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Old 02-27-2019, 03:55 PM   #1
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Requesting Forum Assessment

Hello all-

I have been an occasional visitor and reader and have enjoyed many great posts. As I get very close to pulling the rip cord (hoping for a parachute opposed to pots and pans) I'm looking for honest community assessment of our current retirement standing. As many here have posted similar feelings and thoughts, I feel that we are in great shape however, always second guessing pulling the cord.

Me: 58 DH and looking to retire at or before Dec 2019 (59 in Jan 2020)
- Current retirement savings: $1.5M (75% stocks, 18% bonds, 7% cash)
- Estimated SS at 62: $1,900/mth
- 50% medical plan covered by employer when I retire, until 65

DW: 56 and planning to work until 62
- Current retirement savings: $625K (75% stocks, 17% bonds, 8% cash)
- Estimated SS at 62: $1,800 / mth

DW & DH Combined
- $700k primary home (on lake) with a $53k mortgage balance
- Three relatively new vehicles (2013, 2016, 2016) paid in full
- 2019 boat paid in full
- Tracked expenses over the past three years puts our needs at $75k/yr
- Several scenarios through FIRECalc show zero failures for a 35 yr period

Thanks, and look forward to any responses.
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Old 02-27-2019, 04:48 PM   #2
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If your expense projection is accurate, you seem to be in great shape.

Consider delaying claiming one or both of your social security benefits until 70. It appears you can get by without it in the mean time.

Are you planning to leave a particular legacy amount?
Any large one-time expenses planned (such as purchasing a new home)?
Do you have Long Term Care Insurance?
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Old 02-27-2019, 04:57 PM   #3
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Have you run FireCalc at bottom of page? That should give some reassurance. Second the notion to delay higher wage earner SS to 70.
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Old 02-27-2019, 05:05 PM   #4
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Welcome to the forum. Based on a quick look, your plan seems solid. The only item that might stand out is the house value to NW ratio. But, that is a budget issue. As long as you are comfortable the budget includes enough for future house maintenance and expenses, you should be fine.
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Old 02-27-2019, 05:39 PM   #5
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Sounds like you are in good shape.
Any plans for specific large increases in expenses in retirement ex - budget for travel goes up a lot, etc.
What is the medical plan coverage for the DW at 62?
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Old 02-27-2019, 05:43 PM   #6
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Sorry, all this talk of rip cords reminds me of the classic:





FWIW, I think the OP will have a significantly better result on pulling his personal rip cord.
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Old 02-27-2019, 07:19 PM   #7
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Even without knowing the DW's income until she's 62, the numbers look solid. I agree with others: If you're in good health, consider deferring SS to between 65 and 70. With your wife's income for the next 6 years, you should be able to wait at least until 65, increasing your benefit. OTOH, if you're worried about benefits being cut, go ahead and take it now....oh, that's a whole other thread!
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Old 02-27-2019, 07:25 PM   #8
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You look ready. Curious why you separate yours and DH's retirements savings as hers/mine vs. ours.

My only question besides those above. If she said "oooh me too" 5 mins after you RE, are you ok with that? if yes, bail tomorrow.
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Old 02-27-2019, 08:33 PM   #9
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You're golden on a combined basis... $2.125m @ 3.5% = $74k of inflation adjusted withdrawals, plus you have DW's earnings for next 6 years and SS on top of that.

However, since you chose to segregate your resources, I presume that perhaps your finances are separate (second marriage or personal preference or whatever). If that is the case, then you need to consider what retirement looks like for each of you separately as well as combined.
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Old 02-27-2019, 08:58 PM   #10
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Do you factor in new cars/boats into your $75k? If you like new/expensive toys $75k may be hard to live on. Just a thought.
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Old 02-27-2019, 10:21 PM   #11
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As CaliKid said - does your budget include an allowance for the lumpy expenses such as replacing appliances / roof / cars ?

