Comments on: Working Yourself Into Semi-Retirement http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Jim http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45307 Jim Wed, 28 Jul 2010 03:34:10 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45307 I've really enjoyed reading your blog about retirement income. I'm 61 yrs old and, I suspect, being gradually edged into retirement by market forces within my (TV Production) business...I'm wondering what I will do in the near future. With my income declining, more competitors entering the business every day and with no retirement savings or pension to speak of it is not a happy prospect. My children and wife are young..loving, supportive & understanding but "Daddy" is running out of correct guesses and dumb luck. As an American my biggest expense will be health care for my aging body and for my family. As Canadians with a National health plan you are blessed..despite its' pitfalls it is far superior to what we must deal with here "in the south". The lurking anxiety of unexpected injuries or long term health problems is a national nightmare for us. This will take every ounce of brainpower,blarney,luck,planning and ambition I will be able to harness in coming years. I wish you luck..Thanks for your comforting blog. Very Sincerely, Jim....Philadelphia, Pa I’ve really enjoyed reading your blog about retirement income. I’m 61 yrs old and, I suspect, being gradually edged into retirement by market forces within my (TV Production) business…I’m wondering what I will do in the near future. With my income declining, more competitors entering the business every day and with no retirement savings or pension to speak of it is not a happy prospect. My children and wife are young..loving, supportive & understanding but “Daddy” is running out of correct guesses and dumb luck. As an American my biggest expense will be health care for my aging body and for my family. As Canadians with a National health plan you are blessed..despite its’ pitfalls it is far superior to what we must deal with here “in the south”. The lurking anxiety of unexpected injuries or long term health problems is a national nightmare for us. This will take every ounce of brainpower,blarney,luck,planning and ambition I will be able to harness in coming years. I wish you luck..Thanks for your comforting blog. Very Sincerely, Jim….Philadelphia, Pa

]]> By: WealthWorm http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45101 WealthWorm Fri, 16 Jul 2010 12:55:55 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45101 I don't think I could go into retirement and never work on projects. I would be way too bored. For me, it is about having the freedom to do pursue what you are really interested. Even travelling and working at the same time. I don’t think I could go into retirement and never work on projects. I would be way too bored. For me, it is about having the freedom to do pursue what you are really interested. Even travelling and working at the same time.

]]> By: George http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45093 George Thu, 15 Jul 2010 22:07:11 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45093 I'm the "tail-end charlie" in my family, with my brother being 19-years older and my sister being 10-years older. Mom turned 90 this year and is still lucid, but not sharp-as-a-tack and has bouts of confusion, so I'm handling her finances. She never expected to live this long! I’m the “tail-end charlie” in my family, with my brother being 19-years older and my sister being 10-years older. Mom turned 90 this year and is still lucid, but not sharp-as-a-tack and has bouts of confusion, so I’m handling her finances. She never expected to live this long!

]]> By: Retired Syd http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45090 Retired Syd Thu, 15 Jul 2010 16:09:07 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45090 I think there's another option too--full-blown retirement followed by future "employment" (either paid or volunteer) sometime down the road (after a break). Having been retired for 2 1/2 years now, I think it's great to have some time off to figure out what you'd like to be doing next. With so many years available in front of me, I'm sure I'll get involved in some volunteer or paid endeavors, but I'm not pushing it. Just seeing where retirement leads me . . . I think there’s another option too–full-blown retirement followed by future “employment” (either paid or volunteer) sometime down the road (after a break). Having been retired for 2 1/2 years now, I think it’s great to have some time off to figure out what you’d like to be doing next. With so many years available in front of me, I’m sure I’ll get involved in some volunteer or paid endeavors, but I’m not pushing it. Just seeing where retirement leads me . . .

