A friend from work called me tonight to see how I was doing. “How are you enjoying your retirement?” she asked. “Well, so far, I’ve been very busy,” I said. She wanted me to know that school opened as planned and all went fairly well, almost as well “as if you’d been here!” Well, surprise! The world didn’t end because I left. One thing I know and have known for quite a while: we are all replaceable and life goes on, as it should. But my life goes on, too, and it is evolving, and growing, and getting better.

My friend said, “We all miss you so much!! It’s just not the same!” “Oh, I miss you guys, too!” I say to be polite. The truth: I didn’t miss being there AT ALL, although this does not mean I don’t care about the people I worked with. I do care, but there is so much I do not miss and will not miss. Yet, I cannot say this without hurting feelings, so I am careful with my words.

I will not tell her that on Monday, the opening day of school, I woke up at 7:15 a.m., a time I normally would have been at school. I made a delicious pot of coffee and leisurely enjoyed it on the patio while I read. The morning air was clean and crisp, the birds at the feeder were flittering and chirping, and I reveled in the moment…. not having to be anywhere or do anything until I decide differently.

Yesterday was my first official day of retirement and it feels a little weird to not have a million problems to solve, meetings to attend, and tasks to complete… but it was a great day. In the morning, I spent two hours at a local spa, getting pampered. One great massage and deluxe pedicure later, I met DH for a romantic lunch at an Italian restaurant that we love. The best part is that I used gift cards that were given to me as retirement gifts, so I did not spend any money.

Today, I am looking forward to having lunch with a friend whom I’ve not been able to see for a while. She’s been asking to take me to lunch or dinner in honor of my retirement. Well, now that my “retirement” is finally here, I think the best part is that I have choices. I’ve heard said that change is hard, especially if like me, one is retiring from a position of great responsibility (I was the administrator at a large urban school with over 800 students and 75 employees).

For me the key will be to continue to be productive and to have a purpose greater than just “playing” all day long, although I do have to get better at playing, too. For so many years, my job took prominence in my life until I realized I did not have balance and my health was affected. All work, no play. So, in retirement I will strive to enjoy a life with more balance, a life that is simple but at the same time, rewarding. Next week I will begin to research volunteer opportunities.

To help me “transition” to retirement, and to give me the opportunity to continue working in my field, I have accepted a part-time job working at the local university (same one where DH works). My job will require working about 1 day a week, and on certain weeks, it will be about 1 ½ days if I have a meeting or training to attend. My PT job begins Thursday, but I am looking forward to it. I began my career in education as a teacher, and now I am back to being a teacher… a role that gives me great satisfaction.

Today DH and I went to a class offered by the public employee’s retirement system he belongs to. It was very informative…. One good thing we learned was that he can increase his pension by buying service time for the two years he served in the military during the Vietnam War. We are looking into how much it would cost and then we’ll determine if it is financially sound to buy this extra service credit. We also found out that his employer will pay for our health benefits after he retires. This is a great benefit considering the high cost of health care today. DH is thinking about retiring at the end of the academic year in 2009 or 2010.

Since I am retiring later this month, yesterday I bought a new laptop for my personal use. The laptop I’ve been using for the last two years is very nice but it belongs to my employer and I will be returning it. My employer gives all administrators a new laptop about every three years and mine has gotten very heavy use. I knew the replacement laptop would have to be a Mac because it has been my preferred platform since 1986. The downside is that Macs tend to be pricier than many PCs, but my computer is one of my most important tools I use and I wanted one I know how to use well.

My new laptop is the same model as my old one… a MacBook Pro. It has an Intel Core 2 Duo Processor (it’s fast!!), and more memory than the old one (2 GB RAM and a HD w/ 200 GB). I can really tell the difference in how quickly it processes. The best deal I found was at the bookstore of DH’s university. They gave us an educator’s discount ($250 off the price), a free iPod Touch ($299), a free printer ($185), and 3 years of Apple Care for $183 (regular $349). I also bought the right to use MS Office for $25, so I am all set.

I had budgeted $2500 for the new laptop and came in well under... and I also now have a free printer and iPod. The iPod is going to be given to my DSS and the printer will be donated to my previous school as we do not need another one.

On another note, I am accepting a part-time job working for the university one day a week, just enough to keep me out of trouble. My job will be to supervise student teachers and I am delighted that I’ll stay connected to my field (education). The position is temporary, for the fall semester and possibly the spring. As long as DH continues to teach, it means we will have the same calendar so we will be able to coordinate all our days off.

