[Damian]

If you have enough money to cover your debts and monthly living expenses but don’t have anything extra, it may not be the best time to retire just yet.

Consider these factors before making a decision:

1. Emergency Fund: Do you have a solid emergency fund in place? Ideally, you should have 6-12 months’ worth of expenses set aside for unexpected situations.

2. Healthcare: Will you have health insurance coverage in retirement, and have you factored in rising healthcare costs?

Medicare may not cover everything, and out-of-pocket expenses can add up quickly.

3. Longevity: Depending on your age, you may need your retirement savings to last for 20-30 years or more.

If you’re breaking even each month without room for extras, you might not have enough for unforeseen future expenses or lifestyle changes.

4. Lifestyle: Will you be able to maintain your desired lifestyle with your current income? Think about things like travel, hobbies, and helping family, as these can require extra funds.

5. Inflation: Prices for goods and services increase over time, so you’ll need more money in the future to maintain your current standard of living.

If you’re close to retirement and still able to work, it might be worth holding off until you’re in a more secure financial position where you not only cover your debts and expenses but also have some flexibility.

[Trevis]

Are you saying that you have a cash flow source that is not work…which generates enough money to cover your exact monthly expenses, but no more?

If so, I guess maybe? But don’t forget about taxes and annual expenses. Also medical assuming you currently get it from your job.

[Brian]

Depends. How old are you? When you say “nothing extra”, is that before planned savings or after?

Would you consider being semi-retired and work part time?

[Nathan]

No, you need a contingency. Otherwise an unplanned emergency expense will wreck your plans

[Kerry]

What happens when you need a new furnace, you need a new car with a down payment, you have an unexpected medical expense?

Do you get a loan for these expenses or put them on a credit card?

Now do you have an additional

loan payment each month that you can’t cover?

[Curtis]

There’s more you need to factor in such as inflation, increasing medical expenses as you age, and surprise expenses.

[Guillermo]

Inflation or an unexpected emergency will destroy you. Need a little extra cash flow always.

[Caroline]

You look young , I’d stick out your current job as long as you can. Make sure you have a 6-9 month emergency fund in a HYSA and that you’ve gone over your plan with a professional with fiduciary responsibilities.

Make sure you go over your plan with housing and medical and what you’ll be doing for those options.

I’d wait until you get to the point that you have at least 1000 extra each month and then maybe switch to barista or something else that you enjoy that maybe pays less

[Jessica]

There will always be emergencies if you own a home. Our house, not exaggerating at all, had about $50k in unplanned repairs in an 18 month time period.

It was a Murphy’s Law year.

So having enough to pay the bills but no extra to put into savings could quickly take away your debt free status if a bunch of things come crashing down at the same time with home, health, etc.

[Tom]

If you are talking current expenses vs potential investment income, then maybe you could take your foot off the gas and maybe slow down.

Take a job that is more fun but less pay yet covers expenses so you don’t tap in to your investments just yet.

Things we don’t know:
Your age.

Flexibility in spending.
Your overall health.
Etc.

[Heather]

My parents both retired with nothing other than social security. Do not recommend.

[Laurie]

No way. Do you want to retire and not go anywhere or do anything? You’ll be worried every month.

[Coby]

Take a year off as a test. I was in a similar position. Took a year off, had a $1000 emergency about 6 of those 12 months. Now I am better informed. Good luck!

[Ben]

I wouldn’t. There’s inflation, emergencies, life events, and you probably want some enjoyment. These issues will come up.

For example, you will need home or car repairs since those won’t last forever.

[Shawn]

How old are you? Could you work enough to cover extras and inflation? It’s not a good plan if you only live on the portfolio.

If you have a plan to supplement it I think you could make it work.

[Author]

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