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45085 Canadian Dream Thu, 15 Jul 2010 12:21:49 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45085 @Matt, True. I didn't include the value of compounding since really any/all money you take home could be compounded. If you work elsewhere and invest the money the same effect is possible. Also I should point out even if you put in the extra work you would not necessarily get that extra raise. JMK, That was somewhat like my original plan, use the extra money from work to fund fun things. Now I'm not so sure. Basically the barrier between 'retired' and 'working' is blurring so bad that I'm not sure when I'll cross it until it likely happens. George, Yes, plans always change. I know I have to keep redoing my retirement calculations annually since life keeps shifting those numbers around on me. Thanks for the story, I personally didn't think of elder care as being a potential pitfall until you mentioned it. Tim @Matt,

True. I didn’t include the value of compounding since really any/all money you take home could be compounded. If you work elsewhere and invest the money the same effect is possible. Also I should point out even if you put in the extra work you would not necessarily get that extra raise.

JMK,

That was somewhat like my original plan, use the extra money from work to fund fun things. Now I’m not so sure. Basically the barrier between ‘retired’ and ‘working’ is blurring so bad that I’m not sure when I’ll cross it until it likely happens.

George,

Yes, plans always change. I know I have to keep redoing my retirement calculations annually since life keeps shifting those numbers around on me. Thanks for the story, I personally didn’t think of elder care as being a potential pitfall until you mentioned it.

Tim

]]> By: Robert http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45076 Robert Thu, 15 Jul 2010 00:25:17 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45076 George, your mother is lucky to have you care for her. It's funny how unforeseen events can change our plans, isn't it? George, your mother is lucky to have you care for her. It’s funny how unforeseen events can change our plans, isn’t it?

]]> By: George http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45075 George Wed, 14 Jul 2010 23:37:37 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45075 When I was single and mentally ready to toss aside the day job, my plan was that I would have gone the part-time route while living in a paid-for house. Then I got married, the pension rules changed, we needed a larger house, and my aged mother needed a higher care level... all of which meant my expenses and potential expenses went up, so what was a 2-3 year plan has morphed a decade later as a different plan. The current plan has me in golden handcuffs with the pension until 5 or 6 years from now. The house could be paid off in 5 years, but, if all goes well, I'm making more by not paying it off until I exit employment (no later than 2019). I also can't exit employment until mom passes away, in case she outlives her money. So sometime between 2015 and 2019, the deed will be done (preferably sooner than later). When I was single and mentally ready to toss aside the day job, my plan was that I would have gone the part-time route while living in a paid-for house. Then I got married, the pension rules changed, we needed a larger house, and my aged mother needed a higher care level… all of which meant my expenses and potential expenses went up, so what was a 2-3 year plan has morphed a decade later as a different plan.

The current plan has me in golden handcuffs with the pension until 5 or 6 years from now. The house could be paid off in 5 years, but, if all goes well, I’m making more by not paying it off until I exit employment (no later than 2019). I also can’t exit employment until mom passes away, in case she outlives her money. So sometime between 2015 and 2019, the deed will be done (preferably sooner than later).

]]> By: JMK http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45070 JMK Wed, 14 Jul 2010 15:06:41 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45070 I intend to be in a position to retire by December 2020 at the latest. Better than expected investment returns or picking up an extra PT job to knock down the morrgage even sooner may move that up by a couple of years. At that point I could completely stop working, but I expect when the time comes I won't want to. Instead I expect I'll do contract or temporary work in the summer when I want to be home to garden. Then I'll travel for 1-2 months in the fall and be home again over Christmas. Then I'll head out again to a warmer climate from mid Janauary to early April when I'll head home to get the garden started for another season. My retirement plans include funding for some travel ($10k/yr), but continuing to work full time but only for several months at a time will fund additional travel, or allow for some more exotic adventures. For me working full time for a few months and then hitting the road will work better than working PT year round. It's probably the same amount of income but it will allow me to do extended periods of travel. I intend to be in a position to retire by December 2020 at the latest. Better than expected investment returns or picking up an extra PT job to knock down the morrgage even sooner may move that up by a couple of years.

