# I'm 53 and want to quit!



## wind power

Hi Folks,
I have a question for those self employed.
Last year I earned about 40K after supplies/expenses in a internet home based business....this was while I was working full time too on my day job.
My Home is paid for, we have no debt other than taxes and ( home owners insurance)...my wife does not work and I have a 11 year old child.

I have a little 401k savings..not bad but not a golden parachute by any means....no tropical island vacations when I retire , that's for sure! I will plan on retring from the work-a-day world and focus on my business regardless at age 62

Our Child's college tuition is essentially paid for when the time arrives because my mother-in-law left my wife some money which the wife earmarked for our kid's tuition.
My question is:
Is it possible to leave my job( ...today, tonight...tomorrow) and focus my efforts on making my business my only occupation and still be able to afford health insurance ( possibly through the affordable heath care act?) 

Im nervous about taking the plunge at my age ( 53-1/2) and leaving a crappy day job to venture into my own business.
Thanks for the help folks!​


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## DEKE01

Why don't you try living only on your home biz income for a year. Keep at your day job and save every last cent of that pay. If you do this without cheating and can survive, then you have a good chance of prospering after quitting the day job. 

You also need to take a tough look at your home biz and ask our self if it can be grown, if any of your income from this past year was not repeatable.


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## thesedays

Here's a website that might be of interest to you:

http://www.earlyretirementextreme.com


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## wind power

Hi Deke01,
I would love too, that's a great idea, but here's the rub: they have increased my hours so much at my current job that it will be impossible to keep my home business going. Im desperately trying to find another job which will more than likely pay less but allow me the flexible hours I once had.
If I can get lucky on other employment soon I will try that method....at the moment time is critical mass for me....this pressure is not a good feeling..its like I know what I need to do, but don't want to take the plunge.


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## wind power

Oh one other question folks.
On the affordable health care act, can you apply the government subsidy each month or do you have to wait till the end of the year at tax time?
How does that thing work?


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## FarmChix

DEKE01 said:


> Why don't you try living only on your home biz income for a year. Keep at your day job and save every last cent of that pay. If you do this without cheating and can survive, then you have a good chance of prospering after quitting the day job.
> 
> You also need to take a tough look at your home biz and ask our self if it can be grown, if any of your income from this past year was not repeatable.


We are in the same situation. Hubs wants to retire. We are "pretending" like he has no income and seeing if we can do it. You do want to try for an entire year, IMHO, just because of the fluctuations up and down in any home-based business. By putting those monies created from your day job into savings, it will also give you more of a pad later, should something unexpected pick up. The biggest issue we have are those incidentals like car repairs, insurance, medical bills, etc. Hubs had knee surgery in November and the medical bills are STILL rolling in. Just when I think they are all paid, another shows up. *ugh*


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## simi-steading

If I knew I could make 40K clear with my own business I'd leave my job.... Where I live now I could never survive off 40K, but, since were moving somewhere it will cost very little to survive, I know that 40K would support us.... 

As far as the health insurance, I wouldn't sweat it unless I knew I needed care now. WE're already going to be dropping our healthcare when we move since we're quitting our jobs and get it through work......

I would imagine if you made that part time, imagine what you could do full time... 

Do you mind if I ask what the web based business is?


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## tkrabec

wind power said:


> Hi Deke01,
> I would love too, that's a great idea, but here's the rub: they have increased my hours so much at my current job that it will be impossible to keep my home business going. Im desperately trying to find another job which will more than likely pay less but allow me the flexible hours I once had.
> If I can get lucky on other employment soon I will try that method....at the moment time is critical mass for me....this pressure is not a good feeling..its like I know what I need to do, but don't want to take the plunge.


Can you push back at work , and ask for less hours?
have you read 4 hour work week, by timothy ferris?


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## Guest

If you have to wonder can you get by on $40k a year, you probably can't. If you have to wonder if your internet business will be there in a year, best wonder if your regular job will be there in a year, too.

