Author Topic: 2018 FIRE cohort  (Read 254981 times)

CheapskateWife

  • Handlebar Stache
  • *****
  • Posts: 1391
  • Location: Central TX...but getting ready to hit the road
  • Countdown to fire in 3-2-1
Re: 2018 FIRE cohort
« Reply #1650 on: May 09, 2018, 09:51:42 AM »
Last Navy Physical Readiness Test is done and in the books.
I love that this is a milestone to track!  How did you do?  PT stud or preserving old joints?

My last PRT was my best score ever...because I'm an idiot who wanted to go out on a high note.  Stupid ego.

PhilB

  • Bristles
  • ***
  • Posts: 295
Re: 2018 FIRE cohort
« Reply #1651 on: May 09, 2018, 10:05:40 AM »
Had a call with my boss's boss trying to persuade me to stay on longer and my head is now in a real spin.  My original plan was July 2019, but I brought it forward to this October to avoid the lunacy accompanying a major project.  I've basically been offered the option to stay on a few months, just doing 9 to 5 from home so that they can have my input into calls.  They would also be up for any part time arrangement I suggested.  And would allow me to opt out of all corporate bullshit like performance management.

My stash is already calculated to give me a 25% increase on current spending or survive a significant downturn, so I don't need the money, but I can't deny that the thought of some extra is still attractive.  Against that, for tax efficiency I would need to stick all of it in the pension so wouldn't actually be able to touch any of it for over two years which makes it feel much less like real money.

If I was retiring in spring I'd definitely turn them down, but the months of November to March tend to be pretty grim weather wise so working through them would have less of a feeling of missing out (kids in school so can't follow the sun).  DW is definitely retiring in October though so I might get exceedingly jealous of her if I keep working.

I realise this is a very nice problem to have, but it's doing my head in when I thought I had this all settled.  Not expecting anyone to solve this for me - just wanted to vent to people who would understand.

markbike528CBX

  • Pencil Stache
  • ****
  • Posts: 638
  • Location: the Everbrown part of the Evergreen State (WA)
Re: 2018 FIRE cohort
« Reply #1652 on: May 09, 2018, 03:10:41 PM »
.....My stash is already calculated to give me a 25% increase on current spending or survive a significant downturn, so I don't need the money.......

There's your answer...   

Unless you're going to be making (pulling home) 10%+ of your stash, then you're wasting your time at work.    Your passive investments are likely to outstrip any W-2 wage that you'd get.

davisgang90

  • Handlebar Stache
  • *****
  • Posts: 1104
  • Location: NoVa
    • Chart prepping
Re: 2018 FIRE cohort
« Reply #1653 on: May 10, 2018, 03:15:04 AM »
Last Navy Physical Readiness Test is done and in the books.
I love that this is a milestone to track!  How did you do?  PT stud or preserving old joints?

My last PRT was my best score ever...because I'm an idiot who wanted to go out on a high note.  Stupid ego.
My goal was to pass.  I did!
Check out my blog.  Early retirement from a military perspective.

http://chartprepping.com




PhilB

  • Bristles
  • ***
  • Posts: 295
Re: 2018 FIRE cohort
« Reply #1654 on: May 10, 2018, 03:57:49 AM »
.....My stash is already calculated to give me a 25% increase on current spending or survive a significant downturn, so I don't need the money.......

There's your answer...   

Unless you're going to be making (pulling home) 10%+ of your stash, then you're wasting your time at work.    Your passive investments are likely to outstrip any W-2 wage that you'd get.
In the words of the late Carrie Fisher:
https://getyarn.io/yarn-clip/a3044414-52a7-4d06-917f-8c6be59d977d

cerat0n1a

  • Handlebar Stache
  • *****
  • Posts: 1008
  • Location: England
Re: 2018 FIRE cohort
« Reply #1655 on: May 10, 2018, 03:59:34 AM »

My stash is already calculated to give me a 25% increase on current spending or survive a significant downturn, so I don't need the money, but I can't deny that the thought of some extra is still attractive.  Against that, for tax efficiency I would need to stick all of it in the pension so wouldn't actually be able to touch any of it for over two years which makes it feel much less like real money.

Quitting work in October is fairly advantageous in terms of the UK tax year - you've only been earning for 6 months and end up with a lower percentage tax take. To play devil's advocate - an extra few months pay might make no difference to how much you need to live, but it would be a decent chunk of kids' deposit for a house in 15-20 years time?

PhilB

  • Bristles
  • ***
  • Posts: 295
Re: 2018 FIRE cohort
« Reply #1656 on: May 10, 2018, 06:59:38 AM »

My stash is already calculated to give me a 25% increase on current spending or survive a significant downturn, so I don't need the money, but I can't deny that the thought of some extra is still attractive.  Against that, for tax efficiency I would need to stick all of it in the pension so wouldn't actually be able to touch any of it for over two years which makes it feel much less like real money.

