My wife will be retiring at the end of Sept this year and I will be retiring in Jan of 2014. My wife will be 49 and I will be 48 at our respective retirements. We were originally going to retire several years ago, but after the last couple of stock market events, I wanted a bigger cushion. And quite frankly a good deal of my identity seems tied up in what I do for a living so I had to come to terms with the loss of that part of myself. I'm going to work on open source software in retirement. At least that's what I will do when I feel the need to spend quality time with a computer. No pay, no politics and control over what I contribute to. We own an RV and will probably camp a lot also.
While I am a fairly comfortable investor, I seem to like being over prepared. In 1992 the first paragraph of our first financial plan stated that social security was going to collapse and that the company was going to embezzle our pensions. The plan was that we had to do everything ourselves. Today I assume the pensions are okay but am assuming SS will change to means based testing, which means we won't qualify. I am a serious Boglehead. Low cost index funds rock. 60%stock/30%bond/10%cash is where I intend to start retirement.
I work as a software engineer and my wife is in accounting with the same company. We have both worked here almost since college.
We will retire with investments that add up to about 40 times our actual annual expenses. Our initial spend should be close to 2.6% of our invested net worth. At 55 we both begin collecting pensions. The initial payout of those pensions is equal to about half of our annual expenses. Pensions accrued money based on what we made, not how much we spent. So 6-ish years after retiring our spend from investments will drop significantly.
While I am a fairly comfortable investor, I seem to like being over prepared. In 1992 the first paragraph of our first financial plan stated that social security was going to collapse and that the company was going to embezzle our pensions. The plan was that we had to do everything ourselves. Today I assume the pensions are okay but am assuming SS will change to means based testing, which means we won't qualify. I am a serious Boglehead. Low cost index funds rock. 60%stock/30%bond/10%cash is where I intend to start retirement.
I work as a software engineer and my wife is in accounting with the same company. We have both worked here almost since college.
We will retire with investments that add up to about 40 times our actual annual expenses. Our initial spend should be close to 2.6% of our invested net worth. At 55 we both begin collecting pensions. The initial payout of those pensions is equal to about half of our annual expenses. Pensions accrued money based on what we made, not how much we spent. So 6-ish years after retiring our spend from investments will drop significantly.