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Speculative fantasy post.

All debts paid off, mortgage paid off, how much money to put in the bank before quitting? This is years before retirement age.

What things to consider?

If keeping house and land, then have to obviously calculate yearly taxes. Utilities and groceries.

Any ideas/suggestions on health care? Generally doctor free, but that luck may not continue into old age.

Planning is for both wife and self. Assumption that kid will be self-sufficient.

I know that any kind of monkey wrench could be thrown into the plans. There really are no plans, just wondering out loud.

Instead of banking money, I could spend it. Buy new cars, trips, guns, gadgets, tractor. We live fairly frugal, and at times have really buckled down, so if push came to shove we can do without a lot, get by on the old.

If instead spending the money, then I'd be nowhere. Though I'd have more things, newer things, maybe better things, but I'd have less time. I'm looking for freedom. Freedom where the time is mine, not my employer's.

There could be a negotiated part-time reduced hours status, potentially. But such status would best be negotiated from a position of strength. Strength that comes from the ability to play a Johhny Paycheck song to the boss. That ability comes, I believe, when having the financial freedom to risk going into negotiations.

So what I'm trying to figure out is how much money I need to be free. How much per year. When I reach my retirement age, then I can collect from a retirement account. I know everyone says to save up more than you think you'll need for retirement. But my thoughts here are not on the retirement, but on being able to quit 5 or 10 years before retirement.

Plan A is to just keep working until retirement. This is just about looking at different options if I don't like plan A.
 

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I’m 56 and past my minimum retirement age, every year more I work I get a higher % of my best 5 years. Like you I’m frugal, putting away an additional 403b maxed out (not just to have retirement money then, but cut taxes now). Wife, who is in the same field (education) can put me on her BCBS for an extra $100 a month till Medicare at 65. Only thing holding me back is a 90 year old mother, who will need money for care.
I’ve seen too many people work their ass off, retire, then Die 2 years later. Not me.
 

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All depends how much you have saved up, either through. Retirement account or savings. Also remember to account for inflation. What your money brings now maybe not be the same as 30 years from now.
 

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Well if you plan on quitting and not finding another job before retirement, then wouldn’t you just be retiring early haha. I think I would have to calculate roughly what you could live on, add inflation and add a big chunk of money for unexpected bad crap. Of course, you could just save up a bunch of money and just find some type of job or other way of making money that you enjoy no matter the amount you make, where it doesn’t feel like work and still have some money coming in.
 

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When my friends and girl friends expressed a desire to retire, I would give the following advice - Stay on the job for one more year!

Here is why. You have already figured out how to juggle your personal life (dental/doctor appointments, ordering items, conducting limited personal business while at work). If you up and retire, no more employment income and you cannot change your mind.

Everyone who took this advice reported that it was good.

Now me address YOUR fantasies. You think that AFTER you retire, workmen will show up on time to do repairs, repairs will be done inexpensively by you.
1. workmen will continue to not show up on time for appointments.
2. The hardware stores, the big box stores have old men wandering around the stores while YOU are at work. They are trying to find parts (my cutout for the oven was done years ago). Do you it is like trying to track down a part for an oven first installed in about 1952, then go through two successor companies with the model number changing, then ordering the part yourself from a distributor 2000 miles away (because the repairman didn't know how to find parts), wait a month. Then call a different repair company because it requires two men and a special device to remove the oven!
3. If you are lucky, you will wise up and understand that the dentist costs money - $5000 this year, a new roof in a dead economy is $18,000, It is $13,000 to have a sewer line replaced, the 7 man Spanish speaking crew charges only $600 to trim your trees - and it would take you twice as long and you don't have a chipper or a truck to haul away the cuttings.
4. I paid for a top-of-the-line, near factory brand new radiator (without labor) $350 including tax this year. This was for a 15 year old car. The two year old Range Rover in the next bay had a new radiator installed - $1100 without labor. So, you had better think about what things cost.
I remember in the 1940s that a bottle of coca cola was 2 cents and a 1 cent deposit. Good luck finding a vending machine that charges less than $1.25 today.
 

