So real quick numbers...

If I retire I will collect about 1/3 of my current take home pay and can keep medical and dental.
If I rent out the primary residence, that is another 1/3 of my current take home pay.
Then if mommy works, that will be the other 1/3.

So roughly the same money, but I am not working, and live at the lake.

I'm going to read this as sarcasm. Otherwise you might want to add the expense of alimony and child support to your list.

As far as changing schools for the kids: they are so young, probably won't even notice long term.

No one here can help you make this decision... we can only offer advice and suggestions which probably have no bearing upon your situation ;)...

Except that "happy wife" thingy .... and I am single :D

Just think it through .... as I'm sure you have. When I made that decision back in '08... due to everything that was happening back then, it wasn't a "sure thing" for me either... sorta like life itself.

Best of luck BK!

This!

In my case my wife was already working at a job that gave her something to do. It's less than a mile away and is extremely flexible and she enjoys it and the people she works with. I would not ask my wife to go to work so that I don't have to.

You may want to visit bogleheads.org and lay out your retirement portfolio/plan. Lots of savvy financial people that also retired early that will evaluate your plan or you can just read what others are doing.

How much in cash or cash equivalents (stocks, CDs etc) do you have saved?
Not counting primary house and lake house, how much in other assets?

How long do you expect to live? Do you plan on paying for your kids' college? I guess, what are the huge expenses you expect in 10-20 years?

Also, inflation. Your budget now may fit what you're getting NOW. How do you plan on growing the "nest egg" for beyond 5 years?

It’s actually kind of fruitless to try to factor everything in. Best one can do is be completely debt-free, have some kind of income to cover normal expenses, have significant savings and anticipate living frugally.

All else is not controllable.

My advice is to work until it’s no longer a question, ie., ‘I’m outta here, suckas!’

Plus, doan dis da wife too bad. She can take the kids and get paid for it. Many have.

^^^^ Da Truth!

Can't imagine retiring unless could maintain the same or better lifestyle. I did not save and work all my life to have to worry about making ends meet. It is really hard to go back to work and find similar employment.

if I did not have a surplus of funds/income, the current inflation/economy would be terrifying (to a retiree). It would have been less so when I was younger.

I would not even consider sending my wife to work so I could retire. My wife retired a few years before me and I regret that. Should have had her work a little longer and a couple less years myself. She was sorta sedentary the last few years I still worked and now she slows me down when I want to do stuff/be active.

Do you want to stay home all day with your wife and kids? (This is from a single guy)

Good advice. I took a 6 month sabbatical before I retired just to “try it out”…I never went back. A few years in now and I couldn’t be happier! I’ve had several friends die unexpectedly at a very young age and that definitely factored into my decision making….you never know when your time is up! Life is short, do what makes you happy.

Life is short --do what it takes to make you happy. As per PT -- royalty ck in mail.


The truth as stated "you never know when your time is up".

when my kids were as young as yours -- retirement was a dream. Good if you can do it --though if I said I was quiting and it was Momma's turn to work --- that dog would not have hunted and I'd have become a DMF. Destitute Mother f.

That is a game changer. I rescind my vote and say NO. If you do get her to agree and then she isn't happy it is not going to be fun. Remember the old adage "When momma ain't happy, ain't nobody happy"

You’re too young, you have too many obligations, and the near future is too uncertain for you to retire now. If you work an extra year now, you’ll reap the benefits for the rest of your life. If you retire before you fully have the means, you’ll suffer the consequences for the rest of your life. And, as the sins of the father pass down to the son, so to will your decision of when to retire will affect your family for the rest of their lives.

I could have retired at 56 and eked by. Waited for 63 and glad I did. My net worth is over 5 times as much and my monthly retirement income (independent of my savings) is over twice as much...and my debt load is now quite small. So far, there are not enough hours in the day to do all I want to do (and can afford to do) although that has changed a bit with age/time. It is great to do what you want and not really have to worry about money (although after a lifetime of doing so, most folks still do a little).

I don't often agree with Mr. Fintsone, but he is right this time.