Quitting work in October is fairly advantageous in terms of the UK tax year - you've only been earning for 6 months and end up with a lower percentage tax take. To play devil's advocate - an extra few months pay might make no difference to how much you need to live, but it would be a decent chunk of kids' deposit for a house in 15-20 years time?
Quitting at the end of October makes an awful lot of sense for me tax-wise as it's when I will hit the child benefit clawback band which is effectively another 18% tax on the next £10k earned.  I could dodge that by increasing pension contributions, but that will still get 40% tax as I'm probably going to breach the LTA.  More importantly, anything extra I put into the pension just vanishes amongst the investment volatility so psychologically it would feel like working for nothing.
The only way it could make any sense for me would be if I can shift some of the salary to the next tax year (when I will have no taxable income). 

I think I have recovered from my wobble.  I have told my employer I still intend to go end Oct, but given them a huge list of conditions before I'd even consider staying on part time for a bit - the main one of which is having tiny contracted hours so that I can build up a huge TOIL balance to be paid off in April in the new tax year.  Part of me would quite like to do 1 day a week, term time only, for the social contact, for the extra cash that I would feel allowed to blow on toys and not least so I don't have the hassle of having to buy my own laptop!

Oh, and I already have a reasonable amount for kids' house deposits as a separate item in the budget, and £10k pa to help them through Uni, and my budget makes no allowance for their current running costs every going away, etc, etc.  I know, I know.  I should JFDI!

SugarMountain

  • Bristles
  • ***
  • Posts: 446
Re: 2018 FIRE cohort
« Reply #1657 on: May 10, 2018, 10:47:06 AM »
Anybody else having mild panic attacks as their date draws closer? I find myself having a lot of negative thoughts about it.  We have plenty of money (should be at about 3.6% WR by end of July assuming the market stays about where it is), but there are many unknowns.  Lots of known knowns and known unknowns, but what about unknown unknowns?

Probably the two biggest concerns are health insurance from age 50-65 (or slightly later when medicare eligibility moves out a few years) and whether past is truly prelude.  The 20th century is when most of the data for simulations and the Trinity study are from and it was the century of American exceptionalism.  I do not have optimistic feelings that this will be true in the 21st century.

I can definitely see where it's easy to get pulled in by the siren song of OMY.

sol

  • Walrus Stache
  • *******
  • Posts: 6565
  • Age: 41
  • Location: Pacific Northwest
Re: 2018 FIRE cohort
« Reply #1658 on: May 10, 2018, 10:59:48 AM »
By my unofficial count, subtracting weekends and holidays and scheduled vacations, I have 42 more cubicle days left.

I'm not having panic attacks about money, but I do have mild anxiety over having enough hours in those 42 days to finish the work I want to do before I leave.  I have projects to wrap up, science to do, and reports to write.  I'm afraid I'm going to have to leave some things hanging, which is not how I wanted to go out.  Suddenly, the sum total of my professional accomplishments has a sharply defined maximum limit.  That's the upsetting part for me, not any concerns about what comes next.

CheapskateWife

  • Handlebar Stache
  • *****
  • Posts: 1391
  • Location: Central TX...but getting ready to hit the road
  • Countdown to fire in 3-2-1
Re: 2018 FIRE cohort
« Reply #1659 on: May 10, 2018, 11:03:32 AM »
@Desert goes tomorrow? 

So excited because we're next!!!!!The panic over unfinished projects is subsiding...my co-workers are taking the reins, and coming to ask me questions when they need the support.  Basically perfect.

@PKate , @Calvin , @FernFree , @HappyMargo , @Mother Fussbudget , please check in and tell us how you are doing!

sui generis

  • Stubble
  • **
  • Posts: 226
Re: 2018 FIRE cohort
« Reply #1660 on: May 10, 2018, 11:05:37 AM »
The 20th century is when most of the data for simulations and the Trinity study are from and it was the century of American exceptionalism.  I do not have optimistic feelings that this will be true in the 21st century.


I agree, but that's only a problem if you don't invest in international index funds and/or you believe that the entire human race is going to be less profitable/productive than the 20th century, right? 

brooklynguy

  • Handlebar Stache
  • *****
  • Posts: 2199
  • Age: 37
Re: 2018 FIRE cohort
« Reply #1661 on: May 10, 2018, 12:53:46 PM »
Friendly public service announcement:  Be aware that Vanguard does not accept the funding of 401k rollovers via ACH transfer, despite assurances to the contrary (and erroneous bank routing instructions) given to me by a representative from Vanguard's "asset transfer specialist" department.  If you plan to roll over 401k funds to a Vanguard IRA, make sure to do so by instructing your 401k plan administrator to cut a physical check, even if they offer the option of ACH funding.

My entire 401k balance was transferred over two weeks ago per the erroneous instructions I received from Vanguard, and in that time neither Vanguard nor my 401k plan administrator has been able to locate the funds or provide any definitive answer as to when or if the funds will be returned to me.  I'm trying not to get overly stressed about the fact that a sizable portion of my portfolio is effectively missing, or the comparatively minor problem that I am missing out on any market gains in the meantime (which is precisely the risk I sought to minimize in the first place by conducting my rollover via ACH transfer instead of paper check and snail mail), but I figured I'd warn the cohort lest others find themselves in the same boat.

