Topic: Early Retirement....anyone done it?

[Scott S]

 *** Caution: Long read ahead***
   I started working on my 16th birthday. I turned 52 last July. I got my first "real" job when I was 20, working 60-70 hours a week and working my way up in that company. At 22, I went to work at the company where I'm currently employed.
 I've swung shifts for 30 years; first the traditional "Southern Swing" (1st, 2nd and 3rd shift, 8 hours) and then went to 12 hour rotations. I work a ton of overtime (and turn down as much as I can) and I've worked nearly every single holiday for the past three decades. If there's a big football game, birthday party, Labor Day, Christmas, etc., I've probably been working.

 I'm also lucky and blessed. I make very good money for a high school graduate with a year of tech school. I've been mostly employed continuously, except for a few short lay-offs and redesigns. I've worked hard, saved hard and been financially responsible.

 The end goal has changed. I'm now a Chief Operator, but I was before. Then set back, laid off, redesigned, etc. I've had to work under people that knew half of what I know for a while. That is infuriating.
 Our company has now been sold. In the long run, I think it will be good....for the younger guys. In the next year/year and a half, I see months of rebuilds, overtime, school, new job duties, overtime and, did I mention, overtime?
 
 I'm about done with it. Night shift KILLS me now. Headaches, body aches, fatigue. It was much easier when I was younger. I don't know what my new job duties or position will be yet.

 And then there's the money. I've come to the realization lately that I'm chasing an ever moving target. "They" say you need a million in the bank, then it's two million, then there's the 4% rule, etc, etc. My pension was frozen years ago.
 I could work until I die and never get to the numbers "they" say I need.

 I've been crunching the numbers a LOT lately. I think that I can do it. I'm trying to make it to 01/01/2021. That is my "55 Year" and I can start drawing my 401K without penalty. I may not make it, depending on how #$%*ty things get during this upcoming rebuild/changeover. Sure, I'll make a lot less money than I make now, but I'll be in a lower tax bracket and I'll never work another weekend, holiday or night shift.
 I have a very supportive partner and I can get on her benefits, so that's a HUGE plus. She actually likes her job and plans to be there for a while.
 I would consider a part time job at some point, too. I would love a 20-25 hour a week job, mostly for spending money and to keep me from going crazy (or drinking too much beer).

 Who's done it? Anyone said "Screw it...I'm done doing it your way"?
 

[Deerslayer]

I retired when I was 51 years old. (2006). I was lucky to work at General Motors that had 30 years and out. Another reason for leaving was physical problems. Those 30 years of heavy repetitive work have left me with back fusion, total neck fusion, knee replacement, hip replacement, and metal plate in my ankle. But all that said, I didn’t have near the money I should. We’re doing all right. I love being retired. I find I’m as busy now s while I was working. Get a project and stay sane.

Good luck, Bob

[Jerry Rxman Griffin aka MuthaF'er]

I came to on the side of the road on my 51st birthday in 2002 after a head on hit by a van while on my Harley when I hear my 5yo daughter's voice back home say to me "wake up daddy". My life changed forever. I decided "#$%* it" and bailed from the rat race called full time work. I had worked ever since I was 10 or so. I went through 2 short term disability surgeries for broken bones then threw in the towel. Since then I have been able to work at my own part time business filling in doing relief work. Over the last 5 - 6 years I have averaged 22.5 hours work every other week and it covers my bare basic overhead including a house payment. I had covered my ass-ets over the years. I grew up poor so I know how to live that way. Cut your expenses and overhead and only spend what you bring in. I was covered for insurance through my Ex-wife (keep the "EX" part in mind as #$%* happens!). They can take exception if you are NOT bringing in the same money as your value suddenly becomes less and you are not working full time to support those spending habits. Then my "ex" happened and I lost my excellent good health insurance. That was 6 years ago. I had to acquire my own insurance for 5 years. NOT cheap and terrible coverage mostly only for anything after you pay the first $5 - $10K. I applied through the Obamacare site when all that happened and due to my very low income they actually put me on Medicaid even though I had sizeable assets. In Colorado. Your state is different I'd bet. I couldn't believe it and tried not to use it out of principle. 5 years later I'm on Medicare. Blessing to get old?! I'm writing this from my little inexpensive studio marina beachfront condo in St Thomas, USVI staring out at the Caribbean. I traded some of my saving for this place ($140K) and will not lose any of the value. I was not using the cash anyway and now I'm enjoying it. Anyway we all have our different stories.

