Freaking out a little - signing for retirement today

[blosky]

I posted a couple of months ago trying to figure out if I could retire early or if I should wait a few years. I'm a teacher and we have to give 4 years of notice for retirement. I am signing today and am freaking out a little. Many people at my school are trying to convince me to not sign.
I'm sure others here have had the same thoughts about the decision to retire.

Life Situation: I am about to be 50. Wife is 43. Two children age 10 and 7

Gross Salary/Wages: 220k     Me 140  Wife 80

Total Retirement Savings ~1.6M
> $340k Taxable Acct
> $70k Roth IRA 1
> $95k Roth IRA 2
> $565k 403b #1    maxing out contributions $30,500
> $240k 403b #2    maxing out contributions
> $165k 457b #1    maxing out contributions $30,500
> $120k Cash
> $70k 529    Adding $750 a month

Current AA overall is about 80/20 - Stocks/Bonds

Real Estate – House will be paid off in Nov. 2032
$2500 a month
Taxes $11,000

Pension: I will start to collect my $70k/yr pension at age 55 so I will need to cover a year of expenses from my savings.

Current expenses:
Total for household: 110k a year which will drop to 90k in 2032 when the house is paid off

Future expenses:
I will go on my wife’s insurance for a year. Once I start collecting my pension I will be eligible for retiree insurance(TRIP) until I hit medicare age.
4 years of college for both kids.
Cars are 2013 and 2015 so will likely need used cars

[achvfi]

Go sign away, there is no point in waiting any longer. Your financial situation looks good. It will be even more so in 4 years.

It won't matter much but are you also eligible for social security?

[blosky]

I am not eligible for social security

[reeshau]

Many people at my school are trying to convince me to not sign.

Offer to have coffee with them, and talk to them about how they could do it, too.  Lol

Are these people worried about you, or worried about trying to recruit a backfill when you leave?  (Or, that there will be no backfill...)

[blosky]

They hate to see a good teacher leave the profession which is very nice of them to say.

[Laura33]

Financially you are fine.  Your current assets + pension would cover $135K in annual spend, forever.  Not including any money you add between now and then, any income your DW continues to earn, or any pension she brings in. 

Yes, it is reasonable to be concerned about college, but (1) you will have a minimum of $25K/yr extra in the budget, even with the mortgage, and (2) it looks like the first kid going away will just about coincide with the house being paid off, which will free up another $20K/yr.  Again, even without any extra savings between now and then, that will allow you to cash-flow a lot of college costs and the occasional replacement vehicle.

You are good to go.  If you choose to stay, do it because of the people and the job, not because of unfounded financial fears.

And congratulations!

[chasingthegoodlife]

They hate to see a good teacher leave the profession which is very nice of them to say.

Yes, that’s a lovely thing to hear from your colleagues!

Don’t let that sway your decision though. Once you have had a break, I’m sure you can find many ways to use your teaching skills to contribute to your community.

[reeshau]

They hate to see a good teacher leave the profession which is very nice of them to say.

Yes, that’s a lovely thing to hear from your colleagues!

Don’t let that sway your decision though. Once you have had a break, I’m sure you can find many ways to use your teaching skills to contribute to your community.

I presume you could easily sub, when you wanted to.  Seems to be a sure thing, for the skills you have, and a constant need in school districts I'm familiar with.

[Smokystache]

... I'm a teacher and we have to give 4 years of notice for retirement....

Wait? What?!?! And you're in the US? I have to ask -- how does that work?

[Brystheguy]

... I'm a teacher and we have to give 4 years of notice for retirement....

Wait? What?!?! And you're in the US? I have to ask -- how does that work?

Agreed. I quit my vice-principal job with four months notice and received the full amount for my sick days since I did it so early. It's the same with teachers. Four years seems absolutely wild.

[J.P. MoreGains]

Wow you are doing awesome!

[Dicey]

Piling on to the Four Years??? Team. I remember your previous post. Seemed strange to me then and it still does now.

Congratulations!

[oldladystache]

What happens if you quit with less than 4 years notice?

[blosky]

I technically can stop teaching whenever but there are incentives to giving them 4 years notice. I signed an irrevocable agreement that says they will pay for my health insurance once I start collecting my pension until I reach medicare age. They also add sick days to my current balance to give me the maximum amount which affects my pension by around $2000/yr

[Dicey]

I technically can stop teaching whenever but there are incentives to giving them 4 years notice. I signed an irrevocable agreement that says they will pay for my health insurance once I start collecting my pension until I reach medicare age. They also add sick days to my current balance to give me the maximum amount which affects my pension by around $2000/yr

Those are not insignificant perks.

[NorthernIkigai]

The 4-year notice period should let you get used to the idea of retirement... while letting you pad your stash and make plenty of plans for what to do in retirement. Time will probably go quite fast at time and feel reaallly slow at others.

[2Birds1Stone]

I am having a hard time understanding what you're freaking out about exactly? You're way more likely to die with a lot of money in the bank than run out of money. I would retire ASAP if it means being able to do things you want to do and spend time with your family.

I would consider leaving even earlier than 4 years from now, your kids presumably still enjoy spending time with you? When they're tweens/teens that could change.....

[Dicey]

While I do not disagree with you, 2b1s, we're in the same boat insurance-wise. I qualify for Medicare and Mr. Dicey doesn't yet. Despite being allowed to stay on his former company's very generous plan, he has to pay the premioun OOP. Last year, it was about $15k, and that's just for one person.

[blosky]

I am having a hard time understanding what you're freaking out about exactly?

The decision to actually retire was a difficult one. Financially I figured out I was going to be fine but deciding to leave the profession was difficult. Once I sign the agreement I can not change my mind halfway through and decide to keep working.
For what it's worth I did end up signing. Thank you all for your responses.

[Heckler]

Once I sign the agreement I can not change my mind halfway through and decide to keep working....

... with that employer.