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How do I get that voice in my head to shut up and quit telling me to work just another year...or two...or?

I'm 60, wife is 50.
Our annual expenditures equate to a 3% withdrawal rate on our investment accounts.
My social security earnings (at age 70) would reduce the withdrawal rate to very close to 2%.
I do have young kids, but have already funded their college accounts.
I've got 3 years of cash sitting there, not in the investment accounts.

But that danged voice...
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Nice work, Tim!

Well, if you enjoy what you are doing or would enjoy it if you could consult, partner in cml RE, etc, then those might be good reasons to just keep going a bit. I would have enjoyed doing that, but it just wasn't the nature of the business moving forward.

Its a nice place to be in!

Bill
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Health care insurance?

At 60 you've got 5 years and spouse at age 50 has 15 years to Medicare.

BruceM
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to echo healthcare =

Who expected a pandemic in 2019? Lots of people have ended up in an ICU. Those beds without treatments are in the range of 10K per day.

Hospitals are increasingly selling their past due accounts to bill collectors who regularly take people to court, freeze checking accounts, etc. Are your college funds protected from bankruptcy?

Congress giveth and can taketh - Maybe the idea that budgets will be balanced by another tax cut will die and the folks in Congress will decide to try more taxes? Marginal rates were easily 90% in the 1950s.

Unless you folks have health issues, you likely will see at 80 and if your families have a history of longevity, 90 is reasonable. That is a long time - 30 years ago no iPhone flat screen TVs were a really expensive item.
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Health care insurance?

My budget includes health insurance at the rate we've been paying, which is a stupidly large number. Wyoming is an expensive place to buy insurance for the self employed. In reality, if my earned income drops to nothing, I'll qualify for ACA subsidies and dramatically reduce the expense. But, for modeling purposes, I assume I'll keep paying the higher premium indefinitely.

A good question, as that is in fact the largest single line item in the expense budget, exceeding groceries, recreation, and vacation. My home is paid off, so no mortgage.

Tim
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if your families have a history of longevity, 90 is reasonable.

And they do. My dad is 91, mom is 89.
Which is why I've waited until a 3% withdrawal rate covers the expenses.
But you're right, lots of things can change...health declines, sharp tax rate increases. Right now Wyoming has no income tax and very low property tax rates. I expect those things to go up, now that Wyoming can't sell their coal anywhere to subsidize the state's budget.
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No one lies on their death bed and says "I wish I would have worked more".

Worst case scenario, can you go back to work after a year or two if the finances fall apart?

gcr
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No one lies on their death bed and says "I wish I would have worked more". - gcr

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I don't mind working a little bit in retirement. It is a small company with less than 30 employees, all people I have known for years and like (most of them). I can more or less set my own schedule and put in one or two days work spread over the entire week. It gives me access to a group health plan and also provides me with some social engagement as well as a chance to exercise my spreadsheet skills.

So I guess I am saying, the appeal of working in retirement varies by individual and is a lot easier when you really don't need the income.
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I should clarify.

I retired last year at 62. I had imagined having tons of free time, but I haven't experienced that.

I'm busier now than when I worked 50+ hours a week, but.....I'm doing things I want to do and enjoy.

I heartily recommend retirement. Just a lot less stress.

gcr
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the appeal of working in retirement varies by individual and is a lot easier when you really don't need the income.

I agree with this. I'd like to be able to recruit someone to take my position (commercial real estate broker). I can offer training and part time help. If I only respond to my old clients, I can work a day a week for the next couple of years and make pretty good money. What I don't want to do is have to be here every day to run the office, pay the bills, respond to new leads, etc. I'm not interested in generating any new business; someone else can have all that. Any takers?
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I’m an introvert geek with zero sales ability. Sorry. Can’t you just use your cell and a laptop with a hotspot and leave the office behind? I’ve seen folks run a business out of a truck or SUV. Don’t know your details though.

You’re probably an extrovert in a job like that. Introverts get drained by people but extroverts need people to charge their batteries. What are your post retirement plans? I’d try scaling back first and see if you get bored. Start saying no to new clients, get referral fees to pass along said clients. Try on partial retirement perhaps.

My mom sold residential real estate for decades out of a back room at her house. She’s an extrovert the adrenaline of the deals was hard for her to quit.

Ideas.
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You’re probably an extrovert in a job like that. Introverts get drained by people but extroverts need people to charge their batteries. What are your post retirement plans? I’d try scaling back first and see if you get bored.

Start saying no to new clients, get referral fees to pass along said clients. Try on partial retirement perhaps.

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Except that I'm an introvert. I hate answering the phone, would much rather spend my day analyzing data and valuing property. That's what I started in, and did for 20 years before I moved into sales. But the commission/sales job paid 3x what the valuation job did, and that's what got me to move over to the dark side about 16 years ago.

I've been in partial retirement for a year. Snowboarded 117 days out of the 137 day season last winter. I can afford to retire, and I've no trouble staying engaged with life without going to the office. And the referral fee to pass along clients is an excellent idea and one that I am doing and will continue to do.

I think it's my mother's voice in my head, still after all these years. She was a child of the Depression, so there was always an emphasis on not wasting any opportunity, save all you can, we might be hungry tomorrow.

I haven't ever gone hungry in my life, but she sure did drum in that message!

Thanks for the thoughts and suggestions,

Tim
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If you enjoy the work, there is little harm in continuing. If you do not enjoy the
work, the voice is crazy.

Howie52
Take some time off and take a vacation. See if you can drown the voice in a mountain spring.
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I know what you mean about the mother’s voice. My mom grew up very poor, went hungry, and she’s obsessed with money even though she’s worth about 2M at 87. She looked me in the eye at 12 and told me I’d better get educated and get a job because men were unreliable.

I have made considerable money as well, engineer married to an engineer saving almost half of it. My man turned out to be very reliable but I know what she meant.

Still grew up paranoid about money. My husband is like “we can always make more” but I’ve been investing since my mid 20s. Update my quicken totals weekly. Hardest thing will be mom’s voice saying “never spend principal “ but she could never tell me when profit becomes principal…
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OK, I'm talked into it. Thanks to all for your insights and thoughts.

I do still need to try to recruit someone new for the office to take my desk, as a courtesy to my business partner, but I'll put a timeline on it and start waxing my snowboard for the coming ski season!

Tim
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