Author Topic: So why am I so nervous? (Read 8970 times)

Gunny · « **on:** July 21, 2015, 01:33:22 PM »

ERing in three weeks. Moving to a LCOL area. Have a pension that will cover living expenses including small mortgage plus a little fun money. Additionally I have 550k in retirement accounts, 75k in "emergency cash", fully funded college fund for DS, nearly free medical. So why am I so nervous? I keep reading about high valuation in the stock market, even lower yields for bonds, impending super inflation. Do I hold off on taking 3% SWR from retirement accounts that was going to fund travel? Do I secure a part-time job and forgo immediate travel plans? Or am I just over thinking things and should I just set my SWR at 3% and enjoy life? What would you do?

matchewed · « **Reply #1 on:** July 21, 2015, 01:34:24 PM »

Try to identify for yourself what is making you nervous. These are all questions you should be asking yourself and determining if you have answers.

EricP · « **Reply #2 on:** July 21, 2015, 01:36:29 PM »

I don't think you have anything to worry about. If the stock market has a massive downturn, you can completely stop any withdrawals and still pay your bills. Start taking the 4% (or 3%) SWR and you'll be good to go to enjoy life. Worry about the crisis when the crisis gets here.

lackofstache · « **Reply #3 on:** July 21, 2015, 01:54:16 PM »

Quote from: EricP on July 21, 2015, 01:36:29 PM

I don't think you have anything to worry about. If the stock market has a massive downturn, you can completely stop any withdrawals and still pay your bills. Start taking the 4% (or 3%) SWR and you'll be good to go to enjoy life. Worry about the crisis when the crisis gets here.

+1, deal with it if/when it comes. If you've got your necessary bases covered, you can just stop taking/making withdrawals when needed.

Eric · « **Reply #4 on:** July 21, 2015, 02:09:42 PM »

It's a big life change! You should have some nerves. From what you've written, I wouldn't be worried at all, but I would definitely have some nervous energy. Embrace it and the excitement that it's bringing.

2ndTimer · « **Reply #5 on:** July 21, 2015, 02:11:52 PM »

Start a journal here. It's a great place to examine questions like that and other people can benefit from your conclusions.

forummm · « **Reply #6 on:** July 21, 2015, 03:02:38 PM »

Quote from: Gunny on July 21, 2015, 01:33:22 PM

ERing in three weeks. Moving to a LCOL area. Have a pension that will cover living expenses including small mortgage plus a little fun money.

If your pension is inflation adjusted, it sounds like this is all you need to be safe for life. And then maybe you get SS later too? On top of your retirement accounts and cash. You're sitting pretty. Congrats!

MDM · « **Reply #7 on:** July 21, 2015, 03:14:35 PM »

Quote from: Gunny on July 21, 2015, 01:33:22 PM

ERing in three weeks. Moving to a LCOL area. Have a pension that will cover living expenses including small mortgage plus a little fun money. Additionally I have 550k in retirement accounts, 75k in "emergency cash", fully funded college fund for DS, nearly free medical.

What success rate do you get for your situation in www.cfiresim.com?

Do you get a similar answer from www.i-orp.com or others from https://www.bogleheads.org/wiki/Retirement_calculators_and_spending?

Eric · « **Reply #8 on:** July 21, 2015, 03:19:23 PM »

Quote from: MDM on July 21, 2015, 03:14:35 PM

Quote from: Gunny on July 21, 2015, 01:33:22 PM
ERing in three weeks. Moving to a LCOL area. Have a pension that will cover living expenses including small mortgage plus a little fun money. Additionally I have 550k in retirement accounts, 75k in "emergency cash", fully funded college fund for DS, nearly free medical.

What success rate do you get for your situation in www.cfiresim.com?

Do you get a similar answer from www.i-orp.com or others from https://www.bogleheads.org/wiki/Retirement_calculators_and_spending?

$625K in addition to all living expenses already covered? I think entering these amounts would break the calculator, as 100% is the highest it goes, but this is something like a 250% chance of success. :)

deborah · « **Reply #9 on:** July 21, 2015, 03:34:52 PM »

Join the ranks of people who retired with too much - I could name at least ten of us who post often here who just didn't (and maybe even still don't) believe that we would be OK retiring with a lot more than others here think of as a ludicrous amount. All of us (who have actually bitten the bullet and retired) are definitely having no money problems in retirement.

Maybe we are too conservative, and this makes us wonder what we will actually do in retirement (even though we have plans) and whether it will be fulfilling. Just believe in the numbers. Do what I did before retirement, and recalculate the numbers every hour - or whenever you feel unconvinced. It took a year or two of retirement for me to really believe that I was OK.

Mr. Green · « **Reply #10 on:** July 21, 2015, 04:11:28 PM »

Is your nervousness really about the money, or is it about the change? It sounds like your basic cost of living is covered with the pension. I'd just enjoy things as they go. Market drops and you feel antsy about the 3% withdrawal from the retirement accounts? Then don't do it that year. I would echo the sentiment of others that it certainly looks like you have enough to enjoy life without worry.

Gunny · « **Reply #11 on:** July 21, 2015, 05:45:29 PM »

Thanks fellow mustacheans. I know folks have ERed with less and the numbers say I'll be fine with no change in life style. I guess I just needed to read some input fromlike minded folks since most of my friends are super spenders and don't get that I can live on much less than six figures.

Full Beard · « **Reply #12 on:** July 21, 2015, 06:24:14 PM »

I'm assuming you're retiring from the Marine Corps? If so, thank you for your service!

Bajadoc · « **Reply #13 on:** July 21, 2015, 06:57:28 PM »

Change is weird. You are suppose to be nervous. You sound like you really have your stuff together. Roll with it. Focus 80% on today and 20% on tomorrow. Stay as healthy as possible. Pay great attention to your loved ones. You have it made bro!

