Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
58 yr old's wondering if we can retire now
Old 05-09-2019, 06:56 AM   #1
Dryer sheet wannabe
 
Join Date: Dec 2018
Location: desert SW
Posts: 22
58 yr old's wondering if we can retire now

Hello. I have learned so much in this forum. Thank you for your contributions to my financial education. I would like to seek your opinions about retiring now. My wife and I are 58. She retired in the autumn.

Finances: approx $930,000 total...including:
Sep-ira: $270,000
Roth's: $70,000
HSA's: $11,000
Taxable liquid: $570,000
AA: 55% cash CD's; 45% index stocks
pensions: $30,000/yr- no COLA
SS- wife at 62: $15,000, me at 67: $26,500
house paid for- no debts
kids on their own now

Yearly expenses: $55-60K including health ins premiums thru ACA ( that is the goal)- this figure includes vacations expenses too

I will draw down savings next 3 yrs: $30k/yr ages 59-61; then $15k/yr from ages 62-66. When my SS starts at age 67 we might not need to use our savings nearly as much.

By the way just bought new HVAC system.

Am I safe to retire?- your opinions are greatly appreciated. Thanks
__________________

Mountain skier 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 05-09-2019, 07:01 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 45,504
Quote:
Originally Posted by Mountain skier View Post

Am I safe to retire?
Some Important Questions to Answer Before Asking - Can I Retire?
__________________

__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 05-09-2019, 09:28 AM   #3
Recycles dryer sheets
 
Join Date: Oct 2015
Location: Florida/Indiana
Posts: 224
Looks a little snug to me. I sure understand the desire to join your DW though. A couple more years of the grind and pushing social security out for a larger payout might make those final years less worrisome. I suppose it depends on how full your w*rk bs bucket is and how willing or able you are to pull in expenses when the shtf.
bigcmagor is offline   Reply With Quote
Old 05-09-2019, 09:30 AM   #4
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 4,529
You don't mention at what age your pension starts, IMO that's an important detail. Looking at your spend it looks like the pension will start as soon as you retire. Will it grow at all if you wait until a later age or work a couple more years?
ivinsfan is offline   Reply With Quote
Old 05-09-2019, 10:49 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,361
Sounds like your pension starts right away. Have you included other lumpy expenses in your budget or separate emergency fund for a new roof, new cars, etc?

Overall it sounds to me like you are good to go.
I ran your numbers through Firecalc and get 100% success with 76k maximum spend out to 95 y.o.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 05-09-2019, 10:52 AM   #6
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 45,504
Quote:
Originally Posted by Mountain skier View Post
Yearly expenses: $55-60K including health ins premiums thru ACA ( that is the goal)- this figure includes vacations expenses too
What about taxes - are they in that $55-60K number?
__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 05-09-2019, 12:16 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Posts: 3,501
Quote:
Originally Posted by Mountain skier View Post
My wife and I are 58. She retired in the autumn.

Finances: approx $930,000 total...including:
Sep-ira: $270,000
Roth's: $70,000
HSA's: $11,000
Taxable liquid: $570,000
AA: 55% cash CD's; 45% index stocks
pensions: $30,000/yr- no COLA
How are the pensions split? Joint and survivor percent?

Quote:
SS- wife at 62: $15,000, me at 67: $26,500
house paid for- no debts
kids on their own now

Yearly expenses: $55-60K including health ins premiums thru ACA ( that is the goal)- this figure includes vacations expenses too

I will draw down savings next 3 yrs: $30k/yr ages 59-61; then $15k/yr from ages 62-66.
Why so little draw down if your expenses are higher for the next 3 years? Are you already drawing your pensions?

Quote:
When my SS starts at age 67 we might not need to use our savings nearly as much.
You should really experiment with https://opensocialsecurity.com before making your SS claiming decisions.

Depending on who is the higher earner and by how much, you could benefit greatly by delaying one until 70.

Quote:
Am I safe to retire?
Maybe, if your expense are accurate for the long run, the ACA stays around, healthcare in general doesn't skyrocket, and inflation stays low.

Seems a bit tight to me.
joeea is offline   Reply With Quote
Old 05-09-2019, 01:27 PM   #8
Full time employment: Posting here.
mamadogmamacat's Avatar
 
Join Date: Dec 2012
Posts: 734
Also seems a bit sketchy to me as well, for two. Any significant traveling will I think be unrealistic on that budget unless you live in a very LCOL area.

