Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Hi, gregory r. here, planning in 4, sanity check required
Old 06-25-2014, 12:17 PM   #1
Dryer sheet aficionado
 
Join Date: Jun 2014
Posts: 41
Hi, gregory r. here, planning in 4, sanity check required

Current:
* me - 54
* wife - 54
* combined salaries = $280k
* current pre-tax savings - $960,000 ( 40 stocks/28 bonds/32 fixed-reserves)
* after tax - $70,000
* house -will be paid off in 4, (double payments) assuming they continue
* 3 kids- 2 out of college & gone, 16 yo home college paid for through college trust
* condo in St Pete Beach Fl- paid for
* both 401ks we max out...plus catch up (the $960 above)
* my pension @ 62, it's frozen now w/benefit of $1700 mth
* SS at some point but need to weigh options.
- my calculation the pre-tax should be around $1.23 mill in 4 yrs & after tax around 100k, (emergency fund)..plan on working part time between 58 and 62 to cover medical and then some, and taking about 3.5% from investments. Hopefully the 3.5% combined w/part time income will suffice between 58-62, then the pension and possible one SS payment can kick in. I know i need to run the simulation and assess after tax spending before doing any of this.......just looking for insights or big misses in this "preliminary plan" I realize we'll possibly be hitting the investments a bit harder the first few years till the pension/SS kick in.....also realize we need to assess the SS and ramifications of taking one early.
__________________

__________________
gregory r. is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-25-2014, 12:34 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Welcome Gregory. My first thought is surprise that you have only $1.03m investable assets at your age with a combined income of $280k. You have obviously put money into properties. You are hoping to live on 3.5% WR in the short term, so it is essential to do a detailed breakdown of your current and expected future expenses, including taxes. Expenses might be higher than you think.
__________________

__________________
Meadbh is offline   Reply With Quote
Old 06-25-2014, 01:13 PM   #3
Recycles dryer sheets
wingfooted's Avatar
 
Join Date: Jul 2011
Location: Oregon - Dry Side
Posts: 218
Yes, living large which has impacted savings, particularly after tax accounts.

Your number is probably somewhere around $3MM - based on lifestyle expectations. Quite a ways to go....


Sent from my iPad using Early Retirement Forum
__________________
wingfooted is offline   Reply With Quote
Old 06-25-2014, 01:18 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,597
Quote:
Originally Posted by gregory r. View Post
I know i need to run the simulation and assess after tax spending before doing any of this.
You should be aware that FIRECalc (no reason you can't run this now) doesn't use "after tax" spending. Taxes are just another of your expenses in its calculation, so don't neglect that aspect.

Welcome to our board, where you'll certainly be able to get some good advice.
__________________
braumeister is online now   Reply With Quote
Old 06-25-2014, 02:11 PM   #5
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 406
Quote:
Originally Posted by Meadbh View Post
My first thought is surprise that you have only $1.03m investable assets at your age with a combined income of $280k.
+1 Exactly my thought. What's your essential and discretionary expense? I would only quit after both expenses have been met with 4% WR and cutdown WR in bad return years to meet essential expense.
__________________
Retired at age 52 on 12/1/2016
AA:60/40 WR:3% until 2022 then 4% is the plan
retire2020 is offline   Reply With Quote
Old 06-25-2014, 02:19 PM   #6
Dryer sheet aficionado
 
Join Date: Jun 2014
Posts: 41
The plan is for no consumer debt in 4 yrs. (house, car, etc) Not so sure living large impacted us, more the 3 kids & 3 educations, we also haven't been making the $280k for that long, just where we are now. Big ticket was retirement condo, put our mortgage off a couple years, but it's paid for. Plan to downsize the MD house @ 59, spend 6 mths 1 day in FL. Hopefully working PT will off set some expenses. Agreed, detail expense analysis is required w/taxes included. We don't have toys, 6 yr old cars though, we do low budget activity, biking, kayaking, fishing locally, cheap H-hours, so lifestyle should be somewhat budget friendly. Thanks all for the input...will keep on saving big time
__________________
gregory r. is offline   Reply With Quote
Old 06-25-2014, 03:49 PM   #7
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 1,581
It seems you are close. Your pension at 62 will help out a lot, plus you have SS that can start then or after 62. I assume your wife also gets SS.

What you did not state is what your expenses are. Once you have that, then you can figure out how to meet that required income level. You may need to take larger withdrawals before pension kicks in. Whether you need the extra part time work or not, you may be good to make it without in four years. Also depends on what happens with returns on the invested assets. I think you are a little too conservative, but each person has different risk tolerance.

Increasing after-tax savings is a good goal. You max out the pre-tax, and paying off house sooner, so good job on those areas.
__________________

__________________
After Monday & Tuesday even the calendar says, W-T-F...

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/16 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
ER planning sanity check please Lisa99 FIRE and Money 12 07-05-2013 03:31 PM
First Post - Financial plan sanity check GaryK Hi, I am... 35 08-10-2008 10:01 PM
1973 sanity check twaddle FIRECalc support 2 11-17-2007 11:32 PM
Shoot holes in my plan or give me a sanity check frayne FIRE and Money 4 04-04-2004 04:48 PM

 

 
All times are GMT -6. The time now is 06:48 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.