You say you will not incur penalties if you withdraw your 401K at 55. You CAN begin withdrawing at 55 but you WILL incur a penalty of 10% if you start withdrawals at 55 before 59.5!! AND you have to pay income tax on top of that. Double check what we both say please. I took an early pension at 55 because I could. $223/month. I had always looked at it as just beer and gas money. I knew I'd get hit with the penalty which eventually stopped at 59.5 and was good with that. I looked at it as free money  and it still gets deposited every month at 67.  I'm collecting my social security now. Beginning 1/1/19 I will have a negative cash flow for the first time in my life when I fully retire and have to start tapping all my savings. That aspect is killing my psyche. How can I do that?!! BUT... this is what I've been covering my ass-ets for all these years and I'll be good to go.

As Deerslayer states the old body doesn't get better with time. You have to take that into consideration both good and bad. If you wait until you're too beat down you won't get to enjoy old age but if you start too early you may run into financial considerations that could prevent the enjoyment.

Crap shoot. Roll the dice but get all your ducks in a row and don't make an impulsive decision. My suggestion to you should you choose your date would be to find something else to make money at AND stay busy. You have 2+ years to do this. If you do make the decision to let go you should learn how to give a less #$%* about the work you've taken pride in. It all changes as time goes on and you have no real control over this vs corporate America. This part is for your sanity. You can still care but let the BS go and not bother you.

Good luck, tough decision. And your post wasn't soooo long LOL. 



       

[Scott S]

 A lot of what you mentioned has been a factor as well. I've seen GOOD coworkers go home and never wake up. Literally, worked until the day they died. Life is short and I'm on the downward side of that bell curve. I wasn't put here to sit in a factory at 3 a.m. with a migraine.

 According to Fidelity, and I've talked with them extensively lately, I can get to my 401K the year I turn 55 without penalty. I think it has something to do with the way it's set up. Maybe because they froze my pension?

 I have six figures of equity in my home. It will be paid off when I'm 61 or so. I pay extra on it every month. I'm not tied to it or the area. My GF just had an opportunity to transfer to Nashville and we seriously considered it. The timing just isn't right for either one of us. Right now, at least. But I'm open to selling it all and following her.

 I have projects and toys. Some of the project might keep me busy if I'm not working. I don't need all of the toys and can liquidate and get rid of insurance.

 Other than my mortgage, I'm debt free and have been for years. I put 18% in my 401K (and will probably go to 19 or 20% soon) and I get another 9.5% match through an enhanced plan (that they gave us when they froze our pension). That's 27.5% of my salary going to my 401K. Plus whatever I have in my personal savings account. My pension at 55 would be a good bit more than what you got, too.

 I think it would be EASY to sit at home and make around $34,000 a year and still have money left when I die.
 That goes up in a few years when the mortgage is gone and S.S. kicks in. Or if I get a part time job. Just for spending money.

 I was skeptical and scared to death for years. I've ALWAYS been self sufficient. Trusting a partner is scary. But she is VERY supportive. She's been telling me for a couple of years that we can do it. For better or for worse, she's about convinced me. I'm ready NOW! I don't want to wait until 2021!

 

[demon78]

I'm a little different , but you would be surprised, start now practise saving money on groceries, cutting out expenses for goodies and no I don't mean beer etc but thinks like the steak house, turn off lights put what you can on timers (my hot water heater electric goes off 2300 and comes back on at 0530 ) I don't know how cold it gets where you are but if you've got a wood stove when you are out wandering on back country roads stop and pick windfalls it will supplement heat if you have a freezer make a game of looking at specials to throw in the freezer, and if you are retired think, you wont be using gas to get to work the part time job is great one, if you start to think about it you'll be surprised how much expenses you can save. Make it an adventure.
Bill the demon.

