Quitting your job

Was planning on retiring at age 62 which was last Sept. I actually retired in Dec. 2020 and my advisor said I could have made it work at age 60. My situation is somewhat unique because I lost my wife to cancer almost 7 years ago. 2 life insurance policies and some inheritance from my mom who passed away 2 weeks before my wife did provided a good chunk of cash to pay off my mortgage, buy a new truck and have a nice cash reserve. Currently living on 2 pensions and my wife’s social security without drawing anything from my retirement accounts. Last year for my health insurance I did COBRA (extending the same insurance from my work but paying all the premium). This year I signed up with a plan through MNSure and get about a 45% subsidy from taxpayers. Thanks everyone.
When I start drawing my social security and taking some distributions from my retirement accounts I’ll get a very nice raise. At least the retirement distributions will start at age 65 when I go on Medicare. If my wife wouldn’t have passed away we’d be in even better shape but I can’t complain.

I don’t think it’s accurate to look at retirement savings in a discussion about people using savings to pay for life while opting out of the work force. Anyone under retirement age accessing those funds to “quit” their job is taking a huge tax hit, and impact on their retirement timeframe. As pointed out below, the median savings amount is basically nothing. And just 54% of people age 32 to 61 participate in any sort of retirement plan, meaning they have no retirement at all. Sure the mean could still be $180k, but that is skewed by those with huge retirement accounts.

http://www.fool.com/the-ascent/research/average-savings-account-balance/#:~:text=Key%20findings%201%2071%25%20of%20Americans%20have%20a,while%20the%20mean%20is%20%2439%2C900.%20More%20items…%20

Dan wrote:

I’ve got a question that’s seemingly unanswerable but I’ve always been curious-is there a resource, link, article, document, or own personal experience that will give you a ballpark idea of where you’re sitting at for your retirement accounts?

I know there are TONS of variables. And I know every 401(k) plan I’ve been on has some sort of online calculator where it will let you know what you could make in retirement based off your current funds and expected growth. And I know some of the variables include if housing is paid off, how much you spend, how much you still owe, etc.

What I’ve been interested to hear is actual people saying some basics, like “I retired at 60 with xyz in my IRA, did xyz for insurance, and I’m able to draw xyz a month.” Curious what a “good number” is. I know, I know, it’s all subjective and variable, but I often wonder where I stand.

On my end, worked with a financial planner from the start. As Toddrun said, only as good as the info you put in ( or give a financial planner to work with) I took all of our debt, monthly spending, and monthly payments etc and entered on a spreadsheet ( yes, there products out there already for this but I like to make my own when possible) made several columns for when bills came due, when debt expired, car payments done etc. Marked the time frames when bills were paid and how that impacted each month’s spend and marked significant time frames where once a bill was paid off that was $XXX a month less I had to spend on bills.
Gave this to our planner with all of our other retirement info and he projected out our monthly income vs expense between all of our accounts, we factored in a modest % of investment income over time and went lower than that and found we had 6 figures left in our accounts when we tip over in our 90’s.
I am working another job part time and my wife is still full time so we are not wasting money on health insurance yet.
Plan on downsizing the house in the next couple years and purchasing something that will either leave us “mortgageless” or have only a small $5-700 mortgage every month. We factored in a $2,000 mortgage on our plan.
My house is NOT paid off as I bought college for both my boys or we would already both be FULLY retired!

Big Werm makes a huge point – the people I know who are not going back don’t have that much capacity ( have said so to me) but sure live the good life. At some point there has to be a reckoning and unfortunately their loss is going to be my gain ( govt. and every other cost going up in order to cover their “buyouts”) when their world collapses.
IMHO

I just turned 28. Quit my nursing job in October, have been living the dream since. Several days elk, deer, and duck hunting. Even more days walleye fishing. Been to Packers, Gophers, and Twolves games. Lived with my dad for a bit, got to spend good time with him. On my way to Texas for another trip to see more family now. I just signed a short lease to live in the Cities, so I’ll pick up another job in the coming weeks but not in any rush. I’ll only snag another job if they’ll give me the month of May off. I’ll be too busy <strong class=”ido-tag-strong”>walleye fishing to work.
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How do you make money? I could do the same but I would only be hurting my self. I like money coming in. Not only going out

tbro2 wrote:

I dont. Had plenty saved up for fun, plenty more saved up for retirement long down the road. I quit my staff job to do travel nursing. As a travel nurse you make enough money in your 3 month contracts to easily cover a month or two (or more) break between contracts.

I’m also single, no kids, and enough financial freedom to allow me to do whatever the hell I choose to do whenever the hell I choose to do it.

Mic Drop…

I have said this before but being a traveling nurse is where its at right now. There is no way I could sit at home everyday, and with a 3 year old its different but if my wife went this route we could travel all over the US and she would make 1.5x more in a year than we do combined (each of us having great paying jobs) now.

I can see and agree with both Grouse’s perceptions and BigWerm’s.

