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46/42 DINKs with no debt seeking change
Old 08-27-2019, 09:48 AM   #1
Confused about dryer sheets
Join Date: Aug 2019
Posts: 1
46/42 DINKs with no debt seeking change

Hello ladies and gentleman,

Iíll try to give the really short, simple version...

My wife and I are high income professionals with no debt, including a paid off home. We have about 1.35 in taxable and 650 in retirement accounts (all vanguard index funds 60/40). We plan to let our retirement accounts grow and not to maneuver to make any early withdrawals. Our annual spending is between 50-60k and we donít see that changing. That does not include health insurance since that is paid in full for both of us by our employer. We are both very fit and healthy.

I have the opportunity to leave my employer in 15 months with a payout of 160k and full health coverage for both of us for two years.

We both want to leave our jobs and take advantage of the current opportunity to leave. We donít know what is next. Itís possible/likely that there would be some paid employment in our futures either part time or full. Or... if our financial position allows it, maybe not.

Is it crazy to turn it in and give up our incomes to move on?

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Old 08-27-2019, 10:08 AM   #2
Recycles dryer sheets
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Join Date: Jul 2019
Location: Phoenix
Posts: 100
You don't say how you'll realize income if you quit working. If it was all qualified (dividends or long-term capital gains), you'd owe no tax. I posted yesterday to a different thread with the 2019 MFJ tax brackets. Figure out how they apply to your plan.

If you need to buy your own health insurance, budget 20K for that. (Premium and deductible) Unless you can keep your MAGI low enough to qualify for ACA subsidy.

80K from a 1.5M taxable portfolio is 5.3% WR. Kinda high. Supplementing a lower withdrawal rate with "some paid employment in our futures either part time or full" should definitely be part of your plan.

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Old 08-27-2019, 11:58 AM   #3
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I think you should try to maneuver to take the tax bite out of your retirement account over time. I think you have an excellent opportunity to do Roth rollovers and minimize taxes since you have a very long time horizon. When you have the opportunity and time on your side, you should try to minimize taxes...
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