How do you take the leap from your job when you hit your FI goal?

[pac_NW]

As my family and I make preparations for me to leave my job and take the leap, we are wrestling with taking the actual leap. My significant other and I are 47 and we have a 9 year old. With the exception of the mortgage, we have no other debt and a substantial savings which using the 4% SWR will last presuming the notion that if your principle lasts 25 years, it will last 50 years. I estimate it needs to fund us for 47 years. Some advisors say we don't have enough and others are saying that we should leap. I do plan to work part-time after I semi retire - do something new with my time, get off airplanes, and be local with my family and community. The kicker - the high-paying job, one that is mostly satisfying, but very time-consuming. I am looking for your thoughts on finding the grit to make the leap. I welcome your input.

[expatartist]

Is there a way for you to make a partial leap? Say, scale things down rather than quit completely? Retirement/life changes can be quite stressful, it's good you're taking that into consideration now.

[happy]

I think there is a big grey area of what "FI" actually is once you get close to it. And when you decide to pull the plug is a bit individual.

I have recently become semiretired (work half time) and although this was not such a big a big step as yours I was still nervous about doing this, whilst at the same time longing. What I did was check and recheck the math, numerous times from all directions. (Personally I would like a 3% SWR not 4%, but thats up to you.)  Then I reminded myself of all the reasons why I wanted to spend less time working, again and again and that my time remaining on this earth was finite and precious. Took a deep breath, jumped in and set the wheels in motion.

If you are planning to work part-time: you only need to cover your expenses and leave the stache untouched to continue to compound for as long as you care to work part-time......a lot easier than the accumulation phase.

It might help if you can try to localise what is making you feel uncomfortable..is it the money security?, loss of role and status? worry about what you will do with yourself? concern about being home all the time? fear that if you get off the treadmill something bad will happen?.....

[DoubleDown]

When I quit within the year, I plan to take a formal "leave of absence," thereby leaving the door open in case any surprises come up early. I will extend it as long as I can, but typically taking off a year should not be too difficult and allow me to come back if I desired. Assuming no surprises come up, I will completely cut the cord. Perhaps your employer offers a leave-without-pay type of extended absence that could help ease the transition?

[pac_NW]

Great suggestions, all - thank you.  I wrote a journal entry yesterday using math to talk about the next 47 years. It helped remind me of what I want to do with the added time and also let me tap into the reality if it all.  A LOA or going part-time at my present job are also good ideas - perhaps some type of security blanket and a try-it-before-I-fully-leap phase. 

[superheropunk]

Why not wait to take the leap till your mortgage is paid off?

[James]

Great suggestions, all - thank you.  I wrote a journal entry yesterday using math to talk about the next 47 years. It helped remind me of what I want to do with the added time and also let me tap into the reality if it all.  A LOA or going part-time at my present job are also good ideas - perhaps some type of security blanket and a try-it-before-I-fully-leap phase.

Sounds like you are taking the right steps, gathering your options and thinking beyond the short term as you decide what to do next.  I agree on the LOA step, that would be ideal since it gives a much better indication of leaving your job than just going part-time.  Even if you go part-time later, taking a LOA first gives you valuable experience for figuring out what you want to be doing.

[pac_NW]

Why not wait to take the leap till your mortgage is paid off?

Have considered this and since it is a relatively small payment and not a giant balance, having more time in our lives after semi-retiring while still making enough for the payment seems reasonable. However, working 2-3 more years at my current inc e level would pay it off. It is food for thought.