SugarMountain

  • Bristles
  • ***
  • Posts: 446
Re: 2018 FIRE cohort
« Reply #1662 on: May 10, 2018, 01:10:55 PM »
The 20th century is when most of the data for simulations and the Trinity study are from and it was the century of American exceptionalism.  I do not have optimistic feelings that this will be true in the 21st century.


I agree, but that's only a problem if you don't invest in international index funds and/or you believe that the entire human race is going to be less profitable/productive than the 20th century, right?

I do have some money in international funds and global corporations.  I don't think the entire human race is going to be less profitable/productive than in the 20th century, but the growth rate certainly could slow, and that's why 20th century US stock returns were ~7% annually in real terms. Productivity growth slows even a bit and that brings the rate of return over inflation down significantly.  The issue with "emerging market" stocks is they may increase returns but will also increase variance.

But, the point of my post was not to debate whether there will be growth in the market, it was more about worrying about retiring for 40+ years and general uncertaintanty in the lead up to ER and how others deal with it.  Maybe I'm the only one who is getting close to the edge of the cliff (2.5 months) and am not certain about making the leap, but I doubt it.

sui generis

  • Stubble
  • **
  • Posts: 226
Re: 2018 FIRE cohort
« Reply #1663 on: May 10, 2018, 01:30:33 PM »
The 20th century is when most of the data for simulations and the Trinity study are from and it was the century of American exceptionalism.  I do not have optimistic feelings that this will be true in the 21st century.


I agree, but that's only a problem if you don't invest in international index funds and/or you believe that the entire human race is going to be less profitable/productive than the 20th century, right?

I do have some money in international funds and global corporations.  I don't think the entire human race is going to be less profitable/productive than in the 20th century, but the growth rate certainly could slow, and that's why 20th century US stock returns were ~7% annually in real terms. Productivity growth slows even a bit and that brings the rate of return over inflation down significantly.  The issue with "emerging market" stocks is they may increase returns but will also increase variance.

But, the point of my post was not to debate whether there will be growth in the market, it was more about worrying about retiring for 40+ years and general uncertaintanty in the lead up to ER and how others deal with it.  Maybe I'm the only one who is getting close to the edge of the cliff (2.5 months) and am not certain about making the leap, but I doubt it.
Well, I'll be almost 7 months behind you, so I'm probably not experiencing the uncertainty to the same degree you are, but just last night I did have a freak out about it.  I worry about my pension system collapsing (it's solid right now, but you know what they say about pension systems), healthcare (also an American, so a more unique worry), the stock market, and of course there are innumerable other uncertainties.  I don't pretend to have the right answer, but I made a value judgment about these things (including the unknown unknowns) several months ago when I decided I'd pull the plug on 2/15/19, after careful consideration.  No new information has come to light (although the unknown unknowns continue to be unknown) and there's no indication that I failed to consider important information, so I decided (or am still trying to decide by telling myself) there's no actual reason to change the judgment I made then.  It seems to me that unless one of those things is true, the uncertainty is a natural human emotion to deal with but not a reason to OMY or actually change any other plans.  For me, I'm trying to treat and accept the uncertainty and other emotions, but not in a way that will allow them to hijack my plans, until and unless I learn that my original decision may have been flawed in some way.

PhilB

  • Bristles
  • ***
  • Posts: 295
Re: 2018 FIRE cohort
« Reply #1664 on: May 10, 2018, 02:39:13 PM »
The 20th century is when most of the data for simulations and the Trinity study are from and it was the century of American exceptionalism.  I do not have optimistic feelings that this will be true in the 21st century.


I agree, but that's only a problem if you don't invest in international index funds and/or you believe that the entire human race is going to be less profitable/productive than the 20th century, right?

I do have some money in international funds and global corporations.  I don't think the entire human race is going to be less profitable/productive than in the 20th century, but the growth rate certainly could slow, and that's why 20th century US stock returns were ~7% annually in real terms. Productivity growth slows even a bit and that brings the rate of return over inflation down significantly.  The issue with "emerging market" stocks is they may increase returns but will also increase variance.

But, the point of my post was not to debate whether there will be growth in the market, it was more about worrying about retiring for 40+ years and general uncertaintanty in the lead up to ER and how others deal with it.  Maybe I'm the only one who is getting close to the edge of the cliff (2.5 months) and am not certain about making the leap, but I doubt it.
Well, I'll be almost 7 months behind you, so I'm probably not experiencing the uncertainty to the same degree you are, but just last night I did have a freak out about it.  I worry about my pension system collapsing (it's solid right now, but you know what they say about pension systems), healthcare (also an American, so a more unique worry), the stock market, and of course there are innumerable other uncertainties.  I don't pretend to have the right answer, but I made a value judgment about these things (including the unknown unknowns) several months ago when I decided I'd pull the plug on 2/15/19, after careful consideration.  No new information has come to light (although the unknown unknowns continue to be unknown) and there's no indication that I failed to consider important information, so I decided (or am still trying to decide by telling myself) there's no actual reason to change the judgment I made then.  It seems to me that unless one of those things is true, the uncertainty is a natural human emotion to deal with but not a reason to OMY or actually change any other plans.  For me, I'm trying to treat and accept the uncertainty and other emotions, but not in a way that will allow them to hijack my plans, until and unless I learn that my original decision may have been flawed in some way.
All I can do is share what helps me deal with those fears.  What percentage reduction in spending could you weather for a year or two and still have a better time than if you were working?  Think about all the things you are looking forward to doing that cost diddly squat.  Imagine taking a year to concentrate on them while the markets recover.  How much fun would you have in that year?