We get by just fine on $7200 a year social security. Our job is living, not spending. Our health insurance plan is: eat right, drink plenty of water, get plenty of sleep, and no stress. My "insurance" keeps me from getting sick a whole lot better than paying money does.


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## TheMartianChick

Like regular health insurance through your job, you can jump onto the ACA (Obamacare) insurance at any time if there are extenuating circumstances. Those might include the loss of a job (for any reason) or the loss of coverage through your spouse's employer due to job loss or whatever. You can check out the premiums for the ACA insurance with no obligation here: www.healthsherpa.com. It isn't the official site, but it does pull its information from the government site without forcing you to jump through a whole lot of hoops. If you state isn't represented, just choose another. It will give you a ballpark figure and help you to learn where the subsidies cutoffs are.

While I know that many espouse the idea of living and eating right as a way of remaining healthy, the reality is that it doesn't always work for everyone. Anyone can have an accident or a health problem through no fault of their own. A good diet doesn't necessarily minimize cancer risk if you are genetically earmarked to get it.

When it comes to your retirement money: If it is in a 401k, there is an exception for those individuals who are 55 years of age or older. It allows you to withdraw funds without getting hit with the early withdrawal penalty as long as you are no longer employed by that particular employer. That may be able to serve as a backup plan for your family, should you decide to take the leap and try to survive on the income that your business provides.

If your money is in an IRA, then there is another exception, but you must take substantially equal withdrawals for a number of years in order to access the money. (Scott SW Ohio just clued me in to that one!)

I've spent the last 13 years as a small business counselor for a non-profit organization. There are a lot of questions that you should ask yourself before cutting the day job. Small businesses are usually the first to feel the pain when something goes wrong in the economy. Would an economic downturn cause your company to fail or is your business something that everyone needs? Is your business based upon a current fad or will it still be viable 10 years from now? Is your business something that you spouse could run in your absence? What would happen to the business if you died tomorrow? Would your household cease to have an income? Do you have a continuity plan or can the business be sold to generate income for your family? These are just a few of the questions that you should be asking. 

My husband will be retiring around this time next year. He will be 57 and I will be 44. I suppose that you could say that I retired about 2 years ago when I left to pursue writing full time. I still volunteer with my prior employer and maintained that relationship as a back up plan. I could always go back as a full time employee, but have no desire or need to do so.

When the majority of your bills are paid off, you find that you really don't require much money to live on. Tally up your expenses and see how little your household actually needs. I'm a firm believer in having a back up plan...and a back up to the back up plan. Saving up an extra year of pay sounds like it would help to create a better cushion and improve your odds of success...and long-term success is what this is all about!


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## thesedays

zong said:


> If you have to wonder can you get by on $40k a year, you probably can't. If you have to wonder if your internet business will be there in a year, best wonder if your regular job will be there in a year, too.
> 
> We get by just fine on $7200 a year social security. Our job is living, not spending. Our health insurance plan is: eat right, drink plenty of water, get plenty of sleep, and no stress. My "insurance" keeps me from getting sick a whole lot better than paying money does.


It's no guarantee. If your income is that low, you should be eligible for Medicaid, and if you're 65, Medicare of course.


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## Guest

What's a guarantee is that if you depend on the government, insurance companies, or the medical industry more than you depend on common sense, you'll be dead and broke, both, at the same time. Wake up, dreamers. You can't let yourself run downhill for decades and think insurance or doctors will save you. At that point. you ain't worth saving. What would you do if you survived anyhow? Lay on your donkey and watch TV? Life's for the living. If you want it, work at it.


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## Horseyrider

Retiring without adequate savings scares me to death. I want to have enough to make 4% to live on. Relying on the government scares me to death. I don't want to count on Social Security. Relying on an internet business for my livelihood scares me to death. Internet businesses, even really big ones, come and go with lightning speed. Ever hear of anyone being on MySpace anymore?

