This week I am revealed as a hypocrite.
On this blog, I write about my vague plans to retire, or cut back on work.
I know don’t yet have enough money put away to give up work altogether–not unless I want to skip medical coverage, give up on my plans to travel, and flirt with anxiety over whether my funds will last.
But I do have enough that I should not need to put any more away for retirement. That is to say, if I never added another dime to the pot, in 12-15 years, as long as the markets give average returns (not the 20+% returns of 2020), I should have enough to support myself and Mr. PiN comfortably. Some people refer to this as Coast FI.
I also put money away every month in retirement funds and in my “secret” savings account, so clearly I don’t spend my entire paycheck. I have plenty of room to take a pay cut if I want to work less, which I do after these tough 15 months of COVID.
I decided it was time to walk the talk last week. I spoke with the senior administrator, asking for a salary projection for different proposed work schedules.
However, when I reviewed the proposed salaries, it became clear that I am not yet ready to put my money where my mouth is.
One of my options would cut my salary significantly. In order to maintain our current standard of living, I would have to stop 403(b) contributions and just about all monthly savings in after-tax accounts. We would have to be a lot more careful about spending in the PiN household, and I am not 100% sure we could manage some of the expected-unexpected expenses that crop up periodically (e.e. fixing or replacing the central AC, roof, fridge, or car).
The next option would not be so difficult financially. I could max out my 403(b), or choose to contribute enough to get the employer match while still saving enough after taxes to smooth out our spending over the year. Financially this doesn’t seem so bad, though the associated reduction in work doesn’t seem worth the financial hit.
I realized this week I am not yet ready to give up that much money if I am still going to have to go to work.
The administration and I are still in discussion, we can look at a few more scenarios.
I am looking for an elusive balance: to cut back enough to make my life better, but not so much that I get worried about money.
I suppose I am looking for the Goldilocks solution. Have you found yours yet?