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Looking for some second looks..
Old 04-03-2017, 08:45 PM   #1
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Looking for some second looks..

What do you think? Are we good? ....Turned 55 in December. Fortunate to work for a company that offers early retirement (small pension and med till medicare). Sold the house in OC California, leaving the state in 27 days. We purchased a parcel in Tn and are having a home built. Super excited.
Combined pensions: 51K Yr. (We're both retiring at the same time).
401K - 502K
IRA's - 36K
Mutual Fund -30K
Company stock -215K
Brokrage act -163K
Savings -190K (For Tn house)
Taking SS @ 62 -35K (combined)
No debt other than planned appx 1500 mortgage pymnt on retirement home.
Plan on traveling, fishing, golfing, hunting, riding our motorcycles and flying,maybe purchasing an airplane as I'm a pvt pilot.
Worked HARD our entire lives, paid ourselves first, planned, and are executing. Now just to stay healthy! (Noticed that this takes a TON of personal courage). Hat's off to those that have earned it themselves, paid themselves first, and executed as well. Thank you in advance for your input!
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Old 04-03-2017, 08:57 PM   #2
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Have you answered these questions? Some Important Questions to Answer Before Asking - Can I Retire?
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Old 04-03-2017, 09:00 PM   #3
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It depends. If you spend $500k a year to live you're screwed. If you spend $50k a year to live then you are golden. Lots of in-betweens.
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Old 04-03-2017, 10:53 PM   #4
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Yes. We have answered all of the questions. Also have a terrific fee only financial planner who's been guiding us for the past 20 years. Don't plan on touching that 500K 401K $$ until 70.5. Still open to any input, anything we might have missed etc.
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Old 04-03-2017, 11:09 PM   #5
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Yes. We have answered all of the questions. Also have a terrific fee only financial planner who's been guiding us for the past 20 years. Don't plan on touching that 500K 401K $$ until 70.5. Still open to any input, anything we might have missed etc.
Well, since you seem to have it covered, where in TN are you moving?

Moved from there 2 yrs ago when we FIREd & liked it very much. Still go back to visit friends.
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Old 04-04-2017, 01:46 AM   #6
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Too late for second looks, because you already spent your money. If you don't like TN after you get there, you can move again anyways.
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Old 04-04-2017, 05:30 AM   #7
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Well, since you seem to have it covered, where in TN are you moving?

Moved from there 2 yrs ago when we FIREd & liked it very much. Still go back to visit friends.
After spending a considerable amount of time in: The Tri-Cities area, Knoxville, Chattanooga and North of Nashville we decided to build our home in the Crossville area (Fairfield Glade). The cost of living is considerably lower than where we currently reside (California). We discovered that Crossville is at a higher elevation (upper Cumberland Plateau) and has a bit more mild climate than other areas in the south. We’re super excited and a little scared as there's a whole lot of change coming real fast in our lives.
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Old 04-04-2017, 06:09 AM   #8
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Wow. From OC to Crossville; that's a move! Good location for access to hiking, and "fishing, golfing, hunting, riding our motorcycles and flying,maybe purchasing an airplane as I'm a pvt pilot." Not so much for pricey/fussy meals and fancy nights out. And if your travel involves commercial flights, only 100 traffic-free miles to Nashville's airport. (We are in eastern near-suburbs of nashville)

Financially, you look great. Have you looked at impact of doing Roth conversions up to the top of the 15% bracket of the 401k (after you transfer it over to an IRA)? Even if you follow through on both taking social early, you have 6-7 years to do that, and with the standard deduction and both personal exemptions, you appear to have ~40,000 a year of headroom. (75,900 top of bracket, plus $20,800 for married filing jointly).
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Old 04-04-2017, 06:23 AM   #9
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No one has mentioned it yet but your company stock is a concentration of risk. I'm surprised your FA has not addressed that issue, or perhaps you have a plan to divest? Also you have $190,000 for the new house AND you plan on a mortgage? In a low COL area? Those numbers seem a bit odd. And finally, how much do you plan on spending/year over and above your pension between now and when SS kicks in and what does that number represent as a percentage of your investment portfolio?


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Old 04-04-2017, 08:26 AM   #10
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Originally Posted by Fragrep View Post
After spending a considerable amount of time in: The Tri-Cities area, Knoxville, Chattanooga and North of Nashville we decided to build our home in the Crossville area (Fairfield Glade). The cost of living is considerably lower than where we currently reside (California). We discovered that Crossville is at a higher elevation (upper Cumberland Plateau) and has a bit more mild climate than other areas in the south. We’re super excited and a little scared as there's a whole lot of change coming real fast in our lives.
Hmmm, first time I've heard Knoxville/Chattanooga/Nashville referred to as the "Tri-Cities" but, I guess it is if your triangle is big enough . We've had family in Chattanooga for 40+ yrs and we lived in downtown Knoxville (which we loved) for almost 5 yrs; university towns are special.

I'm an avid golfer so, appreciate the Crossville area for that aspect but, as pretty as it is, we wouldn't live there; too isolated for us. The Cumberland Plateau does have a milder summer due to its elevation but, it also has harsher winters. In Knoxville, we were very thankful for it because it caught much of the harsh weather from the North.

