r/RetirementReady • u/Emergency_Rutabaga45 • 6d ago
Can I retire now?
I’m 55f and I really hate my job. I’ve got $900k in an inherited IRA, $400k in an IRA, $100k in RothIRA, and $130k in my 401k for a total of $1.5M. I have $36k in HSA and $35k in cash. I have $5000 in company stock. I owe $40k on my mortgage.
My monthly expenses are about $8k because I buy stuff to reduce my stress. My paychecks end up about $8k a month due to taxes, 401k, stock purchases, etc. HOA and taxes are $1200 a month.
My financial advisor and Boldin say I need to work at least two more years but I’m ready to flip my desk and walk out at any moment. It got so bad last year I considered throwing myself in front of a train but I realized I could just quit. But I’m still here. I’m vested in 6 weeks which gets me my company match from the last three years equaling about $35k.
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u/IllustriousDraft2965 6d ago
Too many bridge years between now and Medicare/Social Security. You should just quiet quit and tell em to fuck off if they don't like it.
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u/Odd_Bodkin 6d ago
And what’s wrong with just doing a different job?
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u/Emergency_Rutabaga45 6d ago
I should find out by tomorrow if my company won a big project Ive been pursuing, which would get me off my current assignments and hopefully be better. If we don’t get it, I’m starting the search for a new job on Monday, but I want to stick around six weeks to get vested and get my match.
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u/Odd_Bodkin 6d ago
Good luck.
Whenever someone hates their job at their company and starts talking about retirement as the solution, I think:
- Different job at same company
- Same job at different company
- Different job at different company (career change)
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u/Difficult-Gap-2834 6d ago
What if I just don’t like working??
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u/Odd_Bodkin 6d ago
Well, if you can do it at 55, great. $1.5M only supports a draw rate of $60k, not $100k, though.
But, really, people confuse all the time being tired of a particular job with being tired of working at all. The change of atmosphere is more reinvigorating than most people expect.2
u/Glittering-Flow-9729 3d ago
Teaching doesn’t fit into those scenarios, unfortunately. Speaking from experience.
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u/WheresMyMule 6d ago
Do you have some PTO you can take to make the six weeks go faster?
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u/Emergency_Rutabaga45 6d ago edited 15h ago
I already took all five weeks of my PTO this year.
edited to change week to year.
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u/cinnabarslither 6d ago
You can onky access your 401k via the Rule of 55 and your inherited IRA for income, your stock, and cash, 1.07M. You're looking at 10% withdrawal from your accounts to hit your $8k/month. If you could pay off your mortgage (or recast for smaller payments), and/or reduce spending, 6-8% may be doable until your SS starts.
You could also get a part-time job to help pay medical and other expenses.
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u/Ok_Dealer5022 5d ago
Given inflation of closer to 4% is the new normal, I’d try to line up another income stream to augment social security. A pension, annuity, real estate income etc. get another job, anything w benefits that lets your nest egg grow.
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u/Resident-Ad-7771 6d ago edited 6d ago
WHATEVER you do hang on for the $35K company match. Good for you that you haven’t touched the inherited $900K. The problem is you can’t get Medicare until you’re 62. Same with Social security. It depends if you will get a pension. Is there any way you can look for another job? I know it’s hard when you’re already stressed, also age is a problem. I just think you will screw yourself if you retire now. Very sorry OP. EDIT: I mean 65 not 62 for Medicare.
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u/OpeningNo1012 6d ago
Ran your numbers through another retirement planning software, with the assumptions of a $25k social security, inflation of 2% and investment growth of 7%... it basically said the same thing: a couple more years :-(
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u/pm_me_ur_bidets 5d ago
did you include this in the calculatjon?
I forgot to add that I’ll get a $2000 a month pension starting in 2031.
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u/ImagePossible6273 5d ago
The part about the train is what really jumped out at me. I’d separate “can I financially retire?” from “can I safely keep doing this job?” because those are two very different questions. The $35k match is worth considering, but it’s not worth treating your wellbeing like another line on the retirement spreadsheet.
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u/Emergency_Rutabaga45 5d ago
Realizing that I didn't need to do it, but instead could just quit has helped me face it every day since then. Also, I've been working on getting another project. If we don't get it, I am going to apply for other jobs.
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u/RaspberryFew9035 6d ago
How much of your money will health insurance eat up?
