Getting close in North Dakota

[billnd01]

Hi. I'm a 60 year old male with a wife who's 55. I've got $795,000 in retirement assets with an asset allocation of 50% stocks, 45% bonds & 5% cash. Hope to retire at 62. By then I will have added another $40,000+ in contributions. This along with compounding I project I'll have about $925,000 available. Hoping this will be enough.


We have 3 kids, all married and living on their own. 2 in the same town and 1 about 300 miles away. 3 1/2 grandkids we love to spoil (but in a good way). Don't enjoy flying much so most travel is by car in the upper Midwest.

 

[JPatrick]

Hi. I'm a 60 year old male with a wife who's 55. I've got $795,000 in retirement assets with an asset allocation of 50% stocks, 45% bonds & 5% cash. Hope to retire at 62. By then I will have added another $40,000+ in contributions. This along with compounding I project I'll have about $925,000 available. Hoping this will be enough.


We have 3 kids, all married and living on their own. 2 in the same town and 1 about 300 miles away. 3 1/2 grandkids we love to spoil (but in a good way). Don't enjoy flying much so most travel is by car in the upper Midwest.

Welcome Bill
Will $925,000 be enough? Maybe, but you left out some other vital info needed to make that call.
Such as: Is your house paid for?--any pension in the mix?--Got an oil well in your backyard?

PS: Born and raised in ND, but have since moved on.

 

[Nodak]

Welcome Bill

 

[Niuatoputapu]

Hi. I'm a 60 year old male with a wife who's 55. I've got $795,000 in retirement assets with an asset allocation of 50% stocks, 45% bonds & 5% cash. Hope to retire at 62. By then I will have added another $40,000+ in contributions. This along with compounding I project I'll have about $925,000 available. Hoping this will be enough.

billnd01 - welcome to the group! Most people in the US would be envious of a couple in a low cost area with $925K retirement funds at age 62. Great job! But, expect a few members to test your hopes with a more quantitative analysis of spending and future inflows (SS and/or pension). We include people who find $500K at age 45 more than enough and others who don't think they can swing it with $3 million at age 65.

 

[Walt34]

Welcome, and it sounds like you could be set. A lot depends on your expenses. Here are some issues to consider:

http://www.early-retirement.org/for...re-asking-can-i-retire-69999.html#post1399715

 

[kimcdougc]

Welcome. You will find a wealth of info on this forum.

 

[billnd01]

Thanks everyone. House is paid off and no other payments. And unfortunately no pension. I'm feeling good at where we're at at this time.


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[Dave J]

Bill,
Sounds like you are in pretty good shape. Are any of your Retirement assets in Roth accounts? If not much, and if you have assets to live on at 62, consider converting some when you retire before you draw SS and in a lower tax bracket. I've been learning a lot the last few months on the taxing of SS, and timing of SS amounts and IRA/401K withdrawals can have a big impact on taxes. I dislike paying any more taxes in Retirement that I have to.
I've been fortunate to get almost 1/2 of my IRA/401K converted over to Roths, but then I retired several years before 62, so I've been working on it awhile.Make the best use of the lower tax brackets when you can.
Dave

 

[billnd01]

By 62 I'll have about 25% to 30% of retirement funds in Roth accounts.


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[aaronc879]

Thanks everyone. House is paid off and no other payments. And unfortunately no pension. I'm feeling good at where we're at at this time.


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Have you been tracking your expenses? $900K should be good if you spend less than $36K/yr. I know you can live on $36K/yr in ND with a paid off house but will it provide the lifestyle you want? Only you can answer that question.

 

[Dave J]

Sounds good. I'd increase that a bit if possible, and what is your health care situation? That would be a concern, not major or deal breaker, but could be a big cost.
I was/am fortunate my wife retired from mega-corp with health care until 65(we hope), so our current premium is $306 month for good coverage.

 

[Dave J]

Have you been tracking your expenses? $900K should be good if you spend less than $36K/yr. I know you can live on $36K/yr in ND with a paid off house but will it provide the lifestyle you want? Only you can answer that question.

Don't forget they will get SS, I assume at 62/66/70 or when needed.

 

[billnd01]

If I draw SS at 62 I'd be looking at about $20,000/year. So that brings annual income up to $56,000/year. Health Insurance is the wild card. I'm budgeting $1,000/mo. As a part of overall annual expenses budgeted of $53,000/year.


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[Dave J]

And when your wife starts drawing you will get more. You look in good shape to me if you live a semi-frugal lifestyle(which I do). Congrats. You are on your way!

 

[wingfooted]

IMO you are good to go considering

1). The sweetheart rate on medical via your DW's plan until age 65
2). Relatively low cost of living in North Dakota

Your spending plan will need to be conservative and (knock on wood ) no divorce in your future.


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[Sunset]

Welcome,

Nice thing about your plan to retire in 2 years, is that the big DROP in stocks should have happened by then, so you will have a clear picture, or at least no sudden surprise.

Did you you use fireCalc with your numbers ?