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Wow. From OC to Crossville; that's a move! Good location for access to hiking, and "fishing, golfing, hunting, riding our motorcycles and flying,maybe purchasing an airplane as I'm a pvt pilot." Not so much for pricey/fussy meals and fancy nights out. And if your travel involves commercial flights, only 100 traffic-free miles to Nashville's airport. (We are in eastern near-suburbs of nashville)

Financially, you look great. Have you looked at impact of doing Roth conversions up to the top of the 15% bracket of the 401k (after you transfer it over to an IRA)? Even if you follow through on both taking social early, you have 6-7 years to do that, and with the standard deduction and both personal exemptions, you appear to have ~40,000 a year of headroom. (75,900 top of bracket, plus $20,800 for married filing jointly).
+1 on the change in almost every area: weather, geography, culture, COL, accessibility.

I think it's a good thing that you've lived there because, it should make the adjustment easier. Wish you the best.
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Old 04-04-2017, 08:30 AM   #11
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I'm reading this thread and I'm thinking the proceed from selling the house in OC is missing. It should be a large chunk, where is it?
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Old 04-04-2017, 01:10 PM   #12
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[QUOTE=Huston55;1862972]Hmmm, first time I've heard Knoxville/Chattanooga/Nashville referred to as the "Tri-Cities" but, I guess it is if your triangle is big enough . We've had family in Chattanooga for 40+ yrs and we lived in downtown Knoxville (which we loved) for almost 5 yrs; university towns are special.


Oops.Sorry I meant the "Tri-Cities area. (Johnson City, Bristol, Kingsport) along with Knoxville, Chattanooga, Nashville
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Old 04-04-2017, 01:20 PM   #13
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My personal opinion, retirement is much simpler with no mortgage. I know others believe in having a mortgage and investing the balance, but the no mortgage life has been great for us.
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Old 04-04-2017, 01:23 PM   #14
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Fragrep,
You seem to have a good handle on finances and a nice assortment of fun activities to occupy your time. The one thing that you might want to think about is the idea of owning an aircraft (or "moneypit" as we aircraft owners often call them). I owned a Vans RV7 for a number of years. Being an experimental aircraft, it was a little cheaper to maintain, but still drained over $15K from my wallet annually for maintenance, hangar, avgas, insurance, etc. If you really think you might fly more than 150 hours a year, it might be worth it. But most pvt pilots rarely fly anywhere near that in a year. So the plane spends most of its time sitting in the hangar. Maybe look at finding a partner or a good rental FBO.
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Old 04-04-2017, 01:33 PM   #15
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No one has mentioned it yet but your company stock is a concentration of risk. I'm surprised your FA has not addressed that issue, or perhaps you have a plan to divest? Also you have $190,000 for the new house AND you plan on a mortgage? In a low COL area? Those numbers seem a bit odd. And finally, how much do you plan on spending/year over and above your pension between now and when SS kicks in and what does that number represent as a percentage of your investment portfolio?


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Yea she addressed it. I'm selling most of the the company stock and puchasing a truck and RV. The 190k is 150k down on a 300k house,the rest for furniture etc. We are super thrifty and really don't plan on going crazy spending.That 160k in the brokerage account is to draw from as needed. I calculated if I withdrew 1k a month until 62 with it earning 4% I will have some left at 62.
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Old 04-04-2017, 01:35 PM   #16
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I'm reading this thread and I'm thinking the proceed from selling the house in OC is missing. It should be a large chunk, where is it?
160k went into the brokerage account, 190k for the down payment on the Tn house. (Man you guys don't miss anything!
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Old 04-04-2017, 01:37 PM   #17
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Fragrep,
You seem to have a good handle on finances and a nice assortment of fun activities to occupy your time. The one thing that you might want to think about is the idea of owning an aircraft (or "moneypit" as we aircraft owners often call them). I owned a Vans RV7 for a number of years. Being an experimental aircraft, it was a little cheaper to maintain, but still drained over $15K from my wallet annually for maintenance, hangar, avgas, insurance, etc. If you really think you might fly more than 150 hours a year, it might be worth it. But most pvt pilots rarely fly anywhere near that in a year. So the plane spends most of its time sitting in the hangar. Maybe look at finding a partner or a good rental FBO.
Chuck
Funny you mention all this. I've been thinking...This is something I am going to take under very careful consideration. THANK YOU!
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Old 04-04-2017, 01:41 PM   #18
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My personal opinion, retirement is much simpler with no mortgage. I know others believe in having a mortgage and investing the balance, but the no mortgage life has been great for us.
We planned on the same the entire time we planned for this. It was our financial advisor (FA) who recommended we do it this way. The payment will be fairly small so we agreed based on her recommendation. We'll see what happens as we go...(Yup it's a little scary).
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Old 04-04-2017, 01:45 PM   #19
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Wow. From OC to Crossville; that's a move! Good location for access to hiking, and "fishing, golfing, hunting, riding our motorcycles and flying,maybe purchasing an airplane as I'm a pvt pilot." Not so much for pricey/fussy meals and fancy nights out. And if your travel involves commercial flights, only 100 traffic-free miles to Nashville's airport. (We are in eastern near-suburbs of nashville)

Financially, you look great. Have you looked at impact of doing Roth conversions up to the top of the 15% bracket of the 401k (after you transfer it over to an IRA)? Even if you follow through on both taking social early, you have 6-7 years to do that, and with the standard deduction and both personal exemptions, you appear to have ~40,000 a year of headroom. (75,900 top of bracket, plus $20,800 for married filing jointly).
This is a bit over my head. I will get with our FA and see what her take is on it. Thank you!
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Old 04-04-2017, 01:48 PM   #20
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I think we will be more in the 50k yr range, We need this money to last. Wife and I are pretty thrifty as well. I'm just happy to be leaving an extremley stressful management job in a labor intense enviroment.
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