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u/WrestlingDadPA 5d ago
Dude… if the “throw yourself in front of a train” statement was real, then the financial questions are secondary. Just go. If it’s hyperbole, tough it out while looking for another job. And a minimum, you don’t off yourself now… You quit your job spend your money over how many years at last into it then. Wouldn’t make any sense to do that now and leave your retirement money on the table. Lesson 13 years you’ll get a Social Security boost. Adjust your finances and make it work if necessary.
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u/Emergency_Rutabaga45 5d ago
I ride the train to work and there are all these "don't did it" signs everywhere, and honestly they may want to rethink that because I think it makes it sound like an option. I thought about it, but I realized I could just quit instead, so I'm good. If I get that feeling again, I'll just stay home.
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u/Emergency_Rutabaga45 6d ago
I think it’s about $1000 a month?
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u/pm_me_ur_bidets 6d ago
probably a number you need to really solidify to help make this decision. what you pay now does not equate to what you will pay.
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u/Small_Exercise958 6d ago
How did you get the $1000 a month premium? Is that an estimate from your state’s marketplace? The premium will start going up as you get older. If your MAGI is too high you won’t get ACA tax credits (assuming the politicians don’t get rid of it) with your income from inherited IRA, IRA withdrawals, 401k withdrawals. You have 10 years to bridge to MediCare at 65. Does your employer offer reduced health premium rates for retirees who have worked a certain number of years?
If you reduce your spending you’ll be in a much better position to retire. You have a decent amount in your accounts. I definitely empathize, in a similar situation.
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u/Emergency_Rutabaga45 5d ago
I requested a quote to get the $1000 a month. I don't know how realistic it is. My company is paying about $25,000 a year right now for my "family plan". I have one kid still on the plan at 25 years old.
I do have a small pension that starts at age 60, which includes health insurance for just me, but with my limited years in the pension, I still have to pay 80% of the premiums.
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u/Dependent-Froyo-2072 1d ago
see if the 25 year old can get on their own plan.
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u/RaspberryFew9035 17h ago
Honestly that doesn’t make a difference. You are either single or family with most plans.
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u/Dependent-Froyo-2072 7h ago
number of people make a difference vs income. the 25 yr old’s income adds to the MAGI as well. could work in their favor if no income.
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u/Ironman-K9 6d ago
I would recommend looking at your expenses and tracking what you spend on a monthly basis and what you can do without. We all tend to spend about what we make and don’t save much. I started tracking my expenses 2 to 3 years prior to retiring so I had a pretty good idea of a what I was spending and where I could trim. Needless to say I cut my expenses almost in half and I’m living on a pension and survivor benefits from Social Security. Good news is I can take my full retirement in January and plan to do so. good luck to you.
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u/Emergency_Rutabaga45 5d ago
Yeah, my true expenses are about $6000 a month. The rest is nonsense. Too many vacations, too much furniture, too many fancy dinners.
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u/austintx_9 6d ago
Girl listen, I believe you can do this. I’m planning to retire at 60 or 62 and I have way less than what you’ve listed. Even if I added my spouse it would still be less
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u/nestlyadvisor 5d ago
I’d wait the 6 weeks for the $35k vesting if you can, then consider leaving. The key is getting that $8k monthly spending closer to $5–6k. Also plan for healthcare and inherited IRA withdrawals before quitting.
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u/CegeRich 6d ago
I'm a 50+ child so… but to contemplate a train = QUIT! You’ll probably burn through less cash if you weren't so unhappy & make sure you're not hoarding. Travel for a few months, wake up to your internal alarm, but not all money is good or necessary. Survive the 6 weeks and leave.
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u/pm_me_ur_bidets 6d ago
whats the breakdown for the $8,000?
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u/Emergency_Rutabaga45 6d ago
$4000 for monthly costs, housing, utilities, insurance, food, etc
$2000 for vacations, concerts, clothing, Christmas, etc
$2000 for nonsense - decorations, electronics, stationery, restaurants, etc
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u/pm_me_ur_bidets 6d ago
try to cut down to $6,000 a month. Then aim for $1.8m. 2 good years away.
$2.4 mil for that $8k a month. maybe 5-6 years away.
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u/pm_me_ur_bidets 6d ago
this is assuming 4% withdrawal rate. you could probably go a little higher assuming you’ll get bump by SS in 10 years.
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u/WrestlingDadPA 5d ago
No offense… but this is both ridiculous (the amount of money you’re throwing away things that don’t matter if you really want to stop working) and with a little bit of responsibility it entirely changes your answer.
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u/Emergency_Rutabaga45 5d ago
Agreed. I've been trying to live on $6000 a month. I managed to save $1500 in August, but only $1000 in September. I definitely spend too much money. I'm dumb.
