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01-30-2016, 09:33 AM
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#1
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Dryer sheet wannabe
Join Date: Mar 2011
Location: slingerlands
Posts: 19
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I think it's time-maybe
Have admired the intelligence of all of you for some time now. Always thought the day would come when I'd actually post and solicite feedback. Well here I am.
61 years old. DW is 59. Kids grown up and gone. Proud to have sent them to the colleges of their choice. It wasn't easy but they are debt free and so are we with regard to college.
Assets total $5M, with $2.7M in after tax account. $1.8M in 401K. Balance of $500,000 in wife's 401K. Pension is $42,000 annually should I begin now. That's single life option, no benefit to DW. My Social Security would be $24,000 at age 62. I'm inclined to start collecting at 62 as breakeven at 65 is close to 14 years. Why wait? Owe $280,000 on home valued at $$470,000. Also own condo in warm climate valued at $130,000. This paid for.
Huge concern, health insurance which I estimate at $15,000 annually. Lastly I do not live extravagantly but to live tomorrow like I live today is $120,000 annually. (Mortgage and taxes are in this number)
Firecalc says all is good- but I'm afraid anyway.
Any words of wisdom you good people?
Sent from my SM-T550 using Early Retirement Forum mobile app
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01-30-2016, 10:34 AM
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#2
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Recycles dryer sheets
Join Date: Jun 2014
Posts: 440
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Looks pretty good.
Quick and dirty. If you pay off the house it's about 4.5m investable. If you add the 15 to the 120 you are at a 3% withdrawal rate before SS or pension. Throw that in and it seems like you're getting as close to perfect as possible.
Assuming the other stuff is answered I'd do it.
Sent from my HTC One_M8 using Early Retirement Forum mobile app
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01-30-2016, 10:47 AM
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#3
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Recycles dryer sheets
Join Date: Jan 2012
Posts: 440
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Congratulations!
With $42k in annual pension and $5M invested in taxable/ira/401k accounts you shouldn't have any problems sustaining your lifestyle.
Yes you do have some GOOD problems viz: "Hmm....which account do I withdraw from".
Happy retirement. Cheers!
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01-30-2016, 10:58 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,340
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With the assets you have there probably isn't any worry but since your pension dies with you, you may want to make sure to maximize what your wife gets from SS in case she outlives you by a decade or two. That may mean you postponing SS until full SS age and certainly means your wife waiting until her full SS age or maybe even age 70 to maximize the benefit if there's reason to believe she'll outlive you by many years. Either way, with your assets, you should be in great shape to FIRE anytime you choose. Congrats.
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01-30-2016, 11:46 AM
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#5
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,140
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I agree with Aaron - the only concern I would have is if you predecease your wife.
You need $120k/year to spend.
Subtract out the pension - that leaves $78k that you'd need to withdraw from your $5M portfolio.
That's a 1.56% WR...
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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01-30-2016, 01:30 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,939
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Seems to me also that you are in pretty good shape. You don't say how long you have on the mortgage but after that you should in even better shape. No worries.
__________________
"The mountains are calling, and I must go." John Muir
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01-30-2016, 02:21 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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I was the same way. At 56, I have ~3M in assets, most rental property equity. Decent rental income. More than enough to meet my lifestyle, and them some.
Here are some of my posts over the years.
http://www.early-retirement.org/foru...age-70605.html
http://www.early-retirement.org/foru...age-77876.html
Keep looking at the numbers. Slice, dice and analyze them 100 ways to Sunday. Realize that even at 70 years of age, the numbers will look the same. Then, once you are comfortable, jump.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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01-30-2016, 02:29 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Quote:
Originally Posted by birdie
.......
Any words of wisdom you good people?
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Yea - don't go into work on Monday, or ever again. You've got it covered about twice over.
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01-30-2016, 04:10 PM
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#9
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Full time employment: Posting here.
Join Date: May 2011
Posts: 873
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What or what are you waiting for?
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01-30-2016, 05:01 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2009
Posts: 2,101
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I'm not yet retired although within 18 months. Planning to retire with smaller nest egg, higher spending, younger, and no pension. So from my perspective I can't imagine what you're waiting for. Good luck.
Muir
Sent from my iPad using Early Retirement Forum
__________________
“Of all the paths you take in life, make sure a few of them are dirt.” John Muir
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01-30-2016, 05:18 PM
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#11
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Full time employment: Posting here.
Join Date: Apr 2014
Location: Houston
Posts: 957
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Congratulations Birdie - you are easily FI and free to retire if you choose to.
I have same expense outlook as you, am several years younger (55) and lower assets....now retired quite happily with no concerns after reviewing my numbers from many angles.
If you wish to get a stronger sense on how good you are, rerun Firecalc setting the "Investigate" tab option to "Given a success rate, determine spending level for a set portfolio, or portfolio for a set spending level". This will give you an idea of how much leeway you really have in yearly expenses. You'll find you have a LOT of leeway with your numbers. If that's not convincing enough, run I-ORP and you'll get similar results using totally different tool.
Enjoy your retirement.
