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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Dreamer on January 13, 2014, 02:53:30 PM

Title: Quitting job before it's safe
Post by: Dreamer on January 13, 2014, 02:53:30 PM
Has anyone quit their job before having enough to retire on?  If so, how did it work out? 

I have really been contemplating doing this lately due to some unforeseen personal circumstances, although I'm also thinking it could turn out to be a big mistake.

Factoring in all temporary sources of funds I receive to support my son, I would still be short about $700/month.  Selling my car and getting a roommate would put me at the break even point, but both of these would be difficult adjustments for me.  I'd be withdrawing about $850/month from my RRSP on top of the other sources of funds. I have $200k saved, so I'd be withdrawing about 5% annually, so there is a risk of slowly depleting my RRSP at that rate.
Title: Re: Quitting job before it's safe
Post by: burly on January 13, 2014, 02:56:31 PM
Would you be able to generate any income? Either part time job or freelance?
Title: Re: Quitting job before it's safe
Post by: CNM on January 13, 2014, 03:13:46 PM
I have quit jobs that I didn't like, and then gotten other ones. 

Depending on your age  and your monthly expenditures, it doesn't seem to me that $200,000 would be enough to retire on for the rest of your life.  Although, only you can know that after doing the numbers.
Title: Re: Quitting job before it's safe
Post by: Spork on January 13, 2014, 03:14:42 PM
short answer: yes.

Long answer: I had no intention of quitting for FIRE.  But ... like you, I had personal circumstances and the job was sucking my soul.  I quit and called it "pretiring" ... meaning I planned on not looking for a job for 6months to a year.

Result: well, I'd say it mostly worked out ok.  I moved from large city to small city... which made tech jobs difficult to find.  It took me 3 years to find a reasonable job and my initial pay was at about 60% of my original pay.   But it seems like that's "how it is" in the smaller market.   The 3 years off were, quite possibly, some of the most memorable years of my life.  I had a really good time with wife and family and spent time with 2 aging relatives that are both essentially gone now.  (1 passed away, 1 no longer can identify family due to dementia.)

Had I stayed: I'd be well beyond FIRE now and retired.  But... I'm still very close and the time I got with family was irreplaceable.

That said: I was relatively close to FIRE and had *significant* FU money.  When we jumped, we moved to a tiny, tiny place we owned free and clear and we hunkered down into very low spending mode.*  I think I could have made 10-15 years easily at the rate we were going, and probably much longer.

*well, for the most part we did.  We did make a few exceptions.
Title: Re: Quitting job before it's safe
Post by: Dreamer on January 13, 2014, 03:27:30 PM
I would have some free time to potentially generate some income, but I really don't know what I would do!  I've always had regular jobs and have no experience with freelance work.  I'm not sure I could find anything in my field that is part-time, and I am 99% certain that my current employer would deny my request to drop to part-time hours.  If I knew I could easily generate $500 or $1000 every month, I'd be more inclined to take the leap.  The other possibility would be updating my skills and then looking for a new job in a year or two, if i absolutely had to.  I am a software developer but really don't use my (outdated) development skills in my current role.