SugarMountain

  • Bristles
  • ***
  • Posts: 446
Re: 2018 FIRE cohort
« Reply #1665 on: May 10, 2018, 02:58:54 PM »
The 20th century is when most of the data for simulations and the Trinity study are from and it was the century of American exceptionalism.  I do not have optimistic feelings that this will be true in the 21st century.


I agree, but that's only a problem if you don't invest in international index funds and/or you believe that the entire human race is going to be less profitable/productive than the 20th century, right?

I do have some money in international funds and global corporations.  I don't think the entire human race is going to be less profitable/productive than in the 20th century, but the growth rate certainly could slow, and that's why 20th century US stock returns were ~7% annually in real terms. Productivity growth slows even a bit and that brings the rate of return over inflation down significantly.  The issue with "emerging market" stocks is they may increase returns but will also increase variance.

But, the point of my post was not to debate whether there will be growth in the market, it was more about worrying about retiring for 40+ years and general uncertaintanty in the lead up to ER and how others deal with it.  Maybe I'm the only one who is getting close to the edge of the cliff (2.5 months) and am not certain about making the leap, but I doubt it.
Well, I'll be almost 7 months behind you, so I'm probably not experiencing the uncertainty to the same degree you are, but just last night I did have a freak out about it.  I worry about my pension system collapsing (it's solid right now, but you know what they say about pension systems), healthcare (also an American, so a more unique worry), the stock market, and of course there are innumerable other uncertainties.  I don't pretend to have the right answer, but I made a value judgment about these things (including the unknown unknowns) several months ago when I decided I'd pull the plug on 2/15/19, after careful consideration.  No new information has come to light (although the unknown unknowns continue to be unknown) and there's no indication that I failed to consider important information, so I decided (or am still trying to decide by telling myself) there's no actual reason to change the judgment I made then.  It seems to me that unless one of those things is true, the uncertainty is a natural human emotion to deal with but not a reason to OMY or actually change any other plans.  For me, I'm trying to treat and accept the uncertainty and other emotions, but not in a way that will allow them to hijack my plans, until and unless I learn that my original decision may have been flawed in some way.
All I can do is share what helps me deal with those fears.  What percentage reduction in spending could you weather for a year or two and still have a better time than if you were working?  Think about all the things you are looking forward to doing that cost diddly squat.  Imagine taking a year to concentrate on them while the markets recover.  How much fun would you have in that year?

Great points, thanks.  We could weather a huge reduction in spending.  I wonder if some of the fear is "fear of missing out" on what additional money could by.  I think psychologically the shift from accumulation to withdrawing phase is on my mind right now, possibly because I've been looking at withdrawal strategies a lot lately.

Ironically, freaking big data at facebook is inside my head and I just had this sponsored listcicle clickbait show up on my feed.  It's not horrible and to save you the clicks, here it is:

21-unvarnished-truths-about-retirement (Some are less about retirement than life in general. Put 'em on posters with photos of beaches and mountains and you've got yourself a side gig selling them.)

1. Even though you are retired, you donít have enough time for everything. Everyone dies with things in their inbox. Do the best you can and live your definition of a full life.

2. Be curious. See both sides. Stubbornness is not strength. When given new information, strong people develop and evolve their opinions. We can grow when we can admit we are wrong. Your life stagnates when you are wrong, but you refuse to admit it.

3. Negativity wastes life. Being positive and optimistic in the present has a favorable impact on the future. Yes, bad things happen, but so do good ones, and we tend to steer toward the things on which concentrate.

4. You donít have to wait for an apology to forgive. We have all been wronged at one time or another. Waiting for an apology from someone who may never give offer one is a waste of life. Who cares? Hell, if this is a gray area and itís possible the other person is waiting for an apology from you, apologize first. What does it matter? Life is too precious to play those kind of games.

5. It is okay to fail. Failure is part of life even in retirement. Failure teaches valuable lessons. In fact, we learn more from our failures than our successes. Expect success, but donít worry about it too much. It is the journey that matters.

6. Take care of yourself. You arenít much use to yourself or anyone else if you donít. Looking out for your health and happiness is not the same as being selfish. This is fundamental.

7. Ambition can be a killer. I hate to break it to you, but you arenít going to be Number One in everything you do. Breathe, and be satisfied, with the act of living today. Donít let blind ambition cause you to lose sight of what is important. Savour all of lifeís moments, even the bad ones, because you only get so many and you may wish you had paid more attention.

8. Your aspirations mean nothing. Well, they mean nothing if you donít make an effort to realize them. Take action to get the things you want.