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I have a lot of friends that retired early that now have part time jobs or even new careers.

It turns out that being young and healthy makes one bored and yearning to be productive.

I worked in healthcare, specifically maintenance and maintenance director for about ten years for geriatric hospitals and communities. And those folks that maintained some level interest or motivation lived both longer and happier lives.

If you already have a plan for keeping busy, you’ll win.
 

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You cannot know what you will need until you know how much you will be spending.

Instead of trying to guess how much you will spend figure out how much you actually do spend right now. Add up every dollar that flowed out whatever account your paycheck is deposited into. Include every emergency and unexpected expense, you are still going to have those in the future. HVAC systems and water heaters don't last longer once you retire.

And take a good look at health insurance costs. It varies from state to state but for a single 60 year old man in Georgia it would cost about $1100/month to replace the health insurance my previous employer provided. The insurance at my current job isn't as good but even it would be in the same ballpark. Its not a matter of if but when you will need healthcare.

And also think about not just what you want to retire from but what you want to retire to. If you plan to spend your days doing more of what you currently do in your free time you might spend less. if you plan to travel a lot you could spend substantially more than you do now.

The Fidelity and Vanguards of the world overestimate how much you will need in my opinion. Probably because they want us to invest more so they can make more money. If you go to one of their sites don't be surprised to see a very large number
 

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No other job. Quit working.
Not completely clear at what age you are looking to for this, but as far as estimating min. required funds... if pre-Medicare age, be sure to find out what COBRA individual health insurance conversion policy premiums would be. Alternative: scope out brandy new, individual coverage premiums annual deductibles, co-pays, and uncovered med expenses.

If to be post-Medicare eligible, that's a whole nother kettle of fish which will need evaluated. Medicare premiums, deductibles, Part B Supplemental policy costs, Part (?)D Rx coverage if you stick w/'basic' Medicare, and so on.
 

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I retired permanently when I turned 58.

- my personal savings equaled ten times my pre-retirement salary
- I was fully vested in a state funded teacher retirement program that guaranteed:
a) 75% of the average of my five highest years of wages for the remainder of my life
b) 100% coverage of all medical/pharmacy/vision/dental insurance expenses for life
- I waited until my full retirement age (66) to begin receiving social security
- my home was mortgage free (and my property taxes were frozen for life when I turned 65)
- both of my vehicles were paid off before I took retirement
- I had zero credit card debt both before and after retirement

When I travel I spend 3-6 months on the road. Direct deposit and auto bill pay mean that I do not have to be at home to manage my affairs.

I have the flexibility to spend whatever I want to, on whatever I want to, whenever I want to.

I am so busy during my retirement . . . that I do not know how I ever found time to go to work every day.
 

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I was a contractor by profession, a carpenter by trade. Hated every minute of it. Trained to cut dovetails, run fine finish trim, build wooden doors and windows. Then I made a living digging ditches, pouring concrete and water proofing basements. You haven't lived until you've been in the ditch by a wall covered in fresh bear ****.

Every time I tried to get away from it and back to wood, my reputation would suck me back in at a price I just couldn't turn down. Residential flatwork. Runways at SeaTac. Concrete in places and shapes that everyone insisted no one else could possibly do. (What bull****.) And basement after basement cleaning up after some idiot who didn't understand that water flows downhill, regardless of anything else. Ditches. Ditch protection. Drainage. Jesus, it hurts to write about it.

Don't even get me started about retaining walls. "My wall is falling down!"

"Yes, I see that."

"Can you hold it back?"

