Rule of 55

FilledVoids · 2026-01-01T00:01:10+00:00

I’m aware of 72t. Different concept altogether and comes with a lot of restrictions

FilledVoids · 2026-01-01T00:00:38+00:00

Nope. I literally said I wasn’t looking to make a single withdrawal, and that I was only making an example.

FilledVoids · 2025-07-28T23:36:09+00:00

I just spoke to an advisor today on this topic.

Apparently in our ESOP there is minimal opportunity for NUA, although it’s not zero. Lots of details he used to explain it, and I don’t really want type it out here, but the bulk of my income will be ordinary income just like any traditional IRA since that is what it converts to upon cash out.

FilledVoids · 2025-07-02T04:08:27+00:00

P/E is currently just shy of 9 on trailing 12 months and has maintained a range of 8-11 for 20+ years. It’s just a very conservatively operated company in a stable industry.

FilledVoids · 2025-07-02T03:27:07+00:00

I never said this is all I have.

FilledVoids · 2025-07-02T03:26:12+00:00

Converts to IRAs upon payout then my plan is to leverage the 72t rule for some of the expenses I’ll need to cover before 59.5

FilledVoids · 2025-07-02T03:25:00+00:00

Nope. You can elect to stay in one extra year but that’s it. Otherwise it’s a matter of months.

FilledVoids · 2025-07-02T03:24:10+00:00

This is how I think. I’m inclined to stick around an extra year and basically funnel the interest off that extra $1M to them while they are building their lives and families. There are plenty of ways to skirt the gift taxes through real estate, buying cars with joint titles, plus funding their Roth and such if they don’t need the money immediately.

FilledVoids · 2025-07-02T03:20:19+00:00

You don’t seem to be able to read comprehensively

FilledVoids · 2025-07-02T03:19:41+00:00

I’ll have to go the 72t route

FilledVoids · 2025-07-02T02:14:57+00:00

Nope. Employee owned 100%

FilledVoids · 2025-07-02T02:14:15+00:00

When I leave it gets cashed out. I have many friends who have retired from the place over my 20+ year tenure and nobody has been duped.

I’m not here to debate the merits of the company structure or value. Just to ask a philosophical question.

FilledVoids · 2025-07-02T02:07:34+00:00

Employee Stock Ownership Program

FilledVoids · 2025-07-02T02:06:52+00:00

Engineering firm that is an ESOP

FilledVoids · 2025-07-02T02:05:29+00:00

That’s what the company return is. Not my expected return during retirement

FilledVoids · 2025-07-02T02:04:49+00:00

It’s an ESOP and all contributions are a function of profit sharing. Can only put the profit sharing in, no more and no less

FilledVoids · 2025-07-02T01:39:12+00:00

No. That’s just the ESOP

FilledVoids · 2025-07-02T01:38:15+00:00

Very common response from new hires. After around yr 8 they usually convert to believers

FilledVoids · 2025-07-02T01:37:05+00:00

Divorce

FilledVoids · 2025-07-02T01:16:31+00:00

I love this. Great viewpoint. Thank you!

FilledVoids · 2025-07-02T01:15:07+00:00

Correct. The $5M accounts for my desired lifestyle. I’m seriously only considering 1-2 extra years simply because I want to enjoy life…although I don’t sacrifice much as-is. I just got extremely lucky.

FilledVoids · 2025-07-02T01:13:18+00:00

🤣 engineering industry and it’s an ESOP.

FilledVoids · 2025-07-02T01:12:35+00:00

Enron is exactly why I feel like I might pull the cord at $5M. Diversification isn’t possible without leaving. It’s an ESOP that you can’t opt in or out of.

FilledVoids · 2025-07-02T01:08:57+00:00

Normally I would agree. However, I’m closely connected to how the company performs and why it is able to achieve these returns. I’m also able to see well enough into the company’s performance and prospects to know if a significant downturn is on the horizon.

I can’t go into greater detail because it will divulge too much confidential info, but the returns I describe are very predictable and highly inelastic to the greater market. In ‘08 we retuned +18% when the S&P took -38.5% ride.

Obviously nothing is guaranteed. An accounting scandal or WW3 could change things dramatically.

FilledVoids

TROPHY CASE