Grouse is right in that younger Americans save money in different ways than previous generations. One of my neighbors when we had the house in town had over $60,000 in stocks and cryptocurrencies bouncing around in a digital wallet on his phone. My parents’ generation surely didn’t have that in their 20’s. I think if you look at just traditional savings accounts, many Americans don’t have what they used to. However, the walls to investing have been blown down and now any average Joe with income can easily invest in ways that make money. The other factor of savings is that younger people have a lot of wealth tied up in assets. There are a lot of 20 somethings driving around in vehicles that cost more than some people’s first homes. I know these aren’t savings accounts and are generally poor investments, but selling recreational vehicles, vehicles, or just “toys” in general has never been easier to recapture spent money even if at a loss over time.

I also agree with BigWerm’s argument about retirement accounts and “saving for the future.” Younger generations are more and more focused on the NOW. There are Pros and Cons to this. However, I know there are friends of mine in their 30’s that have every toy imaginable, travel all over hell, but because of bouncing around jobs, working side gigs, etc. do not have much of a traditional retirement plan. It takes some real discipline to contribute to something like that voluntarily or 100% on your own without an employer’s incentives. There are people who aren’t working or who are transient workers that live a great life now and have decided to figure out the future when that time comes. Some will do just that and will figure it out…while others will be in a real tough spot when they reach retirement age.

The Mrs. and I have chosen to try our best to plan for the future while still being able to do some things now. If we both green-lighted cashing in savings and “letting er’ rip” financially, it could be one heck of a life and could probably quit our jobs for a long time…but it could jeopardize the future. We have a daughter and hope to grow our family more. As a part of our portfolio we are trying to keep balance in mind with only moderate spending, life insurance policies, investment opportunities, traditional retirement accounts, land, paying off our home quickly, while not missing out on experiences and retiring at a reasonable age. It’s a lot for any one person to juggle and anyone that says there is only one way to work through all of these things is a liar. We consult with an investment advisor and family attorney to try and make important decisions when needed. Our formula for life will hopefully have us both retired before 60 with no bills. When the curveballs come we will hopefully be in a position to handle them.

tbro2 wrote:

I’m also single, no kids, and enough financial freedom to allow me to do whatever the hell I choose to do whenever the hell I choose to do it. So, thats what I’m doing!

Ya that explains it pretty well.

So how many of these unemployed people just started working for themselves?

covid was one of the best things to happen if you ask me. i got 4 months off paid in my prime from April to July. they even begged me to pull my new boat to P4 by making gas .99 per gallon! i had to pinch myself everyday! i actually got bored after 4 months so getting back to work was a welcomed sight.

i still plan on retiring before 60 unless they pay me too much to stay? it is going to be an interesting next 3 or so years post pandemic that is fo sho

Try firecalc to see if you can retire, it’s can be as complicated or as simple as you want it to be. It’s based on any 30 years of investing in the past and will tell you a success rate in percentage, most say once you see 95%, you are good to go. Another one I just recently started watching and enjoy is “the money guy show”, this show will tell you where you should be at your age and income, whether you like it or not. They even reference “the millionaire next door” (Thomas Stanle) and even interviews his daughter (Sarah Stanley) about her book “the next millionaire next door”.

eyeguy507 wrote:

covid was one of the best things to happen if you ask me.

Jesus dude….this is the 2nd time you’ve made this statement here. you cheer everytime a new virus comes around that kills people cause it gives you a few days off work? SMH

eyeguy507 wrote:

covid was one of the best things to happen if you ask me.

Family friend owns a liquor store and he says the same thing

crappie55369 wrote:

<div class=”d4p-bbt-quote-title”>eyeguy507 wrote:</div>
covid was one of the best things to happen if you ask me.

Jesus dude….this is the 2nd time you’ve made this statement here. you cheer everytime a new virus comes around that kills people cause it gives you a few days off work? SMH

Everything kills you, but not everything gives you free pay and time off.

When the WHO, CDC and NIH start taking it serious, I suspect the public will. For such a deadly virus, being ignored as far as origin or responsibility… In fact, let’s all head to China for the Olympics. I once asked a retirement expert, how much do you recommend for me to retire at 59 1/2… she knows me and my wife and our lifestyle.. she said 1 million… I said, how about if we have zero debt, newer vehicles paid off… She said 1 million… that advice was worthless… thank god I didn’t pay for it.

big_g wrote:

In fact, let’s all head to China for the Olympics.

The only people permitted to head to Beijing are the athletes. No visitors from outside the country. The same policy was in effect in Tokyo last August for the delayed summer olympics.

gimruis wrote:

<div class=”d4p-bbt-quote-title”>big_g wrote:</div>
In fact, let’s all head to China for the Olympics.

The only people permitted to head to Beijing are the athletes. No visitors from outside the country. The same policy was in effect in Tokyo last August for the delayed summer olympics.

I realize that… I just find it ironic that countries around the globe will send their finest athletes to compete at the Olympics in the country that is under scrutiny for performing gain of function research… that is not disputed. You would think the gathering would be in Nuremberg.