"No, all walls fail. Nature always wins. All we can do is hold it back temporarily. How long is a function of money and effort. Spend $300, and we'll put up a couple sheets of plywood and drive stakes behind it. Should last until morning. Spend $30,000, and we'll engineer and build a drained concrete wall or dry laid unit masonry that will probably last eighty or ninety years. Spend $80,000, and we'll go down to bedrock, and work from soldier piles. Probably last a couple hundred years. But in the end, Nature will win, and the wall will fail."

We set a number, the house paid off, no debt, and this number in the bank. The number was specific to us, to where we live and to how much we spend each month. The number was big enough that it would grow, not shrink, and no debt is important. A lot of our money is invested with this guy that I don't trust at all, but much to my surprise it withstood the pandemic, and it's hard to argue with profit.

We hit the number when I was 48. I counted down the days until the final check cleared and then walked away. At noon. Didn't even clean out the storage units, just sold the keys. Done.

I ended up keeping a lot of the equipment-- some of it would be handy in an emergency, like an earthquake, and now I can do what I want in the shop. And believe it or not, that turns out to be nice pine boxes for all my reloading components, all the bullets get their own boxes, all the brass get their own boxes.

With dovetails.
 

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Speculative fantasy post.

All debts paid off, mortgage paid off, how much money to put in the bank before quitting? This is years before retirement age.

What things to consider?

If keeping house and land, then have to obviously calculate yearly taxes. Utilities and groceries.

Any ideas/suggestions on health care? Generally doctor free, but that luck may not continue into old age.

Planning is for both wife and self. Assumption that kid will be self-sufficient.

I know that any kind of monkey wrench could be thrown into the plans. There really are no plans, just wondering out loud.

Instead of banking money, I could spend it. Buy new cars, trips, guns, gadgets, tractor. We live fairly frugal, and at times have really buckled down, so if push came to shove we can do without a lot, get by on the old.

If instead spending the money, then I'd be nowhere. Though I'd have more things, newer things, maybe better things, but I'd have less time. I'm looking for freedom. Freedom where the time is mine, not my employer's.

There could be a negotiated part-time reduced hours status, potentially. But such status would best be negotiated from a position of strength. Strength that comes from the ability to play a Johhny Paycheck song to the boss. That ability comes, I believe, when having the financial freedom to risk going into negotiations.

So what I'm trying to figure out is how much money I need to be free. How much per year. When I reach my retirement age, then I can collect from a retirement account. I know everyone says to save up more than you think you'll need for retirement. But my thoughts here are not on the retirement, but on being able to quit 5 or 10 years before retirement.

Plan A is to just keep working until retirement. This is just about looking at different options if I don't like plan A.
If it's a gubmint job, don't quit. Most companies can't match their retirement benefits.
 

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I retired permanently when I turned 58.

- my personal savings equaled ten times my pre-retirement salary
- I was fully vested in a state funded teacher retirement program that guaranteed:
a) 75% of the average of my five highest years of wages for the remainder of my life
b) 100% coverage of all medical/pharmacy/vision/dental insurance expenses for life
- I waited until my full retirement age (66) to begin receiving social security
- my home was mortgage free (and my property taxes were frozen for life when I turned 65)
- both of my vehicles were paid off before I took retirement
- I had zero credit card debt both before and after retirement

When I travel I spend 3-6 months on the road. Direct deposit and auto bill pay mean that I do not have to be at home to manage my affairs.

I have the flexibility to spend whatever I want to, on whatever I want to, whenever I want to.

I am so busy during my retirement . . . that I do not know how I ever found time to go to work every day.
And some say teachers are under paid.
 

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Not completely clear at what age you are looking to for this, but as far as estimating min. required funds... if pre-Medicare age, be sure to find out what COBRA individual health insurance conversion policy premiums would be.
Doesn't COBRA only apply if you are laid off? I know it only last 18 months.

My previous employer had a program like COBRA for retirees. It offers a chance to maintain coverage like COBRA with no time limit. But since there are only middle aged and old people in the risk pool the rates are much higher than COBRA.
 
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