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Just Turned 60, Feeling REALLY Ready to Retire
Old 08-11-2018, 08:03 PM   #1
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Just Turned 60, Feeling REALLY Ready to Retire

Hi everyone! I read about how to introduce myself and what to prepare before I ask "can I retire yet", but I'm still eager to jump in and get started.

I turned 60 a week ago. My husband is 57. We're both in reasonably good health, although he has Crohn's (in remission/on medication) and l'm starting to have memory issues (have a memory clinic coming up in the Fall).

For that reason, I'm feeling like we may want to retire while we're still in good enough health to travel a little and enjoy ourselves in general--and I don't think I can last longer than 2 more years at my stressful programming job.

Here's what I keep coming back to when I think about whether we're ready: We have over 7X what my mom had put away when my dad died 7 years ago--and she's doing ok. She doesn't live extravagantly by any means, but she's 85 and likes to stay home a lot. But the fact that she's living on a SS income of about $50/month after Medicare costs, and still has over $80K in the bank (started with $103K) makes me think we might be able to retire now and be ok. I don't know if we're crazy to be considering retiring in 2 years or even less.

We have no debt (paid off our mortgage years ago); have always worked full-time; have no children together (hubby has 2 adult children); and live below our means (although I have a tendency to give a lot of money/things to others, which I could curb if I had to, though it'd be difficult ). We live in VT and want to move to a warmer place with lower property & income taxes after we retire.

We currently have $725K in stock-heavy mutual funds in our 401Ks (and know the market could plunge overnight, affecting that total drastically), plus our home that's worth about $225K. Property taxes are $4400/year. We own 5 vehicles outright, all over 10 years old. We have about $75K liquid at the moment. Neither of us have LTC insurance, and we don't care about leaving anything much to family (outside the life insurance we bought for that purpose). We've been on one vacation a year for the past few years, costing around $4-5K, and would probably want to continue doing that for the next 5 years, tops. Other than that, we could continue to live on ~$2400/month just as we do now. If I can make it until 68 to start taking SS, I'll get $2200/month; hubby will get $1800. I'd like to eliminate that from our equation entirely, so we can think of it more as a "cushion" for our later years.

I haven't run FireCalc yet (just learned about it in this forum today!), but most of the calculators I put the basics into tell me we need something like $2M to retire. That's so discouraging!!!

I keep comparing our situation to my mom's and thinking that since we have a lot more put away than she did, and don't live an extravagant lifestyle, maybe we CAN think about retiring while we're still fairly healthy in mind and body. The sooner the better! I really don't want to work up until I literally lose my mind.

It's very hard to know what health issues you'll have in the future--and whether you'll need long term care--so how do people know when they have "enough"?

I'm off to try to find FireCalc now. But please chew on what I've written for now, and feel free to comment. Thank you--and I'm so happy to have found this forum! Looking forward to learning and chatting more.
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Old 08-11-2018, 08:19 PM   #2
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What did you plan to do about health insurance?
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Old 08-11-2018, 08:26 PM   #3
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Welcome aboard. You only need $2 million if you spend $80k per year and have no source of income other than your portfolio. So the big question is (as it is for everyone) how much will you be spending?

With vacation, you currently appear to be spending about $34-$35,000 per year, which is excellent. Gross that up for taxes. Then, add in a sinking fund amount for larger expenses that you know will be coming (i.e. - you'll probably want to replace at least one car, and you'll probably need to paint the house or something like that). You will also need health insurance to bridge between now and medicare. Assume $60k spending (including taxes) to be conservative, dropping to $50k when you go on Medicare and to $45k when your spouse goes on Medicare.

I wouldn't totally discount social security. Maybe knock it down to 70% of what they currently estimate you'll get, but it's not going away entirely.

Running FireCalc with $60K initial spending (decreasing as noted), $800k in assets and 70% of your social security at full retirement age, gives a 79% success rate.

At the end of the day, you should make your decision based on your own life and your own calculations, not by comparison to other family members, whose situation may or may not be sufficiently similar to yours.

Edit to Add: I assumed in the FireCalc run that you would retire today. Working two more years will boost your success rate.
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Old 08-11-2018, 08:31 PM   #4
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Welcome -- Here is the link to FireCalc -- https://www.firecalc.com/

Suggest you create a retirement budget (there are a few samples on this forum). It will help you to confirm your assumptions. Biggest wild card (other than the markets) is healthcare.

Since you are both working, suggest you look into the IRS Rule of 55 -- this may help you in your situation.
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Old 08-11-2018, 08:37 PM   #5
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Originally Posted by badatmath View Post
What did you plan to do about health insurance?
That's one of the tough questions as we're not sure yet where we'll be living or when we'll be moving there (as I don't really want to move until my mom passes away). I'd assume it'll be somewhere in the Southeastern US.

Sounds like we'll need to plan on at LEAST $1k/month for a policy for both of us that doesn't cover much, as a rule of thumb. Maybe $1500/month. Whew--that makes a pretty big difference.

This is the sort of thing I want to learn about on this forum--how to estimate this kind of thing.
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Old 08-11-2018, 08:41 PM   #6
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Where the heck does the "confused about dryer sheets" tagline under my username come from? Does everyone get a random tagline?
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Old 08-11-2018, 08:46 PM   #7
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Originally Posted by SoReadyToRetire View Post
Where the heck does the "confused about dryer sheets" tagline under my username come from? Does everyone get a random tagline?
"What's the deal with the dryer sheets?!?"

It changes as you post more.
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Old 08-11-2018, 08:49 PM   #8
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welcome ,

you seem to have a grip on the family medical issues but maybe i would add an extra buffer for the unexpected .

predicting your future ( non-medical ) expenses is a little like crystal ball gazing

it is probably better imposing a spending limit on yourselves and try your hardest to stay within it every year.

