Cliffhanger
Confused about dryer sheets
- Joined
- Sep 4, 2014
- Messages
- 4
Hello all. I've been impressed with the comments on this site for several months, and would like any advice on my situation. I'm nervous about the steps I'm taking over the next few weeks and would love to hear any feedback.
I was pushed out of a megacorp at 51 earlier this year. I'm a single male in good health. From a quality of life standpoint, leaving the job was a blessing. The job had a huge negative impact on my ability to enjoy life. So as my subject line states, I have a strong incentive to stay out of a job like I just left. My general goal is to live within my income, which may require frugal steps until I reach the age that other income streams can activate. I plan to look for some type of "work" that I enjoy, most likely part time, but I don't want to count on that income if possible.
The "numbas"
Fortunately megacorp left me with a pension of 33k annually before taxes. This will reduce to 30k at 63. I also have good retiree healthcare at 200/mo. (excluding dental and vision).
Deferred annuity - 223k annuity that matures when I am 63 and pays set amount for life. Aggressive stock portfolio, so if market produces historical returns over the next 10 years it should produce about 25k annually. But it's fixed with no increases.
Term annuity - 105k in a 7 year annuity (IRA) that matures in 5 years with no strings attached (other than age requirements for IRA). It's semi-protected from market downturns and semi-indexed to the S&P, should be worth 100k to 115k at maturity.
Roth - 47k in an 80% stock/20% fixed portfolio.
Social security - 1552/mo. at age 63, 2205 at age 67 (plan to start at 67 or later).
Non retirement funds
- 49k in cash
- 14.5k in dividend stocks
- 125k being liquidated to cash as I write this
Debt - none
I'm staying with a friend rent-free but I pay all other costs (food, bills, etc). My plan is to buy a house using the 125k to eliminate a monthly housing payment. This should allow me live off the 33k pension. I've been coasting down to that income over the last several months and I've been doing well. Other than some car repairs I've been able to live within this income.
I plan to pay 100k or less for a small house. I also need to make a vehicle change, the net should be a 10k hit to my savings but will leave me in good shape vehicle wise.
At the end of the changes, my non retirement savings will go from almost 175k to 65k, but I am confident (I think!) I can live on 33k annually without a mortgage or rent payment. And at 63 additional income will begin. My rational comes from the ease I've had with reducing my cost of living so far, I'm single with no kids or other financial obligations, without a full time job I have time to squeeze savings on living expenses.
That's it. Sorry for the length and complexity! I would appreciate any feedback or advice on the plan for the rest of my life.
Cliffhanger
Sent from my iPad using Early Retirement Forum
I was pushed out of a megacorp at 51 earlier this year. I'm a single male in good health. From a quality of life standpoint, leaving the job was a blessing. The job had a huge negative impact on my ability to enjoy life. So as my subject line states, I have a strong incentive to stay out of a job like I just left. My general goal is to live within my income, which may require frugal steps until I reach the age that other income streams can activate. I plan to look for some type of "work" that I enjoy, most likely part time, but I don't want to count on that income if possible.
The "numbas"
Fortunately megacorp left me with a pension of 33k annually before taxes. This will reduce to 30k at 63. I also have good retiree healthcare at 200/mo. (excluding dental and vision).
Deferred annuity - 223k annuity that matures when I am 63 and pays set amount for life. Aggressive stock portfolio, so if market produces historical returns over the next 10 years it should produce about 25k annually. But it's fixed with no increases.
Term annuity - 105k in a 7 year annuity (IRA) that matures in 5 years with no strings attached (other than age requirements for IRA). It's semi-protected from market downturns and semi-indexed to the S&P, should be worth 100k to 115k at maturity.
Roth - 47k in an 80% stock/20% fixed portfolio.
Social security - 1552/mo. at age 63, 2205 at age 67 (plan to start at 67 or later).
Non retirement funds
- 49k in cash
- 14.5k in dividend stocks
- 125k being liquidated to cash as I write this
Debt - none
I'm staying with a friend rent-free but I pay all other costs (food, bills, etc). My plan is to buy a house using the 125k to eliminate a monthly housing payment. This should allow me live off the 33k pension. I've been coasting down to that income over the last several months and I've been doing well. Other than some car repairs I've been able to live within this income.
I plan to pay 100k or less for a small house. I also need to make a vehicle change, the net should be a 10k hit to my savings but will leave me in good shape vehicle wise.
At the end of the changes, my non retirement savings will go from almost 175k to 65k, but I am confident (I think!) I can live on 33k annually without a mortgage or rent payment. And at 63 additional income will begin. My rational comes from the ease I've had with reducing my cost of living so far, I'm single with no kids or other financial obligations, without a full time job I have time to squeeze savings on living expenses.
That's it. Sorry for the length and complexity! I would appreciate any feedback or advice on the plan for the rest of my life.
Cliffhanger
Sent from my iPad using Early Retirement Forum