First thanks to all who tirelessly provide their advice to guys like me that dream ER. One day I would LOVE to "payback" and do the same with all the wisdom I intend to soak-up from this forum.
2 Working professionals- both 40 year old with 2 kids (9,7)
400K in 401K/403B & Roth's
Earnings 190K before tax
Recently became elegible for Deferred comp (457B) and plan to contribute 18K in it per year to support 55 to 59 1/2 age - because of the no withdrawl penalty feature of 457B. Will also stash another 24K per year in 401K/Roth. Altogether save ~42K/Year for next 15 years.
Own a rental house (plus our current house) - both houses will be fully paid by age 55.
Would like to retire at age 55. In retirement:
Expect 15K /Yr rental income
after taxes and insurance
Pension from my employer (not wive's) 20K/Yr
Will do a 457B withdrawl from age 55 to 59 1/2 and then live off the dividends from Roth Accts after turning 59 1/2.
Frugal lifestyle and can easily cover about 60K in post retirement exp which includes paying for Healthcare through MN HIE exchange (age 55 to 65).
My numbers tell me the following:
400000K (current) plus 42K/year addition for 15 yrs = 2.5M when we are 55 @ 8% return. Mostly, ETF, low cost vanguard Index funds (passive investing), Dividend Aristrocrats
@ 55; Passive income= 35K
@ 55; Total Exp (including healthcare via exchange)=60K
These numbers don't include SSN and if I use a 4% withdrawl rule- it seems like we could be flushed with cash and a 1% withdrawl will just be fine.
Any issues, concerns, challenges with these assumptions?