At that point I could completely stop working, but I expect when the time comes I won’t want to. Instead I expect I’ll do contract or temporary work in the summer when I want to be home to garden. Then I’ll travel for 1-2 months in the fall and be home again over Christmas. Then I’ll head out again to a warmer climate from mid Janauary to early April when I’ll head home to get the garden started for another season.

My retirement plans include funding for some travel ($10k/yr), but continuing to work full time but only for several months at a time will fund additional travel, or allow for some more exotic adventures. For me working full time for a few months and then hitting the road will work better than working PT year round. It’s probably the same amount of income but it will allow me to do extended periods of travel.

]]> By: deegee http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45067 deegee Wed, 14 Jul 2010 14:00:40 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45067 Besides the compounding that Matt mentioned, other benefits besides pension (if you have one whose benefits are not frozen like at my old company) are related to pay raises. Those would include matching funds for 401(k) contributions, cash balance accounts, company stock distributions, and SS benefits (if you are under the cap in the benefits formula). That being said, I agree that working harder for a measly few hundred dollars a year is not worth it if you don't really need the money to survive or buy/do stuff you really want. Back in the 1980s and for most of the 1990s, my raises were at least 2%, often 3% over the average raise. But after I got burnt out in 2001, I switched to part-time work with the same company, an option you did not mention. Reducing my net pay by about 40% still covered my expenses with room to spare because I had paid off my mortgage in 1998. Still not satisfied, I reduced my pay further in 2007 by reducing my hours by about another 25% and it still covered my expenses, this time with very little room. However, my growing investment income was always there in case I needed it. Meanwhile, I was just waiting for the remaining pieces to fall into place for an early retirement. One benefit or working part-time was watching the value of my company stock continue to rise, so when it hit a certain amount I simply retired in 2008 at age 45 after 16 years of full-time work and 7 more years of part-time (i.e. semi-retired) work. In short, you can progress from one option in your final paragraph (semi-retirement) to the next one (full, early retirement). Besides the compounding that Matt mentioned, other benefits besides pension (if you have one whose benefits are not frozen like at my old company) are related to pay raises. Those would include matching funds for 401(k) contributions, cash balance accounts, company stock distributions, and SS benefits (if you are under the cap in the benefits formula).

That being said, I agree that working harder for a measly few hundred dollars a year is not worth it if you don’t really need the money to survive or buy/do stuff you really want.

Back in the 1980s and for most of the 1990s, my raises were at least 2%, often 3% over the average raise. But after I got burnt out in 2001, I switched to part-time work with the same company, an option you did not mention. Reducing my net pay by about 40% still covered my expenses with room to spare because I had paid off my mortgage in 1998.

Still not satisfied, I reduced my pay further in 2007 by reducing my hours by about another 25% and it still covered my expenses, this time with very little room. However, my growing investment income was always there in case I needed it.

Meanwhile, I was just waiting for the remaining pieces to fall into place for an early retirement. One benefit or working part-time was watching the value of my company stock continue to rise, so when it hit a certain amount I simply retired in 2008 at age 45 after 16 years of full-time work and 7 more years of part-time (i.e. semi-retired) work.

In short, you can progress from one option in your final paragraph (semi-retirement) to the next one (full, early retirement).

]]> By: Matt http://blog.canadian-dream-free-at-45.com/2010/07/14/working-yourself-into-semi-retirement/comment-page-1/#comment-45065 Matt Wed, 14 Jul 2010 12:51:37 +0000 http://blog.canadian-dream-free-at-45.com/?p=1921#comment-45065 I think the one you are forgetting is that the raise is compounded annually...so really it isn't 800-1600. In 10 years of compounding that 1-2% it might work out to more like 20,000$ which would turn that 122 hrs of extra work into a pay rate of over 150$/hour! I think the one you are forgetting is that the raise is compounded annually…so really it isn’t 800-1600. In 10 years of compounding that 1-2% it might work out to more like 20,000$ which would turn that 122 hrs of extra work into a pay rate of over 150$/hour!

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