Retirement Isn’t Just About the Numbers

So, I have been thinking about retirement more in the last six months than I have in my entire life.

Why? Well, later this year I turn 60!!!

With the realization that retirement is suddenly just around the corner, I have started taking a serious look at where things stand and, more importantly, where I want things to go.

Financially, the easiest thing would probably be to stay put, pay off the house, and keep all of that equity available for emergencies. But unless circumstances change, I don't think that's the direction I am going to take.

My current plan is to sell the house, move, and use the equity from this house toward buying something somewhere else. Since I am looking at areas where homes will probably cost a little more, I am also considering using a reverse mortgage as part of the purchase.

I am certainly not recommending that strategy for everyone. If leaving behind a large amount of home equity to your children is important to you, it may not make sense. In our case, though, we don't have children, so our priorities are a little different.

My wife is also three years younger than I am, which complicates the timing somewhat. If we move before she is old enough to qualify as a borrower, I would need to structure things so that she is protected and can remain in the house if I die first.

So Why Not Just Work Until 65?

Maybe I will.

Circumstances can change, and nothing about this plan is carved in stone. But the short answer is that if I can make the numbers work, I don't intend to wait until 65 just because that is the traditional retirement age.

Right now, I am thinking about making the move at around 62½, most likely to Delaware, Florida, or perhaps someplace else on the map that I haven't seriously considered yet.

Assuming there are no major changes involving health or something equally significant, I see three possible scenarios.

Option A: The Ideal Situation

I go to work and tell them I want to relocate and continue working remotely. They say yes.

This would allow me to move to the location where I want to spend the next chapter of my life while maintaining my current salary.

Technically, that wouldn't be an early retirement at all. But in many ways, it would accomplish what I really want: I could start living that next chapter while still earning a full salary and putting more money aside for retirement.

Will my workplace agree to it? I have no idea.

But it certainly doesn't hurt to ask.

Option B: Move and Work Part Time

If work says no, the second option would be to move anyway, start Social Security early, and find an online part-time job to supplement it.

The extra income wouldn't necessarily be about paying the basic bills. Instead, I would use it to buy some of the things I want for this next phase of life: an e-bike, kayak, fishing equipment, and other gear.

Most of those are things I can buy once and use for years.

In other words, I could front-load some of those expenses while I am still working part time. Once everything is paid for and I no longer need the extra income, I could quit.

Option C: Just Retire

The third option is the simplest.

Move, start Social Security, and retire.

Based on the numbers I have been running, I should still have several hundred dollars left each month for entertainment and other discretionary spending. I would have to watch the budget more closely, and I would probably buy some of the things I want more slowly.

But there is something very appealing about this option.

I could jump into the next chapter with both feet.

And Then There Is the Part You Can't Put in a Spreadsheet

My wife came home today from the funeral of a former coworker, and it reinforced why I am thinking this way.

Her friend was only 57.

He was diagnosed with cancer and lived only a few more months.

Things like that have a way of putting retirement calculations into perspective.

Yes, retiring early under Option B or C would mean giving up some future Social Security income. It would also mean missing a few more years of 401(k) contributions and investment growth.

I understand that.

And I may ultimately decide that working longer makes sense.

But I am increasingly willing to give up some of that future money in exchange for something I can't buy later: time.

None of this next chapter is promised to me. I know that.

All I can do is plan for it, put myself in the best financial position I reasonably can, and hopefully get to the place where I want to be while I am still healthy enough to enjoy it.

Maybe I work until 65.

But if I do, I increasingly believe it won't be from my current location!