Hello, sat down again with a FN planner to get additional input regarding ER. I have an option to accelerate my pension from age 55-62 until SS kicks in. Then at 62 it drops by $700 a month until I kick the bucket. Below is the analysis for retiring at age 55,56,57 (normal pension & accelerated pension).
Back of the envelope analysis says normal pension would be too sporty at age 55 but doable at 57. Accelerated could be doable at 55. Below is the other FN stuff. FP is advising accelerated is why I'm asking for your valuable feedback
. A bit more about me:
* 53 years old and can take early retirement 55 (same company 29 years).
* $650K in a 401K (projection at pre-tax max with company match is ~ $775K at 55).
* Asset allocation currently at about 62% equities, 38% bonds and cash.
* 2013 return on the above portfolio was 16%.
* Retiree medical until I turn 65 at Medicare age ($20 a month- no kidding)
* $165K left on my mortgage (ouch). Home value is $415K, 4% 15 year
loan (refi in 2011), $1530 P&I, paying an extra $670 a month currently.
*Will increase as possible but paying if off in three years seems very unlikely (will still owe $120K).
*No credit card or other debt.
*own three cars...kind of a car guy (One muscle car, two drivers). Total value about $36K.
*my retirement income needed will be about $70K if I still have a mortgage...which I don't want to have...if that makes sense. Without my mortgage my "budget" says I can live on $50K a year.
*Net worth with home equity is about $1M. Not much in savings outside my 401K (maybe $15K).
*when I retire I'll have about $30K in sick leave and vacation as a payout.
*my pension will be frozen on Jan 1st 2016 to new accruals.
*I plan to take social security at 62 if that is still an option (~$1700 a month.