on, so I knew it was sufficient from day one. Some people have their stash all in cash, or investments they can't access immediately. In that case, you may need to reorganise things so that you really will get the amount you need when you need it. Actually, I lied - I actually had 3 years cash sitting there, so I could use that for the first 3 years until I could access the rest of my stash (which was already earning the amount I wanted to live on) without penalties.

Secondly, look at the Pre-fire checklist https://forum.mrmoneymustache.com/post-fire/pre-fire-checklist/ and/or work through a retirement book that includes working through your goals and structure for retirement. I did this before I retired (I recommend What Color is Your Parachute for Retirement), and by the time I retired, I was quite comfortable with my plans. It no longer felt like jumping off a cliff into the vast unknown.

When you retire, allow some time to unbend - popular opinion says at least 6 months - and don't commit to doing anything in that time.

Deborah - thank you, I've looked through the checklist and many things I've already considered; some I've put some thought and research in, but need to do more;  and some I haven't thought about much at all.  I agree about not retiring right away - I'm not quite ready for that.  However, I do think I need to start setting some timelines.

Also, I'm lucky in that part of my money I can leave in an account that is guaranteed a really good return, with very, very low risk - that's the last money I plan to touch.  The rest I've figured out how I'm going to handle and have done numerous spreadsheets to figure out long each will last.  So, if I retired today, I could easily make it to about age 65 with easily accessible money (assuming I take SS at age 62), and only then start needing to dive into retirement accounts.

One of my friends who retired from my company awhile back told me that it took years for him to unwind from work - that was a scary thought.

Edit - I modified the last sentence grammatically so it would make better sense.
« Last Edit: August 30, 2017, 09:14:53 AM by CT1001 »

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #22 on: August 30, 2017, 08:51:05 AM »
Here, I'm going to lend you my pre-FIRE mantra:

"Retiring too early is a mistake you can recover from. Too late and there is no recovery."

You can keep it as long as you need it, but hurry up, you won't regret it ;-)

Ha - words to live by.  Yes, I agree, the clock is ticking.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #23 on: August 30, 2017, 08:52:03 AM »
OP, you are FI and can retire.
As Deborah says make sure you know who you are going to manage your cashflow and plan accordingly before you pull the plug.

Thanks Happy - it eases my mind to get confirmation!

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #24 on: August 30, 2017, 09:01:31 AM »
Thanks for your reply and the best wishes (I'm relatively new to posting here as well).  Actually, I have a ton of hobbies and interests.  One of the main reasons I want to retire is to pursue them more.  I am torn on the travel aspect.  Part of me wants to buy an RV and travel the country and part of me wants to get a nice, smallish, comfortable house to really dive into some of my hobbies.  You are right about the soul searching - I think I need to better visualize my life post FIRE.

How active are your hobbies and how much do they rely on good health (eyesight, joints, hearing)?

If you knew you only had two years left what would you do?

It's only too late if you don't start now.

Some of my hobbies are more active than others, but most require good eyesight (for example, photography).  I do expect as time goes on, some of these hobbies will be more difficult.  So, if I want to enjoy them, my time could be limited.

If I only had two years left, what would I do?  Very good question and one I've thought about.  That one is easy.  I would quit my job, get an RV and travel the country, see as much and meet as many people as I could, visit relatives and friends, while enjoying the hobbies that I could take along, and attending events that relate to my hobbies.  The harder question for me is if I had 40 years left, what would I do?

"It's only too late if you don't start now".  Reminds me of this:  When is the best time to start learning a foreign language?  40 years ago.  When is the next best time?  Now.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #25 on: August 30, 2017, 09:19:05 AM »
Thanks to everyone that has posted here!  It's given me a lot to think about.

So, here is where I'm at:  I'm going to go through the pre-FIRE checklist and see what I'm missing, start visualizing what I want my life after FIRE to look like, and set a firm date.  Once I set that date, I think it will start really feeling real and gives me something to shoot for and will help set other dates for decision making (for example, living in a house, condo, apartment, or RV).