9. Stop complaining. Most people donít care about your problems; some are happy you have them. Complaining only serves to keep negatives at the center of your life.

10. Let it go. Everyone has regrets, but donít live a life of sorrow. The past is gone; find a way to come to terms with it. You may be able to reverse a bad situation that haunts you from the past, but you canít turn back time.

11. You canít make people happy. You can listen. You can be kind. You can smile. You can respect. You can offer assistance. You can contribute tools. But people are responsible for their own happiness (see No. 9).

12. You get to choose what matters. You didnít get this far to keep jumping through other peopleís hoops. Donít forget the importance of yourself.

13. You are responsible. You may not be at fault for what happens, but you get to choose how you respond to everything. Yes, everything. Your response to anything is a choice. You are response-able.

14. Go with your feelings. You donít have to intellectualize or justify everything you want to do. It is okay to do things solely because you want to. Take dance lessons. Learn to play the zither. Who cares about the critics? You have earned it.

15. Comfort is overrated. The magic in life takes place at the edges of our comfort zones. Memories are made by pushing yourself and trying new things. Challenging yourself and growing your boundaries is more rewarding than security and comfort.

16. Your bucket list is crap. Putting things on a bucket list can be just another way of deferring your aspirations. Sure, go ahead and make a list but remember: life goes on while you are making plans. Lists are useless unless we utilize them.

17. Stop searching for happiness. The only place you can be happy is in the present. Stop chasing tomorrow and fully experience happiness today.

18. Time is your most valuable asset. You only get so much, and that is it. You canít horde it. You canít get it back. You canít turn back the clock. The best you can do is to start investing your time wisely.

19. Money is overrated. Money is a tool. To see it as anything else is folly. Yes, we all need some, but money is a means to an end, not an end in itself. Spend wisely and remember; superfluous wealth only buys superfluities.

20. In the end, we are all dead. Make that phone call or send an email to let someone know you are thinking of him or her. Better yet, go visit. Mend fences, hug, show appreciation, be kind to people. Donít be complacent; you never know when the people you thought would be there forever will be gone.

21. We ainít gettiní out of this alive. With retirement, you have more time to do things you love, but the extra time is wasted unless you are using it productively and actually living your dreams. The road doesnít go on forever.

Monkey Uncle

  • Handlebar Stache
  • *****
  • Posts: 1226
  • Location: West-by-god-Virginia
Re: 2018 FIRE cohort
« Reply #1666 on: May 10, 2018, 06:43:19 PM »
Friendly public service announcement:  Be aware that Vanguard does not accept the funding of 401k rollovers via ACH transfer, despite assurances to the contrary (and erroneous bank routing instructions) given to me by a representative from Vanguard's "asset transfer specialist" department.  If you plan to roll over 401k funds to a Vanguard IRA, make sure to do so by instructing your 401k plan administrator to cut a physical check, even if they offer the option of ACH funding.

My entire 401k balance was transferred over two weeks ago per the erroneous instructions I received from Vanguard, and in that time neither Vanguard nor my 401k plan administrator has been able to locate the funds or provide any definitive answer as to when or if the funds will be returned to me.  I'm trying not to get overly stressed about the fact that a sizable portion of my portfolio is effectively missing, or the comparatively minor problem that I am missing out on any market gains in the meantime (which is precisely the risk I sought to minimize in the first place by conducting my rollover via ACH transfer instead of paper check and snail mail), but I figured I'd warn the cohort lest others find themselves in the same boat.

Yikes, that's scary.  I hope the funds turn up very soon!
Took that job and shoved it - January 6, 2018

2Birds1Stone

  • Magnum Stache
  • ******
  • Posts: 3981
  • Age: 31
  • Location: New York
  • Peter Gibbons
Re: 2018 FIRE cohort
« Reply #1667 on: May 10, 2018, 06:44:53 PM »
@brooklynguy , that was my biggest fear when rolling an old employers 401k into my current one......my fingers are crossed that you get a positive outcome asap.

Desert

  • 5 O'Clock Shadow
  • *
  • Posts: 8
Re: 2018 FIRE cohort
« Reply #1668 on: May 10, 2018, 08:08:44 PM »
@Desert goes tomorrow? 

So excited because we're next!!!!!The panic over unfinished projects is subsiding...my co-workers are taking the reins, and coming to ask me questions when they need the support.  Basically perfect.

@PKate , @Calvin , @FernFree , @HappyMargo , @Mother Fussbudget , please check in and tell us how you are doing!

Yes!  One more day.  I'm so happy to hear about your upcoming exit! 

DavidAnnArbor

  • Handlebar Stache
  • *****
  • Posts: 1573
  • Age: 52
  • Location: Ann Arbor, Michigan
Re: 2018 FIRE cohort
« Reply #1669 on: May 10, 2018, 08:16:36 PM »
Wow brooklynguy that's incredible. I can't believe how Vanguard could be that unhelpful. Also, try posting in Bogleheads forum for any advice.