10 things that helped me to decide about retiring…

1) I listened to my doctor who said stress was ruining my health;
2) I took a class offered by my retirement system to help me understand all options;
3) I learned by reading and researching information on all aspects of retirement (financial, emotional, health care, etc.);
4) I calculated my defined benefit pension amount plus income from other sources (TSA, 457, IRAs);
5) I developed a realistic retirement budget that includes saving at least 15%;
6) I “practiced” living on my retirement budget for six months, using my lower pension amount instead of my monthly pay;
7) I made a list of monthly “retirement enjoyment” activities and their cost (factored into #5) and estimated the cost of annual travel since this will be an important activity;
8) I got input from my family (encouragement), my accountant (tax consequences), and my financial planner (analysis of investments);
9) I talked to as many retired people as I could about life after retirement (the majority said they have no regrets);
10) I made a list of the “pros” and “cons” of retiring… and, the “pros” won by a huge margin.

While I won’t be officially retired until late August, I look forward to retirement as a time in my life where I have more time, less stress, and better health. After 30 years of working in education, I still feel the need to continue teaching and learning. So, I will definitely keep learning by participating in experiences such as those offered by Elderhostel or by taking or teaching classes. It will be interesting to see how I feel about retirement a year from now.

When I decided to retire, the hardest part was to tell my staff and my community. After 8 years as principal of a large, culturally and linguistically diverse urban school, I have made many wonderful friends, have had many challenges, and many successes. Over the years, my school has been the recipient of several national and state awards, in part because we are a community that has learned to work well together.

Some people may think that I chose to retire because I didn’t like my job, or my health was bad, or I was moving…. Actually, it was none of these. Even though I had a job I LOVED and that paid very well, its very nature created more stress in my life than I was willing to live with at this point in my life. With over 800 students and 65 staff members, the pace was fast, the problems and issues constant. I chose to leave on my terms: while my school was thriving and I still had enough energy to tackle other projects and plans.

So, in late-May, on the day I informed my staff of my retirement, there were many tears, good wishes, thanks, and laughter. I did not want a lot of fanfare … it is not my style. I just wanted to go quietly. Nonetheless, I agreed to a “dinner” in my honor, hosted by my staff at a local restaurant.

To my surprise, this dinner was actually an elaborate retirement party attended by about 85 people, friends and colleagues from the last 15 years. There were videos, surprise VIP guests, entertainment, memory books, great food, orchids galore, and more. It was a wonderful celebration that I will never forget. Some “regrets” I have: because the party was planned in less than two weeks, some people at previous schools were not invited (obviously, I did not control this), and I feel badly that there are some hurt feelings. Also, I would have insisted on NO GIFTS (had I known). All in all, it was a lovely and memorable evening and I feel honored to be recognized in this way.

was completed yesterday. Now I just have to take a form to HR to sign off on the information about the number of sick leave days I have accrued. I learned I have enough days that it gives me an additional year of credit. This is good because since I am taking early retirement, my defined benefit amount will be reduced by 33% of what it would have been in three years. Still, it is WORTH IT considering the amount of stress I am leaving behind. I have seen too many people work longer just to hold out for a higher pension, only to die within a year of retiring. Last year, two of my coworkers died before even being able to retire. By saving and planning in the early years of my career, I now have more choices.

I have three more paychecks before I retire: June, July, and a smaller one is August. Due to my retirement, I will not be able to contribute to my 457 or 403b after August, thus falling short of the maximum allowed contributions for the calendar year.

To remedy this, yesterday I arranged with the payroll department to deduct more from my last three paychecks so that I will meet the maximum allowances for the calendar year. This will result in much smaller paychecks but I will make up the shortfall by eliminating any deposits to my regular savings, and if need be, making withdrawals from my savings.

Most of my tax-sheltered accounts will earn interest until I am 70 ½ and then I will have to begin mandatory withdrawals. One investment is a Roth and another is a non-qualified annuity, and these can continue to earn interest without concern about mandatory withdrawals. One of my goals in retirement will be to monitor these accounts more closely to ensure I get the best interest rates available to me.

two years ago brought a lot of stress, the good, the bad, and the ugly. In anticipation of retirement, we sold our family home and moved into a smaller two-bedroom townhouse in the same city.

The good: it was a financially sound move because we cut our housing expenses in half. DH and I are a blended family… I have two daughters and he has a son and a daughter from previous marriages, all of them now grown and gone. We had bought the family home when we married (his children were still in school and mine were in college by then). Once the nest was empty, we wanted out of the expensive upkeep of a five-bedroom house with its large “high maintenance” back yard. Our timing was good because the house sold quickly, and currently homes are not selling at all in our area.

The bad: we had way too much stuff! Some people by nature can be packrats, but I could not believe what we had accumulated over the last 20+ years. I still had income tax returns from 1983 and cancelled checks from 1969! DD1 tipped us about using a professional shredding service (hospitals routinely use them), so for $5 per banker’s box, we safely got rid of obsolete financial and personal papers. Condensing 11 rooms into 5 smaller ones was a challenge. We gave away our extra furniture to friend who had just bought her first house in exchange for help with sorting and packing. We donated 25 boxes clothing and household items to Goodwill and our collection of children’s literature to the library. Although friends suggested a garage or yard sale, we simply did not have time because of the escrow deadline. A yard/garage sale would have been a moneymaker, though, and I would not hesitate to do it in the future.

