Retirement Journey

Retirement Journey

At age 58, I decided to retire after working 32+ years in computer technology, all in the Bay Area, CA. I am sharing my retirement decision journey and some experiences from the last two years of post-retirement life. You have to look for answers yourself.

The 3 BIG Questions I Needed to Answer (for Retirement Decision):

1. Why should I retire or not retire?
2. Do I have the financial capability to retire?
3. How will I spend my time?

There may be many other questions, but let's start with these key questions. I will share my thoughts. You have to think about yourself.

Why Should I Retire?

In November 2022, I convinced the company to lay me off with a package instead of someone else. I initially decided to take six months off and then consider the next steps.

In January, I came across this article, "Would You Trade Places with Warren Buffett?"

I read the article but did not spend much time thinking about it.

Thinking about the next step, I decided not to start another company; it’s a long-term commitment. I was thinking of working for a maximum of 3-4 years. I started receiving inquiries from my network and was considering joining an early-stage startup as CTO. I asked for one month to decide.

I reread the “Would you Trade Places with Warren Buffet?” again. The following curve awakened me.

As an immigrant who arrived in the U.S. in the late '80s and started a family, I’ve always been aware of how quickly time passes—it’s the same for everyone. At this point in life, dwelling on what I could have done holds no interest; it’s in the past. Instead, my focus is on the kind of experiences I want to create over the next 15–20 years (hopefully), before my health begins to decline.

What Experiences Do I Want?

• Continue my hiking adventure.
• Travel 3-4 months a year.
• Spend time with family and friends, especially with my father in India.
• Continue writing books (children’s books).
• Increase my involvement with the non-profit organizations I was already part of.

Answering the BIG Questions

1. Why should I retire?
   If I wanted the experiences described above, the answer was clear on my next step. I should retire or do a part-time/flexible job.
2. How will I spend my time?
   This would not be a problem for me because of all my activities (hiking, gym, reading, writing, travel, social activities).
3. Do I have the financial capability to retire?
   This was the key question I needed to answer.

Do I have the Financial Capability to Retire?

If you start thinking, “How much money do I need to retire?” here are some key factors I started with:

• No mortgage (the house is paid off).
• No college expenses (kids are done with college).
• No debt (besides monthly credit cards).

For me, there was another benefit. My daughter got married in 2021—that was a big expense (Indian parents imagine). So, my financial needs boiled down to the following criteria:

Living Expenses:

• Monthly home expenses.
• Health (until Medicare).
• Property tax.
• Travel expenses.
• Helping family/charity.

Long-term Expenses:

• Money for my son’s marriage (when it happens).
• Safety net / Inheritance goals

The next most important task was to discuss this with my wife:

• What are her goals and expectations?
• What would she like to do?

We had several discussions and found ourselves mostly aligned. Together, we decided to focus on travel and the specific experiences we each wanted—some shared and some unique. However, she emphasized the importance of ensuring our financial stability before moving forward (living expenses as well as the ability to help out kids).

Financial Analysis

I asked my friends in the Bay Area about annual living expenses (with no mortgage + kids' education requirement). The answer I got was $120k–$250k minimum. One person even said $400k (crazy wow!), but the median was $120k–$150k. Next, I decided on the lifestyle we wanted. 

I looked at my last 2 years of expenses to estimate an annual expense target and found the median value was perfect for me. I used a Google Sheet to capture income (401k/IRA/savings) and Social Security (age 65/67) and calculated. I also discussed this with my financial advisor to ensure my calculations were accurate.

In the Bay Area, you need a minimum of $2.5M–$3M (not $20M, as the same $400k person claimed). This does not include long-term safety net or inheritance goals. Strike a balance—work towards financial security for your kids while still enjoying life yourself.

With all my questions answered, I decided to retire. 

Post-Retirement Analysis

After financial and time issues, the next 2 challenges I faced were:

“Self” anxiety

Before retirement, I had a “Title”.  On LinkedIn, when I saw many friends doing amazing things and advancing in their careers. I was feeling guilty about “no action and “no new fancy title”.  Some friends' company stocks were doing great and here I was using my savings money.  After a few months, I switched off “notifications” from LinkedIn  (I don’t use FB or Instagram). I realized that all these do not have much meaning .. when the time was right, it had value but not anymore - would a “title” give me more happiness?  I am happy with my career - a progression from an engineer to an entrepreneur   (may not be too successful from the world's point of view) but learned a lot - made many friends, and impacted many young engineers. Of course, it was luck and the grace of God which guided it.  

Slowly, I let go. It’s nice to be a normal, ordinary person (New title: “retired”). I check LinkedIn once in 2-3  months or when someone requests my help. 

  

“Spouse” alignment

Now that we are home all the time, we need to make sure each of us has time separately and also time together like going to parks, and museums, …  It took some time to get that alignment. It is probably the easiest but needs to be discussed.  

Retirement has been great!

• Traveling 4–6 months a year.
• Hiking in the USA and internationally.
• Published 2 children’s books.
• I still wake up at 5:00/5:30 AM and sleep at 9:34 PM (don’t ask why 9:34—it’s a long story).
• Reading and writing.
• Joined "Promise A Future," a non-profit, in addition to what I was already involved with.
• Going to Gym and doing Peloton
• Picked up some new areas of interest.
• Some goals I set for myself have been inconsistent, but I’m working on them.

Financial Verification

I captured my expenses for the last 2 years in Google Sheets to make sure my estimate and actual are aligned, and they are, which was great! 

Reflection

Finally, in January this year, I read Bill Perkins’ book “Die with Zero”, which was more in-depth in the thought process and analysis than the article. It confirmed that I had made the right decision.

Key Takeaways from the Book:

1. Maximize Life Experiences, Not Wealth: Invest in memory dividends. Don’t delay living fully until retirement; use your money earlier in life when you have the health and energy to enjoy it.
2. Strategically Plan Giving: Instead of leaving money to heirs after death, give it to them while you’re alive so they can benefit when they need it most.  Kids will need the most help when they are in the 26-40 range. 

His main point is: “Avoid Dying with Excess Money”; create "memory dividends"  NOW so that you will cherish them when you’re old.

There’s no point in not enjoying travel or going to a Michelin-star restaurant but leaving millions for your kids. However, there’s a fine balance. It’s the story of the grasshopper and the ant—we all want to leave our kids in better shape, just as our parents did for us. You have to find the right balance.

Summary

This is my experience. Each of us has a unique situation and requirements. My goal was to share a real-life perspective of my experience.