[jlh3rd]

My job required forced retirement at 65, so that was this pass july. I never amassed any fortune for retirement as i was a single parent for 3 kids since 1993.
     A pension coupled with unemployment right now and then S.S. next july will be my income. I owe nothing on anything, everything is paid off. I can fix just about anything myself and perform regular maintenance on practically everything I own. This saves me aton of money. My water heater was built in 1991. My long term girlfriend also retired has income similar to mine so we will do quite well if she doesn't "ex" out on me.
     I've taken care of myself physically and take no prescription medication but unforeseen medical expenses are the scary part of all this. Extra health insurance ( which i don't have) isn't cheap.
     I don't miss my career job, I loved what i did,but I love being guaranteed off for birthdays, holidays, BBQ's on the weekend, watching my college football team , and being able to say " yeah, we can go on that  cruise in February " without having to say that i don't know what my schedule will be. ....I feel liberated. It's a good feeling.
     I haven't stopped with projects since i've retired but when things do slow down and if i get bored, i might look at uber or schoolbus driving...

[Yamahawk]

I second the retire now and enjoy the extra time left to you... I retired at 57, after a heart attack and open heart surgery. I have seen my share of fellow pipefitter/welders die way before their time should have been, and I couldn't see going back into the type of work I had done for almost 40 years, at that time.
I had a local pension, a UA pension, and Social Security Disability, as I also have Welder's Disease (manganese poisoning) from all that time sucking up fumes. My local pension was over $200k, and I went through that paying off all the bills, remodelling the kitchen, paying off the cars, and everything we now have is bought and paid for. THAT is a reality to look at... pay off all your debts Before You Retire. You can do it. If your credit cards are a problem, cut them up... if not, cut them up except for one for emergencies, and travel. Myself, I have Never owned a credit card, except for a Home Depot card I used a couple years ago, and paid it off... haven't used it since! Bill has a good idea for saving money, every dollar you save is another couple beers and your lights can be supplemented by a solar array on the roof of the garage or home! Each month, purchase another 100W solar panel, and after a year, there is a 1200watt supplement to your electric bill. 
I think the time we have left upon this earth, is more valuable than any extra money you will get by working those extra few years, and not being able to enjoy it. Look carefully at what you have.. and then go for it!
..and don't regret it.
Charlie

[Scott S]

 Yep... I use my credit card (singular) as 30 to 60 day debt. If I'm going out of town, it all goes on the card. Easier than carrying cash or saving receipts and I pay it all off before it accrues interest.

 A lot of what might be missed here is the second income. Very good government job, I would.....for the first time in half a century.... trust her to be the major bread winner. That's a mind #$%* for me, no lie.


 I also remind myself that I have ex co-worker's that DIDN'T get recalled. I haven't heard about a single one of them swinging from a bridge.
 This "choice" could have been made for me, a few years ago. And I would have survived. Make sense?

[dhall57]

I'm 61 and will turn 62 in March of 2019. Been a the same job and company since 1986. Other than some aches and pains at times like any 61 year old I'm in good health My house is paid for but have a car payment a couple credit cards and some other debt. If I could let them have it when I turn 62 I would, but don't see how it would be possible, but hopefully in another 3 years at 65. I'll be the first to admit I haven't been the smartest with money but Iv'e been with the companys 401k for years and do have a little nest egg in that.

[BobbyR]

I retired from a major Fortune 500 after 30 years at 55. I was able to start collecting my pension at that point. I was able to find another job which was less stressful. I worked there 10 years until there was a change in management. I waited a couple of months until I was 65. Told the boss to go #$%* himself and left the building.

Given your experience you can probably score a part time gig somewhere. It is amazing to have freedom to not have to show up every day somewhere.  We have been trained to mistake who we are by what we do. We have also worked so many hours it prevents us from exploring other options, when they decide they don't need us we are lost. The trick is to start now getting yourself in a position that you don't need them.

