Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Newly retired
Old 08-13-2005, 12:33 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Newly retired

I've been hanging out as a guest for a long time, enjoying FIREcalc as well as the board info and entertainment (infotainment?!) and thought I'd introduce myself at last.

We moved out of the fast lane a little over 3 years ago and now live comfortably on 25% of our peak Silicon Valley income. We moved to a lower cost of living area, we're debt free, and the kids are independent <well, there's DD's wedding next spring--eek!>. Anyhow, after working part time for 3 years, I retired--yesterday!* (YESS!!) Meanwhile, my husband went from software engineering/mgt to college teaching. With 3 months off in summer and 1 in winter, he feels semi-retired himself. I'm 55 and he's 56.

I'd like comments on the financial aspects of our retirement plans. (If we're not gonna make it, just break it to me gently!)

-- $60k in gross income, $36k for basics and $24k for extras. This is what we live on now. When DH retires, if he's <62 I plan to take a 4% WR off our portfolio (would be $48k now), then at 62 decrease to 3% and add Social Security ($24k for both, so they say), and at 65, some possible pensions (anywhere from 0 to $15k, so I don't count them).

-- We max our Roths, his pension fund (with 100% match on his 6%), and his TIAA-CREF 403b (no match). In order to afford this, we're essentially "laundering" taxable money into the 403b and Roths. Does that make sense for the 403b? (FYI, 65% of our stash is taxable.)

-- Our portfolio is a conservative 50% stocks and 50% fixed income, and the stocks include 30% foreign and 5% REITs. Kind of a mish-mosh of index funds, managed funds, and individual stocks as well as corporate bonds and CDs.

-- If DH teaches long enough (10 years, which would be age 63), we can continue in the state health insurance plan.
__________________

__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Newly retired
Old 08-13-2005, 06:21 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,673
Re: Newly retired

Hi Astromeria,

Recognize you as a Favored Fool of mine. I expect Nords and the folks who are good with calculators will have more definitive responses but I would say you have things fairly sorted out as the key is an income flow, medical coverage and appropriate style of living. I think moving out of the fast lane makes sense-after whatever struggle for basic needs and investment resources IMHO its all about enjoying life.
I agree with moving funds into the 403 fund since it is a tax deffered account and you are likely to be in a lower tax bracket later. Also you can roll your 403 into an IRA when you retire and then into a Roth if your income and tax paying funds are avilable. Having Roth funds is my favorite way to have money.
I think you could actually retire earlier than 10 more years if you can figure out necessary medical coverage.
__________________

__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Re: Newly retired
Old 08-13-2005, 06:45 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,094
Re: Newly retired

Do you have debt?
What is your net worth?
Total amount of portfolio?
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Re: Newly retired
Old 08-13-2005, 07:35 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Newly retired

Hi, Dex.

We have no debt--no mortgage, no car loans, no revolving CC debt, no HEL, nada. My parents always lived at their means, but gave me two excellent pieces of financial advice: avoid paying finance charges, and pay your bills on time. Not that I haven't made my share of financial mistakes--sometimes I think I should sell everything in my portfolio and restart from scratch. Too bad so much of it is taxable.

Net worth = $1.2m portfolio plus a house worth ~$500k (built 3 years ago for a lot less--Charleston County, SC is having its own real estate boom, and we're located 10 minutes from the beach and 20 minutes from downtown Charleston). I can't see selling the house for a while--my mom built next door to us and calls us her "long term care insurance." She's nearly 80, and in excellent health.

Our cars should last a while--a 98 4Runner and an 02 Prius.
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Newly retired
Old 08-13-2005, 07:48 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Newly retired

Hi there, yakers. The health insurance part is my main concern. My husband's in excellent health, but I have some issues that might make individual insurance difficult or at least really expensive for me. So far my husband is happy teaching, so I won't worry about it yet...but it's out there.

I'm retired now, and I ain't going back to work no-how! We might be OK if DH retired this minute, but I'd love to see the port compounding a little longer, if he doesn't mind. I would never ask him to continue to work--in fact, I frequently ask if he minds working, but he says it's cool with the long summers off.
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Newly retired
Old 08-13-2005, 09:50 PM   #6
 
Posts: n/a
Re: Newly retired

Quote:
Recognize you as a Favored Fool of mine.
What is a favored fool??
__________________
  Reply With Quote
Re: Newly retired
Old 08-13-2005, 10:38 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,673
Re: Newly retired

Quote:
Originally Posted by TromboneAl


What is a favored fool??*
From the Motley Fool web site. It means someone you agree with or admire.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Re: Newly retired
Old 08-14-2005, 03:53 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: Newly retired

Quote:
Originally Posted by astromeria
Hi there, yakers. The health insurance part is my main concern. My husband's in excellent health, but I have some issues that might make individual insurance difficult or at least really expensive for me. So far my husband is happy teaching, so I won't worry about it yet...but it's out there.

