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61 & Less than a year to go...hope we are ready
Old 04-07-2018, 10:18 AM   #1
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61 & Less than a year to go...hope we are ready

Hello from Wisconsin!

Iím looking for confirmation that we are on track from the experienced retirees on this site.

I'm currently 61, my DW is also 61 and already retired! DW worked for about 20 years as a school secretary (part time). Before that she worked mostly full time as an office manager. She is able to draw a small pension with an accelerated benefit (an amount to reflect her approximate SS benefit @ 62). We decided to have her retire because she is able to make nearly the same income retired as when she was working (90%). There are other reason for her to retire that are not financial.

I have 25 years with a manufacturing company. I am going to pull the plug March 1st, 2019. I will be able draw a pension that includes an annuity portion (from a 3.5% contribution for many years) that more than doubles the regular pension. I also have a company sponsored 401K. My Fidelity portfolio will be in the $300,000 range at retirement. I know that may not seem like a large amount to most of you, but it is what it is. I have not always been able to contribute what I would have like to in my younger years. My employer provides $4000 per year of service that can be ONLY used for Heath Insurance premiums. I will have at least $106,000 in that account at retirement.

One of the factors helping me decide my retirement is the expiration of our Union contract April of 2019. In all likelihood, that $4000 per year Heath Insurance benefit will be decreased or eliminated entirely with the new contract. Another factor is that Iíve been working in a factory most of my life, and while there is little stress involved in my job, my job includes a lot of daily OT. I sometimes work 6 days a week. Iím just getting plain tired and worn out!

I am going to draw SS early at 62yrs 7mos. With my Pension + SS along with my DWís Pension + SS, we will be at over 80% of our working income without touching the retirement savings.

I have used several Retirement Calculators (notably Fidelityís) and all have determined that we will not outlive our money. I have greatly overstated our monthly expenses and included what I believe sufficient funds for travel and snowbird expenses (see Wisconsin)!

We have always loved to travel and plan to even more in retirement.

Looking forward to your comments.
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Old 04-07-2018, 10:24 AM   #2
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Medical insurance? Taxes?
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Old 04-07-2018, 10:43 AM   #3
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I plan use the $106000 for Healthcare Premiums until 65 using the remainder for Supplemental. I will be around 19% Fed/State tax bracket.
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Old 04-07-2018, 10:47 AM   #4
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Welcome mhansen! If you haven't found them already, we have a helpful list of things to think about before you make the leap:

Some Important Questions to Answer

We have a calculator here called FIREcalc - the link is at the bottom of each page. You might want to check that out.

Remember that you will probably travel much more in your first 10-15 years of retirement than later, so plan for that in your cash flow estimates. Of course, the amount you spend on travel also depends a lot on your preferred style of travel - tent camping in state parks is much different from luxury cruises on the other side of the world!

We look forward to your participation here!
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Old 04-07-2018, 11:07 AM   #5
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Welcome Mhanson to this wonderful site.
What is the relationship of your working income to expected retirement expenses, as your expected expenses is one of the 2 important aspects of the equation (unless you don't wish to say).
Firecalc will give you results based on historical sequences vs. the Monte Carlo calculations of the Fidelity calculator, so it is good to get different perspectives.
The Fidelity calculator is one of the most conservative ones out there, so those results are good to hear.
Any plans to cover Nursing home/Assisted living possibilities?
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Old 04-07-2018, 11:15 AM   #6
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FireCalc is a bit confusing to me. I think it shows no scenarios going under the 0 line. That's what I should look for, correct?

I have factored in Long Term Care premiums into my spending.
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Old 04-07-2018, 12:55 PM   #7
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Quote:
Originally Posted by mhansen265 View Post
FireCalc is a bit confusing to me. I think it shows no scenarios going under the 0 line. That's what I should look for, correct?

I have factored in Long Term Care premiums into my spending.
Above all the squiggly lines under "Firecalc Results", there will be a success rate percentage. Most posters look for somewhere between 90% - 100% success rate.
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Old 04-07-2018, 01:21 PM   #8
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Yeah, I've figured it out finally!

I've tried several different scenarios and have received 100% on all. So that's good, right?
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Old 04-07-2018, 01:27 PM   #9
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Quote:
Originally Posted by mhansen265 View Post
Yeah, I've figured it out finally!

I've tried several different scenarios and have received 100% on all. So that's good, right?
Absolutely, with of course the caveat of "past performance market scenarios might not be indicative of future results".
Nevertheless, I have always looked for 100% across various calculators and it is one good indicator of potential retirement financial success. IMHO
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