Discuss Latest WCI Blog Post: Did I Just Retire at Age 52?

[jz-]

As we get older keeping track of all of this gets harder if mental faculties decline. I wonder which approach...bucket or AA...is harder to keep ongoing

I've wondered this too. great question.
I retired FatFire and no longer use an AA. I have 3-5 years of bucket needs and the remainder in equities. If/when I lose my mind, I'll pass the baton to one of the children.

[GasFIRE]

fwiw when I first found all of this about 5 years ago my thinking was I'd go from 90/10 on a glidepath to be 60/40 at time of retirement. For the last year or so I've switched to aim to have 3-4 yrs expenses in cash, 6-7 yrs expenses in bonds and the rest in equities. I wouldn't have an AA anymore...it'd be this bucket approach instead so if the market is on a tear and I have $5m by retirement and my expenses are $100k/yr then my AA is 80/20. But if I only saved $4m and expenses are the same then my AA is 75/25. This allows for exactly what the poster's approach is....as long as the market isn't more than 5% below peak, I'd just move some equities over to cash/bonds to make sure I have my expenses in line.

As we get older keeping track of all of this gets harder if mental faculties decline. I wonder which approach...bucket or AA...is harder to keep ongoing

This is my approach also. I’ve got 10-12 yrs worth of expenses in cash/bonds rather than aiming for some equity/bond ratio goal. This doesn’t even take into account taking SS once I hit 70. As I get older I find myself more interested in efficient asset location rather than specific asset allocation. Sufficient bucket of cash, bonds in pre-tax, Roth conversions are my concerns now.

[medicoFIRE]

What would your net worth number be at 52 to feel comfortable retiring? I’m thinking 5 million.

[JBME]

What would your net worth number be at 52 to feel comfortable retiring? I’m thinking 5 million.

It would totally depend on expenses

[JBME]

I've wondered this too. great question.
I retired FatFire and no longer use an AA. I have 3-5 years of bucket needs and the remainder in equities. If/when I lose my mind, I'll pass the baton to one of the children.

thinking about this more, I think the bucket strategy is probably easier to monitor in old age than AA. You can tell yourself or your spouse your children "okay, our expenses are $100k/yr so make sure by January 5 of year X I have $100k in the savings account." Give spouse/child username and password. Repeat the next year. If you oversaved (and most here would have) this shouldn't be an issue. If it's a costly issue I suspect it just means less inheritance

[afan]

No way I could willingly retire at that age. If forced to do so, I would not be liquidating assets. When I do retire, I plan to live on RMDs and Social Security. If I were to retire before RMD age, it would be dividends only, no asset sales.

The piece left me wanting to know why the author retired, apparently without a plan for what to do next.

[JBME]

No way I could willingly retire at that age. If forced to do so, I would not be liquidating assets. When I do retire, I plan to live on RMDs and Social Security. If I were to retire before RMD age, it would be dividends only, no asset sales.

The piece left me wanting to know why the author retired, apparently without a plan for what to do next.

It’s not outright said but I came away with he was let go and then looked for another job and couldn’t find one. Age discrimination is real. You don’t want to lose your jobs in your 50s

[Kamban]

What would your net worth number be at 52 to feel comfortable retiring? I’m thinking 5 million.

For me $5M would be my NW number needed at age 65. At age 52, I would need a bit more like $7.5M

[GasFIRE]

It’s not outright said but I came away with he was let go and then looked for another job and couldn’t find one. Age discrimination is real. You don’t want to lose your jobs in your 50s

I was actually wondering if it was burnout. Departmental politics or bureaucracy, case with a bad outcome or malpractice suit, tired or scared of the adrenaline-rush are all possible. I'm going to take his word for it.

[Kamban]

No way I could willingly retire at that age. If forced to do so, I would not be liquidating assets. When I do retire, I plan to live on RMDs and Social Security. If I were to retire before RMD age, it would be dividends only, no asset sales.

The piece left me wanting to know why the author retired, apparently without a plan for what to do next.

I find the words "toxic work environment" bandied a lot here and I always wonder 1. Is it really as toxic as it is claimed. 2. Who is causing the toxicity, the department or the person or both 3. Why could one not see it coming and take action well before it came to resigning or being fired 4, There are many unpleasant/ not ideal environments that people in medicine work in for some time without leaving and when the time is right, they switch jobs. I did that for 7 years and others can do it too. This avoids loss of income and having to live on assets prematurely.

[Lithium]

Am I mistaken, or did this article initially have the author’s name included? Now it is anonymous.

[StarTrekDoc]

I find the words "toxic work environment" bandied a lot here and I always wonder 1. Is it really as toxic as it is claimed. 2. Who is causing the toxicity, the department or the person or both 3. Why could one not see it coming and take action well before it came to resigning or being fired 4, There are many unpleasant/ not ideal environments that people in medicine work in for some time without leaving and when the time is right, they switch jobs. I did that for 7 years and others can do it too. This avoids loss of income and having to live on assets prematurely.

Typically occurs when new administration arrives with fresh new paradigms sold to upper suits and given free reign to 'change management' yet forget to engage in the basic principles of effective change management by engaging the base and leveraging proper champions.

Happened in our division a few years ago. New management and new service chief both started making very unpopular changes and failed to get opinion leaders behind it. Resulted in significant turnover (20%+) of senior faculty, failed recruitment of additional faculty that year, and additional lowering cFTE or entering discussions of early retirement. --- two years later, new management, new service chief, and a lot of fence mending between health system needed. Taken another three years to recover to pre toxic environment cFTE for the division.

[Tim]

fwiw when I first found all of this about 5 years ago my thinking was I'd go from 90/10 on a glidepath to be 60/40 at time of retirement. For the last year or so I've switched to aim to have 3-4 yrs expenses in cash, 6-7 yrs expenses in bonds and the rest in equities. I wouldn't have an AA anymore...it'd be this bucket approach instead so if the market is on a tear and I have $5m by retirement and my expenses are $100k/yr then my AA is 80/20. But if I only saved $4m and expenses are the same then my AA is 75/25. This allows for exactly what the poster's approach is....as long as the market isn't more than 5% below peak, I'd just move some equities over to cash/bonds to make sure I have my expenses in line.

As we get older keeping track of all of this gets harder if mental faculties decline. I wonder which approach...bucket or AA...is harder to keep ongoing

Bucket.
The 3-5 year cash is a “term life policy” against SORR. The behavioral issue is when to replenish it if you use it. Very comfortable feeling at 60, 70,80 or 90. In the back of your mind, if your TMF or S&P 500 actually goes to zero, just think how you will rich you will feel compared to others. The panic impulse is eliminated. Easier to stay on course.

Up for debate would be a choice, interest rate and inflation risk. Protecting that bucket.

[bovie]

Am I mistaken, or did this article initially have the author’s name included? Now it is anonymous.

Not mistaken. Interesting.

[Kamban]

Am I mistaken, or did this article initially have the author’s name included? Now it is anonymous.

Yes, he did put out his name and a photo of himself, as a columnist. Now he is anonymous. Does it make a difference since once you have put it out on the net, it stays there somewhere.