I have a friend whose husband retired a little early, too early to get the maximum pension. He was in a job he really hated, one that grew over the decades from one in which he felt competent into one in which he did not. The stress was horrible. One day he simply turned in his notice. Rather philosophically, his wife said it beat having a dead husband. Now both of them work full time in different menial jobs to make ends meet. They're content with their choice because they feel it was the only rational one left for them to make. Yet I do worry for them about the years ahead, as inflation and health challenges have a way of really eating you up. They have a lot more years....

I don't know if your reasons for wanting out of the workforce are like my friend's, or for some other reason. But if you were my spouse or family member, I'd say it's too early to quit. If the job you have isn't good anymore, perhaps a lateral move? If people live well into their 80s these days, you're only about halfway through the working part of your lifetime. Can the first half support the second half?


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## countryfied2011

If it doesn't work out, would you have a problem finding work? The only way you will know if it works is give it a try. 

When my company offered 60 of us an early retirement package, I was pretty nervous about it and scared. Although in my mind I had been ready for a year to two before hand to get off 3rd shift(worked 17 yrs) and was tired of the long drive of 45 minutes one way. I was making very very good money, DH was already retired unofficially because he had a year of vacation/sick time built up with the firehall that he had to take that first. After praying about it and talking with DH...I took the plunge. We both retired July 1 2012 and havent regretted a single day of it. We live off his pension and SS and my little pension and live a good life. I have a IRA and DH has a 401k and we have a significant amount of money saved. We dont live high on the hog and we grow a lot of our food, and our children are grown.

I really think this is something that you and your wife need to decide, if the Lord thinks it is a good idea...the door will open for it to happen. I knew in my heart that what I did was the right thing. YMMV

Edited to add, I was 56 when I retired DH was 62--also we had no debt including no mortgage


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## countryfied2011

Wind Power, just food for thought...if you went into work today and they gave you notice that you no longer had a job...could you survive? In today's job market--nothing is guaranteed, including insurance. I never thought in my wildest dreams that my company would offer an early opt. People had been there as long as 40 yrs, turnover was very minimal, and they made money every year and it was a non-profit organization. So you just never know. I might have to go back to work one day...but I will worry about that day when it comes. Life doesn't come with guarantees except for dying, if it is to be than it will be. Good Luck with whatever you decide~


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## Highground

Only advice I can offer is what Granddad told me years ago...........
"If you can't save money after you retire, DON'T"

So far it's worked for us. Good luck in whatever you decide.


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## TxGypsy

Take inflation into account! I was listening to a financial advisor on the radio the other day and he was saying that they can pretty much insure that if you invest X amount of dollars with them that they can get you X amount of return, but the one thing they couldn't do was control inflation. The cost of everything is going up at an alarming rate. So you need to figure out if your income/funds can keep up with inflation.

Prices have gone up enough that it is tempting me into going back into business. Since my business is bees and is what I really love to do, well it will be like playing all the time. I am fortunate that I have the capital to invest in equipment. However, if something happens, I know that I can get my investment back out of my equipment. That is always something to look at when you start spending money on something of this nature.

Inflation can work for you if you are smart. I recently bought a brand new tractor. Why didn't I buy used? Used tractors are within $1,000 of the price of a new tractor in this area if it is something that isn't a bucket of rust. With the rate of inflation, I have no doubt that I can sell this tractor in 4 or 5 years and at least make back the money I spent on it. Plus by buying it new I got a new warranty and the special they were running was 4 year of no cost maintenance and they will come to my ranch to service it! Something to take into consideration while making your decision.

Oh, and, I retired when I was 35 :happy2: It can be done, especially if you have no debt.


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## Jenny

You might check out this blog too. This is one of my favorites!
http://www.mrmoneymustache.com/

Love his approach and attitude. If you want to make it happen, you'll most likely find a way.


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## TheMartianChick

I love Mr. Money Mustache. You can sign up to get the newsletters right in your email!


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