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49 y.o. has 460k in 401k, 115k vested portable pension, 100k tree farm, 65k ROTH,
Old 11-01-2010, 11:15 AM   #1
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49 y.o. has 460k in 401k, 115k vested portable pension, 100k tree farm, 65k ROTH,

49 y.o. has 460k in 401k, 115k vested portable pension, 100k tree farm, 65k ROTH, ~200k in brokerage/metals/hard assets, paid off home worth ~180k, wife 401k=~40k. No debt to speak of. Daughter to start college this Spring, son started HS this Fall. Can I do it at 55? I would like to walk at 55 w/ the portable pension which will be worth ~175k then all the time adding 28k per year via 401k & Roth (both with catch-ups added). Make ~ 100k/year now and would only care to work part time at 55 still making good money (~50k working 6 months tops/year). At 55, daughter will have finished bachelors, son will be in second year of college. He is brainiac and I suspect he will get very good scholarships. I am blessed w/my kids.
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Old 11-01-2010, 11:25 AM   #2
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Did you run FIRECalc (to get one idea of whether you're on track)?

A lot of people say they would like to work half time, but I don't remember anyone on these boards actually doing so (okay, Rich-in-Tampa did dial down on the most ridiculously gradual ER schedule ever , but still....). Are you in a profession that woudl allow you to do that?

It looks a little tight to me.
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Old 11-01-2010, 11:30 AM   #3
Confused about dryer sheets
 
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Originally Posted by Bestwifeever View Post
Did you run FIRECalc (to get one idea of whether you're on track)?

A lot of people say they would like to work half time, but I don't remember anyone on these boards actually doing so (okay, Rich-in-Tampa did dial down on the most ridiculously gradual ER schedule ever , but still....). Are you in a profession that woudl allow you to do that?

It looks a little tight to me.
My J-O-B would allow part-time work. Many fellow workers look forward to just that where I am at. I can work all over the country with what I do. Seems like I am in good shape to go at 55 but wanted other opinions. Part-time to 60 would be OK for me so long as the usual stress of full-time was gone.
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Old 11-01-2010, 11:44 AM   #4
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It looks a little tight to me.
Did you say this in regards to his finances or working part time? Financially, he's doing fine IMO depending how his family approaches spending in general and what health/dental care options they'll have at the time of ER.
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Old 11-01-2010, 11:50 AM   #5
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p.s. No I have not fully done a FIRECALC but I did look at it yesterday. Which flavor calculation do you suggest. Some seem very detailed, possibly I am not needing such detail since I am 5+ years away by my plan. But maybe I should try it to see if I get a surprise.
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Old 11-01-2010, 01:03 PM   #6
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You are far enough away that a lot of things could change (if your son gets a full scholarship, that would be huge!).

Absent any information about current and future anticipate expenses, where you live, and sources of retirement income (and did you read this: http://www.early-retirement.org/foru...elf-27621.html, the sticky at the top of the board you posted this thread to?), I do think things could be tight.

Except for the pension amount, I just added up your numbers and the amount you expect to contribute in the next six years to your 401K and without any growth it is just under $1 million. Is the pension amount a lump sum or is that something that will generate income? Also, the tree farm--does that generate income/credits? Too many unknowns for me to just say you'll be fine.
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Old 11-01-2010, 01:41 PM   #7
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Can you do it at 55? Yes, even know, it depends how spoiled you are and where you wanna live.... Brazil has low cost of living.
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Old 11-01-2010, 03:03 PM   #8
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You are far enough away that a lot of things could change (if your son gets a full scholarship, that would be huge!).

Absent any information about current and future anticipate expenses, where you live, and sources of retirement income (and did you read this: http://www.early-retirement.org/foru...elf-27621.html, the sticky at the top of the board you posted this thread to?), I do think things could be tight.

Except for the pension amount, I just added up your numbers and the amount you expect to contribute in the next six years to your 401K and without any growth it is just under $1 million. Is the pension amount a lump sum or is that something that will generate income? Also, the tree farm--does that generate income/credits? Too many unknowns for me to just say you'll be fine.
Yes, lots could change. With five years to go I am starting to see a little light at the end of the Rat Race Tunnel. I can build at my tree farm if I wanted (>25 acres) but foresee buying cheaply there in 5 years if I wanted (Now is not even a bad time to buy there). Either way I would expect positive cash sum from sale of current house. Don't know how much, only that prices where I am now are still way over the tree farm area prices. Overall expenses would decrease as I live in most expensive area of state (South Florida) and could move to one of least expensive (North Florida). Pension value would be lump sum but could take as annuity with much better return than what I could safely expect on my own. In more detail the pension is small and could yield the following: All assume quit at 55. Draw at 55=178k lump or 1000/month. Draw at 60=227k lump or 1385/month. Draw at 62=250k lump or 1585/month. SS should be ~1600/month in todays dollars. The tree farm is now just looked as a hard asset that does not generate any income but may provide a lump sum in the future do to sale of wood/products or sale of the property itself. Hard to say now. I do not think it will go down in value any more between now and retirement. So 55 to me seems doable with part-time work at half of what I make per year now (I wxpect my pay rate to actually go up-just work less) and medical care to be 82% company paid between 55 and medicare. I think I could make a go of it. On top of maxing my 401k (16.5k + 5.5k catch-up from now to 55) and Roth (5k + 1k catch-up)=28k, I also add more after tax$ to my brokerage/metals/etc. to the tune of 20k-30k/year depending on overtime.
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