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Hello from CO
Old 02-11-2012, 09:28 PM   #1
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Hello from CO

Greetings! I've been lurking here since March. Gaining such great knowledge from so many like-minded people that are so much smarter than I is invaluable to me. I enjoy the "Hi-I am" threads especially because of how interesting it is to discover how others are working on or have achieved ER.

I am 49. DH is 51. We have no kids. Like so many others here we have always LBOM because of our conservative nature brought on by our upbringing. We are very proud of our financial accomplishments especially considering our income level hasn't been that large for very long. Rental houses have helped our NW. We sold the last single family rental home a couple years ago (burned out). We still own an aircraft hangar and rent out space to small aircraft owners (best rental situation we ever had).

Firecalc and other calcs say we can retire now. Our spending in ER will be about $44 K a year including healthcare. Total assets specifically for retirement is $880 K, which does not include the value of 2 retirement homes; one in a small town in the central mountains of Colorado, the other is a condo we purchased in Cocoa Beach, FL. Both retirement homes are owned outright. Our retirement assets of $880 K are invested in Stocks-22%, Bonds-18%, Real Estate-23%, Annuities-14%, Money Market/CD/Cash-23%. We have one debt, a loan on our primary residence of $125 K. The primary residence (current market value of $260 K) will be sold and we plan to spend our retirement in Colorado in the summers and Florida in the winters (the best of both worlds to us-mountains and beach).

Our current plan is to continue working full-time for the next 3-4 years to pay off our loan in addition to stashing away as much cash as we can in Cds. The sale of our primary residence, CDs and part-time work should cover us until ss and medicare kick in.

We really don't want to work another 3/4 years, but we want to be completely debt free before we pull the plug and very comfortable with the decision. He likes his job, but it is very demanding, mentally and physically. I do not like my job at megacorp and am looking forward to a very likely layoff in probably about 2-3 years. Hopefully the timing of that will work. If not, we will adjust to plan B (I get another FT job), C (I get a part-time job and he works longer), D (we sell the primary house, move to Cocoa Beach, and get part-time jobs/start a business), E (we sell the primary house, rent the condo, work part-time on the internet, buy an awesome RV and travel), F (move in with relatives and become bums (just kidding)). Hmmm----the plans get better as you move down them, though, don't they?

My question; Like so many others, much of our retirement funds are tied up in 401-K, IRA's and we can't withdraw until 59 1/2. Can a 72T be put in place before age 55? Can a 72T be implemented on just one of the 401-K's/IRA's? Are there rules on the withdrawl period on a 72T?

Cass
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Old 02-11-2012, 09:37 PM   #2
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72t.Net |IRC Section 72(t) | 72t Distribution | 72t Calculators | SEPP Plans is a good place to start on all matters related to 72T withdrawals. You look like a candidate to me if you need to do so.

My understanding is that once you put a 72T in place, you must continue until age 59.5 or 5 years of withdrawals, whichever takes longer.
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Old 02-12-2012, 05:39 AM   #3
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Hi CMH and welcome to the forum.
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Old 02-12-2012, 07:47 AM   #4
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Welcome aboard Cass, and congrats on your excellent progress toward FI. From there all sorts of options open up. Like most (early) retirees the challenges are often planning for health care and longevity potentially well beyond averages.
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Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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Old 02-12-2012, 08:02 AM   #5
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Welcome CMH! You can do a 72t anytime as far as I know and there are a number of different terms to consider (very specific rules). Brewer's link should be very helpful. You can also withdraw from your 401k at at age 55 if your plan allows it (most do). So take a close look at those options before rolling everything into Rollover IRAs right away when you retire. Sounds like you're in great shape!
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Old 02-13-2012, 03:01 AM   #6
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Hello, CMH, and welcome.
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Dare we believe???
Old 02-14-2012, 07:44 AM   #7
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Dare we believe???

Thanks Brewer for the link and all for the welcome. I will be thouroughly checking into 72T and your link is a great place to start. Your replies help a lot in my confidence that we are really on track and able to seriously consider that we could actually ER.

Our biggest hurdle--that "work one more year" issue. I am anal about checking, double checking, triple.......our portfolio. What am I missing?? Do I have accurate numbers? Of course it does not help that there are so many uncertains in the future with cap gains, taxes, ss, medicare..... Any questions about our situation is welcome. I am very thick skinned and have lurked long enough to get to know a lot of you and know that all want to help.

I will be asking a lot of questions and starting some threads of interest to me. I hope I can contribute some expertise as well. I am just so happy to have found a place with so many like minded people wlling to share themselves with others.

Cass
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Old 02-14-2012, 08:24 AM   #8
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Quote:
Originally Posted by CMH in CO View Post
Our biggest hurdle--that "work one more year" issue. I am anal about checking, double checking, triple.......our portfolio. What am I missing?? Do I have accurate numbers? Of course it does not help that there are so many uncertains in the future with cap gains, taxes, ss, medicare..... Any questions about our situation is welcome. I am very thick skinned and have lurked long enough to get to know a lot of you and know that all want to help.

Cass
I suspect you've already found these, but in case you haven't...
Handling the "just one more year..." syndrome
(FAQ archive) But... what will I do all day?
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Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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Old 02-14-2012, 08:54 AM   #9
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What are your plans for healthcare insurance?
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Dare we believe?
Old 02-15-2012, 07:15 AM   #10
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Dare we believe?

Thanks Midpack. The "one more year" thread is great-many different views-definately going to read that one more thouroughly. The other one is good too.

I guess I am really goofy in that I have looked forward to ER and planned for it for a long time, much more than others I know. Some of that comes from having no kids. Also, we love to travel in addition to work on our house, hobbies, etc. Work is becoming a chore to me just as a means for ER. I have never loved any job that I have had, but instead, cherish the time off of work. I realize this disposition has not necessarily been a good thing. 8 or more hours a day being where you don't want to be isn't good. I am a corporate accountant, but I really should have gone into teaching and hope to teach in some capacity during ER.

Brewer---we have $1000/month budgeted for health. We are both very healthy and I figured $500 each. We would look for some kind of very high deductable or catestrophic policy. I think I didn't mention in my first post that I plan on working part-time during ER, and the part-time work is partly to cover our health costs. If only we all had a crystal ball.......

Cass
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Old 02-15-2012, 09:42 AM   #11
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Cass - You'll see in other threads that it's best to line up your health insurance BEFORE you RE. It removes that worry and you know what to plan for. Although ehealthinsurance.com is a good place to start looking at what's available (and where I ended up getting policies for both DD and DS), it's probably a good idea to find a local agent who specializes in individual policies as there are lots of complexities.

You may have COBRA as a backup, but it is usually very expensive. YMMV.

Good luck!
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Old 02-17-2012, 07:43 AM   #12
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Originally Posted by MBAustin View Post
Cass - You'll see in other threads that it's best to line up your health insurance BEFORE you RE. It removes that worry and you know what to plan for. Although ehealthinsurance.com is a good place to start looking at what's available (and where I ended up getting policies for both DD and DS), it's probably a good idea to find a local agent who specializes in individual policies as there are lots of complexities.

You may have COBRA as a backup, but it is usually very expensive. YMMV.

Good luck!
Thanks MB. I will start looking into it. I wasn't thinking I needed to do that quite yet---but that is why I have asked those on this forum for opinions and understand how valuable they are.

Cass
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