Thanks again everyone!

koshtra

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #26 on: August 30, 2017, 09:52:33 AM »
:-) You're good to go, man. Let us know how things work out!

reeshau

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #27 on: August 30, 2017, 09:57:59 AM »
You mention that you currently are in a HCOL area, and  are looking to move to cheaper location when you retire.  First, do you have a specific location in mind?  Second, is your current budget much higher than $40k?  I think researching / deciding on a destination could be a big help to visualizing your retirement, and providing motivation.  On the other hand, if $40k is a big adjustment, perhaps that is a stumbling block--having faith that you can do it.  What I would suggest is "investing" some of your vacation time into sample retirements--go visit a potential retirement destination, for at least a week, but a month or more if you could swing it (unpaid leave of absence?) and live as closely as you can to your budget.  On a short-term visit like that, you won't be paying utilities, but you could engage locals or realtors about what the costs are.  And you certainly will be able to go grocery shopping.  The other common thing to do, which might not be motivating, is to go to the destination in the "off season"--winter up North, summer down South.  Make sure you are OK with living there, then.  (or, this is when the RV comes up!)

I am fortunate in that our first (early) retirement destination is near my in-laws, so I have done plenty of these trips, without ever thinking about it as retirement!

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #28 on: August 30, 2017, 11:27:39 AM »
You mention that you currently are in a HCOL area, and  are looking to move to cheaper location when you retire.  First, do you have a specific location in mind?  Second, is your current budget much higher than $40k?  I think researching / deciding on a destination could be a big help to visualizing your retirement, and providing motivation.  On the other hand, if $40k is a big adjustment, perhaps that is a stumbling block--having faith that you can do it.  What I would suggest is "investing" some of your vacation time into sample retirements--go visit a potential retirement destination, for at least a week, but a month or more if you could swing it (unpaid leave of absence?) and live as closely as you can to your budget.  On a short-term visit like that, you won't be paying utilities, but you could engage locals or realtors about what the costs are.  And you certainly will be able to go grocery shopping.  The other common thing to do, which might not be motivating, is to go to the destination in the "off season"--winter up North, summer down South.  Make sure you are OK with living there, then.  (or, this is when the RV comes up!)

I am fortunate in that our first (early) retirement destination is near my in-laws, so I have done plenty of these trips, without ever thinking about it as retirement!

Reeshau - Part of my problem is that there is too many possible places to pick from.  I've narrowed it down to 5 or 6 LCOL places, some which I'm very familiar with, some which I've never visited, and everything in between.  I definitely will visit my top choices before moving there.  However, I'm not sure a month would be possible while I'm working.  So, as an alternative, I'm thinking about renting an apartment in my top choice for 6 months to a year.  If I like it there, then I'll consider buying;  if not, I might move to another location.  In that time, I could also visit the other possible locations at my leisure and spend as much time as I want.

As far as my current budget goes, I live very close to the $40,000 a year point and bank the rest (for example, no pets, don't date, very seldom eat out, drive a 14 year old car, sold the big, old drafty house and now live in a very efficient apartment, seldom buy new clothes, etc.)  Also, I try to only do hobbies that are lower cost;  for example, I used to play golf, but it's very expensive were I live, so I quit and found other things I enjoy that are just as fun, but not as expensive (although I do spend money on hobbies).  It should be even easier to do when I move to a location that I can either pay off the mortgage or have a much lower rent.

BTW, after reading that last statement, it sounds like a boring life, but it's anything but that (well, except for the job thing).
« Last Edit: August 30, 2017, 11:29:15 AM by CT1001 »

LifeHappens

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #29 on: August 30, 2017, 11:48:05 AM »
If you want to relocate, but also want to spend some time RVing around the country, you could purchase an RV, travel for as long as you'd like and scout potential homes along the way. The couple who write The Reckless Choice blog are doing just that and having a great time.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #30 on: August 30, 2017, 03:05:08 PM »
If you want to relocate, but also want to spend some time RVing around the country, you could purchase an RV, travel for as long as you'd like and scout potential homes along the way. The couple who write The Reckless Choice blog are doing just that and having a great time.

