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Opinions on when to retire
Old 09-15-2010, 10:45 AM   #1
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Opinions on when to retire

I am 54 and my wife is 57. We own our home outright. We have $1.6M in IRAs/401(k)s and $1M in non-retirement funds. About $2M of the total is in the stock market via mutual funds, individual stocks, and ETFs. The rest in in cash and bonds. We have no kids and no debt. We will not have any pensions and will need to buy our own health insurance until age 65 when I stop working. We will both have access to Social Security. We are both in very good health and may very well live to age 90. So, can I retire now? My wife would continue to work parttime but she will only bring in about $20K/yr gross - she is self-employed. Any thoughts would be appreciated.
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Old 09-15-2010, 10:51 AM   #2
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If that were my situation I'd definitely do it. Much depends on what you plan to do during retirement, I plan to travel quite a bit which can be very expensive, but if I were in your shoes I believe I could do that. The other issue stopping me from pulling the switch is health insurance.
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Old 09-15-2010, 10:56 AM   #3
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Any thoughts would be appreciated.
My two rules for retirement:

1. When my financial statement says I can (e.g. compared to expected retirement expenses).

2. When my heart says I should.

If both are true, then it's time (and I did). If either/both were not true, I would still be wor*ing today ...
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Old 09-15-2010, 10:56 AM   #4
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What will your annual expenses be in retirement?
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Old 09-15-2010, 11:00 AM   #5
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I would guess we are looking at needing $50/yr gross. Health insurance costs are the wildcard.

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What will your annual expenses be in retirement?
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Old 09-15-2010, 11:01 AM   #6
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$50K/year

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I would guess we are looking at needing $50/yr gross. Health insurance costs are the wildcard.
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Old 09-15-2010, 11:37 AM   #7
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You should carefully track all your expenses for at least six months to be sure of the exact number before you pull the plug .
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Old 09-15-2010, 11:58 AM   #8
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If you only need $50k a year to live on I think you are well and truly there.

If you heart is telling you it is time, check your numbers carefully and go for it.
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Old 09-15-2010, 12:02 PM   #9
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You should carefully track all your expenses for at least six months to be sure of the exact number before you pull the plug .
Plus something set aside for the big ticket items that you need... new car, washer/dryer, roof, AC....
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Old 09-15-2010, 02:13 PM   #10
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Ballpark safe withdrawal rate is 4% per year, then adjusted for inflation from that point on. As you are a little younger, 3% would be a more conservative withdrawal rate. - which would still be over $78K. If you really only need $50K, you are overdue!
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Old 09-15-2010, 02:15 PM   #11
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Leyland, you're done, go relax!
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Old 09-15-2010, 07:36 PM   #12
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If I had that amount, that age, no kids, with those expenses - I would not even ask. Have fun!
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Old 09-16-2010, 03:23 AM   #13
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Just do it. You seem to be in a much better financial position than the vast majority of people.

Also check here FIRECalc: A different kind of retirement calculator
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Old 09-16-2010, 07:27 AM   #14
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My two rules for retirement:

1. When my financial statement says I can (e.g. compared to expected retirement expenses).

2. When my heart says I should.

If both are true, then it's time (and I did). If either/both were not true, I would still be wor*ing today ...
Well said.
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Old 09-16-2010, 08:06 AM   #15
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I agree with the other comments that if you are certain about your expenses and you are mentally ready, then get going! I do think you need to carefully look at expenses and don't leave anything out. Although DW and I live what I view as a modest lifestyle, we still spend a fair amount of money. Make sure you allow a chunk of money for travel if that is in your plans. Based on another current thread on that topic, people spend a lot on that. We do!

Good Luck!
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Old 09-16-2010, 08:17 AM   #16
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if I were you I would have retired a year or more ago...
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