I'm retired now, and I ain't going back to work no-how! We might be OK if DH retired this minute, but I'd love to see the port compounding a little longer, if he doesn't mind. I would never ask him to continue to work--in fact, I frequently ask if he minds working, but he says it's cool with the long summers off.
One of our "arrangements" is that DW provides our health insurance,
either through her employment, or by paying the premiums. I have used
our current insurance a lot...........she; hardly at all. She was saying
"Look, I paid out all of this money for health insurance and have never
used it." Seems to me that is the best possible outcome.

JG
__________________
MRGALT2U is offline   Reply With Quote
Re: Newly retired
Old 08-14-2005, 04:11 AM   #9
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: 34N 78W
Posts: 1,772
Re: Newly retired

Hi astromeria,

Sounds like you've everything right, esp. escaping from SV! Only 2 things caught my attention. One is getting mom's long term care figured out. If you're going to be responsible, have a plan (will, possible trust, POA, etc.). The other is the port. It will likely need overhaul when you change from accumulation to distribution phase in full retirement. Until then it sounds like a bit of attention may be needed.

You're gonna be fine!


Enjoy!


BUM
__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Re: Newly retired
Old 08-14-2005, 07:06 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Newly retired

Quote:
Originally Posted by MRGALT2U
One of our "arrangements" is that DW provides our health insurance,
either through her employment, or by paying the premiums.
Hi, JG. That deal makes sense. In our case, our finances are so totally co-mingled that saying one person is paying for something doesn't make sense. Technically, after I get my final paycheck, I guess DH is paying for everything. But I earned 50% of our portfolio, so I don't feel like a slacker. (Although it took me a full year of wanting to retire before I worked through my guilt about being able to run my own life to suit myself while he still has to answer to an employer! Compared to that, playing with financial scenarios was easy )javascript:replaceText('%20',%20document.p ostmodify.message);
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Newly retired
Old 08-14-2005, 07:07 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Newly retired

oops--I tried dragging down a smiley, but obviously that's not the right way to do it!
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Newly retired
Old 08-14-2005, 07:29 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Newly retired

Quote:
Originally Posted by BUM
Sounds like you've everything right, esp. escaping from SV! Only 2 things caught my attention. One is getting mom's long term care* figured out. If you're going to be responsible, have a plan (will, possible trust, POA, etc.).* The other is the port. It will likely need overhaul when you change from accumulation to distribution phase in full retirement. Until then it sounds like a bit of attention may be needed.

You're gonna be fine!
Thanks, BUM. I still miss my friends and the weather in NoCAL, but we love the warm, white sand beaches here in the Lowcountry, and people are very nice--and calm!--here.

As for my mom's care, she's adamant about never going into an institution. She also has no debt and owns her home (worth about the same as ours) and has a $500k IRA as well as Social Security, so hopefully we can use her resources to pay for anything she needs that we can't do ourselves. We'll be here for emotional, and as far as we're able, physical support--and I have a brother nearby to help. We had some adaptive features built into her house--grab bars, wide doorways, lots of lighting, large master bedroom. She has a will, but no trust. Her advisors didn;t advise that, and she's of the generation that venerates people in authority, so that's that. She gave my brothers POA for health care decisons. She figures I'd probably have too much hope and drag out her suffering <imagine an interesting smiley here!>

Some day I'll be brave enough to expose my port. As an example, for foreign investments I have EEM, EPP, and EFA as well as EWC (Canada ETF), DODFX, TBGVX, TAVIX, MACSX, and SGOVX, plus a few individual stocks. None of the funds are bad--they're all very good to excellent, but a couple have high-ish expense ratios. I started investing when I had a little knowledge--a dangerous thing!
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Newly retired
Old 08-14-2005, 07:35 AM   #13
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 38,970
Re: Newly retired

Quote:
Originally Posted by astromeria
oops--I tried dragging down a smiley, but obviously that's not the right way to do it!
Just <click> on the and you can have all the 's you want in your post.

REW
__________________
Numbers is hard.

The problem with the world is that the intelligent people are full of doubts while the stupid ones are full of confidence. - Charles Bukowski

Retired in 2005 at age 58, no pension

REWahoo is offline   Reply With Quote
Re: Newly retired
Old 08-14-2005, 07:48 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Newly retired

Good heavens--how could I forget that I also have large positons in VINEX and VEIEX! Well, it's easy to forget whn you have several dozen investments* :

Thanks for the smiley help, REW. This software is cool!
__________________

__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Too late, coulda and shoulda retired already. jclarksnakes Hi, I am... 23 02-24-2012 08:33 PM
Finally were both going to be retired. riskadverse Hi, I am... 10 01-27-2006 04:48 AM
Newly Retired, Contemplating Relocation Sundance Kid Hi, I am... 8 11-24-2005 12:17 PM
Retired military officer survey Nords Other topics 0 10-21-2004 07:08 AM
You're Not Retired BigJohn Other topics 29 02-19-2004 09:04 PM

 

 
All times are GMT -6. The time now is 07:48 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.