Sibley · « **Reply #14 on:** July 22, 2015, 08:51:00 AM »

I've seen this around here a few times: Retiring too early is a mistake that can be recovered from. Retiring too late is not.

Good luck! Wish I was in your shoes.

Basenji · « **Reply #15 on:** July 22, 2015, 12:07:33 PM »

Gunny, you are in great shape. Is that "pension" military retirement?

Bateaux · « **Reply #16 on:** July 22, 2015, 10:01:22 PM »

I share the nervous feeling. In 952 days I hope to retire. With current investment we could take 40k a year @3% withdrawl rate. I'm more comfortable with 50k @3% withdrawl rate. Should hopefully be there in 952 days.

EricL · « **Reply #17 on:** July 23, 2015, 12:03:07 AM »

If you ain't nervous, you're nuts. It's a big change and you're literally betting your life on it. But based on you're post it sounds like you'll be OK. If retirement doesn't suit you you'll have enough to get a regular job. If the tag "Gunny" is indicative of military service (it's used in the Army and Marines) there's jobs available to fill that financial/existential hole.

DollarBill · « **Reply #18 on:** July 23, 2015, 09:31:57 AM »

I'm in a similar situation (Pension + savings + emergency funds). The only part I find remotely nervous about is dipping into the savings and E-funds. I like to stay within my pension budget and not touch the other stuff.

Gunny · « **Reply #19 on:** July 23, 2015, 10:43:40 AM »

The pension is a combination of military (Marines) and FERS. AGAIN, thanks everyone for your encouragement.

Bric-a-Brac · « **Reply #20 on:** July 23, 2015, 02:19:36 PM »

Right there with you. I'm retiring in 4 weeks on quite a bit less than you ($650k w/ no pension) and I'm nervous as a [folksy analogy]!

Nords · « **Reply #21 on:** July 25, 2015, 11:05:45 PM »

Quote from: Gunny on July 21, 2015, 01:33:22 PM

ERing in three weeks. Moving to a LCOL area. Have a pension that will cover living expenses including small mortgage plus a little fun money. Additionally I have 550k in retirement accounts, 75k in "emergency cash", fully funded college fund for DS, nearly free medical. So why am I so nervous? I keep reading about high valuation in the stock market, even lower yields for bonds, impending super inflation. Do I hold off on taking 3% SWR from retirement accounts that was going to fund travel? Do I secure a part-time job and forgo immediate travel plans? Or am I just over thinking things and should I just set my SWR at 3% and enjoy life? What would you do?

To some extent it's a different way of living your life (especially managing your finances), and that's always scary.

Every ER goes through this phase. Six months after they've ER'd, they wonder what they were worrying about.

http://the-military-guide.com/2014/09/04/eight-reasons-worry-military-retirement/

DollarBill · « **Reply #22 on:** July 26, 2015, 08:38:05 AM »

Quote from: Nords on July 25, 2015, 11:05:45 PM

Quote from: Gunny on July 21, 2015, 01:33:22 PM
ERing in three weeks. Moving to a LCOL area. Have a pension that will cover living expenses including small mortgage plus a little fun money. Additionally I have 550k in retirement accounts, 75k in "emergency cash", fully funded college fund for DS, nearly free medical. So why am I so nervous? I keep reading about high valuation in the stock market, even lower yields for bonds, impending super inflation. Do I hold off on taking 3% SWR from retirement accounts that was going to fund travel? Do I secure a part-time job and forgo immediate travel plans? Or am I just over thinking things and should I just set my SWR at 3% and enjoy life? What would you do?
To some extent it's a different way of living your life (especially managing your finances), and that's always scary.

Every ER goes through this phase. Six months after they've ER'd, they wonder what they were worrying about.

http://the-military-guide.com/2014/09/04/eight-reasons-worry-military-retirement/

I like this post Nords...especially this part:

Quote

The habits and behaviors you spent over half your life acquiring will serve you well after the military. You’ll still run your life pretty much the same way you do in uniform, only with fewer haircuts. You’ll have a lot fewer rules to follow, too, and you could really let yourself go, but you won’t because your personal (internal) standards are too high.

I'm six months into my retirement; I've managed to lose over 40 lbs and removed all stress in my life...I have a new zest for life and all that will follow.

Nords · « **Reply #23 on:** July 26, 2015, 08:47:42 AM »

Quote from: DollarBill on July 26, 2015, 08:38:05 AM

I'm six months into my retirement; I've managed to lose over 40 lbs and removed all stress in my life...I have a new zest for life and all that will follow.

Excellent. I enjoyed writing the post!

11ducks · « **Reply #24 on:** July 27, 2015, 04:43:48 AM »

Quote from: Gunny on July 21, 2015, 01:33:22 PM

ERing in three weeks. Moving to a LCOL area. Have a pension that will cover living expenses including small mortgage plus a little fun money. Additionally I have 550k in retirement accounts, 75k in "emergency cash", fully funded college fund for DS, nearly free medical. So why am I so nervous? I keep reading about high valuation in the stock market, even lower yields for bonds, impending super inflation. Do I hold off on taking 3% SWR from retirement accounts that was going to fund travel? Do I secure a part-time job and forgo immediate travel plans? Or am I just over thinking things and should I just set my SWR at 3% and enjoy life? What would you do?

Congratulations!!!!! Retire and go for it!! Enjoy life! If you want a part time job, get one. Or just take a few years off- Consider volunteering in an area of interest, starting a website or blog, learning a language, if you want to keep your options open. I cannot wait to be in your financial position one day!

News:

Author Topic: So why am I so nervous? (Read 8970 times)

EricL