Hi
I'm 54 years old and will basically retire at 59 1/2. What that means is I have a defered comp package from family busines ownership that runs out when I am 59 and 1/2.
I have $1,025,000 in liquid investable assets and a net worth of around 2million. After the years of acquiring a home and raising three children including college educations and master degrees....I suddenly looked around and retirement was on the horizon. Have been saving diligently towards that goal for 7 years now...on top of what I had done previously. I am married to a CPA who owns his own small CPA practice but the assets mentioned are just my assets. My husband doesn't have the assets I have but is working on it.
I am with any luck able to save approximately another 75k-100K a year or the next 4 years. My original goal was to have 1.5 million but it is likely it will be more like 1.3 ro 1.4. I am not including investment gains in my projections because who knows what they will be.
I cashed out of the stock market well before the crash but lost probably 10 % from the October 2007 high before doing so. Currently have about 70% in CD's paying 5% and 15% in the market and 15% in same brokerage house waiting to invest. I have to sleep at night.
I have worked at reducing debt. The only debt I have is about $50k left on my house and I plan to have that paid off by the time I retire. My "bare bones" projected budget in retirement looks like I need $3600 a month. Knowing "barebones" might not be possible...I run calculations based on $5,000 a month (net).
SSN is projected to be $1500 a month at age 62. Almost $2000 at age 661/2.
Other income in retirement includes $18,000 a year in board fees. $75,000 a year or more in K1 income from family business ownership. I consider this sort of like a pension. These buckets have run true to form for the last 20 years but hey...there is no guarentee.
I have projected that if the board fees and K1 income remain in tact, I shouldn't have to touch my projected 1.4 million investments and hope to be able to let that grow for several more years before invading it. Trying to get to 2 million.
My husband plans to help with household expenses after my deferred comp runs out...to the tune of maybe another $1,000 a month ($12,000 a year).
As you can tell...I have been the one responsible for most of the "families core bills). We have been married 18 years - it is a blended family and things work differently for blended families.
If I ever sell my portion of the family business I could probably net an additional 1m to 1.5m (but again there are no guarantees and it could just as easily go in a zero direction). And...stock may or may not be worth that in closely held family business. However...IF things remain fairly constant....my stock ownership in family business is worth about $4.5 million to me over the next 25 years. My planning has been to protect myself in case the family business doesn't afford us what we expect.
I don't expect to live to 95. I take after my moms side and all of them died relatively early with my mom living the longest...passing away at age 76.
Health care: I have a private individual policy for my daughter and myself and see this as a big risk for me during retirement. Currently paying over $7,000 a year in premiums and deductible (2,500 a year to get premiums down). I have a subclinical thryoid condition. Am currently NOT on any medication for it. Other than that fairly healthy.
Children: eldest stepson is 27 and can't find a job - doesn't have a great work ethic. Has taken him a year to get 1 part time job. Lives at home with his mom. My daughter is 22 and will graduate in May with a teaching degree - hope she can find a job- has a great work ethic- working summers thru college. Youngest stepson has 1 more year of college...and has a great work ethic- worked part time all thru college.
I'd appreciate any thoughts on how you think I am doing...in preparing for early retirement. Ive run Firecalc...and it looks fairly good but there are some unknowns...such as income from family business.
I'm 54 years old and will basically retire at 59 1/2. What that means is I have a defered comp package from family busines ownership that runs out when I am 59 and 1/2.
I have $1,025,000 in liquid investable assets and a net worth of around 2million. After the years of acquiring a home and raising three children including college educations and master degrees....I suddenly looked around and retirement was on the horizon. Have been saving diligently towards that goal for 7 years now...on top of what I had done previously. I am married to a CPA who owns his own small CPA practice but the assets mentioned are just my assets. My husband doesn't have the assets I have but is working on it.
I am with any luck able to save approximately another 75k-100K a year or the next 4 years. My original goal was to have 1.5 million but it is likely it will be more like 1.3 ro 1.4. I am not including investment gains in my projections because who knows what they will be.
I cashed out of the stock market well before the crash but lost probably 10 % from the October 2007 high before doing so. Currently have about 70% in CD's paying 5% and 15% in the market and 15% in same brokerage house waiting to invest. I have to sleep at night.
I have worked at reducing debt. The only debt I have is about $50k left on my house and I plan to have that paid off by the time I retire. My "bare bones" projected budget in retirement looks like I need $3600 a month. Knowing "barebones" might not be possible...I run calculations based on $5,000 a month (net).
SSN is projected to be $1500 a month at age 62. Almost $2000 at age 661/2.
Other income in retirement includes $18,000 a year in board fees. $75,000 a year or more in K1 income from family business ownership. I consider this sort of like a pension. These buckets have run true to form for the last 20 years but hey...there is no guarentee.
I have projected that if the board fees and K1 income remain in tact, I shouldn't have to touch my projected 1.4 million investments and hope to be able to let that grow for several more years before invading it. Trying to get to 2 million.
My husband plans to help with household expenses after my deferred comp runs out...to the tune of maybe another $1,000 a month ($12,000 a year).
As you can tell...I have been the one responsible for most of the "families core bills). We have been married 18 years - it is a blended family and things work differently for blended families.
If I ever sell my portion of the family business I could probably net an additional 1m to 1.5m (but again there are no guarantees and it could just as easily go in a zero direction). And...stock may or may not be worth that in closely held family business. However...IF things remain fairly constant....my stock ownership in family business is worth about $4.5 million to me over the next 25 years. My planning has been to protect myself in case the family business doesn't afford us what we expect.
I don't expect to live to 95. I take after my moms side and all of them died relatively early with my mom living the longest...passing away at age 76.
Health care: I have a private individual policy for my daughter and myself and see this as a big risk for me during retirement. Currently paying over $7,000 a year in premiums and deductible (2,500 a year to get premiums down). I have a subclinical thryoid condition. Am currently NOT on any medication for it. Other than that fairly healthy.
Children: eldest stepson is 27 and can't find a job - doesn't have a great work ethic. Has taken him a year to get 1 part time job. Lives at home with his mom. My daughter is 22 and will graduate in May with a teaching degree - hope she can find a job- has a great work ethic- working summers thru college. Youngest stepson has 1 more year of college...and has a great work ethic- worked part time all thru college.
I'd appreciate any thoughts on how you think I am doing...in preparing for early retirement. Ive run Firecalc...and it looks fairly good but there are some unknowns...such as income from family business.