Thanks for the blog link - I follow several RVer's blogs and YouTube channels, but haven't seen this one yet.  I should have mentioned this with the apartment idea, since that is a possibility as well.  The only downside is that it can be a pretty big financial committment, so I wouldn't want to only do it for 6 months to a year.  If I went the RV route, I would want to commit for several years.  With an apartment, it's much cheaper upfront.  Also, you can get killed if you want to sell a used RV (know that first hand - one of the issues I had to wrap up from my divorce years ago).

deborah

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #31 on: August 30, 2017, 03:10:18 PM »
Surely second hand? You didn't actually kill somebody?

You are in a good place - go for it!

Lobo

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #32 on: August 30, 2017, 11:48:17 PM »
Hey CT....three things i'm curious about - 1. What % of your portfolio is allocated to stock/index funds?  2.  Have you factored health care costs and taxes in to your annual budget requirements?  3.  Would you be willing to share what type of account you have that guarantees a great return with very little risk - and how much that return is  - 4%, 6% Etc?   Best of luck!
« Last Edit: August 30, 2017, 11:52:47 PM by Lobo »

Playing with Fire UK

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #33 on: August 31, 2017, 12:24:25 AM »
Yeah, you want to be buying a second-hand RV so that some other unfortunate person has taken the giant depreciation hit. If you are not tied to any geography, think about where an unused RV would have had the easiest life (moderate temperature, away from salt spray etc).

LifeHappens

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #34 on: August 31, 2017, 08:53:41 AM »
Yeah, you want to be buying a second-hand RV so that some other unfortunate person has taken the giant depreciation hit. If you are not tied to any geography, think about where an unused RV would have had the easiest life (moderate temperature, away from salt spray etc).

The answer to those questions is Arizona. It is the Holy Grail of used RVs.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #35 on: August 31, 2017, 02:37:20 PM »
Surely second hand? You didn't actually kill somebody?

You are in a good place - go for it!

LOL - no one was hurt in the owning of my RV, other than my financial portfolio.  Yes, second hand would definitely be the way to go and should greatly help with the depreciation.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #36 on: August 31, 2017, 02:45:48 PM »
Hey CT....three things i'm curious about - 1. What % of your portfolio is allocated to stock/index funds?  2.  Have you factored health care costs and taxes in to your annual budget requirements?  3.  Would you be willing to share what type of account you have that guarantees a great return with very little risk - and how much that return is  - 4%, 6% Etc?   Best of luck!

I'll try to answer what I can here:  1) At this point in time, I've transitioned to a very conservative portfolio, so very little is in stocks (I was very aggressive with stocks when I was younger).  2) Yes, I have factored in health care and taxes.  I'm assuming on the high side for health insurance as well.  The areas I'm thinking about relocating to all have good tax environments for retirees.  3) The account that has a decent return with low risk (well, actually probably zero risk actually) is a company pension fund.  I feel very lucky with this account because the company guarantees an annual percentage, even after retirement (which I've confirmed with friends that have actually retired from here).  I don't feel comfortable saying the exact amount, but will say it's between 4% and 7%.  Thanks!

Playing with Fire UK

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #37 on: September 01, 2017, 12:36:07 AM »
Yeah, you want to be buying a second-hand RV so that some other unfortunate person has taken the giant depreciation hit. If you are not tied to any geography, think about where an unused RV would have had the easiest life (moderate temperature, away from salt spray etc).

The answer to those questions is Arizona. It is the Holy Grail of used RVs.

And this is why I love this forum!

OP, head off to Arizona!
« Last Edit: September 01, 2017, 06:56:27 AM by Playing with Fire UK »

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #38 on: September 01, 2017, 06:50:09 AM »
Yeah, you want to be buying a second-hand RV so that some other unfortunate person has taken the giant depreciation hit. If you are not tied to any geography, think about where an unused RV would have had the easiest life (moderate temperature, away from salt spray etc).

The answer to those questions is Arizona. It is the Holy Grail of used RVs.


And this is why I love this forum!

OP, head of to Arizona!

I've considered becoming an RV snowbird and wintering in Arizona and/or New Mexico (you can get a dirt cheap state park annual camping pass in New Mexico) and summering up north and/or in the mountains.  I fluctuate on this idea quite a bit, but I've done a fair amount of research on this kind of life style.  It's still definitely a possibility.