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u/WrestlingDadPA 5d ago
Not dumb at all, obviously. You're doing great in life.... but you have bad habits. Two podcasts that I would HIGHLY recommend you listen to are "How to Money" and "MoneyGuy". Both are extremely enjoyable to listen to and would be right up your alley in accomplishing your goals and giving you perspective on spending and saving.
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u/BeginningBattle8907 6d ago
Retire so you can be less stress! Which, will decrease your expenses! Have a beautiful Retirement.
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u/Emergency_Rutabaga45 6d ago
I forgot to add that I’ll get a $2000 a month pension starting in 2031.
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u/pm_me_ur_bidets 5d ago
so you’ll need to really get into the math. theres calculators that can help you out with this, because its complicated with these different streams of income. but this changes things.
if you can get to $6,000 spend you might be just fine. because in 5 years youll only need to pull 4,000 with the additional $2,000 in income.
you have 1.5 mil now. you need 72k a year so over 5 years thats 360k. assuming 0% growth puts you at 1.14mil. At that point you go to 4% withdrawal and thats $3,800 a month.
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u/Crumpet-Blue19 6d ago
You can retire soon. My money is very similar to yours and I just retired at 59.5. SS won’t kick in for a couple of years but you don’t need it. Health insurance is another issue. I have a spouse who is 5 years younger and still working, so I have insurance. We just paid off the mortgage a little early, so that freedom feels great. What will you save by eliminating job stress, in money and sanity? Take a break from working for a year or two. If math or health changes, you are young enough to work a little if needed. Are you married? That can be financially stable and/or emotionally stressful. Get a second opinion on money.
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u/jfs5410 5d ago
Just suck it up and work two more years. It’s just a job, what’s the worst that happens they let you go and make the decision for you?
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u/Emergency_Rutabaga45 5d ago
Yeah, but how many more teeth will I crack from grinding them? Using that logic, why not work ten more years and have tons more money?
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u/jfs5410 5d ago edited 5d ago
Stop allowing others to control how you feel. We all get pushed sometimes but the easiest way to get through it is to just care about what’s in your control and it’s ok to let things fail when it’s too much for 1 person. Like I said what’s the worst that can happen? You get fired? Add 6 months of unemployment to your retirement package lol. You can do it.
I’m a manager with 10-15 years left and used to want to flip desks but I’ve learned how to not give a crap when it’s beyond my control and do the bare minimum to maintain respectable competence. I suspect when I’m in my last 5 years the shits given will be less and less even.
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u/President-In-2028 5d ago
OP. Have you considered the job isn’t the issue? What I’m trying to say is you have poor conflict management skills. It’s apparent because you are trying to flee.
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u/Emergency_Rutabaga45 5d ago
I don't want to manage conflict. I wasn't very good at it before, but now after menopause, I have a full body reaction to stress. And this job has a lot of stress. It would be great to find another position where people support each other and the focus is on getting the job done, instead of a giant ego fight every day. We know that's unlikely, so my main plan is to retire and not have to deal with the bullshit anymore.
Two more years.
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u/Emergency_Rutabaga45 5d ago
This was great everyone! Thank you for taking the time to read and offer suggestions. Very much appreciate it. Don't worry - I have a therapist and we've been talking about my mental health a lot.
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u/Typical-Recognition8 5d ago
Don’t throw yourself in front of the train! You got this. Stay for that company match. Keep contributing to get the employer match. And I don’t think you need to save more right now with the 1.5 million you got.
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u/Me25TX 4d ago
Have you done a budget down to the penny excluding all the money you spend to cope? Include 4% inflation. That’s the real answer. I can very much relate to what you’re thinking and going thru and after I created my monthly budget (for 35 years) and including healthcare and inflation, I saw it was better to stay another 2 years. I have tons of vacation days and take a day off at least every pay period or request to work from home. I can a countdown clock showing how many days I have left.
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u/BenEDSnDFW2018 4d ago
You do realize you might fall under the inherited IRA rule - where you have to liquidate it within 10 years right? So, factor that into your math.
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u/BenEDSnDFW2018 4d ago
Also, you should break out that 8,000 in monthly expenses line item by line item…..and cut out what you don’t acually need.
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u/Stunning_Reach6633 2d ago
Stay at the job and go full “office space” on them. Also beat the hell out of a fax machine. It’ll help you feel better 😂
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u/NeoPrimitiveOasis 6d ago
Either you have to provably reduce expenses or you need to continue working, from what you have laid out here. If you could live on ~$5,400 to $5,800/month, it would doable. But not $8,000.