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I "feel" like I'm doing the right thing
Old 05-08-2013, 07:46 PM   #1
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I "feel" like I'm doing the right thing

Hello everyone. So here's my script to the plan:
- 52, married, stay at home wife, two adult kids living their own dream
- Primary residence, current market value $395K; no mortgage
- Rental property, current market value $170K; no mortgage
- No auto payments (2013 Jeep wrangler and 2002 Dodge Dakota)
- Money Market/savings, $120K
- Traditional IRA, $150k
- Monthly income (pension [cola]+rent)= $6,100
- Monthly Expenses = $3,220
- Retired Military Medical
- Term life on both wife and I $150K
- Deferred FERS @ 62 ~$650 per month
- SS for both wife and I (not sure the amount)

I'm currently working civil service under FERS but plan to resign and take a deferred retirement.. I "feel" I can pull this ER thing off.

Based on what you know, am I there?

Thank you
Doug
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Old 05-08-2013, 08:01 PM   #2
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Doug,
Welcome! With your income (got to love a military pension!) almost twice your expenses, I think you are there. Your FERs and SS are great icing when you draw them.
That said, reccommend you run fire calc to make sure you are clear. Hard to see anything but success based on the info you provided. I'd also double check my expenses, and add in a buffer for emergencies
Best of luck!

P.s. Thanks for your service!
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Old 05-08-2013, 08:46 PM   #3
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If it feels good, do it.
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Old 05-08-2013, 10:23 PM   #4
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Quote:
Originally Posted by haloFIRE View Post
... That said, reccommend you run fire calc to make sure you are clear. Hard to see anything but success based on the info you provided. I'd also double check my expenses, and add in a buffer for emergencies
Best of luck!

P.s. Thanks for your service!
+1 Run your numbers through FireCalc and/or Quicken Lifetime Planner but from what you outlined it seems like you are good to go whenever you want.
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Old 05-10-2013, 08:17 AM   #5
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With almost a $2900 buffer above your monthly expenses, healthcare taken care of of and cola pension, unless you plan to dramatically change your lifestyle, this is as close to a no brainer as I've seen.

Makes me wish I had pursued a military career after college. Came close, I wanted to fly but couldn't qualify, and then the Navy offered me a lieutenant spot in the Seabees which I prompty said
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Old 05-10-2013, 02:05 PM   #6
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I'd say you are there! Double check with Firecalc, and then go for it!
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Old 05-10-2013, 03:46 PM   #7
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I would like to know:
#1 How much of the $6,100 /month is Cola pension vs rent?
#2 Does the $3,220/month of expenses include taxes? replacement costs?
#3 How much Social Security has been earned to date?

You might also want to check out one or both of Henry K. Hebeler's (aka Bud Hebeler) books if you would like a critical view of you retirement plans.
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Old 05-10-2013, 05:01 PM   #8
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The numbers, as you've laid them out, look favorable and medical is no issue with Tricare.

Since your Military and FERS pensions are key parts of your retirement income, how are you protecting your spouse's income should you die first? Both pensions have a Survivor's benefit option and you can find companies that propose strategies such as insurance or annuities. SBP/Survivors benefit decisions are complex enough that they often have long threads of their own on this and other forums...just curious how you've considered this in your planning.
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Old 05-10-2013, 05:06 PM   #9
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Originally Posted by gauss View Post
I would like to know:
#1 How much of the $6,100 /month is Cola pension vs rent?
#2 Does the $3,220/month of expenses include taxes? replacement costs?
#3 How much Social Security has been earned to date?

You might also want to check out one or both of Henry K. Hebeler's (aka Bud Hebeler) books if you would like a critical view of you retirement plans.
Agree. Especially #1. The rent portion has a cost as well.
Seperatley, Folks always say "no car payments". That is meaningless to me, unless your vehicle is going to last for 30-40 years.
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Old 05-11-2013, 05:26 PM   #10
Confused about dryer sheets
 
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Thank you everyone for your insight. To answer a few of the thoughts: $5,666 after taxes on the pension end and $600 on the rental. I rent to my daughter and her husband so the rent is low. I did select SRB to protect my wife. We have both paid into SS since we were kids, but I have not researched SS numbers. So the kicker, I have multiple myeloma and my wife has PKD....another reason we're ready to give this a try. Life is short, and we plan to enjoy it. Thank you again for taking the time to share your thoughts.
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Old 05-11-2013, 07:03 PM   #11
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So the kicker, I have multiple myeloma and my wife has PKD....another reason we're ready to give this a try. Life is short, and we plan to enjoy it. Thank you again for taking the time to share your thoughts.
Go for it!

I hope you both enjoy every minute of retirement.
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Old 05-12-2013, 04:04 PM   #12
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Originally Posted by utah1016 View Post
Hello everyone. So here's my script to the plan:
- 52, married, stay at home wife, two adult kids living their own dream
- Primary residence, current market value $395K; no mortgage
- Rental property, current market value $170K; no mortgage
- No auto payments (2013 Jeep wrangler and 2002 Dodge Dakota)
- Money Market/savings, $120K
- Traditional IRA, $150k
- Monthly income (pension [cola]+rent)= $6,100
- Monthly Expenses = $3,220
- Retired Military Medical
- Term life on both wife and I $150K
- Deferred FERS @ 62 ~$650 per month
- SS for both wife and I (not sure the amount)

I'm currently working civil service under FERS but plan to resign and take a deferred retirement.. I "feel" I can pull this ER thing off.

Based on what you know, am I there?

Thank you
Doug
Welcome to the forum. Congratulations! It sounds like you are situated well. I echo the others in suggesting toy run firecalc with and without SS numbers.
Good luck to you both!
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Old 05-13-2013, 06:03 PM   #13
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I agree with this comment.
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Originally Posted by Ready View Post
I'd say you are there! Double check with Firecalc, and then go for it!
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