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3 if I'm lucky, 6 if I'm not
Old 10-19-2012, 07:33 AM   #1
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MikeWillRetire's Avatar
Join Date: Apr 2012
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3 if I'm lucky, 6 if I'm not

I'm glad I found this website. I've learned so much during the last 9 months, and I'm encouraged that retirement looks possible earlier than I imagined. Turning 50 this year prompted me to start looking into it.

I could retire in as little as 3 years if I am lucky enough to get an early retirement offer, and my children get some amount of scholarship money. If not, then I plan to wait up to 6 years from now.

My wife and I both work for the federal government after spending about 1/3 of our careers in the private sector. We both turn 50 this year with two kids in high school.

Our house will be paid off in 5 years. We currently owe a little bit less than the amount saved in our emergency fund. We have no other debts.

Our combined thrift savings plan (federal 401k) = 460,000. We currently contribute 23,000 (combined) each year to it, and the government matches $10,000.

Cash = 60,0000 in bank accounts, cdís, and savings bonds. Since the kids are now in public high school after going to private elementary school, we are now able to save about $25,000 to 30,000 per year (the private school years trained us to basically live on one salary). I would like to build up the savings to $150,000 to $200,000 to cover emergencies, home renovation, and some college tuition for the kids.

We also inherited two rental properties recently. Rental income minus property taxes, insurance, maintenance, and management fees is about $22,000 total per year. They are 20 years old, and will need renovation soon. We plan to save all of the rental profit for the next few years to pay for the renovation. After that, we can use most of the rent as income.

Our pensions should total between $30,000 and $38,000 depending on when and how we retire.

Pensions, rent, and thrift savings plan should cover our expenses. Social Security is our backup.

I donít have questions right now, but I just wanted to start contributing to the forums.

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Old 10-19-2012, 07:53 AM   #2
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Midpack's Avatar
Join Date: Jan 2008
Location: Chicagoland
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Welcome aboard! Congrats on seeing your plans come together...

No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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Old 10-21-2012, 09:20 AM   #3
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Location: midwestern city
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Welcome, Mike.
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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Old 10-22-2012, 10:17 PM   #4
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Welcome. Turned 50 myself this year. I'd call your situation rock solid. Congratulations! Have you calculated your expenses in retirement and tried some of the retirement calculators such as Firecalc?

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Old 10-23-2012, 05:54 AM   #5
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Location: Vermont & Sarasota, FL
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Welcome Mike. It sounds like you are in good shape. That is quite a generous match on the TSP - I'm envious. You say that pensions, rental net income and TSP will cover your expenses, but what is your TSP withdrawal rate? I presume it is reasonably low.

I found Quicken's Lifetime Planner helpful in doing a basic retirement plan and making sure I had the bases covered (supplemented by a Firecalc analysis using the same assumptions to provide me with a Monte Carlo type view).
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Old 10-23-2012, 07:16 AM   #6
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Thanks for the responses. I have estimated my retirement expenses, and I've run FireCalc on various scenarios. It looks like TSP withdrawal would be in the range of 3% to 4%. It looks like 3 to 6 years is possible. It looks like it depends on how much I can save between now and then. I'm hoping to have enough to renovate my home and pay for some of the kids college.

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