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At A Crossroads...

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foghorn:
At a Crossroads…

Hello MMM Readers.

Here is my situation.  I was recently laid off from my job and find myself debating the next step in my life.  For many years I have tried to be a good saver and a spender of very little.  Now that I am unemployed I find myself searching for what to do next. 

•   Do I look for another Corporate America job and throw myself back into that world maybe one last time?

•   Do I use this as an opportunity to walk away from Corporate America and work at something else that has much lower stress, but likely much less pay?

•   Do I retire completely and tell Corporate America for go away and leave me alone?


My personal stats:

•   Male
•   Age 50
•   Single – Never Married
•   No kids (thank you vasectomy)
•   Live in Upper Midwest in a suburb of a major metropolitan area.


My financial stats – (Assets):

•   Debt Free
•   Total Net Worth = $2,775,000 (Incudes the details below)
        - House Value = $308,000.
        - Retirement Funds (IRA’s and 401K) = $1,600,000.
        - Taxable Accounts = $867,000 (Checking, Savings, CD’s, Bond Funds, Brokerage Account, etc.)  These accounts generate about $1,000 per month in Interest and Dividend Income which gets re-        invested.


My financial stats – (Monthly Expenses):

Property Taxes                           $307
Gym Membership                    $45
Groceries                                   $200
Cable TV / Internet                   $140
Homeowners Association Fee   $110
Property Insurance                   $106
Gas - Car                                     $90
Electric                                    $79
Car Insurance                            $67
Cell Phone                                    $58
Gas - House                           $56
Disability Insurance                   $54
Car Tabs                                   $38
Water-Sewer-Recycling          $26
Umbrella Liability Ins.                  $11
TOTAL                $1387

Starting in November 2017, I will need to budget about $500 per month for Health Insurance via COBRA or the ACA Exchange.  My essential expenses will then be $1887 per month.  I would also like to add in about $500 per month for unplanned expenses and having some fun from time to time. 

All told, I think I can plan on $2500 per month ($30,000 per year) to live a fairly comfortable lifestyle.


Bad habit – I like to drive a new car.  About every two years I trade in my current vehicle for a new one.  My last trade was about two years ago – and had I not lost my job, I probably would have done another car deal recently.  With that said, my current vehicle is fine.  It was purchased in 2015 (2016 model year) and has 21,000 miles on it. 

The House – My home is about 15 years old and will start to need some new items in the next few years.  All the appliances are original to the home; the furnace and AC are also original.  It will not be long before all of these will need to be replaced.

The idea of retiring is enticing, but frankly foreign to me.  I always assumed that I would work at least another 5 years at the job that I held (saving the entire time) and then leave on my terms.  My former employer threw a wrench into that idea and I now I am faced with decisions I did not plan on making at age 50.

I would appreciate the perspective of people on this forum who think about this stuff a great deal and have a point of view that I may not be considering.

Thank you.

Tyson:
Based on the 4% rule, you can withdraw $96,000 per year and never run out of money, barring an event like the Great Depression.  Living on $30,000 per year you will never run out, period.  You aren't just FI, you're stinking rich!  Haha.  Don't waste another moment of your life doing ANYTHING you don't want to. 

One question - are your retirement and taxable savings in low-cost accounts like Vanguard?  You really should find out what the costs/fees are and make some changes if they are high.

GenXbiker:
I'm about the same age - also a single guy.   Your expenses are a little higher than mine, but you are quite a ways ahead of me in your total retirement + investments.   People think I should go ahead and FIRE, so I would definitely go ahead and FIRE if I was you.  You're sitting well.

RWD:
You're planning on spending $30k/year and have ~$2.5 million in invested assets? You have no need to work for money ever again. $2.5 million can sustain about $100k/year in spending per the 4% rule and that's not even factoring in eventual social security payments.

What do you do now? Whatever you want!

foghorn:
Hi Tyort1;

Thanks for your reply and your perspective.

Most of my Retirement Funds are with Fidelity Investments and I am in their managed funds program.  Basically, Fidelity manages my account (based on my Objectives).  They earn about 75 basis points for the cost of funds and their services.

The non-retirement funds are largely in CD's and bank accounts.  The dollars that are in Mutual Funds and Bond funds are low cost options.

Thanks agin for there input.

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