I have about 20% more than you and am 60/40 AA still, as I was before retiring 3 yrs ago.
Otherwise remarkably similar except I'm single.
mamadogmamacat is offline   Reply With Quote
Old 05-09-2019, 01:42 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 3,433
I would retire today in your situation. However, there are several variables that could make you decide to keep working. Do you like your job, do you despise it? Are you willing to cut back on expenses if you need to? Are the pensions both yours and is there a survivor policy? You dying early would be the main concern. Is there enough for your wife with just a small-ish SS and no pension? I think she would still be ok so I would go ahead and retire.
aaronc879 is online now   Reply With Quote
Old 05-09-2019, 02:29 PM   #10
Thinks s/he gets paid by the post
HNL Bill's Avatar
 
Join Date: Dec 2017
Posts: 1,525
Quote:
Originally Posted by Mountain skier View Post
Yearly expenses: $55-60K including health ins premiums thru ACA ( that is the goal)- this figure includes vacations expenses too

I will draw down savings next 3 yrs: $30k/yr ages 59-61; then $15k/yr from ages 62-66. When my SS starts at age 67 we might not need to use our savings nearly as much.

Am I safe to retire?
Have you run this through FIRECALC? I'd suggest you make a donation to FIRECALC, then enter your yearly spending differences. Are you already taking the pension?

The AA is likely too conservative to keep inflation at bay over the long-term, especially since the pensions aren't COLA'd, and the future of the ACA is unkown. My main concern is that if the markets tank in the next 5 years AND you have an emergency, then your finances will be in jeopardy.
__________________
Balance in everything.
HNL Bill is online now   Reply With Quote
Old 05-09-2019, 02:37 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,361
Quote:
Originally Posted by HNL Bill View Post
Have you run this through FIRECALC? I'd suggest you make a donation to FIRECALC, then enter your yearly spending differences. Are you already taking the pension?

The AA is likely too conservative to keep inflation at bay over the long-term, especially since the pensions aren't COLA'd, and the future of the ACA is unkown. My main concern is that if the markets tank in the next 5 years AND you have an emergency, then your finances will be in jeopardy.
See post #5.
Doesn't "regular Firecalc" effectively take into account that there are different spending in different years based on when the income is available?
__________________
TGIM
Dtail is online now   Reply With Quote
Old 05-09-2019, 02:41 PM   #12
Thinks s/he gets paid by the post
HNL Bill's Avatar
 
Join Date: Dec 2017
Posts: 1,525
Quote:
Originally Posted by Dtail View Post
Doesn't "regular Firecalc" effectively take into account that there are different spending in different years based on when the income is available?
Yes, except for 'lumpy' expenses. You can enter start dates for pensions and SS and other incomes/expenses. With the full version, you can also adjust for anticipated differnces in annual spending (e.g., at age 75 you plan to stop travelling, and at age 85, pay for LTC).
__________________
Balance in everything.
HNL Bill is online now   Reply With Quote
Old 05-09-2019, 02:49 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 4,361
Quote:
Originally Posted by HNL Bill View Post
Yes, except for 'lumpy' expenses. You can enter start dates for pensions and SS and other incomes/expenses. With the full version, you can also adjust for anticipated differnces in annual spending (e.g., at age 75 you plan to stop travelling, and at age 85, pay for LTC).
Yes realize that. I took his change in expense spending to match up with beginning his pension/beginning her SS/beginning his SS.
Nevertheless, I did ask him about lumpy expenses.

If one believes in SS not being cut, why do you feel there is concern here?
__________________
TGIM
Dtail is online now   Reply With Quote
Old 05-09-2019, 03:37 PM   #14
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: 23,038
Quote:
Originally Posted by Mountain skier View Post
Hello. I have learned so much in this forum. Thank you for your contributions to my financial education. I would like to seek your opinions about retiring now. My wife and I are 58. She retired in the autumn.

Finances: approx $930,000 total...including:
Sep-ira: $270,000
Roth's: $70,000
HSA's: $11,000
Taxable liquid: $570,000
AA: 55% cash CD's; 45% index stocks
pensions: $30,000/yr- no COLA
SS- wife at 62: $15,000, me at 67: $26,500
house paid for- no debts
kids on their own now

Yearly expenses: $55-60K including health ins premiums thru ACA ( that is the goal)- this figure includes vacations expenses too

I will draw down savings next 3 yrs: $30k/yr ages 59-61; then $15k/yr from ages 62-66. When my SS starts at age 67 we might not need to use our savings nearly as much.