Dicey

  • Walrus Stache
  • *******
  • Posts: 7497
  • Age: 60
  • Location: NorCal
Re: 2018 FIRE cohort
« Reply #1670 on: May 11, 2018, 03:33:32 AM »
Great list, @ SugarMountain! Thank you for cleaning it up and sharing it.
I did it! I have a journal!
A Lot Like This
And hell yes, I am still moving confidently in the direction of my dreams...

MaybeBabyMustache

  • Pencil Stache
  • ****
  • Posts: 854
Re: 2018 FIRE cohort
« Reply #1671 on: May 12, 2018, 08:32:39 AM »
I've been offered an opportunity to take on a part time coaching & training/development role at work (in addition to my full time role). This is an area I'm hoping to explore as a post-work passion point, so I'm pretty excited about the opportunity. That said, it's a 1 year commitment, and I can only do it while I'm doing my current job. So, I'm 90% sure I'm moving out of the 2018 cohort. Most likely new FIRE date is June 2019.

JumboShrimp

  • 5 O'Clock Shadow
  • *
  • Posts: 7
Re: 2018 FIRE cohort
« Reply #1672 on: May 12, 2018, 07:10:53 PM »
I am a little confused about the roth thing. I do not have one, as for some reason I thought I could not make contributions but after doing some reading maybe my understanding was wrong. So for 2018 I am trying to figure out if it makes sense to start one up. Can anyone tell me what numbers I should be looking at to figure this out?

And what should I be thinking about for 2019 and beyond?


aperture

  • Bristles
  • ***
  • Posts: 444
  • Location: Colorado
Re: 2018 FIRE cohort
« Reply #1673 on: May 12, 2018, 07:26:34 PM »
I am a little confused about the roth thing. I do not have one, as for some reason I thought I could not make contributions but after doing some reading maybe my understanding was wrong. So for 2018 I am trying to figure out if it makes sense to start one up. Can anyone tell me what numbers I should be looking at to figure this out?

And what should I be thinking about for 2019 and beyond?

Hey JumboShrimp, great question, but likely to get lost in the 2018 cohort thread.  Suggest you pose your question under Investor Alley https://forum.mrmoneymustache.com/investor-alley/   You may be able to find an answer by searching there a bit.  Best wishes, aperture. 
« Last Edit: May 12, 2018, 07:52:38 PM by aperture »
Able was I, ere I saw Elba.

chasesfish

  • Handlebar Stache
  • *****
  • Posts: 2151
  • Age: 36
  • Location: Texas
    • Years in the making, I created a journal!
Re: 2018 FIRE cohort
« Reply #1674 on: May 13, 2018, 06:32:00 AM »
Ladies and Gentlemen...I'm going to have to officially move my date out to March of 2019.  Depending on company stock performance (restricted that comes released) and annual bonus, working an additional nine months is worth between $250,000 and $300,000.  The combination of a good deferred comp plan plus splitting that amount of pay over two tax years means I get to keep most of it (yay!).

I just can't turn down a 10-15% increase in our net worth/SWR for something like 7 1/2 months worth of work once I factor in vacation time/holidays, ect.  Half the time I can Peter Gibbons it
Check out our journal, counting down the days until I Stop Ironing Shirts

We hit $1mil by 33 and will retire at 36!  Stop by over at my site Stop Ironing Shirts

Share the love - Chase Sapphire Preferred Signup Link: https://www.referyourchasecard.com/6/OS5OVSFUKD

MaybeBabyMustache

  • Pencil Stache
  • ****
  • Posts: 854
Re: 2018 FIRE cohort
« Reply #1675 on: May 13, 2018, 08:02:33 AM »
Ladies and Gentlemen...I'm going to have to officially move my date out to March of 2019.  Depending on company stock performance (restricted that comes released) and annual bonus, working an additional nine months is worth between $250,000 and $300,000.  The combination of a good deferred comp plan plus splitting that amount of pay over two tax years means I get to keep most of it (yay!).

I just can't turn down a 10-15% increase in our net worth/SWR for something like 7 1/2 months worth of work once I factor in vacation time/holidays, ect.  Half the time I can Peter Gibbons it

Nice! That definitely sounds like it's worth it.

sol

  • Walrus Stache
  • *******
  • Posts: 6565
  • Age: 41
  • Location: Pacific Northwest
Re: 2018 FIRE cohort
« Reply #1676 on: May 13, 2018, 03:37:57 PM »
Nice! That definitely sounds like it's worth it.

It always does.  That's how OMY gets to you.

I'm in the same boat.  We hit our number months ago, but I can find ten different reasons that all sound really good to justify why I should continue working.

2Birds1Stone

  • Magnum Stache
  • ******
  • Posts: 3981
  • Age: 31
  • Location: New York
  • Peter Gibbons
Re: 2018 FIRE cohort
« Reply #1677 on: May 13, 2018, 04:08:06 PM »
@chasesfish, I thought you made that decision after ERN did your case study?

SwordGuy

  • Magnum Stache
  • ******
  • Posts: 3919
  • Location: Fayetteville, NC
    • Flipping Fayetteville
Re: 2018 FIRE cohort
« Reply #1678 on: May 13, 2018, 04:14:55 PM »
OMY????

Been there, done that, got the dollars.

Not convinced it was worth it.   That last 8 months was brutal.

