So, I now have a copy of the contract for my retirement and severance package, following it previously being approved. I will hand in the document in person on Monday. I will still be employed for the next six weeks. The severance package follows a standard formula and amounts to about AUD 255k after tax. That would be similar to working another two years full time. I think Financial Samurai would approve:
- I reached financial independence - I will only need to spend less than 2% of net worth initially. That is Ed Thorp's retirement rule. Still, I don't go 100% in equities. I don't want to go through the GFC holding all equities again. I think it is possible to get equity-like returns with much lower volatility.
- I'm retiring early - at 60, which is less than 67 and very early for people in academia.
- I got a severance package.
- My wife is still working part time. 😎
My life won't change that much, actually. I won't have to teach or go to meetings I don't want to go to. I won't feel guilty about doing other stuff when I am supposed to be doing my job. Like right now 😀 But I wasn't scheduled to teach again till next July, once I finish this year's teaching in late November. I was actually scheduled for 2 months leave in December and January, to use up my "leave balance". But I will still be supervising PhD students, doing journal editing for the next year, and doing some research stuff.
What will change at Moomin Valley? I will probably going back to tracking net worth regularly, as this will be an important number. Obviously, I have been tracking it, but I haven't been reporting on it in the blog except on the NetworthShare widget. The "retirement number" - net worth at the end of November, plus the severance that I will get in December will also be important to keep in mind.
P.S.
Interesting discussion with Karsten Jeske, where he admits that he hasn't sold any shares and would find it difficult to do, despite all his research on safe withdrawal rates:
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