Hello

[Runner51]

Hello from Northeast PA. I am 54 yrs old planning on retiring at 55. I am have been married for 34 yrs. We have 2 grown children and 1 grandchild. What are some of the things to consider when planning a early retirement? We have always kept a close watch on our finances. Thanks

[gauss]

Welcome Runner51!

Are you looking primarily for financial or non-financial comments?

[Runner51]

I would like to hear both financial or non-financial comments.

[REWahoo]

Here's a dozen questions to help you get started: http://www.early-retirement.org/foru...ire-69999.html

[racy]

Hi Runner,

You're not giving us much to go on. But, here's a basic financial consideration: do you have 25X the amount you'll need to spend invested in a portfolio of at least 40% stock? If so you can take 4% of that annually, adjusted for inflation, for 30 years.

And, a basic non-financial consideration: what will you do with your time (besides spoiling the grandchild!)

Good luck!

[pb4uski]

+1 not a lot to go on. Besides the FAQ link that REWahoo provided, another good way to assess your financial readiness is the Lifetime Planner tool included in Quicken Deluxe and higher. QLP is a reasonably intuitive, easy-to-use tool where you fill out screens with your information and it then projects your future retirement assets based on the information that you provided and is a good place to start.

[Runner51]

Thanks for the quick responses. I read the questions. Right now I make 40,000 per year, but I have so much taken out for 401k and savings that I actually netted $24,000 last year. I do know what my expenses have been. I track them very closely. My expenses would actually drop somewhat when I retire. My income would be $1100 per month pension from current employer, with access to $250,000 401K. My wife operates a very small part time business (about 3-5k / year). Plus when I reach 65 I would get an additional $200 from a former employer. My S.S. would be at 62 $1182, age 67 $1700, 72 $2100, my wife's would be at 62 $598, 67 $858, 72 $1064 Healthcare: I have done an estimate on ACA website and found insurance similar to what I have now for $79/month, that money would come out of health insurance fund from my employer. We live a very modest lifestyle. We do not travel (in 55 years I have been out of PA 3 times.)
I would not get bored. I would, and have in the past assist coaching our local high school track and cross country teams. (part time job 3-4 k /yr)
And I would spoil my grandchild(ern)

[gauss]

Quote:

Originally Posted by Runner51 ... Plus when I reach 65 I would get an additional $200 from a former employer. My S.S. would be at 62 $1182, age 67 $1700, 72 $2100, my wife's would be at 62 $598, 67 $858, 72 $1064 Healthcare: I have done an estimate on ACA website and found insurance similar to what I have now for $79/month, that money would come out of health insurance fund from my employer.

I would like to know more about the $79/month health insurance that a 54 year old Pa resident can qualify for. Does the policy show up on this web site?

I suspect that is the cost after the advanced premium tax credit (aka subsidy) has been applied based on an assumed income level and family size.

Thanks
-gauss

[MRG]

I made up magi of $20,000 and used Susquehanna county(northeast). There's 5 less than $80 with subsidies and cost sharing, BCBS and Gesinger. OP congrats on living LBYM, nicely done. I'm assuming your pention starts at 55? Is its COLAed? Would you have more in another 2 years? Is your DW going to keep her business? Have you run your numbers through firecalc?

Welcome to the group, I know you'll get good feedback.

[Runner51]

My pension would start at 55. My wife would continue her business.
The premiums are with tax credit.
Here are links.
https://www.healthcare.gov/see-plans...tal=2&state=PA

Pennsylvania Health Insurance Exchange | Healthcare.gov

[RAE]

Quote:

Originally Posted by Runner51 I would not get bored. I would, and have in the past assist coaching our local high school track and cross country teams. (part time job 3-4 k /yr) And I would spoil my grandchild(ern)

Quite a few folks seem to struggle (initially, anyway) with finding enough meaningful things to occupy their time after retirement. That was not the case at all with me (I can hardly find the time to do the things I want to do), and it sounds like it won't be with you, either. Just make sure you have given enough thought to this, however, to avoid any surprises/disappointments later. Your life will change in a major way once you leave your job, and you need to make sure you have a plan for the next phase.

[UnrealizedPotential]

Welcome to the forum Runner, no advice , I will leave that to others. I learn alot on this forum. I think you will as well.

[pb4uski]

Quote:

Originally Posted by Runner51 Thanks for the quick responses. I read the questions. Right now I make 40,000 per year, but I have so much taken out for 401k and savings that I actually netted $24,000 last year. I do know what my expenses have been. I track them very closely. My expenses would actually drop somewhat when I retire. My income would be $1100 per month pension from current employer, with access to $250,000 401K. My wife operates a very small part time business (about 3-5k / year). Plus when I reach 65 I would get an additional $200 from a former employer. My S.S. would be at 62 $1182, age 67 $1700, 72 $2100, my wife's would be at 62 $598, 67 $858, 72 $1064 Healthcare: I have done an estimate on ACA website and found insurance similar to what I have now for $79/month, that money would come out of health insurance fund from my employer. We live a very modest lifestyle. We do not travel (in 55 years I have been out of PA 3 times.) I would not get bored. I would, and have in the past assist coaching our local high school track and cross country teams. (part time job 3-4 k /yr) And I would spoil my grandchild(ern)

I think you're probably ok. I presume that you're living on the $24k a year that you take home and that is sufficient for your lifestyle. If you retire, your pension would be $13k so from 55 to SS you'll need to fund the gap from your 401k. You can start SS whenever your 401k gets uncomfortably low but since your SS is so much higher than DW and she would get your SS if you die you should consider waiting until you are 70 if the 401k will support you for that long.

Run your situation through firecalc and see what the result is.

Does you employer allow people who leave after they are 55 to access their 401k money without penalty? Many do, but some plans do not allow that and that 10% penalty from 55 to 59 1/2 might be a deal-breaker for you.