If you were offered 31k a year to not work for the next 10 years would you say yes to that?

[Anonymous]

Let me explain. I asked a question on here a few days ago and got no responses. So I had to re-word this in an eye catching way. We all work, (hopefully if possible) we all save for retirement. But we never know what life is going to throw at us. I've always invested 15 of my income% to my retirement for the past 20 years. 4 years ago I got hurt at work. And while I'm not the definition of disabled I'm not able to do what I've done. I've lived off my savings thus far (not retirement) but with my back against the wall and 10 years before retirement I come across IRS rule 72t that stipulates you can withdraw from retirement without incurring a penalty by opening a SEPP plan. Ideally I'd like to leave that money where it is, let it keep compounding, and retire at 59 1/2 with over a million. Because with what I've got in there now I'm over half way there already. But as long as the market returns 6% annually for the next 10 years I should be able to replace what I withdraw in annual returns. Something that should be do-able since the market historically returns 10% annually (before inflation that is).

I know some responses I'll get already, "31k isn't enough". It is for me. I live pretty frugally and the standard of living where I live is not that expensive comparatively nationally.

What is your take on this? What would you do in this position? by the way, I'm not saying I can't work or wouldn't work. I'm just limited to what I can do. And not a lot has changed over the past few years. And I don't anticipate much changing. I'm always going to try to better my situation if possible.

[shortster]

Have you tried to apply for disability and were rejected? If you can get that, I would recommend it. However, I worked with a guy in a similar situation; he got hurt in a forklift when a truck driver pulled out his trailer while he was moving from the trailer to the warehouse. He worked as an accessioning clerk at the laboratory I started at. It wasn't too hard on his back since all the packages were under 5lbs; and a full rack of tubes probably didn't even get to 1lbs. The pay wasn't the best, but it was close to 31k 18 years ago.

[Asker]

I haven't. I've never wanted it. I've always wanted to earn my money ( yeah I know I'm being prideful). But equally as bad I'm afraid they'll say I don't qualify. I'm sorry about the guy you worked with. I hope he's doing well.

[Asker]

I probably will say something to my doctor at my next visit. You have to ask about disability. They not just going to give it to you. And I don't even like saying the word.

[shortster]

I can understand that. I didn't get unemployment when I got furloughed during covid.

[AviatorTom]

To live on 31k, you must be very frugal. That's not even 3k per month, maybe 2.5k after taxes.. With rents around 2k per month, how can you buy food, pay for transportation, and pay utilities on 500?

No thanks, I'll pass.

[Asker]

I figured this was going to be most people's response. You do not pay FICA on it so it's closer to 2225 per month. And the rent her is about a 3rd of that. Utilities are about 150 to 200.
So it is do-able here. I never said you'd be living high on the hog. But your necessities should be covered.

[AviatorTom]

Since you posted this question anonymously, I don't know who you are or where you live. Therefore, my response is based on conditions where I live, Southeast US. 2225 a month would be very difficult here.

[Asker]

Fair enough

[jennifer_bloom]

I have many money making ideas that could make me filthy rich but I don't have the investment capital to put my ideas into practice and I refuse to borrow money because Deuteronomy 28-30 says not to borrow money from friends or family, only banks, if you know you can pay it back on time.

[CupcakeTheDestroyer]

Fuck yeah, I’d love some UBI

[Asker]

It's not UBI. I EARNED all of this. Nobody is giving it to me.
Assume you made that money and you had it coming to you. It was just earmarked for after the of 59 1/2. And as I said. As long as the market continues to return at least a 6% annual return. That money should be replaced by compounding returns.

[CupcakeTheDestroyer]

Whatever, it basically functions the same

[AI Opinion]

Considering your situation, utilizing IRS Rule 72(t) and a SEPP plan seems like a strategic approach, especially since you’ve planned well for retirement. Given your frugal lifestyle and confidence in the market's return, this could work. However, I'd advise consulting a financial advisor to weigh the potential risks and benefits. Exploring part-time or flexible work options that align with your limitations might also provide supplemental income and a sense of purpose. Always prioritize maintaining your quality of life while balancing financial security for the future.

[genericname85]

would i be free to work anyway? or would i have to stay out of work? my first thought is: taking the money and then working part time.

[Asker]

Let me just say it's a possibility. If you read the description you can work so long as you health allows it. And that's not a given.

[genericname85]

i'd take the money and work casually. cause the work i have brings meaning to my life and i'd rather forego the money if i couldn't work instead. also it's not a "lot" of money so yeah. not really worth the consideration here.

[LiamJHayden]

No. $31K might be okay in some areas, but where I live fast food workers make more.

[Anonymous]

I would say yes.

[Deereeeee]

I would