Requesting Forum Assessment

[Kabowest]

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.

 

[joeea]

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?

 

[travelover]

Have you run FireCalc at bottom of page? That should give some reassurance. Second the notion to delay higher wage earner SS to 70.

 

[flintnational]

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.

 

[Dtail]

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?

 

[stepford]

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.

 

[HI Bill]

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!

 

[Aerides]

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.

 

[pb4uski]

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.

 

[CaliKid]

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.

 

[Live And Learn]

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)

 

[DrRoy]

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.

 

[Golden sunsets]

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?

 

[audreyh1]

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.

 

[Kabowest]

Thanks for the reply!

We will likely wait on SS. I just included the minimum amount as a guage on our current standings.

 

[Kabowest]

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!

 

[Kabowest]

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?

 

[Kabowest]

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.

 

[Kabowest]

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!

 

[Kabowest]

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.

 

[flintnational]

Thanks for the comments and insight. Quick question - what is the concern with the house value?

Not necessarily a concern if you have all the costs in your budget. But, as house values go higher, so do taxes, insurance and upkeep. House costs could end up being a large portion of your budget. Once again, not a problem as long as you are aware of the associated costs and have properly accounted for them.

ETA: Here is a link to a forum poll on house value to NW value. Not scientific, but you are in the top 11%.

 

[Kabowest]

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.

Great question. We both came from previous marriages and the accounts are as they stand in separate accounts. It wasn't meant to be a hers/mine vs. ours, simply just how things look split out. In the end it's a virtual single bucket.

Unlike myself she loves her job and insists 62 is the target (and agree, not that feelings cant change. Regardless, I think we are good in any scenario.

 

[Kabowest]

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.

The good news is, the boat is the 'retirement boat' so that should be it for toy purchases. The plan for we she retires at 62 is to reduce down to a single new car, which 'should' be the last big purchase.

 

[Kabowest]

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.

Thanks for the vote of confidence!

We are both from previous marriages. We have run the numbers for combined against individual to be sure to understand all scenarios. Never say never, but rest assured this the last stop for both of us!

 

[Kabowest]

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)

We have almost every large expense I can think of covered. House interior was renovated top-to-bottom 5 yrs ago, which included furnace on demand hot water, and appliances. New roof last summer and new driveway two years ago. All this work is paid for. Not to say that something can't pop up.