Personal Finance (Not Investing) • Should we pull the plug and go OMY? (When do I stop??)

Hi, my wife and I need advice on whether for me to retire or keep going. I don’t hate my job, or coworkers, but I’m not really energized nor enjoy my field as much now (after 30 years). WFH 60%, 35 hours a week, low stress, good team. There’s a lot of psychological factors to this decision and what to retire to, but we are only focused today on the math and probabilities of success:

Ages 55 (both in good health), living in VHCOL. May stay or move eventually to lower cost area
Net worth $6.7M, no debt.
Kids recently launched.

Real Estate:
$1.1M primary house
$0.6M vacation home

Investments:
$2.5M 401Ks
$2.5 taxable accounts (excludes money set aside for weddings, house deposit help, grandkids college, some house projects in next few years, etc.)
Aiming for 50/40/10 split

Retirement Income (todays dollars):
$24.8K Social Security (collect at age 62)
$50.0K Social Security (collect at age 72)
$26.6K Pension Annuity (non-cola, collect age 62)

Annual Expenses, including second home, taxes and healthcare:
$225k
Will self fund LTC if necessary

Wife is definately quitting but each year I work I will add $5k more to annual pension amount while netting $100K more per year than if I didn’t work. If I stay 8 years, we could continue healthcare at employee rate through retirement / for life, otherwise we will use COBRA / ACA until Medicare & supplemental. Wife doesn’t mind me working as she will keep busy, but I think I want to join her, and she says she would love that too!

What would you do and why? What additional data points would you need to make that decision?

If the decision is not clear, make no decision and continue the status quo.

Thank you, Chassis! With what you know, what would you do and why? Is the path very clear for you, or is it clouded like it is for me? To give you some perspective on me: I grew up poor, recognize that I am very fortunate now (and blessed beyond what I should ever deserve), and don’t want to necessarily make a decision on emotion alone. Also don’t want to make a decision based on potential flaws in my understanding of retirement planning. Would like to balance time vs money. Again, what would you do and why? Thanks again!

Statistics: Posted by chassis — Thu Apr 18, 2024 5:50 am — Replies 42 — Views 4664