Playing with Fire UK

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #39 on: September 01, 2017, 06:58:05 AM »
I've considered becoming an RV snowbird and wintering in Arizona and/or New Mexico (you can get a dirt cheap state park annual camping pass in New Mexico) and summering up north and/or in the mountains.  I fluctuate on this idea quite a bit, but I've done a fair amount of research on this kind of life style.  It's still definitely a possibility.

Do it! Do it now!

If you decide in a year that you preferred working, ask if you can go back.


CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #40 on: September 01, 2017, 02:25:22 PM »
I've considered becoming an RV snowbird and wintering in Arizona and/or New Mexico (you can get a dirt cheap state park annual camping pass in New Mexico) and summering up north and/or in the mountains.  I fluctuate on this idea quite a bit, but I've done a fair amount of research on this kind of life style.  It's still definitely a possibility.

Do it! Do it now!

If you decide in a year that you preferred working, ask if you can go back.

Good advice!  I'm planning to spend time this weekend just laying out a plan and timeline.  Not sure when yet, but it will be soon.

markbike528CBX

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #41 on: September 01, 2017, 07:41:48 PM »
.....snip...
  But, the older I get, I have more money, but less time in life to spend it, so it's not logical to keep "polishing the cannonball".

I suggest reading the above  as:

 But, the older I get, I have more money, but less time in life to spend it, so it's not logical to keep "polishing the turd".

Mythbusters devoted much energy proving that one CAN polish a turd, but they got a lot of laughs for doing such an illogical thing.

lhamo

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #42 on: September 01, 2017, 08:14:01 PM »
I think the phrase "polishing the turd" should officially be added as an addendum to any use of OMY on this forum.  It may cure many people of the nasty habit of hanging onto a job longer than is necessary.   

Read the following statement with and without the parenthetical addendum:

"I really don't enjoy my work any more, but I think I will stay OMY [polishing the turd]"
Wherever you go, there you are

markbike528CBX

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #43 on: September 01, 2017, 10:50:53 PM »
Given the acronym predilection on this board I declare OMY-PTT to be official terminology.

deborah

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #44 on: September 01, 2017, 11:25:55 PM »
Given the acronym predilection on this board I declare OMY-PTT to be official terminology.
Sorry - read https://forum.mrmoneymustache.com/welcome-to-the-forum/what-type-of-re-person-are-you - it's One More Yeti - Stash Snowball Watcher!

Finances_With_Purpose

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #45 on: September 04, 2017, 02:15:30 AM »
I am in the same situation, but I hate my job.

I am simply fearful of taking the next step.

I have been conditioned since birth to buy into the get an education, go for a well-paying career, work until 65 bull shit.

I am struggling with it right now.

I think we are very much in the same boat.  I don't think it's finances, or lack of interests, or anything like that.  There is something in my conditioning that holds me back.  Part of it may be because I come from a lower middle class background, that it's hard to walk away from money.  But, the older I get, I have more money, but less time in life to spend it, so it's not logical to keep "polishing the cannonball".

Both of you sound in search of your next thing. Not just a hobby, however, but something with life purpose.

This helped me profoundly re discovering life purpose and I've read or watched TONS of material on this and studied it for years: What Now?: 90 Days to Your New Life Direction (link/refer: http://amzn.to/2ex30l3)

I recommend studying up on your purpose. You may not need any job for it.

Generally, you'll find more life satisfaction by serving others somehow. Could be any way you can think of (from selling your unique custom furniture to serving in customer service to analyzing global poverty to reviewing abstract concepts for application to some life problem).  It'll be easier to love life if you can see and feel how you're making the world better, rather than just playing golf or whatever. 

You didn't say what your hobbies are or how they might work this way, so I'm making no judgments here; they may do just this for you already. I'm merely offering hopefully helpful input to shape how you may want to think about them. 

Once you plan that, go for it!  Also, think about how to find a vibrant social life with those you love. That'll matter more especially as you age.

I'm excited for both of you here - what amazing opportunities like ahead!!!