[RAFster122s]

Move to TN and you can get a degree in any TCAT (TN College of Applied Technology) school free of tuition charges. You gotta cover books and other living expenses. You could become an airline airframe and powerplant mechanic if you could adjust to evening and night work as that is when they fix the planes usually. Lots of other options too. They also do free tuition to TN residents at community colleges for 2 yr degrees. That could turn into a four year degree if you work it right. Education may allow you to skip penalties for 401k withdrawals, verify that. You also could have Pell Grants and Federal assistance returning to school to become what you wanted to be when you grew up...
TCAT schools are so cheap they do not participate in the federal education Pell Grant or federal education loan programs.

My dad retired early (50s) due to health issues and did not have hobbies nor did he really have enough to do so given the time needed to support he and mom with medical premiums eating you alive as well as general cost of living increases.

 Got any place like Cognito Moto near you where your talents could be used? You might find a second career doing something you love  with the skills you learned over the past 30 years. Time with a career counselor who knows their stuff could open your eyes to a lot of jobs you would fit into pretty readily that are not necessarily directly related to what you have been doing.
Working part time could be a great way to do it.

Do not burn bridges exiting if you decide to do so.

David

[Don R]

 Like Yamahawk, I retired with a UA and local pension. At 57 I had an opportunity to be a building/plumbing inspector so I retired and prepared for my third profession. The job didn't happen and I found myself in full retirement. I may have set up  things differently knowing that I wasn't going to have the insurance from the new job. Anyway I took a $50K up front payment and paid off everything, that left a bank balance and decent situation. I paid my own insurance for a couple years but now am using social security to cover that. Actually am saving money which was rare most of my life.
I remembered when my Dad was forced to retire early and I was glad he did. So here I am now at 65, Still drag racing (second place in our association this year) and have 10 bikes in the shop, all paid for which I consider my savings investments for my toys. I'm considering a 9 bike sell off to fund a car project. One of my friends is a race car fabricator and we team up to do a project once in a while, that all goes into the toy fund also.

[vfourfreak]

My tuppence worth. For what's that worth.
Turned 61 last September. I had worked in management in blue chip companies for many years, but about 10 years ago the wheels fell off the trolley, mainly due to external events forced upon me. I ended up taking a safe but minimum wage job 5 years ago, but have now ceased and I have sold my VFourfreak mansion, not for the price I would really want, but a pragmatic one. I have a few individual pension pots that will progressively kick in over the next few years so I'd say I won't be flush, if careful I'll be OK. I don't have great fears for the future. I always plan on doing some work no matter how badly remunerated, in my opinion staying active is important.

But I am retiring to the Philippines where the € goes much further.

Best of luck with your own plans Scott

Kev

Edit : health insurance - important : big concern for me. In France it's just there and paid for, once I leave, I'm on my own.

[754]

 The best part about semi or full retirement  is weekday riding..no traffic  no stressed out masses. Its great.
 I get by with very little , hope to set up a bit of a shop again to work on my bikes and generate a bit of spending money.
 Doing it on almost no money, but have to work a bit to play.
 Some of the guys in this thread  will get more income working , than I made for many years.
 But being self employed had its sweet perks..
 Basically  I would like to finish a few bikes, and hit the highway more often , and make a few new parts to sell..

[Kevin D]

Scott, I didn't retire early but here's the one thing that got me out: these actuarial tables tucked in the back of the Social Security website:
https://www.ssa.gov/oact/STATS/table4c6.html
The tables told me that my 65 year old arse had about 17.8 years left here above ground. So I asked myself how much of that time I wanted to spend at my dirty difficult dangerous job and the answer came easy: ZERO. So I jumped.

In the short time I have been retired I have noted a few things:
There is no overtime after retirement.
The pay is not the greatest but the hours are terrific.
I like weekday motorcycle rides.
Senior ticket at the afternoon show and always get the best seat in the theater.
I get to play guitar a lot more, but I'm still a 3 chord hacker.

My advice is to stay as long as you must to lock in benefits like health care.