By the way just bought new HVAC system.

Am I safe to retire?- your opinions are greatly appreciated. Thanks
You need to do more analysis but I think you will be ok.

As I understand it your annual gap will be $30k a year for the first 4 years, then $15k a year for the next 5 years... then once you start SS your pension and SS will exceed your spending. So until you start your SS you'll need $195k for the gap and you have $930k.

So once you start SS you'll have income of $71.5k a year plus withdrawals from what is left of your $930k portfolio after using $195k for those first 9 years of retirement.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is offline   Reply With Quote
Old 05-09-2019, 05:46 PM   #15
Dryer sheet wannabe
 
Join Date: Dec 2018
Location: desert SW
Posts: 22
The pension can start immediately. Will set up as 100% joint survivor meaning spouse would collect 100% of amount if other spouse dies.
Mountain skier is offline   Reply With Quote
Old 05-09-2019, 06:06 PM   #16
Thinks s/he gets paid by the post
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 1,184
Quote:
Originally Posted by Mountain skier View Post
The pension can start immediately. Will set up as 100% joint survivor meaning spouse would collect 100% of amount if other spouse dies.

How much is that going to take out of the pension/mo?
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 05-09-2019, 06:09 PM   #17
Dryer sheet wannabe
 
Join Date: Dec 2018
Location: desert SW
Posts: 22
Quote:
Originally Posted by dtbach View Post
How much is that going to take out of the pension/mo?
The $30k/yr is with the 100% joint surviorship
Mountain skier is offline   Reply With Quote
Old 05-10-2019, 05:26 AM   #18
Recycles dryer sheets
 
Join Date: Jun 2007
Location: Oklahoma City
Posts: 288
It appears your expenses ($60K) are fully covered by your Pension and SS @ 62 --- You are just electing to delay YOUR SS until 67 (smart move) but if you did not you'd have >$16K SS + wife's $15K SS and the $30K pension = $61K -- So just using the $30K per year from savings until 62 and then savings is a big bonus bucket "in case"

I'd feel very comfortable with your plan!
__________________
USAF Veteran -- Retired Air National Guard -- OSW -- ONW -- OIF
militaryman is offline   Reply With Quote
Old 05-10-2019, 05:55 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Jun 2010
Location: France
Posts: 1,313
Quote:
Originally Posted by Mountain skier View Post
The $30k/yr is with the 100% joint surviorship
You might want to reconsider the decision to go for 100% joint survivorship. It can seem like a "nice" thing to do, but once the funeral expenses are paid for the first partner to die, the second may not need (assuming you have money set aside for possible LTC for the second partner) or even want the same level of income, for example if s/he is less likely to travel alone. If a 70% (or whatever) survivorship pension were to get you $X more per year, what value of X would make you think of taking it? (I didn't get this option with my w*rkplace pension, so I dodged having to think about this issue!)

PS: If you have already thought extensively about this then please ignore this comment, but I guess you knew to expect some slightly impertinent questions when you posted!
__________________
Born 11/1960, retired June 30, 2012; DW born 07/1957, retires on July 31, 2019. Current portfolio is 2000K Euros, split 40 stocks/20 bonds/20 RE/20 cash. Renting house, no debts.
BigNick is offline   Reply With Quote
Old 05-10-2019, 06:15 AM   #20
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: 23,038
With respect to living expenses I think BigNick makes a valid point, but the other thing to consider is that taxes may end up being much more for a single than a couple and could very well make up any decline in living expenses... also, the surviving spouse's Medicare Part B and Part D costs may be higher if the surviving spouse's income is over $85k.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski 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
Can I retire NOW? I can't sleep! What do YOU think? Charlie Delta Hi, I am... 32 08-16-2013 10:54 AM
Purchased I bonds previously, wondering if now a good time to buy more joecaf53 FIRE and Money 26 01-30-2013 05:32 AM
28-year-old photographer wondering what to do next... landedgentry13 Hi, I am... 19 10-06-2009 06:12 PM
Wondering if there is a clear understanding now.... Art G FIRE and Money 15 10-21-2008 03:32 PM
49 year old pofessional wondering retiring at 50 phase3jrl Hi, I am... 8 08-17-2008 08:38 PM

» Quick Links

 
All times are GMT -6. The time now is 07:45 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×