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01-30-2016, 05:49 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
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Quote:
Originally Posted by birdie
.....Huge concern, health insurance which I estimate at $15,000 annually. Lastly I do not live extravagantly but to live tomorrow like I live today is $120,000 annually. (Mortgage and taxes are in this number)
Firecalc says all is good- but I'm afraid anyway.
Any words of wisdom you good people? ....
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You have plenty to retire now. ($15 +$120)/$5000 = 2.7% which is very reasonable for a 62 yo.
$15k for health insurance is quite a bit more than what we pay but $15k is not unheard of. Have you priced out a good bronze level policy on your state exchange or healthsherpa.com?
Your taxes will likely plummet once you retire. Recalculate your taxes as if you were retired on TaxCaster or with TurboTax by taking out your earnings and making any other appropriate adjustments.
My fear for you is the tax torpedo with so much in tax deferred. You might want to consider deferring starting your pension and SS and do Roth conversions from now until you are 70.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-31-2016, 11:05 AM
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#13
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Dryer sheet wannabe
Join Date: Mar 2011
Location: slingerlands
Posts: 19
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You guys are great! Everyone of you. Thank you for your advise. I have not priced out health insurance, and I take some comfort in your perspective pb4uski. And you thoughts on taxes are most helpful too. Whisper66, my task today will be to rerun Firecalc as you suggest. I've never been closer to the exit door but as you all know better than me, there is a time to turn to the next chapter.
Health and happiness to you all!
Sent from my SM-T550 using Early Retirement Forum mobile app
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07-29-2018, 02:48 PM
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#14
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Dryer sheet wannabe
Join Date: Mar 2011
Location: slingerlands
Posts: 19
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Quote:
Originally Posted by birdie
You guys are great! Everyone of you. Thank you for your advise. I have not priced out health insurance, and I take some comfort in your perspective pb4uski. And you thoughts on taxes are most helpful too. Whisper66, my task today will be to rerun Firecalc as you suggest. I've never been closer to the exit door but as you all know better than me, there is a time to turn to the next chapter.
Health and happiness to you all!
Sent from my SM-T550 using Early Retirement Forum mobile app
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Almost embarrassed that my last post was 1/2016 when i said "I was ready", but fact of the matter is my last day of work was 6/15/18! But I am now officially done. As many of you know, taking the plunge is very scary. Anyway, I'm the happiest guy in the world after 39+ years at a corporate desk. DW will work for a few more years as she is a successful real estate broker. Has brought others into her shop and they do a fine job.
For me its been 8 weeks of golf as weather has been excellent. On 9/1/18 ill begin some volunteer work at a local hospital in the childrens area. I pray I can handle it.
I look forward to chatting with you on this site and wish the retirees and hopeful retirees happiness and goog health!
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07-29-2018, 02:59 PM
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#15
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Recycles dryer sheets
Join Date: Aug 2017
Posts: 70
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Congratulations Birdie! Enjoy your retirement in health and happiness. You've earned it!
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07-29-2018, 05:06 PM
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#16
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Recycles dryer sheets
Join Date: Oct 2015
Posts: 124
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Excellent. Glad to hear that the initial "dip into the pool" is going so well.
I am guessing that 6 months from now, you will have a post questioning "why didn't I do this earlier??" LOL
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07-31-2018, 03:29 PM
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#17
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Recycles dryer sheets
Join Date: Aug 2009
Location: westerville
Posts: 262
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Look to be in great shape ! May want to look at ACA Marketplace prices and if you can delay drawing on Pension and Social security and living off your non 401K assets for a while to manage income. We are do this for Roth conversions while managing income to maximize our ACA Subsidy. We are on a Bronze Plan that is HSA compatible and we recieve about $1,109 per month in subsidy and covers our total premium. At this level allows us to make our income thru Roth Conversions plus other income minus HSA contribution to equal 43,800 per year. Line 37 of 1040. Just a thought to help with the health care premiums and reducing IRA mandatory withdraw later down the road. Been doing this going on 5 years and nice to see Roth growing so rapidly.
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07-31-2018, 04:26 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,975
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You've got far more than most. Rock on!!
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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08-01-2018, 05:25 PM
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#19
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Recycles dryer sheets
Join Date: Oct 2015
Location: Fairfield
Posts: 206
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At a 4% withdrawal rate, you could live on 225k pretty easily; conservative withdrawal rate would be 3.5%, ultra conservative 3%. So you add your 42k pension and social security to that, take out taxes and there is your spend rate. Anything less than 3% you are depriving yourself, especially at age 61. You are good to go! I would recommend 3.5%.
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11-27-2020, 08:18 PM
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#20
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Dryer sheet wannabe
Join Date: Mar 2011
Location: slingerlands
Posts: 19
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Here we are 11/2020. I did stop working 6/2018. So 2 1/2 years later, could not be happier. Living easily on ss of $2700 monthly and dividend income of $80K annually. Suplimental health insurance is $160 month for me. Hight deductable plan for DW is $500 monthly. Just paid off mortgage, home value $500,000. DW working and killing it. No plans to touch 401k which is moderately invested and has grown to $3.0M. Taxable account is $4M. Playing tons of golf and volunteering in hospital and Make A Wish. Advise to those looking to retire early, save like you life depends on it. Learn to live on a little less and bank the difference. Wishing everyone health and happiness!
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