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Old 10-12-2014, 01:06 PM   #21
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Originally Posted by EastWest Gal View Post
If your annual living expenses are $100K and your pension is $60K, you will only need to w/d $40K/yr to start . What you withdraw from taxable accounts isn't income. You ought to be able to spend more on whatever you want (big hint: travel) than you thought. I don 't know if you saw this, but Kiplinger has info on state tax situations for retirees. You live in one of the top 10 tax friendly states for retirees. Congratulations. You look good to go.


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Thanks EastWest Gal

I will take a look at Kiplinger
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Old 10-12-2014, 01:10 PM   #22
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Originally Posted by Cobra9777 View Post
Congrats. Looks like you are good to go. You have a big decision coming up on the pension. There are plenty of threads here on lump sum vs annuity. It was an excellent resource when I was making the same decision last year.
Thank you Cobra9777

Can you tell possibly tell me what you ended up doing and why?

I have read some of the post's and they seem to recommend annuitizing a part of your assests which lower the SWR on remaining assests. If you know of any specific really good posts on this please let me know.
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Old 10-12-2014, 01:12 PM   #23
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Originally Posted by retire2020 View Post
You are in very good position..fire any time. 65K on 2M portfolio…3.2% WR + SS is very much doable.
THANK yOU retire2020
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Old 10-12-2014, 01:16 PM   #24
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Originally Posted by stepford View Post
My numbers are similar, but I'm planning to make a go of it with with significantly less pension than the OP and significantly smaller savings than JCRetire77. I'll be at 0.9M taxable, 1.1M deferred with a $33K/yr non-COLA'd pension (includes retiree medical) and I expect to make the jump on or about my 55th birthday next summer.

The one (huge) saving grace in my plan is that DW will continue to work part time and will have a COLA'd state pension 50% larger than my own (plus a few $100K additional savings) when she drops out to join me at 60.

Of course, the other saving grace is that DW and I are both pretty frugal (as ex-grad students are wont to be) and have after tax expenses typically in the $60-70K/yr range...
Thank you for your information stepford. Enjoy.
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Old 10-12-2014, 01:25 PM   #25
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Originally Posted by rodi View Post
I plugged in your numbers to firecalc and it gave 100% success. Not sure how you came up with 94.5%.
Did you enter the extra income (SS, Pension) on the appropriate tab? When all that kicks in - you're covering a huge portion of your expenses.
Thanks rodi

I put 3114K$ (pension lump sum + current investable assets), 50/50 total market, 3% inflation, 125K$ year spend, 35 year retirement, 21.6K$/year my SS at 62, 10,404$/year wife SS at 66, 1% annual fee costs (instead of 0.18% in program). I get 94.5% from Firecalc.
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Old 10-12-2014, 05:16 PM   #26
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Originally Posted by klbvbb01 View Post
Thank you Cobra9777

Can you tell possibly tell me what you ended up doing and why?

I have read some of the post's and they seem to recommend annuitizing a part of your assests which lower the SWR on remaining assests. If you know of any specific really good posts on this please let me know.
Not Cobra, but here's some thoughts I posted a while ago Lump Sum vs Pension Summary?. I took a lump sum over a pension three years ago, and I can explain again if you like. But it's a personal decision for each of us, and not strictly dollars and cents.
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Old 10-12-2014, 08:16 PM   #27
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Originally Posted by klbvbb01 View Post
Thank you Cobra9777

Can you tell possibly tell me what you ended up doing and why?

I have read some of the post's and they seem to recommend annuitizing a part of your assests which lower the SWR on remaining assests. If you know of any specific really good posts on this please let me know.
The thread linked by Midpack is very good. I remember reading through his reference guide several times. Many others as well. Just search and you'll find a wealth of information and viewpoints.

I elected the annuity option for several reasons, but mainly to reduce risk and uncertainty by covering ~50% of our spending with guaranteed income. When SS kicks in, the percentage goes higher, and then drifts lower because the pension is not COLAed. It also had a decent payout at 6.5%, and was 100% funded with a solid company.

On the flip side, if the market performs as well as it has the last 30 years, a 60/40 lump sum portfolio would have beaten the pension annuity and left some money for my heirs (...in most cases). I remember running some FIRECalc models to see how the lump sum would have performed vs the fixed annuity, and the success rates were quite high (70-80%). So you definitely forego some potential upside in exchange for reduced risk and uncertainty. In my judgement, with interest rates sitting near zero, I don't think stocks and bonds will perform as well as the last 30 years. We're just at the tail-end of a 30-year run-up in stocks/bonds after interest rates peaked in the mid 80s.

I paid off my mortgage with part of my taxable portfolio for same basic reason... to reduce reliance on future market performance to meet retirement expenses. I have lower expenses and a smaller portfolio, with less risk and uncertainty. You'll find many here who advocate holding a low-interest-rate mortgage in retirement, on the expectation that the market will outperform the mortgage rate. History is on their side, but again, I'm a little more bearish going forward and thus prefer to eliminate that unknown.

Good luck.
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Old 10-12-2014, 10:04 PM   #28
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Originally Posted by klbvbb01 View Post
Thanks rodi

I put 3114K$ (pension lump sum + current investable assets), 50/50 total market, 3% inflation, 125K$ year spend, 35 year retirement, 21.6K$/year my SS at 62, 10,404$/year wife SS at 66, 1% annual fee costs (instead of 0.18% in program). I get 94.5% from Firecalc.
I did not change the expense part.
I also realize I didn't unclick COLA on the pension - and I did pension, rather than lump sum.

That's probably the difference.
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Old 10-12-2014, 11:26 PM   #29
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You're good to go!
... and if maybe you need a part time chauffeur, gardener or doorman, I 'm available.

Congratulations and welcome to the ranks of the unemployed.
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Old 10-13-2014, 08:51 AM   #30
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klbvbb01 - I hope to be in a very similar situation in 10 years. This gives me confidence it will work out.
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Old 10-13-2014, 04:03 PM   #31
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- Includes recent quote on retiree medical plan from megacorp
If your after-tax investments did not throw-off much income, it might be possible for you to qualify for PPACA subsidies. Could you get your income under $62,920? Probably not if you annuitize. Sticking most of the $2M into non-income producing investments might not be worth it, but I figured I'd mention it.
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Old 10-13-2014, 05:31 PM   #32
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If your after-tax investments did not throw-off much income, it might be possible for you to qualify for PPACA subsidies. Could you get your income under $62,920? Probably not if you annuitize. Sticking most of the $2M into non-income producing investments might not be worth it, but I figured I'd mention it.
thanks for suggestion sengsational
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Old 10-13-2014, 05:54 PM   #33
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You're good to go!
... and if maybe you need a part time chauffeur, gardener or doorman, I 'm available.

Congratulations and welcome to the ranks of the unemployed.
thanks imoldernu
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Old 10-13-2014, 05:57 PM   #34
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thanks phil70

save/plan hard and you will do great
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