Hello All. My first post here after studying the site for quite a while.
After 30+ years in the corporate world, I really need a change, so I'm building up my courage to announce my resignation in a few weeks. I've run the Firecalc numbers and all looks good, but it's still nerve-wracking and some feedback would be nice. Once I pull the plug, the's no way I'll go back to this kind of job (or salary) ever again. My DW is on the fence about the idea, despite trying to explain the FIRECALC numbers to her, but I think she's more worried about me hanging around the house all day. Anyway, what I'm really looking for is "semi-retirement" with the assurance that I COULD retire if I wanted to. So for the next 5-10 years, my plan is to start up a small business or find a lower stress job which I expect can generate at least $3K in income per month.
So here's my situation:
· DW and I are both 55 years old. DW is retired.
· No mortgage and no debt
· Total current investments: $2.3 million ($880K in IRAs/401Ks) (50/40/10 equities/bonds/cash)
· Home value: $650K (will downsize to retirement area in 10 years)
· Est. Annual Spending: $85,000 EXCLUDING health care and income taxes
· Annual Social security at age 70: $62,000 combined with DW (per SSA estimator)
· Additional Income : $36,000 per year from now until my early-mid 60s. (This should hopefully cover the health care and income taxes)
· One son starting college but all expenses are 100%+ covered in a separate 529 account
To me, the big variables are health care and taxes, which are hard to estimate. I can pick up COBRA from my company for 18 months which is costly ($2K/mo), but I may be better off with a new policy under Obamacare.I know taxes on dividends and capital gains will be less, but not sure how much.
What do you think? Firecalc tells me I'm 100% based on 40 years but am I missing anything?
Thanks.
After 30+ years in the corporate world, I really need a change, so I'm building up my courage to announce my resignation in a few weeks. I've run the Firecalc numbers and all looks good, but it's still nerve-wracking and some feedback would be nice. Once I pull the plug, the's no way I'll go back to this kind of job (or salary) ever again. My DW is on the fence about the idea, despite trying to explain the FIRECALC numbers to her, but I think she's more worried about me hanging around the house all day. Anyway, what I'm really looking for is "semi-retirement" with the assurance that I COULD retire if I wanted to. So for the next 5-10 years, my plan is to start up a small business or find a lower stress job which I expect can generate at least $3K in income per month.
So here's my situation:
· DW and I are both 55 years old. DW is retired.
· No mortgage and no debt
· Total current investments: $2.3 million ($880K in IRAs/401Ks) (50/40/10 equities/bonds/cash)
· Home value: $650K (will downsize to retirement area in 10 years)
· Est. Annual Spending: $85,000 EXCLUDING health care and income taxes
· Annual Social security at age 70: $62,000 combined with DW (per SSA estimator)
· Additional Income : $36,000 per year from now until my early-mid 60s. (This should hopefully cover the health care and income taxes)
· One son starting college but all expenses are 100%+ covered in a separate 529 account
To me, the big variables are health care and taxes, which are hard to estimate. I can pick up COBRA from my company for 18 months which is costly ($2K/mo), but I may be better off with a new policy under Obamacare.I know taxes on dividends and capital gains will be less, but not sure how much.
What do you think? Firecalc tells me I'm 100% based on 40 years but am I missing anything?
Thanks.