Stopped in to see some information related to quitting jobs, switching jobs, retirement………..and now I’m getting a lesson on the olympics, Covid, China, health research, the CDC, WHO, Nuremberg

Only at IDO can some people who hate Covid, the government, politicians, other countries race to bring those very things into every discussion.

Back to the original topic – Do you think the labor shortages will be resolved anytime soon? I think the people quitting, retiring, switching jobs is just getting started. The entire labor market is going to be dealing with shortages for not months but years in my opinion.

Didn’t realize this was your thread to steer… posture much ?

Everything you take issue with, is what has caused/contributed the labor shortages. Try to keep up

buckybadger wrote:

Only at IDO can some people who hate Covid, the government, politicians, other countries race to bring those very things into every discussion.

Be sure and stop by the main page for yet another echo chamber regarding mask usage, where you’ll see the same unsolicited opinions that have outnumbered outdoor info for the past 2 years.

big_g wrote:

I realize that… I just find it ironic that countries around the globe will send their finest athletes to compete at the Olympics in the country that is under scrutiny for performing gain of function research… that is not disputed.

No disagreement here.

I for one am glad they’re still at least doing the Olympics. I enjoy it. I prefer the Summer games mostly because the United States does better, but the Winter ones will do when they’re played too.

big_g wrote:

Didn’t realize this was your thread to steer… posture much ?

Everything you take issue with, is what has caused the labor shortages. Try to keep up

You could take a post in an outdoor forum about scoring a deer or a fishing report and turn it political. There’s not even a logical transition.

…but logic isn’t a necessity for everyone

Show me one where I did that. I will wait, or is it just something you made up ?

Just a quick thought about labor shortages that I never see talked about. It purely anecdotal but how much of this is caused simply by the creation of new jobs? I mean, how many Kwik Trips, Dollar Generals, Starbucks, Walmarts, Amazon Fulfillment Warehouses, Jimmy Johns, etc… we’re built in the last two years?

Just think about what gas stations looked like 20 years ago. Did these places employ 15 people on a single shift like they do now? A Holiday Station near me was torn down only to be replaced with a giant monstrosity of a convenience store/carwash. It’s probably going from 3 people per shift to 10-20. Meanwhile the Speedway down the road is closed 3 days a week because they don’t have enough staff.

biggill wrote:

Meanwhile the Speedway down the road is closed 3 days a week because they don’t have enough staff.

I’ve seen multiple business closed in the past week because of labor shortages that I never thought would close.

The Holiday near me in Plymouth has been closed every day this week after 6pm due to staffing issues. There is a sign on the door.

Rodizio Grill, a brazilian style steakhouse in Maple Grove, is completely closed this entire week due to staffing issues.

How many flights have been cancelled or delayed in the past couple weeks because of staffing issues? Literally thousands.

It seems it’s a new world. Some will benefit, some won’t.

biggill wrote:

Just a quick thought about labor shortages that I never see talked about. It purely anecdotal but how much of this is caused simply by the creation of new jobs? I mean, how many Kwik Trips, Dollar Generals, Starbucks, Walmarts, Amazon Fulfillment Warehouses, Jimmy Johns, etc… we’re built in the last two years?

Just think about what gas stations looked like 20 years ago. Did these places employ 15 people on a single shift like they do now? A Holiday Station near me was torn down only to be replaced with a giant monstrosity of a convenience store/carwash. It’s probably going from 3 people per shift to 10-20. Meanwhile the Speedway down the road is closed 3 days a week because they don’t have enough staff.

I have wondered this too. In Sioux Falls there is constantly new businesses opening up and there is a huge labor shortage. I jsut dont understand where they plan on finding people to run them. The chick-fil-a brought employees in from other locations when it opened up for a few days, then it was shut down to drive thru only I believe. Doesnt make sense

Companies like Nestle, 3M, GMI that previously had low skill workers on manual lines in 2020 have now all switched to automated lines in 2021. And they have saved big money because of that. There will be a larger focus for other companies to automate work because people are such a liability. Don’t want to deal with labor shortages? Automate.

Tried to order chipotle yesterday and the app wouldn’t accept an online order, nor would their website. Tried Buffalo Wild Wings and the same thing happened. Ended up going to El Loro where they had a full staff, but there was almost no customers. Because of the snow mainly.

Went to a local Pho shop on Tuesday for lunch and they were fully staffed too. I really think there’s just too many sh!itty jobs and not enough workers.

As a side note, my daycare prices are increasing as well. I’m sure that’ll further enhance the labor shortage too.

ganderpike wrote:

Companies like Nestle, 3M, GMI that previously had low skill workers on manual lines in 2020 have now all switched to automated lines in 2021. And they have saved big money because of that. There will be a larger focus for other companies to automate work because people are such a liability. Don’t want to deal with labor shortages? Automate.

You would think with all the labor being replaced by automation, that there would be an abundance of previously unavailable labor freed up by it ? Seems backwards ?