A little taste of freedom: can it be permanent?

[rdy4er]

So I have been off of work for almost 3 months due to an injury. It has been great even with the recovery part. I've been sleeping better than I have in a very long time. It's now getting near the end and the thought of going back has me literally sick. I'm getting close to FIRE but I don't know if I'm close enough. Here are the basics:
Investments-910K, paid off house, no debt, family of 3 (I'm 51, DW48, DD is 12), currently spending around 33K a year. The spending does not include health insurance which would be around 2000 a year with an ACA subsidy (plus out of pockets). If I FIRE, the chance of going back to the same field would erode very quicklly. I'm not qualified to do much else so it would most likely be a low paying job if I need to go back to work later on. So I need some help, stick it out for more of a safety net or give FIRE a chance.
Thanks

[tarheeldan]

You already know that your 910k invested give you 36.4k/yr based on the 4% rule, and that this covers your 35k expenses including ACA.

Does your 33k include irregular expenses related to your home, etc? Things will wear out. How much belt tightening is possible if there is a tough year in the markets?

How about DD's education?

It sounds like you really don't want to go back to your current job. Is there something else you could do instead in order to build up the safety margin it sounds like you want?

One more thing - you are 51, so 16 years or so until SS, which should help with the safety net.

Lots of questions, hope it helps you find your answer :-)

[rdy4er]

Thanks for the quick reply,
The 33K does include house and car repairs over the last 4 years, but not major repairs. We could do some belt tightening if we had to (about 10-20%). DD's college is paid for other than books and housing. I'm looking at about 20K in SS at 67.
There is not a lot else I could do outside of my field, so any safety net there would be mostly low paying.

[forummm]

Put your scenario into cFIREsim. What are the results? Try different amounts for health insurance until you hit 65 (in case ACA changes or goes away) and for whatever you might spend on DD's college.

It sounds to me like you could quit. You have a low WR and SS and MC coming before too long. And you could always get some part time work to supplement if you needed to, right? It doesn't take a very high wage to put a big dent in $33k/year.

[Cyaphas]

I think you already know the answer. There are other ways to reduce your spending like moving to a lower cost of living area, maybe one with a good school for the kiddo or one closer to family?
You already have a pretty good sized buffer and you don't necessarily have to stop making money, you can just go make money doing things you enjoy on the timeline you desire OR you could retire and spend time with your family doing the things you want, when you want. Good luck!

[rdy4er]

Thanks for all the help,
I feel I can do it, however, it seems to be right on the edge. I've run the numbers through many calculators and it works but not a lot of room for unforeseen problems.

[2Birds1Stone]

Sounds like you are right on the cusp.

Does DW work at all? If one of you could pick up some part time work here and there over the next 10 years I think you are GOOD TO GO!!

Even without that the 4% rule doesn't account for SS......so I would pull the trigger if I were you. Life is short, enjoy what matters!

[2Birds1Stone]

Thanks for all the help,
I feel I can do it, however, it seems to be right on the edge. I've run the numbers through many calculators and it works but not a lot of room for unforeseen problems.

You posted this right before I replied.

If you could add a few $k in part time/side hustle type work some years you are pretty darn safe!

What field were you in? If either you or your wife can make some side income or part time income here and there as a buffer you should be just fine! Not to mention your SS and spousal SS.

[MMMWannaBe]

I completely relate to your situation.  I feel like we are on the cusp.  I was off from work with our younger children and decided I never wanted to go back to work like I once knew it.  With the help of this forum I was able to gain the confidence that we could manage our financials without returning to work. 

But what really helped was that I did end up with a part-time job.  I am making less than 1/2 of what I did, but it is low stress and I don't have to worry about every penny we spend.  And in the mean-time our investments are continuing to compound.  We have reached the point that compounding will do more for us than our annual contributions.

I would love to not work at all, but we love to travel and I am very happy that if I want to buy a generous birthday or Christmas gift I can.  Unmustachian perhaps, but happiness is also spending money the way that adds to my happiness. 

