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07-11-2011, 02:52 PM
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#1
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Confused about dryer sheets
Join Date: Apr 2011
Location: Pittsburgh
Posts: 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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07-11-2011, 02:59 PM
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#2
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Full time employment: Posting here.
Join Date: Mar 2004
Posts: 941
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07-11-2011, 03:13 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,035
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 Quote:
Originally Posted by omni550
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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
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07-11-2011, 03:34 PM
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#4
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Recycles dryer sheets
Join Date: Jan 2011
Posts: 247
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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.
__________________
Retired on 5/31/2011 at 54
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07-11-2011, 04:28 PM
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#5
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gone traveling
Join Date: May 2011
Location: Portland
Posts: 133
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Quote:
Originally Posted by Packman
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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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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07-11-2011, 08:47 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jun 2008
Posts: 3,406
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Christy,
Congrats and welcome aboard!
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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07-12-2011, 03:51 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 3,511
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Hello Christy - have you run your numbers with this free online tool : Merrill Edge| See Where You Stand
__________________
Very conservative with investments. Not ER'd yet, 48 years old, about 98-99% in cash, CDs, munis, sizeable nest egg, WR < 3.5%, pensions, annuities, no debt, and 47-year planning horizon. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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07-12-2011, 04:55 AM
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#8
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Moderator
Join Date: Jul 2005
Location: Houston
Posts: 12,699
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Welcome to the site Christy (and Kathy).
__________________
Retired in Jan, 2010 at 55
Now it's adventure before dementia
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07-12-2011, 05:49 AM
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#9
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Recycles dryer sheets
Join Date: Sep 2008
Posts: 164
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Christy,
Congratulations. You did it! 
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07-12-2011, 06:02 AM
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#10
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Recycles dryer sheets
Join Date: Feb 2011
Location: NW Lower Michigan
Posts: 96
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AWESOME! congrats from a fellow 47 year old - unfortunatly I've still got at least 7 years to w*rk
__________________
"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
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07-12-2011, 07:22 AM
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#11
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Recycles dryer sheets
Join Date: Aug 2009
Location: Northern Virginia
Posts: 332
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Congratulations! And welcome to the Forum.
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07-12-2011, 08:07 AM
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#12
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Full time employment: Posting here.
Join Date: Mar 2005
Location: Los Angeles (Hollywood Hills)
Posts: 539
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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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07-12-2011, 08:11 AM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: Chicagoland
Posts: 7,215
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Quote:
Originally Posted by Christy
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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Congrats Christy! Can we add you here The Class of 2011, or you can do the honors yourself if you'd like to!
__________________
It's a pity to waste your life living the same tiny day over and over again. James Taylor
Retired Jun 2011 at age 57
Target AA: 55% equity funds / 40% bond funds / 5% cash
approx 20% SI (secure income, SS only)
Target WR: approx 2.5%
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07-12-2011, 08:45 AM
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#14
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2008
Location: Pines at East Nowhere, 43N Latitude, NY
Posts: 8,245
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Congratulations!
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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07-12-2011, 08:56 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Posts: 1,512
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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.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
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