Frugal_is_Fab

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #46 on: September 04, 2017, 05:23:52 AM »
Hi,

I'm a 58 year old divorced male and I think I've reached FI, but something is holding me back from retiring (which has been a life long dream goal of mine).  Here's my situation:  Using the 4% rule, I can easily take out $40,000 a year ($1.4 million total, most in retirement accounts, but some cash on hand), which is all I think I'll need.  I did sale my home and almost everything in it recently and downsized to an apartment, so a home is not holding me back.  I have a grown son who has a business that's doing great, so he doesn't need support from me right now (who knows what the future holds though).

I'm not from this HCOL area (although I've lived here for over 20 years) and plan to move to a cheaper location when I retire.  Based on the numerous spreadsheets I've run, I think the $40,000 will work just fine and I should be able to buy a house or condo, or rent an apartment, for a fraction of the costs of homes where I'm at.  I have enough cash to buy a new place and live until I can draw from my retirement accounts and even maybe until I reach SS age.

Any thoughts on tips for moving on?  I don't hate my job, but there is no more future for me there.  I'm stuck in middle management and have little to no hope of advancing (in fact, because of company downsizing, some responsibilities have been moved to other departments).  Every time I turn around, I'm hearing about someone my age or younger getting sick or dying, so I do sense my own mortality.

Thanks in advance for any words of wisdom.

Hi , My husband and I struggled with this over the last year and I got the MMM forum to "cheer me on" and advise which helped me get over the hurtle.   Here are the things I did to "mentally" prepare to pull the plug and feel comfortable.

1) Create a spreadsheet projecting income into the future.   Don't forget about your social security benefits if you are US based!
2) Track spending.... I did this for three years
3) Try as best you can to estimate your health insurance cost for pre-medicare years
4) For six months prior to actually retiring, set up your bank accounts in such a way that you actually pay your expenses from investment income and use your paycheck to invest only.    I know this sounds like it's just "mental gymnastics" and you aren't really accomplishing anything but it gets you in the right "mindset" for when the paychecks stop.    You now have a habit of not using the paycheck money so you don't miss it.  Also, do a "set aside" each month from you investment income to project the funds that you will need for health insurance.   Again once you actually start paying your own health insurance you have a habit established.   Never underestimate the importance of habit in your dealings with money.

I found projected income to exceed current expenses to the tune of triple what I had spent in any of the last three years which made me feel ok about pulling the plug even with the threat of inflation always there.

I retired on 7/7/17.  How do I feel about it?  It's actually better than I thought and I built it up in my mind to be WONDERFUL pre retirement.   Even with having complete control of my time I still have more things I want to do then I have time for and so far I'm spending less than I projected. 

« Last Edit: September 04, 2017, 05:31:16 AM by Frugal_is_Fab »

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #47 on: September 06, 2017, 01:03:43 PM »
I am in the same situation, but I hate my job.

I am simply fearful of taking the next step.

I have been conditioned since birth to buy into the get an education, go for a well-paying career, work until 65 bull shit.

I am struggling with it right now.

I think we are very much in the same boat.  I don't think it's finances, or lack of interests, or anything like that.  There is something in my conditioning that holds me back.  Part of it may be because I come from a lower middle class background, that it's hard to walk away from money.  But, the older I get, I have more money, but less time in life to spend it, so it's not logical to keep "polishing the cannonball".

Both of you sound in search of your next thing. Not just a hobby, however, but something with life purpose.

This helped me profoundly re discovering life purpose and I've read or watched TONS of material on this and studied it for years: What Now?: 90 Days to Your New Life Direction (link/refer: http://amzn.to/2ex30l3)

I recommend studying up on your purpose. You may not need any job for it.

Generally, you'll find more life satisfaction by serving others somehow. Could be any way you can think of (from selling your unique custom furniture to serving in customer service to analyzing global poverty to reviewing abstract concepts for application to some life problem).  It'll be easier to love life if you can see and feel how you're making the world better, rather than just playing golf or whatever. 

You didn't say what your hobbies are or how they might work this way, so I'm making no judgments here; they may do just this for you already. I'm merely offering hopefully helpful input to shape how you may want to think about them. 

Once you plan that, go for it!  Also, think about how to find a vibrant social life with those you love. That'll matter more especially as you age.

