Retirement for real at age 51?

[Trickdog]

I retired from the US Navy as a Senior Chief (E-8) in 2007. My DW and I are on Tricare Prime so we have health care covered. We are seriously thinking about Retiring and hitting the road full time in the RV next year. We plan to be debt free with a little money stashed away.

Work camping/host is an option for us to put a little extra in our pockets for beer and wine money.

When I turn 62 I might grab some SS if it's still around.

Not sure what is going to happen with my 401K when I give my 2 week notice to my employer. Roll it over to a IRA? If I can leave it in the 401K that would be great.

Has anyone else did something similar? Thank you in advance.

[Mr_D]

I retired at 51 after 30 years with the State of WA, but went back to work doing IT consulting till the late DW could retire. Then the IT market went south and I took a job in a retirement center just to keep busy. Late DW put her retirement papers in Aug 1st 2008, on the 13th her daughter died and we took in the two grandkids and she rescinded her retirement. She had been buying shares of company stock in a profit sharing plan. Then we found she had liver cancer and she died Aug 21 2016. Right now 1/3rd of my income is from that annuity.

[Logan Oregon]

We're retiring this fall (me: 62, wife: 55).

401k's will be rolled over outside of the company and into better investments anyway.

Haven't decided on S/S and whether I'll take it at 62, or hold out for a better amount later. It all depends on health, where we are in life, and family factors that we will have no control over. Right now, things are (like you) in a good place (debt, savings, etc.).

Thought about a work camping situation, but realized that we just needed to pull the trigger and enjoy things rather than worry about the money. It will all work out. Maybe we will have to pull from savings here and there, and maybe we'll boondock as needed here and there. Other times, we're going to stay in an expensive resort for a week or longer.

I'm working full time now, and to us, full-time RVing will NOT be work!

it's whatever fits your needs, desires, and how you really want the rest of your life to work out. We had, between us, some very heavy discussions (especially around family, etc.) that we had to flesh out in detail before we both felt comfortable about what we called "full-time" RV in our definition.

For us, it's about the travel, places, fun, and friends we haven't met yet.

At 51, you have a virtual lifetime of memories yet to build.

Congratulations on being able and ready!

[geoff1200]

Wife & I are retired Seabees, 22/23 yrs respectively, also nabbed a state job and retired from it at 53. Debt free and loving it!!! Our retirements and Tri-care/VA allow us to be comfortable, investments will go to the kids/grandkids. SS will just be a bonus, if it's still there.....

[Deep Water D]

The biggest problem I see is you won't be eligible for the senior's discount at Denny's for a few more years.

[Finance]

You need to understand how the investment choices in your 401k compare to those in the wider marketplace. I keep some money in a 401 that offers employer sponsored cash funds that pay better than typical money markets.

Also the ages differ when you qualify to withdraw from 401 vs. IRA without an early withdrawal penalty. It couldd be an expensive mistake to decide whether to maintain the 401 or roll it to an IRA without fully understanding those situations.

[vsheetz]

Originally Posted by Deep Water D

The biggest problem I see is you won't be eligible for the senior's discount at Denny's for a few more years.

Dennys is 15% AARP discount. Age 50 gets you into AARP. So the OP is good to go at Dennys. Most other places are higher age - so you are correct - the OP will miss out on one if the best parts of getting older - the senior discounts. (-:

[vsheetz]

The biggest problem of retiring before 65 / Medicare is of course health care. But you have that covered.

Suggest you sit down with three financial advisors to learn how they see your options.

The 401k will likely roll over into a IRA. You can likely draw an income of about 3-4% of the amount and have the principle amount stay same/increase. If you have a goodly amount there that can provide the needed income, great. If not, you will need additional income from somewhere and/or expense reduction. Work camping can be a good option.

The biggie is getting with financial advisors for discussions. IMHO.

[tizzyfit]

Trickdog, DO IT! Don't be part of the that "coulda-shoulda-woulda" group. You can always change your mind if you decide it's not the lifestyle you thought it would be. I think the primary reasons more people don't take off are not enough monthly income and no health insurance. Go see this beautiful country while you're young enough to truly enjoy it. Best of luck!

[Rotis]

I retired at 51 back in 2002, it's been great. As Finance said in his post it's very important to know the difference in withdrawal ages between the 401K and an IRA, the penalties for early withdrawal are stiff.

[Old-Biscuit]

I retired at 50 yrs of age....15 yrs ago

Debt free

Standard VA Medical

401K had been rolled over into private investment
Took a monthly 'income' via a 59 1/2 age program........once started could NOT change anything about it until I had reached the age of 59 1/2 yrs old or met some other requirement.

At 62 took SS Early and drastically reduced monthly 'income' withdrawal amount

Was able to do this because my MOM taught me at an early age to 'sock $$' away
That and 'MAX Contribution' with company's retirement programs.

Enjoyed my job........actually got a big kick out of doing it
BUT Dang ----Retirement IS the best 'job' I have ever had.

There is so much more to life then working
DO IT!

[Jim_HiTek]

Retired at 58, 14 years ago. For no reason other then having seen several acquaintances retire and then drop dead a couple years later. Working at a large heavy industrial manufacturing company you see that a lot.

Have VA for medical full coverage having been in Viet Nam. Sold my paid off home before the big crash and lived off that money for 8 years until I could get full SS at age 67. That was a squeaker and I had to cash in my paid up Life Insurance policy to make it the last 3 months before SS kicked in.

Rolled my 401K over into an IRA because advisors told me it's better that way based on income. You can always open a new 401K if you decide that's best for you.

After 14 years, I'm still happy about the choice to retire early. Have gotten to do the kind of stuff most people only dream about or only do a week or two at a time during each year. Always have the time to take my time.

[tizzyfit]

Originally Posted by Old-Biscuit

I retired at 50 yrs of age....15 yrs ago

Debt free

Standard VA Medical

401K had been rolled over into private investment
Took a monthly 'income' via a 59 1/2 age program........once started could NOT change anything about it until I had reached the age of 59 1/2 yrs old or met some other requirement.

At 62 took SS Early and drastically reduced monthly 'income' withdrawal amount

Was able to do this because my MOM taught me at an early age to 'sock $$' away
That and 'MAX Contribution' with company's retirement programs.

Enjoyed my job........actually got a big kick out of doing it
BUT Dang ----Retirement IS the best 'job' I have ever had.

There is so much more to life then working
DO IT!

Taking Social Security at age 62 is a less amount granted, BUT you are getting monthly benefits for 4 or 5 years longer than if you had waited until age 66/67. Do the math, the cross-over is usually in the 12-14 year range depending on COLA's and Time Value of Money. If you know the exact date you'll Croke, it makes it much easier to figure out when to start drawing SS.

[Finance]

Originally Posted by Jim_HiTek

Rolled my 401K over into an IRA because advisors told me it's better that way based on income. You can always open a new 401K if you decide that's best for you.

You may want to fact check that.