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afraid to let go?
Old 04-23-2015, 10:03 PM   #1
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afraid to let go?

I have been reading posts for about a year and find the information interesting, and I am learning a great deal.
Our situation: both public workers >35 years each.
will have guaranteed cola'd pensions with 100% survivorship (I know, I am blessed to have this) that should cover about 90% of our spending, which I have been tracking for 5 years. ( We could roll over our entire pensions which would be 1.2 million, but I think I would prefer the guaranteed for life income)
Also have $442,000 in 457 plan and another $110,000 in an IRA through work
House will be paid off next year. Our emergency fund is low right now due to recent home upgrades.
children independent.
Two FA say we are good to go, now if we want, due to pension.
If I wait until 60, my health insurance will be paid approx 90% until 65 by employer.Both spouse and I plan to work until 11-2016 (when I turn 60) due to that. Not early retirement, but less than 65!
I've run firecalc twice with 2 different spending patterns and it says 100%.Even with that, I keep thinking (worrying) about finances!Hubby wants to go now.
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Old 04-23-2015, 10:15 PM   #2
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Congratulations on the place you and your wife are in. It's nice to know you've provided for your family and your future--a rare thing indeed.

Healthcare is a major expenditure, and it's very important. It's bad enough to know that most people will be $200K out of pocket for future premiums, deductibles and co-pays.

Hang in there and 11/2016 will be here fast.
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Old 04-23-2015, 11:58 PM   #3
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Congratulations on the place you and your wife are in. It's nice to know you've provided for your family and your future--a rare thing indeed.

Healthcare is a major expenditure, and it's very important. It's bad enough to know that most people will be $200K out of pocket for future premiums, deductibles and co-pays.

Hang in there and 11/2016 will be here fast.
OP is a woman.
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Old 04-24-2015, 06:32 AM   #4
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Congrats on where you and your husband are at. I think you're OK, the FA's think you are OK and Firecalc says you're OK. If you plan to work till you are 60 then you have over a year and a half to mull this over. Don't stress about it now. Wait a year and see how you feel then. My bet is by then you will be longing for the finish line!
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Old 04-24-2015, 06:54 AM   #5
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I get why you would choose the pension vs the lump sum, but out of curiosity what will your starting pensions equal vs the lump sum at the point that you RE?
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Old 04-24-2015, 09:28 AM   #6
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Thanks for the reassurances.
golden sunsets: there are over 13 options to choose from--ranging from total to partial lump sum and joint/survivor! It is mind boggling to me to look at all of these, I am not a financial or mathematical person--(healthcare is my specialty!)
the total lump sum estimate is currently 1.3 million combined and the most reasonable monthly payout option amount with 100% survivor is approx $9400/mo. gross
I have requested a verification, which should come in the next 6 months. At that point, they guarantee the option payouts will not be any lower than stated.
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Old 04-24-2015, 10:12 AM   #7
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Two FA say we are good to go, now if we want, due to pension.
If I wait until 60, my health insurance will be paid approx 90% until 65 by employer.Both spouse and I plan to work until 11-2016 (when I turn 60) due to that. Not early retirement, but less than 65!
I've run firecalc twice with 2 different spending patterns and it says 100%.Even with that, I keep thinking (worrying) about finances!Hubby wants to go now.
You're set financially, hubby wants to retire now, and you want to wait. Is there any reason you need to both retire at the same time? It may work even better to retire at different times. If you both pull the plug at the same time, you're both going through 2 adjustments at the same time: Adjusting to retirement, and adjusting to being around each other a lot more than you had previously.
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Old 04-24-2015, 10:42 AM   #8
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Congrats, I think you're in great shape with your pensions and savings. The target for increased medical coverage is a nice incentive, and if you're still enjoying work, it's nice to get that benefit. But be careful that your hesitation doesn't lead to ever increasing additional targets - if we just work one more year, we could also have $xxx or some other benefit.

It's completely natural to have some hesitation, people who have been careful all their lives financially have a hard time taking a big financial step. But you have done your work, tracked your actual spending and reviewed your assumptions with third parties. Look forward to the freedom you're about to have and enjoy!
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Old 04-24-2015, 10:48 AM   #9
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FIRE away!
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Old 04-24-2015, 03:33 PM   #10
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Welcome, pacergal! Sounds like you and your husband have done a lot of things right and are well-positioned for retirement. We look forward to hearing more - feel free to ask questions as you go!
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Old 04-24-2015, 05:46 PM   #11
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You're set financially, hubby wants to retire now, and you want to wait. Is there any reason you need to both retire at the same time? It may work even better to retire at different times. If you both pull the plug at the same time, you're both going through 2 adjustments at the same time: Adjusting to retirement, and adjusting to being around each other a lot more than you had previously.
+1...What Roger said.
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Old 04-25-2015, 11:02 AM   #12
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Thank you everyone for your responses. Hmmm, hadn't thought of having hubby retire first, but it would eliminate "having to go to work" as the excuse not to finish projects!
And having him take over dinner preparations would be an added bonus coming home after work :-)
I tend to over analyze, so I appreciate all of your honest feedback, suggestions, etc. Thats why I joined!
I hope to continue to learn from all of you on this journey, and yes, 11-2016 will be here sooner than I think.
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Old 06-24-2016, 09:30 AM   #13
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Brief update: Today is DH last day! Over 30 years in govt law enforcement, he is ready. Our work def comp recently partnered with Vanguard (YES!) and I have switched funds. His pension has a small COLA and we chose 100% survivor option. His work 401 will roll to Vanguard after today. He will stay on my health insurance. When I retire in November, both of our pensions will cover expenses.
I have learned so much from all of you on this journey, and continue to do so.
Falling Stock market today gave me a slight gulp this morning, but we will stay the course...
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Old 06-24-2016, 10:10 AM   #14
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Brief update: Today is DH last day! Over 30 years in govt law enforcement, he is ready. Our work def comp recently partnered with Vanguard (YES!) and I have switched funds. His pension has a small COLA and we chose 100% survivor option. His work 401 will roll to Vanguard after today. He will stay on my health insurance. When I retire in November, both of our pensions will cover expenses.
I have learned so much from all of you on this journey, and continue to do so.
Falling Stock market today gave me a slight gulp this morning, but we will stay the course...
Congrats!! I am right behind you.
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Old 06-24-2016, 10:40 AM   #15
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pacergal - Congratulations - and don't let the market worry you one bit having your pensions cover 100% of your expenses you are in fine fine shape!
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Old 06-24-2016, 11:03 AM   #16
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Congrats to him (and to you soon)!
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Old 06-24-2016, 11:04 AM   #17
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And definitely don't do the lump sum. A SWR of 4% on $1.3M would be $52k/year. vs. $112k/year from the pension payouts.

Congrats and thanks for the update!
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Old 06-26-2016, 06:06 PM   #18
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Big congrats! Sounds like you are in a very good place. Enjoy it!
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