Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
57-year-old just set 2015 ER date
Old 12-06-2014, 07:30 AM   #1
Recycles dryer sheets
Niuatoputapu's Avatar
 
Join Date: Nov 2014
Posts: 69
57-year-old just set 2015 ER date

New member from California here, 57-years-old with 58-year-old DW, both still working. I just provided a six month notice to my boss, and now have a June 5, 2015 target ER date. DW hopes to work another 4.5 years which is great since she carries our health insurance. We saved 40% of our income (her salary) in the past decade and can happily live on 50% of today’s gross, so short of a multi-decade long market meltdown, the numbers work.

AA = 65/10/24/1, Equity/RE/GIC/Cash, excluding primary residence. Currently avoiding bond exposure, so apparently we tactically allocate. Currently have 30 mutual funds, and though that may sound silly, I add that they are spread over ten plans (two 403(b)s, three Rollover IRAs, two Traditional IRAs, two Roth IRAs, and one 457(b) Plan). Average cost about 55 bps. Cost will go lower once we exit the 403(b)s and 457(b) in which we are captive.

Will keep our 2.875% mortgage until sooner of downsizing (after DW retires in 2019) or rate adjustment in 2022.

DW did not “work for money” about 10 of the last 30 years in order to raise our three children and get her master’s degree. So now she is happy that it will be my turn (for 4 years) to be the appendage rather than the principal breadwinner. I’m looking forward to it too. Hope I can add to the site’s discussions.

Any advice for a couple who space their retirements four years apart?
__________________

__________________
ER'd 6/5/2015 at age 58, and DW targets ER in 6/2019
Niuatoputapu 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 12-06-2014, 07:38 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,396
Welcome and congratulations. I don't have any advice on your situation because DW was a SAHM so she was already "retired" when I retired.

One question though - you own guaranteed investment contracts? I'm quite familiar with them having worked in insurance but haven't heard much about them lately, particularly retail. What sort of interest are they paying these days? What issuers are you using?
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 12-06-2014, 08:02 AM   #3
Recycles dryer sheets
Niuatoputapu's Avatar
 
Join Date: Nov 2014
Posts: 69
[QUOTE=pb4uski;1526174]

One question though - you own guaranteed investment contracts?


My 403(b) is at TIAA-CREF. They offer varying versions of their "Traditional" product. The one version available to my plan currently pays 3% guaranteed with no withdrawal restrictions. Not officially a GIC, but it quacks like one.
__________________
ER'd 6/5/2015 at age 58, and DW targets ER in 6/2019
Niuatoputapu is offline   Reply With Quote
Old 12-06-2014, 08:06 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,396
Ah, I see. The old fixed account option. Today I wish I had access to a 3%, no interest rate risk investment. Consider yourself lucky.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 12-06-2014, 08:06 AM   #5
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 406
We've similar plan as OP. My wife took a career break to raise kids and they're now 10 years old. She slowly started consulting work which fits in her schedule while kids are in school. She is currently seeking full-time employment with School System and if that works out, I'll accelerate my FIRE date to 2018 and get on her health insurance until she quits when kids go to college in 2022. During the time when only DW is working, I'm planning to convert huge amount of IRA --> Roth IRA(worth 800K now) without worrying about Obamacare subsidy. After she quits, we'll make sure that our MAGI is below 400% FPL to get some subsidy for health insurance.
__________________
Retired at age 52 on 12/1/2016
AA:60/40 WR:3% until 2022 then 4% is the plan
retire2020 is offline   Reply With Quote
Old 12-06-2014, 08:40 PM   #6
Recycles dryer sheets
robertf57's Avatar
 
Join Date: Jun 2014
Posts: 329
[QUOTE=Niuatoputapu;1526185]
Quote:
Originally Posted by pb4uski View Post

One question though - you own guaranteed investment contracts?