TartanTallulah

  • Bristles
  • ***
  • Posts: 412
  • Location: The Middle of Scenic Nowhere
Re: 2018 FIRE cohort
« Reply #1679 on: May 13, 2018, 04:18:17 PM »
Doing OMY now. Hating it. But money was only part of my reason for deciding to stay on.



MaybeBabyMustache

  • Pencil Stache
  • ****
  • Posts: 854
Re: 2018 FIRE cohort
« Reply #1680 on: May 13, 2018, 06:10:46 PM »
Nice! That definitely sounds like it's worth it.

It always does.  That's how OMY gets to you.

I'm in the same boat.  We hit our number months ago, but I can find ten different reasons that all sound really good to justify why I should continue working.

Fair. It's a real struggle.

Monkey Uncle

  • Handlebar Stache
  • *****
  • Posts: 1226
  • Location: West-by-god-Virginia
Re: 2018 FIRE cohort
« Reply #1681 on: May 14, 2018, 05:00:15 AM »
I have to admit that I probably would have done an extra 9 months for a quarter million dollars.
Took that job and shoved it - January 6, 2018

chasesfish

  • Handlebar Stache
  • *****
  • Posts: 2151
  • Age: 36
  • Location: Texas
    • Years in the making, I created a journal!
Re: 2018 FIRE cohort
« Reply #1682 on: May 14, 2018, 06:20:38 AM »
@chasesfish, I thought you made that decision after ERN did your case study?

For anyone wondering, here is the link 2birds1stone is referring to:

https://earlyretirementnow.com/2018/01/10/ask-big-ern-a-safe-withdrawal-rate-case-study-for-mr-and-mrs-shirts/

Yes, but I hadn't formally pulled myself off this thread yet.  Now we're coming up within a week of my original "give notice" date.   I've been trying to figure out how to engineer a layoff with no success.  I can also make the last nine months turn into six months if I were to pull FMLA for spousal care starting in early December.  There's a late February vesting date that constitutes most of the money, but that would probably tank the discretionary bonus portion.

I love reading all the responses:

@sol - Completely agree with you about this is how OMY works. I could even be pulled into the trap financially for a 2020 vesting before the economics drop significantly.  However, we don't particularly love where we live and are swearing up and down that this is our last summer in North Texas.  100 degrees by May 17th is absurd and we're outdoors people.  The other issue is two years ago I went from working for someone I'd go to war for (now the #3 guy in our Fortune 500 company) to someone who's nice but completely mediocre.  I don't deal with mediocre well, especially when I work for them.  The only option I see is if I can pull off a work remote job at a significantly lower set of responsibilities.  I've been exploring those, but need to do it harder since my pension is hitting its magic numbers.   I will desperately lobby for a "1 year sabbatical" to hang on to that last equity vesting (I'd probably still quit afterwards, just wouldn't be official).  I've been trying to get that for a while, but will put a formal request in late this year to force them to say yes/no.

@SwordGuy - Thank you, there are plenty of days I feel that way.   I'm reminded of the unknowns around potentially needing to provide some family some support, healthcare, and charity drive me.   I am hell-bent on doing nearly nothing income earning for my first eighteen months to recuperate from the grind of the last fifteen years.

@Monkey Uncle - It especially helps that I put away 40% off the top into a deferred comp plan that pays out over 15 years once I leave.   I get to keep most of that quarter million between doing that plus the stock/bonuses hit in Q1 of the following year so its nicely spread out over two tax years at these nice low rates.

@TartanTallulah - Some/most days I hate it, but there are a few nostalgic moments.  I'm intentionally meeting clients at higher end restaurants this year
Check out our journal, counting down the days until I Stop Ironing Shirts

We hit $1mil by 33 and will retire at 36!  Stop by over at my site Stop Ironing Shirts

Share the love - Chase Sapphire Preferred Signup Link: https://www.referyourchasecard.com/6/OS5OVSFUKD

tooqk4u22

  • Handlebar Stache
  • *****
  • Posts: 2127
Re: 2018 FIRE cohort
« Reply #1683 on: May 14, 2018, 08:38:58 AM »
@Monkey Uncle - It especially helps that I put away 40% off the top into a deferred comp plan that pays out over 15 years once I leave.   I get to keep most of that quarter million between doing that plus the stock/bonuses hit in Q1 of the following year so its nicely spread out over two tax years at these nice low rates.

Personally, I am not comfortable with deferred comp paying out over 15 years although I wish that was my selection from a tax perspective - and my company is highly rated with no issues.  A lot can happen in 15 years - and the risk, even if very little, to have so much tied to one company (remember it is not guaranteed, if they go BK or don't have the cash flow to pay, it can be suspended or lost) I just couldn't bear it. 

SugarMountain

  • Bristles
  • ***
  • Posts: 446
Re: 2018 FIRE cohort
« Reply #1684 on: May 14, 2018, 09:27:40 AM »
Nice! That definitely sounds like it's worth it.

It always does.  That's how OMY gets to you.

I'm in the same boat.  We hit our number months ago, but I can find ten different reasons that all sound really good to justify why I should continue working.

