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Can We Retire Now.
Old 11-05-2013, 11:55 AM   #1
Confused about dryer sheets
 
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Can We Retire Now.

Hello, new to this forum and have lately been thinking it's time. I think I know the answer but am looking for encouragement. Here is our current status:

I'm 57 and DH 55 and still both working.
Daughter still in college but have 529 to cover the remainder. Son grown.
We would have megacorp retiree health insurance.

No debt. House paid off.
Primary Residence worth about 750k intend to stayput for next 10 years


850k Cash
900k Investments (maybe 80/20 stock/bond)
2400k Retirement (401k/IRA) (maybe 80/20 stock/bond)

If stopped working today

120k/year DH Defined Benifit Pension start today
28k/year DW lifetime annuity (in IRA) starts in 2.5 years (at 59.5)
20k/year DW SS in 5 years (at 62)
20k/year DH SS in 7 years (at 62)

Yearly expenses estimated 100k to 120k.
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Old 11-05-2013, 12:07 PM   #2
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Really? You've obviously worked hard and the question is whether ER is really what you want.

100K yearly expenses with no mortgage…I'm sure you can manage and wish you well.
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Old 11-05-2013, 12:29 PM   #3
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Are your expenses including taxes? If so, you can easily swing it financially now. If not, you are still in good shape but your expenses will really be more like $120k to $145k.
I don't see you making a meaningful dent in your savings at your current spending level. You are definitely only working to increase your childrens' inheritance or you like what you are doing.

Between now and age 70, you can move money from your 401k/IRA to a Roth to minimize your RMD.
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Old 11-05-2013, 12:35 PM   #4
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Go for it!!
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Old 11-05-2013, 12:48 PM   #5
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Why would you draw SS at 62? Does not look like you need that (or much else) IMHO
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Old 11-05-2013, 02:19 PM   #6
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Yep, you are clear for launch. Have a great time!
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Old 11-05-2013, 02:20 PM   #7
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Do you want to retire? Obviously there is nothing standing in your way financially, so you may not be ready psychologically or emotionally. Take your time deciding.
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Old 11-05-2013, 02:49 PM   #8
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Like others have said, not everyone should retire just because they're financially ready. FI is a worthy goal in itself (and FI depends on what probability of success you need to sleep at night), ER then becomes one of many options. You have to be emotional prepared too, comes naturally to some, but not all. And if you enjoy your work (some people do) and/or don't know what you'd do with yourself once retired, you might want to look beyond just the numbers.

More info than most new members post, but not quite enough to enter in FIRECalc: A different kind of retirement calculator, so I assumed worst case.
  • $4.15M portolio, invested 60:40 equity:fixed
  • 40 yrs (plan to age 95 for youngest spouse)
  • 120K/yr non COLAd now
  • 28K/yr non COLAd 2016
  • 20K/yr SS 2018
  • 20K/yr SS 2020
And got...
Attached Images
File Type: jpg FC44.jpg (107.2 KB, 73 views)
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Old 11-05-2013, 03:11 PM   #9
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What are you waiting for? Life is short...go for it.
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Old 11-05-2013, 09:34 PM   #10
Confused about dryer sheets
 
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Short answer-YES YOU CAN, Tomorrow. Finances appear to not be an issue, period.

Question is a "back at ya"....What do you want to?

I have just started to try it (early retirement) a few months ago and I like it. It does take some adjusting to....having time to do whatever you want to do. So, what do you want more of...more time or even more money?

For some people, making the decision and going through with it isn't an easy thing to do, because its leaving the life you know, for something new and unknown.

Credit to Nike..."Just Do It"
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Old 11-06-2013, 08:22 AM   #11
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Quote:
Originally Posted by EarlyRiser View Post
20k/year DW SS in 5 years (at 62)
20k/year DH SS in 7 years (at 62)
You look golden.

One thing I would suggest would be to do the "one early, one late" SS claiming strategy. At age 62, DH takes his SS. At age 67, DW can take the spousal benefit which is half of DHs. At age 70, DW switches to her own SS which is now at the maximum rate.

You also might consider doing Roth conversions before SS starts to give you more flexibility, reduce RMDs, and to let that money grow tax free for your children who will probably be inheriting a lot.

Enjoy!
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Old 11-06-2013, 08:56 AM   #12
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Quote:
Originally Posted by EarlyRiser View Post
Hello, new to this forum and have lately been thinking it's time. I think I know the answer but am looking for encouragement. Here is our current status:

I'm 57 and DH 55 and still both working.
Daughter still in college but have 529 to cover the remainder. Son grown.
We would have megacorp retiree health insurance.

No debt. House paid off.
Primary Residence worth about 750k intend to stayput for next 10 years


850k Cash
900k Investments (maybe 80/20 stock/bond)
2400k Retirement (401k/IRA) (maybe 80/20 stock/bond)

If stopped working today

120k/year DH Defined Benifit Pension start today
28k/year DW lifetime annuity (in IRA) starts in 2.5 years (at 59.5)
20k/year DW SS in 5 years (at 62)
20k/year DH SS in 7 years (at 62)

Yearly expenses estimated 100k to 120k.
Have you tracked your expenses, or is that a loose estimate? If you're pretty sure you are able to live off of 100-120k, well, you have a defined-benefit pension that covers that before you ever even get into your multi-million dollar portfolio.

So yes, financially, you look good.
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Old 11-06-2013, 09:03 AM   #13
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As others have said, from a financial point of view, I don't think there is any question that you CAN retire. The question is: do you WANT to retire?
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Old 11-06-2013, 03:14 PM   #14
Confused about dryer sheets
 
Join Date: Nov 2013
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Thanks to all for your advice.

DH is a little hesitant that it's now time for him to make the move. He says what am I going to do to occupy my day.

So far we've been in accumulation mode and haven't given much thought how to deploy assets in retirement. As far as when to take SS and converting 401k/IRA to roth, we will need to investigate the pluses and minuses. Any recommendations on resources to educate ourselves?
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Old 11-06-2013, 03:33 PM   #15
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Quote:
Originally Posted by EarlyRiser View Post
Thanks to all for your advice.

DH is a little hesitant that it's now time for him to make the move. He says what am I going to do to occupy my day.

So far we've been in accumulation mode and haven't given much thought how to deploy assets in retirement. As far as when to take SS and converting 401k/IRA to roth, we will need to investigate the pluses and minuses. Any recommendations on resources to educate ourselves?
"What color is your parachute in retiremet" deals with psychological/social/emotional (and other) aspects of retirement very well. Includes exercises and self-assessments which may assist with creating next chapter in your life. It helped me.
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Old 11-06-2013, 03:35 PM   #16
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Good! So we are all agreed that you have the necessary funds to retire whenever you like. It sounds like DH in particular is not psychologically ready. It's time to do a bit more research, both on financial strategies (managing withdrawals and social security) and on the personal aspects, e.g. what are you going to do all day?

This book by Ernie Zelinski is a good start:

http://www.amazon.ca/How-Retire-Happ.../dp/096941949X

And you may want to search the forum for ideas as well. Here's over 12,000 of them!

http://www.early-retirement.org/foru...day-37868.html

It's a good idea to have some structure as you start ER, be it a regular golf date, club memberships, or other social activity. You might consider planning your first year, including trips, before making the decision to ER.
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