Four Month Countdown to Freedom and Early Retirement
Retired in 2019
Countdown is running
Well, we did it! We declared financial independence! Debt free. High wealth. Approaching sixty. Over the magic 59 ½ threshold for accessing IRAs, 401(k)s, and 403(b)s without penalty. Wanting to focus less on make-work and more on what we want to do. Gave notice effective December 31, 2018. So, the countdown to freedom and early retirement is on!
Aging with Freedom™ Roadmap
We have a plan, a roadmap to stay on track with our trifecta of Aging With Freedom™: High Wealth, High Health, High Purpose™
Each track has stations to achieve to create a successful life in retirement with the freedom to enjoy choices about how and where to live well. Some of the stations are on just one of the tracks. Others are shared between two or all three tracks. For instance, living below our means is a necessary station for not just High Wealth, but High Health (fewer worries), and High Purpose (serving others).
We’ll share our roadmap and the stations along the way. Maybe it will help you plan for independence and Aging With Freedom™. Maybe it will help you pull the trigger knowing when you have enough for the retirement lifestyle you can choose. The roadmap works regardless of your age. Or whether you are contemplating an early or late retirement. This is how to know you have enough to succeed, not just financially, without a regular paycheck.
Stations Still Ahead
There are still some stations we must check-off between now and going live with retirement. Two big ones:
- Health Insurance between now and Medicare at Age-65. Our recent blog article on this topic struck a nerve with a lot of readers. We’re apparently not alone in seeing health insurance as the wall between us and early retirement. After running the numbers, we know what it’s going to take. Ironically, the “reformed” health insurance market forces us to limit income between now and Medicare to stay eligible for premium subsidies under the Affordable Care Act. That is, one goal is not making too much We don’t want to go over the Obamacare subsidy cliff. We know the options. Now it’s time to choose. We’ll share the pros and cons and our final rationale (at least for 2019 – the rules keep changing) with you.
- Non-investment Income between now and Social Security election. We could live off our investments using the traditional 4% rule with a high probability of making it to 95. Alternatively, we could use a 3% withdrawal rate and make it with near certainty. While we have a significant nest egg, accumulated the old-fashioned way. We live below our means. Pay ourselves first (save and invest). Spend less than we earn. Our goal is to defer drawing income from the investment portfolio until after the next recession. The timing of that first draw matters. That means making money from less than full-time employment in the meantime. We’ve got a plan. Now to put it into action.
60 is still “Early”
Yes, our “early retirement” isn’t as early as some millennials. We’re in our late 50s. Dan is on the verge of 60 this Fall. Lori is still flaunting her youthful good looks and is a few years behind. But we’re still “early” because neither Social Security or Medicare are accessible for several years.
But it’s time to get off being dependent upon the fickle employment market and control our own destiny. Counting on an employer to protect your best interests? Not a winning strategy. Rewards for loyalty are out of style. So it’s back to the private sector as entrepreneurs for us.
We’re planning success working together as we’ve got complementary skills. And we’re a good team.
Follow our daily countdown and steps along the track to financial independence starting January 1, 2019.
Medi-Share Cost-Sharing Health Coverage
Our next to do? We’ll examine Medi-Share® and similar religiously sponsored cost-sharing, health coverage as an option rather than individual health insurance within the government-run marketplace.
Countdown to early retirement
110 Days to January 1, 2019, and FIRE – Financial Independence and Retirement!