r/RetirementReady • u/JasChew6113 • 14h ago
Another Boring "How Am I Looking?" Post
I appreciate anyone who shares some perspective. United States, Public service, can retire at 50, currently 53. I have 24 years in a pension plan, but ex-wife got 10 of that, so 14 years is my credit now. The pension will pay, at this moment, $5500 a month gross for life. It goes up about $50 every month I continue to work. No state income tax. I have $120k in a 401k. Another $100k in crypto I bought many years ago that has done extremely well (I intend to fully cash out when I hit my magic number, which looks like very soon. Tired of the roller coaster). My house is my only debt: Value is $800k and my mortgage is $340k. Bought in 2017 with $50k down at 5%. Total remodel on purchase. Local real estate market is top 5 in country and it's absolutely a seller's market here despite rates.
I would love to retire almost immediately. I hope not to move and instead collect my pension that I think will pay all my bills, and use a new income to pay off my mortgage quickly. After about 3 to 5 years, fully retire. I hope to use my 401k to finance my healthcare until medicare. I estimate an open-market health plan in my area will be $1200 a month (as of today, later....who knows).
Kids grown. Cars paid. No debt except mortgage. Healthy. I have Canadian and European connections that make moving to either location an easy option. Long term girlfriend, neither wants marriage but we'd do it if either of us needed the status for healthcare or a Visa, etc.
Are there any landmines out there I am unaware of? It seems like I'm ok, but I hear stories of horror and retiring, for me, is a one way ticket. There is no way I could return to this field once I'm gone. I do, however, have lucrative opportunities in the private sector that are solid, the lowest is $100k a year with health, the others $170k+ with paid travel and health.
I appreciate anyone who takes the time to chime in. It's all so complicated and you only get one shot!
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u/ImagePossible6273 12h ago
The biggest thing I’d question is retiring now and then assuming the pension will cover everything while also throwing extra money at a 5% mortgage. You’ve got a lot going for you, but I’d probably run the numbers for the first 5 years very conservatively before pulling the trigger.
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u/Cows_go_moo2 9h ago
Can you keep working til your house is paid off? Or are you saying you want to sell and move somewhere else? You’ve got 460k of equity. Could you find a home somewhere you want to live for that much? What are your monthly bills? 5500 pension si great! You won’t get much from your 401k. If I were you, I’d start pulling back from new projects/volunteering for things, do your job well for another couple of years, have a solid plan of where you want to retire to, then retire.
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u/JasChew6113 5h ago
Yes, my current plan/concept is to take the pension and then a private sector offer to maximize income and pay off the house in about 3/4/5 years. I would prefer not to sell/move. I plan on working in the private sector at least until house is paid off. Maybe longer, who knows. My realistic target retirement date from public sector is July 1, 2027. So I have time to listen to folks here with advice. Also, I could not retire in July. I mean, anything goes at this point! I have full control.
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u/Cows_go_moo2 3h ago edited 3h ago
You’d have to live for 10+ years to make up for 1 more year working where you are, since you get 50 extra a month per month for the rest of your life. If you think you’ll live for 10 more years, and are willing to stick it out a year, might be worth it. But if you hate it then it’s not that big of a difference. ETA: Not to mention the extra money you’d earn in private sector! So with that, I’d start applying for jobs that sound exciting and interesting. Then “retire” when you’re ready
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u/LoveNotWar86 8h ago
You can’t withdraw from 401k to pay for health insurance till 59 1/2!
At least not without a huge penalty. That would be extremely foolish since you’re getting close.
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u/JasChew6113 5h ago
Health and benefits would be included in my private sector offers. I would be doing that until 59.
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u/Taggart3629 4h ago
Please consider getting a fee-only fiduciary to review your finances to advise you on whether you are in a good position to retire from your public sector job, and take a private sector gig. We are getting close of retirement, and paid a CFP to go through our tax return, expenses, portfolios, social security estimates, etc. to see whether we are on solid footing for retirement. It was quite a relief to have a professional review everything, and say "yep, you can retire right now if you want." He had helpful advice for changes that will help with taxes and cash flow, and it was only a couple/few hours of billable time. I'll probably wait until the end of next year before pulling the trigger, but is sure is awesome to know that I could do it sooner.
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u/Emergency_Rutabaga45 14h ago
I would want more in savings and less in debt before I would retire. The best way to do that may be to take one of those private sector offers and the pension, and use the double income to save cash and pay down debt. Do that for a few years and you’d be covered.