My FIRE story, retired in April 2026
Hi everyone, I have greatly enjoyed reading your posts and learning from this community over the years. As I have FIREd this year, want to give back by shaaring my own story. Please be gentle lol
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After a 32 year career – 27 at the same institution - my last day in the office was April 30, 2026. I am 54, my wife is a couple years older, all the kids are launched and mostly independent. We live in a mid-to-high COL area and plan to stay here.
I accepted a buyout package with the following terms:
· for 15 months I sit at home on my couch and continue to get paid my current salary and all the usual benefits. I cannot work elsewhere during this perio, but I am volunteering locally.
· My final salary was about $250,000
· In August 2027 I move to the pension plan for pay and medical. My first year pension salary will be $156,000 with a guaranteed COLA tied to CPI. It also has a guaranteed survivor benefit of 50%. The plan is not Fed but it is rock solid and I have no worries about.
Background, Family and Career:
Spent all my life in US east coast cities. Started working when I was 15. I graduated college in 1994 with an English degree, during which I worked two part-time jobs in technology. Two weeks after graduation, I started working full-time for a telecom company and made my very first 401(k) deposit two weeks after that. After a few years in telecom, I transitioned to a defense contracting agency doing IT and multimedia work for a couple of years. Since 1999 I have been working in IT at an international private institution.
One fun note for me: Summer 2026 was the first summer I’ve had completely free from work or school since 1987!
The year 2000 was a massive turning point for us. We got married, bought our home, and had our first child. My wife left her job to stay home full-time with our kids and has not worked outside the home since.
In 2000 we paid $220,000 for our home in the far outer suburbs, a 4-bedroom, 3-bathroom house with a finished basement on a lot surrounded by trees. That came with a **brutal** daily commute for me for 26 years (except for remote work during COVID), but staying put paid off:
- Current House Value: ~ $650,000
- Mortgage: We refinanced during COVID, currently it is $118,000 remaining at 2.375% fixed (~10 years left)
- Home Condition: In the past 10 years we have new HVAC, siding, roof, hardwood flooring, and a Trex back deck. Need to do the kitchen at some point.
Assets & Accounts
- Fidelity: $500,000 in a mix of brokerage, Roth and cash
- Lump-Sum Buyout Payout: As part of the buyout, I received a lumpsum of after-tax ~$150,000. This is currently sitting in SPAXX at Fidelity (is part of that $500k)
- Vehicles (Both Paid Off):
- 7-year-old Honda (~72,000 miles)
- 10-year-old Honda (~140,000 miles)
- Child Assistance: Currently paying $375/month for a 2026 Honda to help one of our kids
Income & Healthcare
- Pension: $155,000/year beginning August 1, 2027, guaranteed COLA indexed to CPI, a 50% survivor benefit for my spouse.
- Social Security Strategy: Plan to delay claiming as long as possible (aiming for age 69 or 70). Expecting a payout of ~$3500/month for myself given my earning history. Since my wife stayed home, we are basically planning her SSA will be $0 and take anything as a bonus.
Expenses and Plans
- All daily living expenses are covered by the pension! It will allow us to put away some extra for our next car and some travel.
- Healthcare Benefits: Guaranteed lifelong retiree medical coverage through my former employer. We estimate it will start at $525 per month based on the current year retiree costs. At 65, Medicare Part B becomes primary, the employer plan shifts to secondary coverage, and my former employer fully reimburses 100% of Medicare Part B premiums and any income-related charges for both my spouse and me.
- Children's Down Payments: Reserving $25,000 per adult child) to assist them with future house purchases and wedding costs
- Vehicle Replacement: Plan to replace the older car in the next 2–3 years.
- House plans: We need to do the kitchen and we expect HVAC replacement in ~5 years
Please let me know your thoughts and suggestions!
Questions for you
- Overall Portfolio Growth: With zero need for ongoing portfolio withdrawals to fund living expenses, we are treating th pension as a huge bond asset. How aggressive should i be with the Fidelity money - 100% equities? VT and chill?
- Investments at Fidelity: How would you structure and invest the ~$140,000 buyout payout and $50,000 earmarked for our kids across short-to-medium term horizons?
- Emergency Fund Sizing: Since our pension and retiree health benefits fully cover all living expenses with a CPI index, how much cash would you recommend keeping in an HYSA / Treasury money market fund (like SPAXX or FSIXX/FZFXX) for true emergency liquidity?