I'm excited for both of you here - what amazing opportunities like ahead!!!

Some good points.  For me, I have several things that I want to do that will basically take the rest of my life, so it's not so much that I don't have anything to go towards, it's that it's hard to let go of where I'm at.  I think when I retire, I'll be much, much busier than I am now (if I can keep my health, that is).  I do have a hard time visualizing my life style (house, RV, condo, apartment, cabin in the woods, etc.), since the hobbies that I want to pursue more can be done just about anywhere.  I'm coming to the conclusion that I'll probably be happy just about anywhere that I feel comfortable, secure, and not bored and I'll just have to pick something and go for it.

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #48 on: September 06, 2017, 01:09:53 PM »
Hi,

I'm a 58 year old divorced male and I think I've reached FI, but something is holding me back from retiring (which has been a life long dream goal of mine).  Here's my situation:  Using the 4% rule, I can easily take out $40,000 a year ($1.4 million total, most in retirement accounts, but some cash on hand), which is all I think I'll need.  I did sale my home and almost everything in it recently and downsized to an apartment, so a home is not holding me back.  I have a grown son who has a business that's doing great, so he doesn't need support from me right now (who knows what the future holds though).

I'm not from this HCOL area (although I've lived here for over 20 years) and plan to move to a cheaper location when I retire.  Based on the numerous spreadsheets I've run, I think the $40,000 will work just fine and I should be able to buy a house or condo, or rent an apartment, for a fraction of the costs of homes where I'm at.  I have enough cash to buy a new place and live until I can draw from my retirement accounts and even maybe until I reach SS age.

Any thoughts on tips for moving on?  I don't hate my job, but there is no more future for me there.  I'm stuck in middle management and have little to no hope of advancing (in fact, because of company downsizing, some responsibilities have been moved to other departments).  Every time I turn around, I'm hearing about someone my age or younger getting sick or dying, so I do sense my own mortality.

Thanks in advance for any words of wisdom.

Hi , My husband and I struggled with this over the last year and I got the MMM forum to "cheer me on" and advise which helped me get over the hurtle.   Here are the things I did to "mentally" prepare to pull the plug and feel comfortable.

1) Create a spreadsheet projecting income into the future.   Don't forget about your social security benefits if you are US based!
2) Track spending.... I did this for three years
3) Try as best you can to estimate your health insurance cost for pre-medicare years
4) For six months prior to actually retiring, set up your bank accounts in such a way that you actually pay your expenses from investment income and use your paycheck to invest only.    I know this sounds like it's just "mental gymnastics" and you aren't really accomplishing anything but it gets you in the right "mindset" for when the paychecks stop.    You now have a habit of not using the paycheck money so you don't miss it.  Also, do a "set aside" each month from you investment income to project the funds that you will need for health insurance.   Again once you actually start paying your own health insurance you have a habit established.   Never underestimate the importance of habit in your dealings with money.

I found projected income to exceed current expenses to the tune of triple what I had spent in any of the last three years which made me feel ok about pulling the plug even with the threat of inflation always there.

I retired on 7/7/17.  How do I feel about it?  It's actually better than I thought and I built it up in my mind to be WONDERFUL pre retirement.   Even with having complete control of my time I still have more things I want to do then I have time for and so far I'm spending less than I projected.

I've done your first 3 bullets and they were extremely helpful.  In fact, until I ran the numbers through multiple spreadsheets and scenarios, I didn't realize that I was FI.  Running the numbers really sank home what I need on a monthly basis (now and in retirement) and how much I have available.

The last bullet is a great idea, but I'll have to put some time into thinking how I could accomplish this right now.

Your last paragraph is extremely encouraging.  It's interesting, because the retired people that I know that make the most out of retirement love it, while those that don't seem to hate it (my Dad is one example - he absolutely hates retirement, because he has few interests or hobbies).

CT1001

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Re: Think I've reached FI, but scared to pull the plug on job
« Reply #49 on: September 06, 2017, 01:12:10 PM »
Thanks again to everyone that has responded to this post.  I gave it some thought over the long weekend and I'm developing my short and long term plans now.  When I'm ready to share them, I'll post more here on the forums.

Thanks again!