And Pb4Uski has very wise advice (as always)
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Old 02-28-2019, 03:44 AM   #12
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Without any further NW growth you are at a 3.5% WR. You could view view the large home equity as a potential backstop if it came to that.
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Old 02-28-2019, 06:49 AM   #13
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Quote:
Originally Posted by Kabowest View Post
Hello all-

I have been an occasional visitor and reader and have enjoyed many great posts. As I get very close to pulling the rip cord (hoping for a parachute opposed to pots and pans) I'm looking for honest community assessment of our current retirement standing. As many here have posted similar feelings and thoughts, I feel that we are in great shape however, always second guessing pulling the cord.

Me: 58 DH and looking to retire at or before Dec 2019 (59 in Jan 2020)
- Current retirement savings: $1.5M (75% stocks, 18% bonds, 7% cash)
- Estimated SS at 62: $1,900/mth
- 50% medical plan covered by employer when I retire, until 65

DW: 56 and planning to work until 62
- Current retirement savings: $625K (75% stocks, 17% bonds, 8% cash)
- Estimated SS at 62: $1,800 / mth

DW & DH Combined
- $700k primary home (on lake) with a $53k mortgage balance
- Three relatively new vehicles (2013, 2016, 2016) paid in full
- 2019 boat paid in full
- Tracked expenses over the past three years puts our needs at $75k/yr
- Several scenarios through FIRECalc show zero failures for a 35 yr period

Thanks, and look forward to any responses.
You list retirement savings for each of you, but you list no savings outside of retirement. Is this correct? There are no joint after tax savings accounts?
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Old 02-28-2019, 06:51 AM   #14
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Quote:
Originally Posted by travelover View Post
Have you run FireCalc at bottom of page? That should give some reassurance. Second the notion to delay higher wage earner SS to 70.
They mention this at the bottom of the OP.
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Old 02-28-2019, 02:31 PM   #15
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Thanks for the reply!

We will likely wait on SS. I just included the minimum amount as a guage on our current standings.
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Old 02-28-2019, 02:33 PM   #16
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Originally Posted by travelover View Post
Have you run FireCalc at bottom of page? That should give some reassurance. Second the notion to delay higher wage earner SS to 70.
I have run FIRECalc many many times, along with many other popular calculators. Averaged out in my ever-expanding spreadsheet results are favorable.

Thanks!
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Old 02-28-2019, 02:34 PM   #17
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Originally Posted by flintnational View Post
Welcome to the forum. Based on a quick look, your plan seems solid. The only item that might stand out is the house value to NW ratio. But, that is a budget issue. As long as you are comfortable the budget includes enough for future house maintenance and expenses, you should be fine.
Thanks for the comments and insight. Quick question - what is the concern with the house value?
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Old 02-28-2019, 02:37 PM   #18
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Originally Posted by Dtail View Post
Sounds like you are in good shape.
Any plans for specific large increases in expenses in retirement ex - budget for travel goes up a lot, etc.
What is the medical plan coverage for the DW at 62?
Hi

We travel about once a year and we already have the budgeted in. The last large expense was the new boat, so we should be OK there. Good question on DW. At the moment we both have individual plans but this is an active conversation.
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Old 02-28-2019, 02:40 PM   #19
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Originally Posted by stepford View Post
Sorry, all this talk of rip cords reminds me of the classic:





FWIW, I think the OP will have a significantly better result on pulling his personal rip cord.
I always envision pots and pans (think it comes from my generation of cartoons) however, your cartoon provides an even better visual. I also think we will have better results and appreciate the vote of confidence!
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Old 02-28-2019, 02:41 PM   #20
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Originally Posted by HNL Bill View Post
Even without knowing the DW's income until she's 62, the numbers look solid. I agree with others: If you're in good health, consider deferring SS to between 65 and 70. With your wife's income for the next 6 years, you should be able to wait at least until 65, increasing your benefit. OTOH, if you're worried about benefits being cut, go ahead and take it now....oh, that's a whole other thread!
Thanks for your thoughts, much appreciated. We will likely delay but I always use the minimum in my calculations to get a baseline read.
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