[RAFster122s]

Murray of Murray's Carbs is having neck surgery to fuse many discs from a offshore powerboat racing accident back in '87 on Nov 15th. He has 50-60 CX-500s, CX-650s, GL-500s, GL-500 Interstates and maybe a GL650.
They are all being sold as he is no longer going to be able to ride. Murray didn't plan on this being the case but he is going to accept it and focus on bringing more carb projects to market. He makes a nice Mikuni carb setup already for the 750...don't recall if it is the DOHC bikes or also the SOHC/4s. His carb business he shared with me has grown 20-30% a year of late...and it requires a lot of time to bring a new product to market.
Since he is 63 this is going to be a retirement plan for concentrating on the carb business.
Sometimes you cannot plan for what you are going to do with your life when something bad happens.

But Scott, if you can leverage your work experience into something that can make you money on a steady income with 20-25 hours a week of effort, then you will be happy.

Right now the sidecar business has seen a resurgence in popularity because of millennials or gen-Xers who ride liking their practicality and quirkiness.  But, then again, sidecars and 3 wheelers will be how many Boomers will keep riding after they start feeling uncertain on 2 wheels if they do not give it up.  Few people can fabricate their own sidecar frame or rig, but there are those out there whom can.

Know how to weld, weld well enough?  Take some classes in welding at night. And start using it to build your skill. It is something if you don't weld often you lose that ability, most do at least. Have Calj737 come for a visit and see if he can give you some tutoring in welding as he can make some pretty dimes welding and TIG welding. Welding can come in handy if you take to it well and master it like some do, quickly. Others never seem to get it.
Welding is handy for bikes and fabricating your own stuff.

What kind of work did you do previously?

Good at websites and being creative?
That can be a lucrative field supporting several small companies web-presence and hosting those sites on your servers. Just have to have a separate network for home since web sites like to be targets of hackers...hosting it yourself or running daily backups on dynamic sites (those changing often) is required in case you need to recover the web-site and reload it fresh. Hosting the site on other's equipment works too, just more headache making certain it is not getting spammed or hacked just like when you host it but you have to work with others and depend upon their supporting you.

If you think you can do it and you will live for another 15-20 years then you will need something to help you bring in income so you are not dipping into things.  The structure of a 8-5 job is reassurring and getting out of that routine really is freeing in a way but also can make getting things done difficult if you really like sleeping a lot.
Without something to do and involvement with others you can find yourself slipping into depression, happens to many retirees. So, stay active and have goals...you can find yourself busier than when you were working if you take on things...or you can say no to some stuff and find the relaxing and decompressing like a vacation great.


A lot depends on if you work well alone and like to interact with others or if you like your solitude and work well alone.  If you need groups to keep your sanity then get involved in a few volunteering or a part time job.
David

[dave500]

I cant imagine retiring!ya gotta have some cash tucked away with house paid off etc plus ya gotta keep busy,ill work forever in that case.

[Scott S]

 I can see taking a few months or a year off to just "do me". But I can also see something part time. Possibly from home, possibly for someone else.

 I mostly want to retire from what I've been doing for 30 years.

[dave500]

ill get you job with me scott,become a fully paid professional dumpster diver!

[754]

That's apprentice dumpster diver.. .. you won't get home on weekends..

[74cb750]

Worked in construction starting at age 13 w/ my dad. Saved enough to buy a new Honda SL175 by the time I was 15 and have many motorcycles as projects now to keep me busy.
 
I "retired" at 61 because I was hurt on the job (maintenance, carpentry, electrical , plumbing etc etc). .Jobs were hard to come by around here 4 years ago, and once you file for workman's compensation you are blackballed. Now a few of my former employers want me back, & I have said "No thanks, I don't need your money." IN the past several years most local employers have treated employees like sh234t and now it is coming back to bite them in the arse.

Actually I could use the $, but will not compromise my principles, as I already said I'd never work for them again if given a chance.

I reduced my expenses, the wife was laid off 2 years ago and took a new job with a 25% cut in pay but is happier at her new job which pays most medical bills . The house is almost paid off and I have no other debts.

