I did what your Dad did. I took early retirement and didn’t work a year because of taxes and the inability to shelter basically a year’s plus salary.
Then, I became an independent contractor/consultant, and made good money. However, due to the taxes including both sides of my FICA, I was clearing about 48%. My wife came up with the concept of depositing every other check into a money fund to pay my quarterly taxes.
Part of my retirement plan/pay was I got my estimated SS pay early until I turned 62. Then, I lost that monthly payment and actually went on SS at age 62.
Our cpa was an anti tax hawk, and she told my wife and I that if I continued to consult, with the penalties re levels of income and FICA pay, we would be really penalty/taxed with my pension, fica, my wife’ income other incomes.
My wife wasn’t ready to retire, and our CPA told her that if both of us worked and got paid at the same level, it would be like having her ride in the back of my pickup and throwing money away.
So for the first year, I only worked to the level before getting penalized by SS.
About halfway through that first year, we decided to that I would stop the consulting as the air travel had gotten hard to take and we didn’t need the income.
In the meantime, my CPA said to enjoy the time off and to study hard to become my own financial advisor for my wife and I.
So I stopped consulting and became our financial advisor, which has worked so far.
My wife opted for more vacation time and a 3 day week at her work.
When she turned 70.5, she went to working one day a week as she had to start taking withdrawals from her iras. This is/was a hard concept/adjustment for most of us. Instead of maxing out payments to your IRA or 401k, you have to start withdrawing on a regular basis.
So, we in your words of wisdom have been kinda going Galt for awhile, and now we are see our capable younger relatives/friends doing the same thing.
“This is the kind of “Going Galt” that I’ve been seeing (heck, I’ve been DOING) for a number of years. Lots of people not completely off the rails like in Rand’s novel ....but only pulling along at about 50% of their capacity. “
It's been awhile, but my dad cleared 40% at his margin, if memory serves. Being an independent and paying both sides of FICA is a real backbreaker, for sure.
Otherwise, you and he could have been interchangeable.
I just got off the phone with him. He and my youngest (who goes to visit at least a couple of times a week) are playing "Matchbox cars and Green Army Men". Sounds like a far better way to pass the time to me, than sitting in a cubicle farm somewhere spitting out code.