jm67
Dryer sheet wannabe
Hi all,
New member here looking for a bit of feedback. As the title says, I am planning to RE from my Federal position in 2021. At that point I'll be 54, and my spouse will be 65.
Right now we have about $4M in net worth, with about $1.6M in brokerage or retirement accounts (cash, bonds, stocks, 401K, IRA, TSP). The rest is real estate, including property that generates ~$60K per year in rental income.
Our plan is two parts...
The first part is 2021-2030. This period is before I can collect my Federal Pension or Social Security. Our income during that phase will be:
60K rental income
20K spouse's social security
40K brokerage withdrawls
That's $120K total, which would support our current spending ($90K) + $30K for taxes. I'm guessing our spending level will be about the same - we'll get rid of the current mortgage ($1500/mo) and move to a lower COL area, but I'll end up spending up to $1500/mo on ACA premiums and other health care (spouse will move to Medicare).
The second part is 2030- the grave. Here I can collect pension & SS:
60K rental income
20K spouse's social security
30K pension
25K social security
So we'd be okay without withdrawing anything further from the brokerage account. The remaining brokerage and TSP funds just be left for long-term care, or end of life medical issues.
Most of the income streams (SS, pension, rent) are indexed for inflation.
I've done the FireCalc simulations and it has 100% success rate. I guess the biggest risks are:
* rental income property burns down or earthquake (it's in CA)
* health care costs spiral out of control
* Federal pension abolished or significantly curtailed.
Seems like this should work... do you guys see anything I've missed?
New member here looking for a bit of feedback. As the title says, I am planning to RE from my Federal position in 2021. At that point I'll be 54, and my spouse will be 65.
Right now we have about $4M in net worth, with about $1.6M in brokerage or retirement accounts (cash, bonds, stocks, 401K, IRA, TSP). The rest is real estate, including property that generates ~$60K per year in rental income.
Our plan is two parts...
The first part is 2021-2030. This period is before I can collect my Federal Pension or Social Security. Our income during that phase will be:
60K rental income
20K spouse's social security
40K brokerage withdrawls
That's $120K total, which would support our current spending ($90K) + $30K for taxes. I'm guessing our spending level will be about the same - we'll get rid of the current mortgage ($1500/mo) and move to a lower COL area, but I'll end up spending up to $1500/mo on ACA premiums and other health care (spouse will move to Medicare).
The second part is 2030- the grave. Here I can collect pension & SS:
60K rental income
20K spouse's social security
30K pension
25K social security
So we'd be okay without withdrawing anything further from the brokerage account. The remaining brokerage and TSP funds just be left for long-term care, or end of life medical issues.
Most of the income streams (SS, pension, rent) are indexed for inflation.
I've done the FireCalc simulations and it has 100% success rate. I guess the biggest risks are:
* rental income property burns down or earthquake (it's in CA)
* health care costs spiral out of control
* Federal pension abolished or significantly curtailed.
Seems like this should work... do you guys see anything I've missed?