I am definitely following this thread.  Best wishes.

[lifejoy]

Are there any low-paying jobs that you would just straight up enjoy? Something that you envision as possibly a fun hobby that pays? For me, it's jewellery stores and cafes :)

[Cassie]

If your wife hasn't been working maybe time for her to get a p.t. job?  Or maybe both of you get a p.t. job doing something you enjoy more. Can you consult in your field?

[Goldielocks]

You already know that your 910k invested give you 36.4k/yr based on the 4% rule, and that this covers your 35k expenses including ACA.

Does your 33k include irregular expenses related to your home, etc? Things will wear out. How much belt tightening is possible if there is a tough year in the markets?

How about DD's education?

It sounds like you really don't want to go back to your current job. Is there something else you could do instead in order to build up the safety margin it sounds like you want?

One more thing - you are 51, so 16 years or so until SS, which should help with the safety net.

Lots of questions, hope it helps you find your answer :-)

Note, 4 percent rule is for 30 years of withdrawals.  If you are younger than 50 or 60, you should use 3 percent.

[tarheeldan]

Note, 4 percent rule is for 30 years of withdrawals.  If you are younger than 50 or 60, you should use 3 percent.

http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/

[DeltaBond]

OP, what do you enjoy doing with your time?  Its great to sleep better, definitely, but beyond that, what do you enjoy doing with your days?

[rdy4er]

I've been going over my expenses, if I add in health care, house maintenance, car replacement fund and taxes I'm looking at around 41K a year. cFIREsim still gives 100% with full SS figured in. I think I will return to work at least to see what happens with the election and the ACA then look at a part time job.

[rdy4er]

OP, what do you enjoy doing with your time?  Its great to sleep better, definitely, but beyond that, what do you enjoy doing with your days?

I love being around the house. I've got a nice routine going:
I get up and make breakfast for my DD, send her to school, casually drink coffee and scan the internet eat some breakfast, work out, hit the supermarket, library, do some reading. I haven't even been doing any fishing or surfing because of the injury and still the days are flying by. I can't wait until this is permanent, I'm loving it!

[Retire-Canada]

Note, 4 percent rule is for 30 years of withdrawals.  If you are younger than 50 or 60, you should use 3 percent.

The 4% rule includes 1% MER if you are doing low cost ETFs/MF from Vanguard you already have nearly an extra 1% safety margin over the Trinity Study.

[Retire-Canada]

Thanks for all the help,
I feel I can do it, however, it seems to be right on the edge. I've run the numbers through many calculators and it works but not a lot of room for unforeseen problems.

Go for it.

You literally have the rest of your life to deal with what may come along. Even though there is no obvious way to make a decent PT wage based on your current perspective you really can't tell what your life will be like in 10yrs. Opportunities you may have no thought about now could be available to you. And frankly the way you are talking about work would some easy PT retail work be so bad if you needed it down the road for a short spell?

You also have your home equity as an additional safety net if you really needed it.

[DeltaBond]

OP, what do you enjoy doing with your time?  Its great to sleep better, definitely, but beyond that, what do you enjoy doing with your days?

I love being around the house. I've got a nice routine going:
I get up and make breakfast for my DD, send her to school, casually drink coffee and scan the internet eat some breakfast, work out, hit the supermarket, library, do some reading. I haven't even been doing any fishing or surfing because of the injury and still the days are flying by. I can't wait until this is permanent, I'm loving it!

DO you have hobbies?

[rdy4er]

OP, what do you enjoy doing with your time?  Its great to sleep better, definitely, but beyond that, what do you enjoy doing with your days?

I love being around the house. I've got a nice routine going:
I get up and make breakfast for my DD, send her to school, casually drink coffee and scan the internet eat some breakfast, work out, hit the supermarket, library, do some reading. I haven't even been doing any fishing or surfing because of the injury and still the days are flying by. I can't wait until this is permanent, I'm loving it!

DO you have hobbies?

I do, fishing, surfing, reading, reparing things... being bored in retirement is not one of my worries.