Unless a man has something to consume his time and passion for life, voluntarily retiring is over rated.

You definitely need hobbies and things to do that are intellectually challenging, that’s for sure. My in-laws retired 15 years ago and sit around watching TV and doing NOTHING all day long, and it has taken a toll….I’m an active guy by nature, so I rarely get bored. Always something to do….

I am not sure you are serious, or if you have really thought this through to the end. There are so many variables in the time ahead that giving up work at your young age and retiring that this is really a crap shoot. Don't over-rate your assets, at your age without an income you likely need at least the equivalent of several million $ in cash producing investments of some sort to weather the storms ahead. Especially since your #1 is not on-board (women are pretty smart about this stuff) and you have very young children. Inflation is out there and will blow up a lot of plans. I stayed on until 62, got the kids through school ( oh Lord, give us strength!) and like Fintsone made out pretty well.

Agree. That’s why I asked my questions.
Having no debt, and what sounds like very little in cash and income-producing assets, and expecting to live on the income he described (“a few grand a month” plus his wife’s income when she goes back to work), for potentially 40 more years seems, how can I put it nicely, “optimistic.”

You started a family late and are trying to retire early! Only guys wit big bucks are able to pull that off. All the mortals with young families I know are still at work. And it seems to keep them young!

As others have mentioned - two main issues. Young kids with only growing expenses for the next 15-20 years and a wife that doesn't want to work. Don't assume things always go well in life either. A health issue or a serious teenager problem will drain your reserves and exceed your fixed income in a heartbeat.

Also mentioned was that income is highest in your later years and a few more years should give you a lot more of a cushion. Why not commit another 5 years and reevaluate your situation then. Retiring at 57 is still early.

Good luck!

Hey BK ... I hear they're hiring down at "that" burger joint.... in case you want another "gig"...

You'd look good in that crown too ;).

Keep mama happy tho'...

Mebbe a few more years, then.... ???

I bailed because I was burned out and was NOT going to transfer to the Motor Meister of my field (outsourced IT dept) :(.

But I didn't have a wife and kids like many of my coworkers. Many bailed out when I did ... but many did not.

Only BK can answer this.... good luck!

Work as long as you can, get your wife into work, and set your kids on the best possible trajectory. Make every sacrifice you can, to leave them the best possible legacy. When you draw your final breath, the satisfaction of knowing you have done that will outweigh everything.

Sent from my SM-G988B using Tapatalk

Thanks again.
Looks like we range from "retire now" all the way to "work until you die to provide for your kids".
Im somewhere in the middle.
I started as a homeless runaway 10th grade drop out.
Enlisted in navy at 17, got out with $13.67 and a GED.
Now have a masters degree and several million in real estate.
Thinking that's a good enough legacy for kiddies.
Want to spend some on me.
I don't need more, just enough.
Have 10 building lots at the lake.
Have enough cash to build another cabin.
Then use rental income to build another.
And another.
When I die kiddies should have more than enough in rental income.
So if I can accomplish my goals without working, why not?
I realize I could have more, but really looking to enjoy my time left.
I have enough.

As for the sabbatical...
Lost my job for a few months due to vax mandate.
Worked the numbers and figured out how to manage without the income.
Went back for the money, but don't need it.

Thinking I will retire mentally but still go to work until I don't want to anymore.

^^^^ I've been reading your posts for years, knew you were a very sharp guy, watched you post about your builds, projects, lake lots, etc. and knew this thread didn't tell the whole story ;).

You've got this .... now do whatever you so desire.... just make sure the missus is on board :D

And you should be quite proud of where you are today imo.... another "success story".... and success is defined by you alone.... no one here matters.

Rock on BK!

You punked us?

Ditto on the ‘you done good’ part!

Thanks guys.
Tough road but worth it.

Getting wifey on board is the hard part.
Enough is never enough.
More more more.

So frustrating.

Here’s some unsolicited advice regarding wifey.

I would think, considering the new information regarding your family’s station in life, and because wifey will probably never find satisfaction with her working and you not, perhaps you should ask her hypothetically, of course and not including a court-ordered transfer of wealth if you evenly divided your assets, would she go to work or not? Her answer, if honest, would be quite a tell, IMO.