For spending $ I referee 150+ soccer games a year , fix motorcycles for people I know, do odd jobs like house painting, sheetrocking, house framing for cash paid per day,  and sell stuff on the internet.

Have no pension or savings, but that's ok. God will take care of the thief whom stole the company pensions one day I'm sure. Had 6 figures saved up....so it goes.

I'm happy, healthy and hale, so it's not all bad . Have met many millionaires over the years whom are not happy, were thieves and / or have a horrible home life. Money doesn't make you happy.

[Mr. Mike]

At 58, I planned on retiring at 62 ... and I did. After watching the industry I was in for 35 years start to take a shape in which the governing body said to their service employees in their best digital robotic voice, “ You’ll-do-your-job-this-way-now”, I started doing the math. Micro managing by my employer didn’t sit well with most of the company employees.
Yes my industry provided a pension, an IRA, and with social security at 62 and my wife’s meager pension, it added up to enough to do just that...retire, and early.
We believe we have our tax liabilities figured correctly, and I pay for my own pensioners healthcare plan, but that and every possible known expense was in the equation to retire, but of course there’s always the surprise expense, and we do have savings but nowhere near what “retirement experts” say we “should have”. A cool million not including my home equity? Get out.

You can’t beat the 40 hour check, but if your personal circumstances work out to where you can retire early, try it. As some have said, you can return part time somewhere, volunteer part time or fill in the time however you feel you have to to accommodate your personal needs and desires because it IS a big difference.

I have found that I do miss the personal interactions and relations I had built over the years with untold number of customers, and short of engaging back in the workplace part time, I cannot speak the same number of words to my wife, grandkids and neighbors. So, there are some aspects to which you have to get used to, and some pop up up to a year after retiring. Some do well in this, and some end up back in the workplace for a variety of reasons, but ultimately it was because retirement wasn’t what they thought it would be. But will it be any different in 5-7 years? Individual health also plays a part in this decision.

It’s nice to not be latched on to a company phone, be on call, putting up with managements latest streamlined program to squeeze more out of fewer employees and the like, but be prepared financially and personally with hobbies or other activities to use the time with greatest benefit to you and others.
So far, I’m doing ok with it. There has been one occasion where I thought maybe I had made a mistake in pulling the plug early...t’was but a fleeting thought.
 Everyday is Saturday except Sunday, and what I don’t get to today, Lord willing, I’ll get to tomorrow.

Oh...and in the event you’re married...and your wife is already retired or whatever....uhhhhh, I think  I’ll leave that one for you to figure.

[ken65]

This has been great reading.
I haven't had a real job in about 10 years.
We moved to the city for my wifes career and i became the house wife.The kids are all grown up now  so don't need me like they used to.
I make some cash selling stuff on the internet and the odd cashy here and there.
I don't need much money. Not into travelling, dining out or socialising.
I have a few mates and we get together for beers etc. 

[Alan F.]

I agree with Ken, its very good reading. Thanks everyone. I never had given it a second thought, I always figured I'd work til I drop. Getting divorced at 43 shot my plans all to hell, house and savings were gone and I'm not making much headway rebuilding yet. I'm in a good job that I don't enjoy, but my 401k is growing. At 47 its early, but after reading your experiences it seems like I should seriously start planning now. I've got no health issues and didn't wreck my body working heavy construction like my brother and father did. I'm thinking I should ditch the job I hate for something that at least pays better.
I like the idea of going back to school for new skills. I guess its time to give up the on-call life before stress takes its toll and I wind up in poor health and all alone.

[Scott S]

 I'm soaking in every response.

 To be clear, by "early" I mean sometime between now and age 54.5 or 55.

 This may or may not happen.  The future is pretty uncertain right now. If I can make it to 55, or close, I can retire and keep living the life I'm living. Maybe work part time.
 A friend is telling me about an upcoming opportunity at one of his businesses.  I'm very interested,  but it's full time and less money. BUT.... no overtime,  weekends,  holidays,  night shift,  etc. A "normal " life, in other words.

 A lot depends upon what happens with the upcoming sale/conversion at my current job. The next year or two is going to be interesting.