... say you need to replace your car , in the next 2 years do you know what it will cost in total .. ( i am not even willing to guess taxes, inflation finance are very hard to predict more than 12 months into the future )

one curve ball to throw at you will you need to relocate ( or renovate ) this year would be an interesting time to consider that decision ... you could turn your holiday into an information gathering trip

cheers !
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Old 08-11-2018, 09:51 PM   #9
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OP,

Take a look at these links to help learn about health insurance

https://www.healthsherpa.com/

https://www.healthcare.gov/glossary/...rty-level-fpl/


If your MAGI (Modified Adjusted Gross Income) is below 400% of the federal poverty level (also known as the ACA cliff) you may qualify for subsidies. Healthsherpa will help you figure a rough number out.
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Old 08-12-2018, 04:13 AM   #10
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Originally Posted by SoReadyToRetire View Post
Where the heck does the "confused about dryer sheets" tagline under my username come from? Does everyone get a random tagline?
Well, you were confused about dryer sheets.
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Old 08-12-2018, 04:30 AM   #11
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Welcome to the Forum and good job with your savings and your thinking process --- this puts you far ahead in the game just by starting. I did have to read this line twice:

"We own 5 vehicles outright, all over 10 years old."

How are you defining vehicles? Does this include snowmobiles and off roaders? Remote controlled toys? If these are automobiles/trucks, are you paying insurance and maintenance etc. on 2.5 cars for each of you?

So, perhaps selling at least three of these would be wise as you gather more resources.

Just a thought! :-)

Also, about the memory. After your 50s memory loss is very common. It is usually nothing to worry about; but I'm guessing you will be told that at the memory clinic.

-BB
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Old 08-12-2018, 06:28 AM   #12
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Originally Posted by SoReadyToRetire View Post
That's one of the tough questions as we're not sure yet where we'll be living or when we'll be moving there (as I don't really want to move until my mom passes away). I'd assume it'll be somewhere in the Southeastern US.

Sounds like we'll need to plan on at LEAST $1k/month for a policy for both of us that doesn't cover much, as a rule of thumb. Maybe $1500/month. Whew--that makes a pretty big difference.

This is the sort of thing I want to learn about on this forum--how to estimate this kind of thing.
Hi there
As Conundrum mentioned, look at those 2 healthcare sites. If you can manage your MAGI for ACA purposes (see rules below)
http://laborcenter.berkeley.edu/pdf/..._summary13.pdf
your monthly medical costs can definitely be under 1k with a full Silver plan.
It depends heavily on where you live down to the county.
We live in Florida and in most counties of Florida, one would spend less than 1k at a lower MAGI.
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Old 08-12-2018, 12:10 PM   #13
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Quote:
Originally Posted by Bryan Barnfellow View Post
Welcome to the Forum and good job with your savings and your thinking process --- this puts you far ahead in the game just by starting. I did have to read this line twice:

"We own 5 vehicles outright, all over 10 years old."

How are you defining vehicles? Does this include snowmobiles and off roaders? Remote controlled toys? If these are automobiles/trucks, are you paying insurance and maintenance etc. on 2.5 cars for each of you?

So, perhaps selling at least three of these would be wise as you gather more resources.

Just a thought! :-)

Also, about the memory. After your 50s memory loss is very common. It is usually nothing to worry about; but I'm guessing you will be told that at the memory clinic.

-BB
We have 3 Honda Civics (2000, '05 and '05--we just kept finding bargains!), a BMW convertible ('02), and a Tacoma pickup ('06). I think we bought all the Civics in case one breaks down, so we'd have another available, tee hee. We had 2 but then my sister decided to sell hers and it's in excellent shape--only 60K miles!), so we couldn't resist buying that one, either. The BMW is my toy car; I put it up for the winter. The truck is just for hauling stuff, although my hubby used to commute in it until we got the Civics. We didn't have these Civics until I had to have my Kia crushed last summer--I drove it until the wheels basically fell off and there was nothing left to it.

And yup, we pay insurance/inspection/registration on all of them, but it's only $1K/year (minimal coverage) for all 5. It is silly to have so many once we both don't need to commute, so we'll definitely get rid of 2 or 3 soon.
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Old 08-12-2018, 12:12 PM   #14
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Well, you were confused about dryer sheets.
Excellent point!
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Old 08-12-2018, 12:18 PM   #15
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Excellent point!
Post 5 more times to see the next change.
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Old 08-12-2018, 01:32 PM   #16
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Gumby's 79% success rate statistic would give me pause, assuming the inputs are correct.
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Old 08-12-2018, 01:39 PM   #17
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Welcome to the forum. You will need to input more info about spending for those smarter than I here, to help you.
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Old 08-12-2018, 03:46 PM   #18
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We are in the same boat. I am 59 and my DW is 56. I am trying my best to make 62. Like you we will have no insurance. Your retirement numbers are close to ours. My only worry is insurance. Hope this forum can help us.
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Old 08-12-2018, 07:11 PM   #19
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This boat is getting crowded! I will turn 61 in Oct and trying to push on to 62. Megacorp has subsidized retiree healthcare at $420/mth/person but deductible and copay climb. OPís monthly spend sounds low and I hope all is included But you are living it now so that is the best test.

Good Luck
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Old 08-12-2018, 07:23 PM   #20
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I almost never give specific financial advice here, and others might disagree with me. But I believe that if you do intend to retire shortly, you should reduce your percentage of stock holdings in your retirement portfolio. I won't say what that percentage should be - that depends on your comfort level. But if a major market correction occurs, being too weighted in stocks might derail your retirement plans.
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