Yep.  We probably hit our number last year, so technically this year has been OMY.  But I can still find a bunch of reasons why another year makes sense. 

Acastus

  • Bristles
  • ***
  • Posts: 262
  • Age: 56
Re: 2018 FIRE cohort
« Reply #1685 on: May 14, 2018, 01:16:20 PM »
At least I have the problem whittled down to OMM, one more month. Not sure I will have all my paper work done tomorrow for June ACA.

chasesfish

  • Handlebar Stache
  • *****
  • Posts: 2151
  • Age: 36
  • Location: Texas
    • Years in the making, I created a journal!
Re: 2018 FIRE cohort
« Reply #1686 on: May 14, 2018, 02:55:38 PM »
@Monkey Uncle - It especially helps that I put away 40% off the top into a deferred comp plan that pays out over 15 years once I leave.   I get to keep most of that quarter million between doing that plus the stock/bonuses hit in Q1 of the following year so its nicely spread out over two tax years at these nice low rates.

Personally, I am not comfortable with deferred comp paying out over 15 years although I wish that was my selection from a tax perspective - and my company is highly rated with no issues.  A lot can happen in 15 years - and the risk, even if very little, to have so much tied to one company (remember it is not guaranteed, if they go BK or don't have the cash flow to pay, it can be suspended or lost) I just couldn't bear it.

I work for a highly regulated and overly conservative financial institution, as in criticized constantly about holding too much shareholder equity, not taking enough risk, low returns, ect.  We can't even hire more producers than people leaving because lenders want to work for an institution that actually makes loans. 

All that aside, the deferred comp's money is also invested in an offsetting asset account I have investment control over. The only precedent I can find for a banking institution was when WaMu failed the deferred comp money was still protected/paid out from Chase's acquisition through the FDIC.

It is a risk and if I loose it, it'll be a hit to my net worth but not crippling.
Check out our journal, counting down the days until I Stop Ironing Shirts

We hit $1mil by 33 and will retire at 36!  Stop by over at my site Stop Ironing Shirts

Share the love - Chase Sapphire Preferred Signup Link: https://www.referyourchasecard.com/6/OS5OVSFUKD

davisgang90

  • Handlebar Stache
  • *****
  • Posts: 1104
  • Location: NoVa
    • Chart prepping
Re: 2018 FIRE cohort
« Reply #1687 on: May 15, 2018, 07:26:17 AM »
One month until my retirement ceremony and last day of work.  Then I spend 75 days on househunting/job hunting/terminal leave until my actual retirement date of 1 September.

Close on our new house in 2 weeks.  Movers show up the week after my ceremony.

Check out my blog.  Early retirement from a military perspective.

http://chartprepping.com




itchyfeet

  • Pencil Stache
  • ****
  • Posts: 518
Re: 2018 FIRE cohort
« Reply #1688 on: May 16, 2018, 12:24:53 PM »
Nice! That definitely sounds like it's worth it.

It always does.  That's how OMY gets to you.

I'm in the same boat.  We hit our number months ago, but I can find ten different reasons that all sound really good to justify why I should continue working.

Yep.  We probably hit our number last year, so technically this year has been OMY.  But I can still find a bunch of reasons why another year makes sense.

All I can say is +1
:-/

Dicey

  • Walrus Stache
  • *******
  • Posts: 7497
  • Age: 60
  • Location: NorCal
Re: 2018 FIRE cohort
« Reply #1689 on: May 16, 2018, 02:53:25 PM »
Nice! That definitely sounds like it's worth it.

It always does.  That's how OMY gets to you.

I'm in the same boat.  We hit our number months ago, but I can find ten different reasons that all sound really good to justify why I should continue working.

Yep.  We probably hit our number last year, so technically this year has been OMY.  But I can still find a bunch of reasons why another year makes sense.

All I can say is +1
:-/
So that Gold Bond Medicated Powder has cured your foot condition, lol?
I did it! I have a journal!
A Lot Like This
And hell yes, I am still moving confidently in the direction of my dreams...

SwissMiss

  • 5 O'Clock Shadow
  • *
  • Posts: 7
  • Location: Switzerland
Re: 2018 FIRE cohort
« Reply #1690 on: May 19, 2018, 02:43:57 AM »
SwissMister is all geared to FIRE on 4 June. He has a six month notice period but he is most likely to be sent home for that period (garden leave). Soooooo excited!!!!!

I will follow him into FIRE in September. Everybody at my workplace knows and they're all very nice about it. So many times I hear the words "I envy you".

We both just turned 50 last month. Not really early, but still early enough to surprise people.

SwordGuy

  • Magnum Stache
  • ******
  • Posts: 3919
  • Location: Fayetteville, NC
    • Flipping Fayetteville
Re: 2018 FIRE cohort
« Reply #1691 on: May 19, 2018, 07:53:56 PM »
My kind offer to work part-time until the replacement comes in will be officially done by the end of June.

Looks like I'll be working 7 days in June.   Didn't have to work any in May so far.

Feels good!

Who knows, maybe they'll even give me a good bye lunch this time.   Or maybe not.