The ugly: DH wanted to rent a moving van and move with the help of friends and family, but fearing for his back, I insisted on hiring professionals. The movers I found online, and who seemed very reputable, ended up charging us 50% more than the quote… they justified it by re-shrink wrapping all the furniture we had already prepared for moving. They charged an exorbitant amount for the materials and held our furniture hostage until we paid them. So, a move of less than 10-miles cost much more than it should have because I didn’t do my homework and didn’t ask the right questions. If we hadn’t already moved all the items we could transport by car, it would have cost even more.

Although I occasionally miss my roses (I had 50+ bushes that bloomed until November), my tiny patio is just the right size for me to easily maintain. MC, my 18-year- old kitty, formerly an indoor/outdoor cat, at first had some adjustment problems to an indoor-only life but he eventually settled in. We love living in our smaller, cozy townhouse that will give us the freedom to travel more in our retirement.


MC always finds the best seat in the house, er...patio.

Preparing for retirement required setting financial goals and monitoring them periodically. One of my goals was to have at least 80% of my net working income in retirement. Through careful planning this will be accomplished. Now as retirement gets closer, I decided to set new goals in retirement. These are not in any particular order:

1) Spend the equivalent of one day a week doing volunteer work;

2) Spend more “quality” time with family and friends;

3) Focus on getting healthier: lose 20 pounds and prepare more nutritious meals;

4) Continue to save 15-20% of my retirement income. This fund will be used for big-ticket items such as vacations, replacement car or appliances, etc. and would be used before the “Emergency Fund” is tapped;

5) Consider doing some part-time consultant work IF the work interests me AND I have too much time on my hands;

6) Continue learning… take classes, read more, get involved in causes;

7) Each year, travel to one of the places on my list of “Places to Visit Before I Die”;

8) Spend more time enjoying container gardening in my patio;

9) Get involved in online forums that appeal to me;

10) Write that mystery/suspense book that’s been lurking in the creative recesses of my mind for years.

For those of you already retired, do you have words of wisdom to share? What were some challenges? Any regrets or advice?

did have bumps and potholes along the way but nonetheless, I always kept an eye on the destination. Now, my philosophy has changed… the “destination” (retirement) is really just a fork in the road and journey continues but on my terms. While I have made many mistakes (and hopefully learned from them), I will share a few things that have had a positive impact in the overall scheme of things:

1) Paid myself first. No matter how little I was earning, I always made it a habit to put a few dollars in my savings each payday. This was part of my monthly budget. I didn’t touch this money unless I had a dire emergency (but it was there when I needed it);

2) Began to plan for my retirement at a very early age. I started my first IRA when I was 22, later added a Roth IRA, a 403b, and a 457 plan. Now, at the end stage of my formal working career, I am able to deposit the maximum allowed into these accounts;

3) Asked is this a want or a need? Years ago, as the single mother of two young daughters, resources were limited, so I researched big purchases (e.g., new car, TV, computer), lived frugally, and managed the family budget carefully. I looked for bargains and sales whenever possible (still do) and always asked, “Is this a need or a want? Do I love it? Do I need it now or can it wait?” Delayed gratification builds will power and helps cut impulse buying (most of the time).

4) Taught my daughters to be financially responsible. They always received a small allowance to help them learn money management and I required 25% to go into their savings. They had many chores and responsibilities at home, but these were not connected to receiving an allowance. It was how they contributed as members of the family… chores were done whether they received an allowance or not. Now, as adults, they are financially solid, one is an ICU nurse, the other a biologist, and both, along with their DHs are well on their way to financial freedom with their own retirement and savings accounts. I will not have to worry about supporting or subsidizing adult children in my retirement years.

Well, there is more but I will save it for another day as this post is long enough! I much appreciate the supportive comments and know that I am in good company here.

I have been following this blog since January '08 and am very excited to be joining this interesting group of like-minded frugalites. After almost 30 years in education, I decided to retire... three years short of the "optimum" time. The decision came after much reflection that focused on questions such as: How long can I survive all this stress? How much $$ do I really need to live a decent life in retirement? What other options do I have? THIS BLOG helped me to make one of the most important decisions of my life: I will be officially retired in August of 2008. My hope is that through this forum, I can learn and share tips to maximize resources in retirement. One thing I'd like to share today is a very good book I recently read: Don't Retire, Rewire! by Jeri Sedlar and Rick Miners. It is a must read for anyone seriously considering retiring soon but is looking to stay connected to work about which you are passionate.