Retire or keep working

[G G]

I just turned 60 this month. I am about 80% decided to draw my social security at 62.

So I am thinking about retiring soon. I do pest control on what I would say is really a part time basis. I can usually get all my work done between the 12th and the 15th each month.

My wife gets her SS each month, and I also get a State Retirement which is not a huge amount but not bad.

We also rent my dad's place for $1600 a month. We aren't rich at all, but we have enough money to do what we want with traveling and such. We don't live an extravagant life at all.

I also have a 50 amp hookup, with electric, water, and sewer I could rent for about 6 to 700 a month if I choose to do it.

After my dad died I inherited a 50K IRA, and the rules on that is you have draw it down to 0 in ten years. We have invested that and my guy tells me that we can probably make around 12 to 18% on that money.

We also invested just south of 100K in a separate IRA and on that one we went a little less risky so maybe around 12% on that one.

I am not a stock market guy but we did all this just before the tariffs and whatever else happened and the market has been more down than up. We lost quite a bit right away then gained most of it back.

The only payments we have each month is my 2021 Truck, and our Travel Trailer. Those two together are $1050 a month, and the guy who helped us do the investments said it makes more sense to just keep paying the monthly payments instead of paying them off because we stand to make more percentage on the investments are than the interest rate on two vehicles.

So, just looking for any ideas, or someone's experience with retiring early? Pros-Cons?

Thanks

[Wharf Rat]

I retired at 62 and have never regretted it.

It strikes me that your assumed rates of earnings / interest are way too high by a factor of 2 or 3. I’m not saying that you can’t find somebody who claims they can make that. But, it’s likely too risky to be prudent. For comparison, a 90 day Tbill gets a little over 4% and dividend stocks might pay 2% to 10% depending on risk.

When you are working, you have new money coming in every month to spend or invest. When you retire, you largely don’t and you need to protect your capital because there’s no way to make it back up. So, there’s a psychological change that’s necessary. What sounded like a hot but risky investment idea no longer makes sense.

Best of luck!

[Porch Dweller]

I retired early and never regretted it a single second.

[Chainsaw13]

Originally Posted by Porch Dweller

I retired early and never regretted it a single second.

Same here. Retired at 53. My financial advisor has cautioned me against it, but I’m making it work. I find I spend a lot less now.

[icehog3]

If you can get your jobs all done in 3-4 days a month, Greg, aren't you mostly retired now anyway? :s

I retired from my full time gig at 54, and then have worked part time for the last several years. That may end in 7 days when my school closes permanently. I took SS at 62.

I am trying to think of a con.

[G G]

Originally Posted by icehog3

If you can get your jobs all done in 3-4 days a month, Greg, aren't you mostly retired now anyway? :s

I retired from my full time gig at 54, and then have worked part time for the last several years. That may end in 7 days when my school closes permanently. I took SS at 62.

I am trying to think of a con.

Actually I probably work 8 or 9 days but am done for the month by the 12 to the 15th of the month. Def haven't decided yet, just wanted to hear the ins and outs.

[Weelok]

Originally Posted by G G

Actually I probably work 8 or 9 days but am done for the month by the 12 to the 15th of the month. Def haven't decided yet, just wanted to hear the ins and outs.

As I debate this while my peers and family retire, I am on the side of it’s better to have money coming in and maximize your own time with something you enjoy. I picked up skiing and take Fridays off to ski.

I am healthier being active and trying to force that. Skiing is expensive and I like pricy booze.

Now I have a deer tag so new rifle and scope. Money money plus I need to hike a LOT more.

For now, let the money in investments grow while I work and play.

My thoughts and internal debates.

[longknocker]

I Agree With Bob, Wharf Rat. You'll Do Good To "Average" 7% A Year Return Over The Next 30 Years. Retirement Is Great! I Retired @ 69 And Sometimes Miss A Little Extra Income Coming In, So I Would Advise Working PT For Awhile As Long As You Don't Hate It.

[G G]

Originally Posted by Wharf Rat

I retired at 62 and have never regretted it.

It strikes me that your assumed rates of earnings / interest are way too high by a factor of 2 or 3. I’m not saying that you can’t find somebody who claims they can make that. But, it’s likely too risky to be prudent. For comparison, a 90 day Tbill gets a little over 4% and dividend stocks might pay 2% to 10% depending on risk.

When you are working, you have new money coming in every month to spend or invest. When you retire, you largely don’t and you need to protect your capital because there’s no way to make it back up. So, there’s a psychological change that’s necessary. What sounded like a hot but risky investment idea no longer makes sense.

Best of luck!

