The Last Mile to the Starting Line

I have been fortunate to get an engineering degree and be professionally employed for 37 years. I had grown up expecting to retire close to 70. In the early years of my career I had more engagement, optimism and aspirations. I am an inventor, creator, problem solver, and leader.

My later years into management, bureaucracy and office politics became the albatross and having to course through a minefield most days. While an introvert does not prevent one from leading others, it was more taxing on my than others. The ends had justified the means most of my career; work was supposed to be laborious. The realization that the end was near made me rethink that those compromised “means” we’re not justifiable any more.

Roughly half of my career was spent in my current company. I feel blessed and grateful for the benefits offered… as well into retirement. Years of matching retirement 401k and a pension added up. My recent realization of the option to continue healthcare coverage into retirement was the last piece to the puzzle. I had enough tenure and was of age.

Having studied, modeled, discussed and challenged the possibility of early retirement—it now seems ludicrous to remain working at my current employer if it does not make me feel fulfilled or appreciated. Hints and conversations with my wife were gently rebuffed, that I should consider working until both kids were out of college—out seven more years. Later she was more encouraging (and empathetic to my work culture). During one family dinner she interjected “did Dad share that he’s retiring early?” with a smile. A great relief to have my family’s support. And even the option of an early retirement for her when she is ready. I could look for a new job, but at 59 to join a new company and adapt and perform—I’d rather consult or find part time work or volunteer.

Having worked 17 years at company A, I have reason to transition into early retirement mid-year.

I would take advantage of my employer retiree health plan continuation—which is still more affordable than ACA for a family. [For this benefit alone, gives me great relief. We remain in my company’s plan and can elect changes each year, as an employ, unsubsidized. I can choose the family plan until kids reach 26, I can elect Medicare discount at 65 remaining on the same company plan and still cover my family at a lower cost. I believe I can cover my wife indefinitely.]

I have deferred income for the first 5 years, and my wife would like to work until 60 (5 more years) or go back to school.

I would be 59.5 yrs old shortly after retirement and can withdraw from pre-tax 401k & IRA with no penalty. I will confirm with my tax CPA or retirement advisor, but if our 2027 taxable income is below $206k or $394k, we would be taxed at 22% or 24% Federal, respectively. Potential to execute Roth Conversions until age 75–eliminating heavy RMDs that may push us to a higher tax bracket.

While our house has a low fixed mortgage (interest rate of 2%), we will likely consider relocating after our youngest is out of high school—three years off. We currently have more than doubled our investment, net after sales costs and taxes. We would plan to find a single story, spacious home for adult kids or visitors. More yard or 1/2 acre at best. We would hope to have no mortgage.

I would delve deeper into my craft and hobbies. We would hope to be close to community, culture, music and the arts.

This is just my prologue, for my friends and visitors. This journal of my “second chapter” is as much self-therapy, anthropological evidence if this experiment bodes well.

Standing at start line.