Hello, a few years from FIRE

[Papi]

Hello all,

First time caller, short-term lurker.

I'll start this off with a brief introduction, then start some new threads with some retirement planning questions I have.

My DW and I are about 5-7 years from FIRE, that is if crazy Mr. Market is agreeable over that time span.* DW and I are both in our mid 40's.* We have 3 kids in elementary school.* *I am a software engineer and DW has the harder job of managing the household.* *Yeah, I just read the CNN report referenced on this forum that a SE is the best job out there.* Yeah, it pays well but they forgot to ask me if I'm satisfied with it* :P .* *But I do get to work from home full-time so that makes it bearable for now.* That and the golden ball-and-chain keep me at the current employer*

We will have no pension or anything like that, so all retirement funds are from our own holdings.* My retirement holdings will be approximately 60% Roth IRA and 30% 401k/Rollover IRA, and the remaining 10% in a taxable account.* I will have to do the 72t thingy at FIRE to tide us over until age 59 rolls around.

In about 12 years we will have the house paid off and no debt.* *This will conincide with the youngest hopefully leaving the house for college.* *As she is packing her belongings to leave, I will be staking the for-sale sign outside to downsize to a much smaller house and pocket tax-free (hopefully) around 300-400k .*

Some concerns I have are 1) funding the kids college education while ER'd and 2) health care costs.* I'll start both of these concerns in new threads.

Great forum and thanks,

--Papi

[Nords]

Welcome to the board, Papi.* Sounds like you guys have both a clue and a plan.

Remember to add your massive Social Security distributions to your calculations.* Even if it's only $10K/year that's a big chunk of the ER budget that could buy a lot of health insurance.

[2B]

Welcome.

A note on college funding -- money in your children's name is expected to be used by them for their education. Nothing is excluded when financial aid is calculate. Money in your retirement accounts are excluded from even being reported since it isn't accessible. Your personal money is looked at but not all is expected to be used for college funding. Some schools are looking at home values and figuring you can get a HELOC to fund college. If you are doing a good job of saving, you probably won't be eligible for much aid.

If you're ER'd with kids in college your lack of income may actually help get financial aid. It helped my son get money when I was "between jobs." To be safe, assume college funding will come out as part of your SWR.

[Papi]

Hi Nords and 2B,

If I retired today, my SS at 62 would be a little over 19k/yr and DW's, since she worked a bit before kids, will be about $3k/yr. That is roughly half of what I expect my long-term retirement expenses to be. Of course, the first few years will be a little different with paying off the mortgage and getting the kids through school.

I have nothing saved in the kids names for education (529's, etc.). I have put everything into retirement accounts or home equity.

--Papi

[REWahoo]

Quote:

Originally Posted by Papi If I retired today, my SS at 62 would be a little over 19k/yr and DW's, since she worked a bit before kids, will be about $3k/yr.*

Papi, check the SS benefit FAQ's on the SS website (fourth question).* I think you will find your DW will get 1/2 your benefit, boosting her annual amount up to 9.5k/yr.

[Papi]

Quote:

Originally Posted by REWahoo! Papi, check the SS benefit FAQ's on the SS website (fourth question).* I think you will find your DW will get 1/2 your benefit, boosting her annual amount up to 9.5k/yr.

Yahoo, REWahoo!!!

That is great info, thank you for sharing that.* A few months ago I requested from the SSA what our SS benefits would be if we stopped working on a specific date.* I never saw mention of this little nuggest of information.* I may have to re-visit FIREcalc at lunchtime today*