I don't think I ever really figured I would make those kinds of returns either. It certainly hasn't returned anything since we put it in. In fact right away it lost a ton, and slowly made its way back, and now is down at the moment. I have thought seriously about buying gold and or silver with it. I don't really know much about(as you can tell) about investing as we are newbies but should have been doing it for decades. I am leaning towards keeping the job cause it's the easiest job I have ever had and I am pretty much on my own with no supervisors following me around, the owner has treated me better than any job I have ever had so it's not a hard call to keep working, since it's basically part time and most days I probably make anywhere from $50 to $75 an hour if we were going by hourly rates. So it's really a no brainer. Plus the fact that I doubt very seriously I would find enough to do for the whole month to keep me from going crazy. LOL.

I appreciate all the advice so I imagine I will stay with it at least until 62 and may even put off drawing SS at 62 if I am still able to work.

[Porch Dweller]

Originally Posted by G G

I don't think I ever really figured I would make those kinds of returns either. It certainly hasn't returned anything since we put it in. In fact right away it lost a ton, and slowly made its way back, and now is down at the moment. I have thought seriously about buying gold and or silver with it. I don't really know much about(as you can tell) about investing as we are newbies but should have been doing it for decades. I am leaning towards keeping the job cause it's the easiest job I have ever had and I am pretty much on my own with no supervisors following me around, the owner has treated me better than any job I have ever had so it's not a hard call to keep working, since it's basically part time and most days I probably make anywhere from $50 to $75 an hour if we were going by hourly rates. So it's really a no brainer. Plus the fact that I doubt very seriously I would find enough to do for the whole month to keep me from going crazy. LOL.

I appreciate all the advice so I imagine I will stay with it at least until 62 and may even put off drawing SS at 62 if I am still able to work.

That's a great reason to keep working; I'd probably do the same. I was pretty unhappy at my last assignment so it made the choice to retire very easy for me.

[jledou]

Originally Posted by G G

I don't think I ever really figured I would make those kinds of returns either. It certainly hasn't returned anything since we put it in. In fact right away it lost a ton, and slowly made its way back, and now is down at the moment. I have thought seriously about buying gold and or silver with it. I don't really know much about(as you can tell) about investing as we are newbies but should have been doing it for decades. I am leaning towards keeping the job cause it's the easiest job I have ever had and I am pretty much on my own with no supervisors following me around, the owner has treated me better than any job I have ever had so it's not a hard call to keep working, since it's basically part time and most days I probably make anywhere from $50 to $75 an hour if we were going by hourly rates. So it's really a no brainer. Plus the fact that I doubt very seriously I would find enough to do for the whole month to keep me from going crazy. LOL.

I appreciate all the advice so I imagine I will stay with it at least until 62 and may even put off drawing SS at 62 if I am still able to work.

If you are new to investing, I would recommend trying to read a book or two, and potentially interview an advisor or two. There are a lot of differing opinions and views, fees, structure etc for advisors so doing a little pre-work on different thoughts before talking to someone can help you figure out what is more comfortable in your mind.

My personal example, I managed all of my own until a couple of years ago when it hit me that my wife would not be comfortable continuing to manage it if something happened to me so we started working with an outside advisor who had the same philosophy as us. For context, we are very close to 100% in ETFs and mutual funds but we have a longer time horizon to retirement (10-15+ years).

I am enjoying all of the discussion, I look forward to thinking about the same in 10 years.

[icehog3]

Sonds like you've made your decision, Greg. I wish you health and happiness in whatever you do.

[BigDawg]

Originally Posted by G G

I don't think I ever really figured I would make those kinds of returns either. It certainly hasn't returned anything since we put it in. In fact right away it lost a ton, and slowly made its way back, and now is down at the moment. I have thought seriously about buying gold and or silver with it. I don't really know much about(as you can tell) about investing as we are newbies but should have been doing it for decades. I am leaning towards keeping the job cause it's the easiest job I have ever had and I am pretty much on my own with no supervisors following me around, the owner has treated me better than any job I have ever had so it's not a hard call to keep working, since it's basically part time and most days I probably make anywhere from $50 to $75 an hour if we were going by hourly rates. So it's really a no brainer. Plus the fact that I doubt very seriously I would find enough to do for the whole month to keep me from going crazy. LOL.

I appreciate all the advice so I imagine I will stay with it at least until 62 and may even put off drawing SS at 62 if I am still able to work.

Sounds like you've got a good plan. I "retired" from 40 years of teaching when I was 62 and started collecting my pension. I had an opportunity knock on my door and I picked up a remote working job where I actually made more that I did when I was teaching. Like you, with little supervision.

I'm 68½ now. Last time I looked, if I wait until 70 to start collecting, my check jumps about $800/month. So that's the plan for now.

On the other hand, one of my best friends was a union pipefitter/welder and retired at 60. He has his pension, which added his projected SS benefit until he turned 62. He just turned 62 and is now collecting both pension & SS. He has never looked back.

So, it can work quite well either way as long as you plan well and have a nice rainy day fund set up for emergencies.