My 403(b) is at TIAA-CREF. They offer varying versions of their "Traditional" product. The one version available to my plan currently pays 3% guaranteed with no withdrawal restrictions. Not officially a GIC, but it quacks like one.
Look a little closer at TIAA Traditional. Not really a GIC equivalent. The accrual guarantee is a minimum of 3% for most contracts but there is a variable components as well. My vintage is currently paying about 4 and 1/2%. Also need to consider the payout restrictions. Most contracts require 9 year and a day to roll money out if you don't choose to annuitize the account. The annuity payment is also not what you may think. The guaranteed rate in payout is 2 and 1/2% but also includes a variable amount that has been significantly greater than the payout of SPIAs. Kind of a diferent beast and one I really didn't understand when I began participating in TIAA-CREF all those years ago.
__________________
robertf57 is offline   Reply With Quote
Old 12-06-2014, 10:15 PM   #7
Recycles dryer sheets
Niuatoputapu's Avatar
 
Join Date: Nov 2014
Posts: 69
Quote:
Originally Posted by robertf57 View Post

Look a little closer at TIAA Traditional. Not really a GIC equivalent. The accrual guarantee is a minimum of 3% for most contracts but there is a variable components as well. My vintage is currently paying about 4 and 1/2%. Also need to consider the payout restrictions. Most contracts require 9 year and a day to roll money out if you don't choose to annuitize the account. The annuity payment is also not what you may think. The guaranteed rate in payout is 2 and 1/2% but also includes a variable amount that has been significantly greater than the payout of SPIAs. Kind of a diferent beast and one I really didn't understand when I began participating in TIAA-CREF all those years ago.
Robert, thanks for the advice, but you are quoting restrictions from TIAA-CREF's Group Retirement Annuity (GRA) while I have a Group Supplemental Retirement Annuity (GSRA). The former does have some handcuffs. It paid 3.75% over the past 12 months. The GSRA only pays 3.00% but it does not have the same payout restrictions. I'm happy with the lower return and greater freedom. It is strange that TIAA-CREF calls both of these products their "Traditional" when in fact they are so different.
__________________
ER'd 6/5/2015 at age 58, and DW targets ER in 6/2019
Niuatoputapu is offline   Reply With Quote
Old 12-07-2014, 11:06 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
Quote:
Originally Posted by Niuatoputapu View Post

Any advice for a couple who space their retirements four years apart?
DH has been retired since 2010 and I still work at a part time job (school crossing guard - 8-9am and 3-4pm) that I enjoy. I make a little money but there are no benefits.

I had been a stay at home mom until 2006 and DH was always working full time. When he lost his job and retired we had to adjust to him being around the house all the time. We had some "personal space" issues and both learned to adjust to the new reality. He quickly learned to LOVE being home and retired! I always enjoyed being at home so I was glad to see him not working and having the opportunity to do what he wants and putter and play and just enjoy this.

Our main differences now are that he has no time schedule and I still have one. I go to bed on time, wake to an alarm and get going, eat meals at a set time and have a routine on weekdays. He has no schedule and can stay up late, sleep until he's done and eat when he feels like it. Sometimes we are together all day and sometimes not.

I'm very happy that he is retired. His pension pays the bills and my income goes to saving and investing, so we do not have money worries. He worked for many years and deserves to play now.
__________________
Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Old 12-07-2014, 02:42 PM   #9
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,146
Welcome and congratulations for taking the plunge, Niuatoputapu, (Is there a story behind your screen name?)

DH retired about 4 years before me. He picked up some additional chores around the house, especially things that involved being home like scheduling repair people. He did a lot of volunteer work also. When I retired we did start doing more things together during the day. But it wasn't as radical a change as you might think, at least for us. YMMV.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 12-07-2014, 08:41 PM   #10
Recycles dryer sheets
robertf57's Avatar
 
Join Date: Jun 2014
Posts: 329
Quote:
Originally Posted by Niuatoputapu View Post
Robert, thanks for the advice, but you are quoting restrictions from TIAA-CREF's Group Retirement Annuity (GRA) while I have a Group Supplemental Retirement Annuity (GSRA). The former does have some handcuffs. It paid 3.75% over the past 12 months. The GSRA only pays 3.00% but it does not have the same payout restrictions. I'm happy with the lower return and greater freedom. It is strange that TIAA-CREF calls both of these products their "Traditional" when in fact they are so different.
Thanks for the clarification of what you have. There are slight differences for various contract types, so I am careful to use words like generally or usually. The GSRA does lift the cash-out restrictions for a slightly lower return and a few of the GRAs had an out clause within the first months after separating from service for a small percentage surrender fee. The variable addition to the guarantee however is similar in both contract types"
" ...Guarantees principal and a minimum rate of interest (generally 3%) plus the opportunity to receive additional amounts, as declared in advance, on a year by year basis. Such additional amounts, when declared, remain in effect for the “declaration year”..." The additional amounts vary by the "vintage" in which the premiums were paid. To the best of my knowledge, TIAA has never NOT paid additional amounts. In fact I think the GSRA guaranteed rate is generally < 3%. (haven't studied it since my contracts are older and not GSRAs

