Join Early Retirement Today
Reply
 
Thread Tools Display Modes
54 yr old looking to shut it down
Old 02-25-2014, 06:19 PM   #1
Confused about dryer sheets
 
Join Date: Feb 2014
Posts: 6
54 yr old looking to shut it down

Hi everyone

I am a 54 yr old retired lawman who currently works full time in another field. I think i have lost my zest for getting up early in the cold and going to work. I tried to play with the firecal but to be honest, i just aint that smart and I cant figure it out. So here it goes. Am i in a good spot to shut it down?

Pension: 6500 monthly
457 plan: 250,000 right now in stable fund earning 2.5%
IRA: 348,000 in vanguard wellington, Wellesley, Growth fund
Taxable account 125,000 split between Phillip morris, JNJ, Starbucks
Approx 100,000 in Ally Savings account
2 rental condos in florida with no mortgage worth 130,000 total with a positive cash flow of about 700.00 monthly

DW 56 will still work and earns approx 55,000 yr
Currently she has 155,000 in her 401k in vanguard 2020 fund and will max out 23,000 every yr for 5 more yrs and then will stop working also

Our kids are grown and out and our only debt is 190,000 mortgage on our townhouse where we live on long island. We have no other debt. Any comments would be appreciated and I hope I gave enough info. I look forward to joining in on many topics. Thank you
Hotrod 140 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-25-2014, 06:29 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,328
Welcome HotRod. The first thing that you need to do is to really carefully determine what your spending needs are. Go over the past few years' records carefully and get a handle on your must-spend and would-be-nice-to-spend amounts. This is just as important as knowing how much savings / income you have.
travelover is offline   Reply With Quote
Old 02-25-2014, 06:38 PM   #3
Confused about dryer sheets
 
Join Date: Feb 2014
Posts: 6
Thanks for the helpful info. I forgot to mention. We nave fully paid health ins. Until we reach medicare age and If we decide to collect SS at 62 we will gross approx. 2800 monthly in total.
Hotrod 140 is offline   Reply With Quote
Old 02-25-2014, 06:44 PM   #4
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,391
If I count correctly you have monthly free cash-flow of $6500 + 700 now plus another $2800 when SS kicks in. Thats $7200/mo now and $10k/mo at SS FRA. In addition, the various investment accounts totaling ~$1MM could throw off another $3300/mo ($40k/year or so at a 4%SWR). That would bring your monthly income to around $10500 now and $13300 when SS kicks in.

Unless you have one giant house or car payment you should be able to live really well on that.

Work some more if you want more stuff or have grand travel plans, otherwise your future looks pretty good. You are at the stage where you can do what you want.
MasterBlaster is offline   Reply With Quote
Old 02-25-2014, 06:53 PM   #5
Confused about dryer sheets
 
Join Date: Feb 2014
Posts: 6
Thanks, we are simple people who worked hard our whole lives and put 3 kids thru college. I just probably need some help on our asset allocation of our retirement funds maybe when we can we will consolidate all our assets in one Vanguard target retirement fund
Hotrod 140 is offline   Reply With Quote
Old 02-26-2014, 08:30 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,328
To expound on what MasterBlaster said above, the average family in the US has an income of about $51,000. Out of that, they generally pay a mortgage and save for retirement. So, without knowing your actual expenses, you are probably more than fine.

You might want to start a new thread to ask asset allocation questions for Vanguard.
travelover is offline   Reply With Quote
Old 02-26-2014, 08:47 AM   #7
Confused about dryer sheets
 
Join Date: Feb 2014
Posts: 6
Thanks for the help, guys. my expenses which include my mortgage and property taxes total approx. 2700 monthly. so I figured we are in a good spot. I just like to hear if from others who look at things logically. like all of you its a little scarry to actually stop working after going full bore for almost 40 yrs. I will post more about asset allocation which will be my next project. i have to simplify things!!
Hotrod 140 is offline   Reply With Quote
Old 02-26-2014, 09:49 AM   #8
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,354
Quote:
Originally Posted by MasterBlaster View Post
If I count correctly you have monthly free cash-flow of $6500 + 700 now plus another $2800 when SS kicks in. Thats $7200/mo now and $10k/mo at SS FRA. In addition, the various investment accounts totaling ~$1MM could throw off another $3300/mo ($40k/year or so at a 4%SWR). That would bring your monthly income to around $10500 now and $13300 when SS kicks in.

Unless you have one giant house or car payment you should be able to live really well on that.

Work some more if you want more stuff or have grand travel plans, otherwise your future looks pretty good. You are at the stage where you can do what you want.
X2, it seems you are more than sufficient income and potential income to stop working now and start retirement.

Since you do not have the mental attitude to want to keep working, now seems a good time to make the transition. If your wife is still working, chances are you will not even have to tap into any savings money. If you do need some money for extra expenses (travel, new vehicle, major remodel, etc), my recommendation is use your after tax money first to avoid paying higher tax rate on other pre-tax account withdrawls.
__________________
The problem isn't artificial intelligence, it's natural stupidity.

You can't spend yourself to prosperity.

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pandora to Shut Down? Gotadimple Other topics 8 10-02-2008 10:51 AM
Roberts Rule of Order In Action, Or Shut Up White Boy poboy Other topics 0 12-22-2007 12:50 PM
When Gulf Crude is SHUT IN prices should NOT SPIKE! dumpster56 Other topics 12 09-27-2007 04:28 AM
When to keep your mouth shut John Galt FIRE and Money 6 01-03-2005 03:15 PM

» Quick Links

 
All times are GMT -6. The time now is 12:24 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.