So you plan to raise a family on $4k a month?
Your kid expenses are just beginning.
College will cost you $500k each in 15 years.

Yes, yes he did.

Next time, please ask for OUR opinions with the entire backstory...really. My reply would have been completely different had I known the info in post #64...you wasted my time, and perhaps others.

That sucks.

Moral of the story is every man has his demons............... and he does not shuck em by telling half truths........

NOTHING IS EVER AS IT SEEMS.

I don't think BK was trying to punk anyone... jmho. No one "puts everything" regarding their personal finances and situations out here.... I sure don't. I'm sure this thread, and everyones' responses might help BK & others tho'.... gives everyone "food for thought" and certainly not a waste of time... jmo.

Except Sugarbritches' :D

But then he did.

I have no issues, just give me the real lay of the land before you ask advice on an incomplete financial data set.

Financially he will be fine if he is careful. Relationship-wise I have no clue.

Unless...

How can you own several $ million in RE and not have it pay more than 1/3 of your current income? IIRC you are in the South, where rental income vs. property value relationship is pretty favorable. 1% rule is generally achievable there? Say it is 0.75%, if you have 2M in RE, you should clear 15k gross rent a month. Or is most your RE value in land that doesn't produce income? If that's the case, you may want to shift most of it into income producing property and do it faster than your current plan of adding a cabin every few years.

IMHO the story isn't changing until your wife doesn't have to work for it to be possible. She will resent you every day she comes home and you look like you had more fun than she did. Doesn't matter if you took care of kids or RE work. Many women starting a family with an older guy have a certain idea on how that's going to go down, the guy hanging out retired and them having to work probably isn't high on the list. ;)

In the end, count your blessings on where you have arrived at with a less than ideal start and 'mentally retiring' indeed can be good. Knowing you don't need your job like someone that lives hand to mouth is a great feeling already.

It doesn’t matter how much equity BK has in real estate. He’s still too young, has too many obligations, and the future is too uncertain for him to retire now. He can if he wants, but you only pass this way once. If he retires now and things don’t go quite as he hoped, he will wish could take the decision back in a couple of years. But by then it will be too late. That’s why he should work a bit more and reevaluate in a year or two.

The answer to the question above is that BK’s real estate is in raw land, that has value, but no cash flow.

If that's the case, like I said, shift it into cash flow property before retiring. Best would be if the income was enough where the wife can stay home too. And if it was more than enough, so some of the income can be re-invested. If he really has several million tied up in land, then it could be moved over into income producing property that can enable an early retirement. I did the math. 15k gross should cover a retirement and keep him busy too because it probably would be at least 10 properties / tenants where he lives.

One of the big deals is that BK looks to have health insurance covered. That is usually a very large cost that can go up unpredictably.

G

My advice included the value of your lake property. Undeveloped property is really just the value of the land until developed (plus generally is an expense due to insurance and taxes). If your plan is to develop it into income producing property, I would do so before retiring...while you have 3/3 your current income vs 1/3/. It is easy to overestimate income from rentals (at least for me), much like projected gains from a stock portfolio; and potential income is a wish/plan (unrealized)

In your original statement, your retirement pay would be 1/3 of your current salary and you assume that you would be able to make an equal amount from renting your home. What if your wife's employment does not work out and provide the final 3rd,or the rental ends up with one deadbeat after another? You do not leave a lot of margin. Also, keep in mind that early retirement reduces your eventual social security (and your wife's)....and adds additional time to spend your nest egg.

As far as providing money for adult kids...that is their problem.

I missed the several million in RE.
$3mm at 5% a year gets you $150k of income.
Go for it. You seem frugal. Just watch out if the wife divorces you.

I was golfing last weekend with a very athletic 70 something who brought his overweight wife to the course. He was fit as a fiddle, in better shape than half his age, and she was barely able to walk around. It was such a pitiful mismatch, and I felt really bad for the guy.

What are you so busy doing?