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Hi, today was the day.
Old 07-11-2011, 03:52 PM   #1
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Hi, today was the day.

Last week I decided enough was enough.

My assets include:
$700,000 in 401k and IRA mutual fund accounts
$500,000 in taxable mutual funds
$150,000 in home (mortgage paid-off)

Expenses:
approx $20,000/yr not incl taxes or medical insurance

: 47 yo, unmarried, and no debt.

Hope I didn't make a mistake.
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Old 07-11-2011, 03:59 PM   #2
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Welcome, Christy.

Have you run Firecalc? FIRECalc: A different kind of retirement calculator

omni
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Old 07-11-2011, 04:13 PM   #3
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Quote:
Originally Posted by omni550 View Post
Welcome, Christy.

Have you run Firecalc? FIRECalc: A different kind of retirement calculator

omni
With $1.2M in assets, and a 3.5% SWR,I would ballpark your cashflow at around $42k which is well above your expenses.

Have you budgeted for healthcare ? That can get very expensive, and especially so as you age and if you have any pre-existing conditions or medical events along the way.

Are taxes part of your (included) expenses ?

Bernstein's SWR charts are attached, as well as his suggestion for stock-bond allocation per retirement duration. Notice the high percentage stock allocation for long retirements
Attached Images
File Type: gif SWR2.gif (13.9 KB, 19 views)
File Type: gif SWR.gif (29.2 KB, 232 views)
File Type: jpg StockAllocation.jpg (20.9 KB, 233 views)
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Old 07-11-2011, 04:34 PM   #4
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Welcome Christy. Your expenses are very low, even if medical insurance sets you back 10k/year. You will need to live on the taxable account for quite a while, but if you can maintain your low-cost lifestyle, you should be able to handle it.

I'm assuming the j*b was unbearable. If you can go back to another similar j*b, perhaps that is you fallback option, should your need it.
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Old 07-11-2011, 05:28 PM   #5
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Welcome Christy. Your expenses are very low, even if medical insurance sets you back 10k/year. You will need to live on the taxable account for quite a while, but if you can maintain your low-cost lifestyle, you should be able to handle it.

I'm assuming the j*b was unbearable. If you can go back to another similar j*b, perhaps that is you fallback option, should your need it.
Actually, with the low cost lifestyle it would be advantageous for Christy to NOT live entirely on the taxable account but instead withdraw from the 401K/IRA via the 72T provison, at least up to the 15% bracket. Or even better, live on the taxable account but convert a portion of the IRA/401K to Roth each year, thus eventually reducing taxes to zero. Possibly this would save you from being means tested for SS one day too.
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Old 07-11-2011, 09:47 PM   #6
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Christy,

Congrats and welcome aboard!
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Old 07-12-2011, 04:51 AM   #7
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Hello Christy - have you run your numbers with this free online tool : Merrill Edge| See Where You Stand
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Old 07-12-2011, 05:55 AM   #8
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Welcome to the site Christy (and Kathy).
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Old 07-12-2011, 06:49 AM   #9
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Christy,
Congratulations. You did it!
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Old 07-12-2011, 07:02 AM   #10
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AWESOME! congrats from a fellow 47 year old - unfortunatly I've still got at least 7 years to w*rk
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Old 07-12-2011, 08:22 AM   #11
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Congratulations! And welcome to the Forum.
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Old 07-12-2011, 09:07 AM   #12
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Congratulations, Christy. We, the vast majority of the Early Retirement and Financial Independence Community, were wondering when you might retire. And, now you've done it. Welcome aboard.
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Old 07-12-2011, 09:11 AM   #13
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Quote:
Originally Posted by Christy View Post
Last week I decided enough was enough.

My assets include:
$700,000 in 401k and IRA mutual fund accounts
$500,000 in taxable mutual funds
$150,000 in home (mortgage paid-off)

Expenses:
approx $20,000/yr not incl taxes or medical insurance

: 47 yo, unmarried, and no debt.

Hope I didn't make a mistake.
Congrats Christy! Can we add you here The Class of 2011, or you can do the honors yourself if you'd like to!
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Old 07-12-2011, 09:45 AM   #14
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Congratulations!
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Old 07-12-2011, 09:56 AM   #15
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Congrats, Christy. As someone whose personal situation is not a lot unlike yours (I am 48, no debts, no spouse, no kids, just over $1M in assets in reverse proportion to yours, along with my home worth around $100k), I share your joy.

I would advise you not to ignore taxes and health insurance, particularly the latter which can become quite costly.
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