I'm very excited about finding this forum. I'm 52 and am planning on ER the day I turn 55 -- 34 months from now when I can start receiving payments from my TIAA-CREF annuity.
I am single and live fairly modestly -- incurring approximately $11,000 in 'necessary' expenses annually, which includes my utilities, property/school taxes, food, car/home insurance as well as Cable TV and Internet access. I also spend about $4,000 annually on vacation travel and other indulgences such as new laptop, bicycle, plants for the garden, hobbies, etc.
I had a $175,000 home built 8 years ago and paid the mortage off in 3 years because I hate being in debt for anything. Maybe that wasn't wise from a financial/investment standpoint but it makes me feel wonderful. I have 0 debt. Starting 4 years ago or so, I have taken a *very* conservative approach in my investing -- being satisfied to earn 3-4%.
I'll have $370,000 in a life-time annuity at 55 as well as $30,000 in savings; I'll also have $60,000 ($25,000 Roth; $35,000 trad.) in IRA's when I hit 59.5. I intend to use the savings to fund a new car 7 years from now; and the IRA money for emergency home repairs, replace major applicances, fund another new car in my 70's, etc. As far as health insurance, my current employer will pay half my premium until I reach 62.
I'm a little uncertain as to how much of the $370,000 I should annuitize. I'm leaning towards 80% which would provide me with approx. $15,000 (after tax income) annually. The other 20% ($74,000) would give me about $10,000 each of the 7 years prior to $12,000 in Social Security kicking in at 62. So I'm looking at an annual income of $25,000 which is more than the $15,000 I am spending now. So even with added expense of paying 1/2 of the health insurance premium I'm feeling comfortable that I'll have some additional money to travel and indulge a little more in retirement than what I'm currently doing.
Do you see any red flags? Or am I going about this wrong? Thanks for your time.
I am single and live fairly modestly -- incurring approximately $11,000 in 'necessary' expenses annually, which includes my utilities, property/school taxes, food, car/home insurance as well as Cable TV and Internet access. I also spend about $4,000 annually on vacation travel and other indulgences such as new laptop, bicycle, plants for the garden, hobbies, etc.
I had a $175,000 home built 8 years ago and paid the mortage off in 3 years because I hate being in debt for anything. Maybe that wasn't wise from a financial/investment standpoint but it makes me feel wonderful. I have 0 debt. Starting 4 years ago or so, I have taken a *very* conservative approach in my investing -- being satisfied to earn 3-4%.
I'll have $370,000 in a life-time annuity at 55 as well as $30,000 in savings; I'll also have $60,000 ($25,000 Roth; $35,000 trad.) in IRA's when I hit 59.5. I intend to use the savings to fund a new car 7 years from now; and the IRA money for emergency home repairs, replace major applicances, fund another new car in my 70's, etc. As far as health insurance, my current employer will pay half my premium until I reach 62.
I'm a little uncertain as to how much of the $370,000 I should annuitize. I'm leaning towards 80% which would provide me with approx. $15,000 (after tax income) annually. The other 20% ($74,000) would give me about $10,000 each of the 7 years prior to $12,000 in Social Security kicking in at 62. So I'm looking at an annual income of $25,000 which is more than the $15,000 I am spending now. So even with added expense of paying 1/2 of the health insurance premium I'm feeling comfortable that I'll have some additional money to travel and indulge a little more in retirement than what I'm currently doing.
Do you see any red flags? Or am I going about this wrong? Thanks for your time.
Maybe we should start a "Class of 2013" thread.
