is this sustainable?

[ADLAADS]

so I'm 52 and the Mrs. is 57. I worked the past 27 years for my brother until he "tragically" did this summer at the age of 58. I decided to take a year off, mainly cause I a mental mess at the moment. Firecalc says I'm good to go, but I would love to hear from anyone with similar numbers.
Wife gets SSDI of about $1,000 a month
We have a total moderate stock portfolio of about $650,000
We have no debt, (mortage is paid off)
We have a rental property that clears about $10k per year after expenses.
We live a frugal life and my budget shows we'll need about $48k a year to get by.
I plan on taking SS at 62 with a expected payment of about $1400 a month.

So, am I crazy to not go back to work? Anyone with similar numbers have any first hand experience to pass along?

 

[Standard Staples]

How is the stock portfolio set up? Specifically, what kind of dividend output does it produce? How much of the money is immediately available without a tax burden? If we assume a 3% dividend, then it would output around $20K/yr. Your wife gets $12K/yr from SSDI. Your rental generates 10K/yr. Before taking social security, you're at $42K, falling $6K short of your budgeted number. Once you have social security, the entire $48K is covered.

So, basically you have 10 years at a $6K deficit. In my view, you have 3 options:
1) Dig in to your budget and find enough holes to reduce the deficit
2) Sell the paid off house, downsize to something a good bit less expensive, and allow the surplus cash to cover the $60K until SS (this could also reduce your overall budget, in utilities, taxes, etc.)
3) Slowly draw off your investments as needed to cover the deficit

With your multiple streams of income, a quick FireCalc gives you a 100% success rate, so you're in good shape. I'm not sure how your brother died, but if it happened to be something genetic that you could also eventually suffer from, I'd pull the plug, spend time with my wife and enjoy. If you keep an eye on the money and do your best to stay in good health, you can definitely do it.

Good luck!

 

[Rothman]

ADLAADS, first let me say how sorry I am about the loss of your brother, I think it makes no sense for you to go back now because of the grief, you can take some time and see if you can squeeze the budget a little more and get by or maybe consider some part time work to make the numbers fit. If after a year and you see the need to go back you can. I always use the mindset when I retire young and things go bad like a long streak of poor market returns I'll need to go back but it's worth accepting that so I can retire early. In your case the situation has you in a place you need to go now if at all possible, do it and later if you conclude you have to work full time you'll be 53 or 54, plenty young. Congrats on the savings you have accumulated to make it possible. I wish you the best


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[imoldernu]

Anyone with similar numbers have any first hand experience to pass along?

Eerie... numbers, age, situation, so close to my own. My past quarter century here:

http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html

A different time and a different situation, but you asked for first hand, so here it is.

The saving grace is, that at age 52, there are ten years to recover or supplement the financial situation should it become necessary. Best wishes for a long and happy retirement.

 

[ADLAADS]

A different time and a different situation, but you asked for first hand, so here it is.

I was reading your thread today, but did not see a starting age or initial funds. Base on you comments, I assume they were close to mine, that's reassuring.

 

[Lakewood90712]

I think the $ will work out , but retirement is not just about money. Have you found something meaningful to do with your time ? , if not maybe go back to work until life is more stable ?.

 

[ADLAADS]

I think the $ will work out , but retirement is not just about money. Have you found something meaningful to do with your time ? , if not maybe go back to work until life is more stable ?.

Agreed.I do some volunteer organizing that I really enjoy and I like doing stuff with my hands so I have been contemplating buying a foreclosure home and fixing it up on my own and reselling it.