Anyway, the bottom line is that these contracts are really not like other annuities or a GIC in my mind and require a little noodling to understand what role they may play in your portfolio. Pardon my heresy; but, I plan to actually annuitize my traditional contract: The payout looks like it will exceed anything I could get from a SPIA, it has some opportunity to rise as the additional amounts are based on performance and it will play a role in combating my longivity risk......
.
__________________
robertf57 is offline   Reply With Quote
Old 12-08-2014, 01:46 AM   #11
Full time employment: Posting here.
martyp's Avatar
 
Join Date: Sep 2010
Location: Bangkok
Posts: 963
I retired 4 yrs ago and DW is still working with a plan to retire in June 2015 (We'll see . . . ).

Advice?

I was already doing the food shopping, cooking, and kitchen cleaning. I took over most of the housework and I take care of the dogs. I don't wake her up after midnight. I still have plenty of time for my own activities.

Work out a plan and do what is right under the circumstances. Every couple is different.

Ohhh . . . listen to her complaints about work and be supportive.
__________________
Happy, Wild, and Free
martyp is offline   Reply With Quote
Old 12-08-2014, 06:24 AM   #12
Thinks s/he gets paid by the post
heeyy_joe's Avatar
 
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
Make dinner. Repeat.
__________________
_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
heeyy_joe is offline   Reply With Quote
Old 12-09-2014, 12:25 AM   #13
Recycles dryer sheets
Niuatoputapu's Avatar
 
Join Date: Nov 2014
Posts: 69
Quote:
Originally Posted by MBAustin View Post
Welcome and congratulations for taking the plunge, Niuatoputapu, (Is there a story behind your screen name?)
Regarding my screen name - in my longer hair days, I hitched a ride on an ocean freighter and landed in Niuatoputapu. It was almost three weeks before another freighter stopped so I was able to explore the island well. Retirement should allow us to hop freighters at will, yes?
__________________
ER'd 6/5/2015 at age 58, and DW targets ER in 6/2019
Niuatoputapu is offline   Reply With Quote
Old 12-09-2014, 09:13 AM   #14
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 4,146
Freighter-hopping - I don't recall seeing that on the board as a retirement hobby so you might start a new trend!😉


Sent from my iPad using Early Retirement Forum
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 12-09-2014, 02:04 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,452
My hubby & I both retired almost 3 years ago. Mine was by choice & his was not. He is also 5 years younger then me. I do p.t. consulting & teach a university class. He has been working f.t. on a project for the last 6 months that will end in 2 months. This made him realize he will seek another f.t. job. We did fine when we both were home together at the same time. Some things we did together & some we did not.
__________________
Teacher Terry is offline   Reply With Quote
Old 12-09-2014, 02:12 PM   #16
Full time employment: Posting here.
SumDay's Avatar
 
Join Date: Aug 2012
Posts: 799
Quote:
Make dinner. Repeat.
^^This.

My spouse retired 7 years ago, and I have, as of today, 1,269 days, 8 hours & 50 minutes to work (but who's counting?)

He still works a few hours a day doing consulting, so I feel like he's earning his keep. It has taken a lot of adjustment, but we're getting there. Do what you can to help her - believe me, she'll appreciate it. Don't ask, just do. Or tell her to leave you a list for the week if there are special things.
__________________

__________________
SumDay is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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
November I Bond rate set with a .2% fixed composite set at 1.38% Mulligan FIRE and Money 1 11-10-2013 05:02 PM
ER date set to avoid 72t nun FIRE and Money 18 03-17-2013 10:36 AM
I officially set my retirement date! Culture FIRE and Money 11 01-05-2010 07:16 PM
ER Date is Set SteveR Life after FIRE 33 04-12-2007 06:28 PM
I think it's time to set a date.... thefed FIRE and Money 21 09-15-2006 03:58 PM

 

 
All times are GMT -6. The time now is 05:50 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.