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05-15-2017, 04:37 PM
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#1
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Retirement?
I am considering retiring at the end of the year, and am a little nervous about it. Firecalc says I'm okay, and I spoke with Fidelity and they say I'm okay too.
Still......thought I would ask for another opinion. Giving up a nice income makes me a little nervous.
My current monthly expenses run around $2400 per month. I don't see them changing except as prices rise due to inflation.
My income after retirement would be $2800 per month. It will go up when I turn 70 (in 7 years) and take my own social security (it will increase approximately $1500 per month)
I will be buying my health insurance from the ACA exchange.If it goes by the wayside at some point, I'm two years away from Medicare.
Current investments:
1,100,000 in sep/roth iras.
340,000 non-ira split between a mutual fund and a bond fund.
100,000 cash (my emergency money).
My house is free and clear (worth around $500,000)
and I own two rentals (combined worth around $450,00 with
a mortgage on one of $67,000)
So two questions:
First, do things look good for retiring?
Second, I will shortly be inheriting somewhere between $300,00 to $400,000 in addition to the above. Any idea on what to do with it?
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05-15-2017, 04:54 PM
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#2
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,346
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Welcome to the forum!
If you haven't already seen it this is a list of questions that you will want to have solid answers to before retirement:
http://www.early-retirement.org/foru...ml#post1399715
__________________
When I was a kid I wanted to be older. This is not what I expected.
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05-15-2017, 04:57 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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what type of $$$ do the rentals throw off net?
__________________
FIRE'D in July 2009 at 51...Never look back!
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05-15-2017, 05:20 PM
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#4
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Quote:
Originally Posted by RockyMtn
what type of $$$ do the rentals throw off net?
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They net me $1200 per month although I am just about to increase the rent on each which should bring it up to $1500.
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05-15-2017, 05:22 PM
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#5
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Recycles dryer sheets
Join Date: May 2015
Posts: 54
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Quote:
Originally Posted by TripleT
I am considering retiring at the end of the year, and am a little nervous about it. Firecalc says I'm okay, and I spoke with Fidelity and they say I'm okay too.
Still......thought I would ask for another opinion. Giving up a nice income makes me a little nervous.
My current monthly expenses run around $2400 per month. I don't see them changing except as prices rise due to inflation.
My income after retirement would be $2800 per month. It will go up when I turn 70 (in 7 years) and take my own social security (it will increase approximately $1500 per month)
I will be buying my health insurance from the ACA exchange.If it goes by the wayside at some point, I'm two years away from Medicare.
Current investments:
1,100,000 in sep/roth iras.
340,000 non-ira split between a mutual fund and a bond fund.
100,000 cash (my emergency money).
My house is free and clear (worth around $500,000)
and I own two rentals (combined worth around $450,00 with
a mortgage on one of $67,000)
So two questions:
First, do things look good for retiring?
Second, I will shortly be inheriting somewhere between $300,00 to $400,000 in addition to the above. Any idea on what to do with it?
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Just my humble opinion.
When you get your inheritance put it in the market at a 30-50% equity/bond split.
You have over 1 mil in sep and roth IRA plus rental property and 340 K in another IRA. Thats a net worth close to 2 million and over that with the inheritance.
You are 63 now so a 3.0% swr is reasonable. You could even do 2.5% and collect rent and do fine. When social kicks in then even better. If you are really nervous about it, go part time and transition out over the next 3 years.
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05-15-2017, 05:40 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,943
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Based on the info you provided (age, NW, income and spend rates) you should be good to go. IMO, don't really need much of a calculator to figure yours.
BTW, welcome to the forum....
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05-15-2017, 05:43 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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Quote:
Originally Posted by TripleT
They net me $1200 per month although I am just about to increase the rent on each which should bring it up to $1500.
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I am assuming that number is in the $2800 per month income?? Even with the 's on ACA costs (for only two years) I think you are more than good to go!
Good luck!!
__________________
FIRE'D in July 2009 at 51...Never look back!
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05-15-2017, 05:43 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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You may want to use Cobra to get you closer to Medicare.
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05-15-2017, 05:49 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Oct 2015
Posts: 2,330
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Quote:
Originally Posted by Car-Guy
Based on the info you provided (age, NW, income and spend rates) you should be good to go. IMO, don't really need much of a calculator to figure yours.
BTW, welcome to the forum....
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+1 With expenses that low you'll be fine for sure
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05-15-2017, 06:26 PM
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#10
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Recycles dryer sheets
Join Date: Dec 2014
Location: The Desert
Posts: 311
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Have you considered taxes and have you factored in medical expenses into your numbers?
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05-15-2017, 08:07 PM
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#11
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Recycles dryer sheets
Join Date: Feb 2017
Location: San Antonio
Posts: 179
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Fidelity & FireCalc say you are good as well as most of the replies above..so what is making you nervous? Any major change is usually somewhat unsettling...fear of unknown is pretty normal. What are your plans for when you do retire?
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05-15-2017, 08:22 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,526
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I will repeat what most have already said. I would say you are more then good to retire. Very low cost to live and the one thing is you have cash flow. I really don't see any issues unless you change things up.
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05-15-2017, 08:48 PM
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#13
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Quote:
Originally Posted by RockyMtn
I am assuming that number is in the $2800 per month income?? Even with the 's on ACA costs (for only two years) I think you are more than good to go!
Good luck!!
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Yes, it is included in the $2800.
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05-15-2017, 08:50 PM
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#14
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Quote:
Originally Posted by T-Minus
Have you considered taxes and have you factored in medical expenses into your numbers?
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I checked with my accountant and it looks like if my income does not change I will have very little to no taxes due. However, the extra $100,000 I have set aside as my "emergency fund" is there in case he is wrong or for medical expenses. I also have another $400 left over at the end of the month for any medical expenses that crop up.
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05-15-2017, 08:53 PM
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#15
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Quote:
Originally Posted by evilanne
Fidelity & FireCalc say you are good as well as most of the replies above..so what is making you nervous? Any major change is usually somewhat unsettling...fear of unknown is pretty normal. What are your plans for when you do retire?
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Just normal paranoia I think....all of a sudden no large income from working.
Also, I have worked since I was in 5th grade (baby sitting, berry picking when younger, not a lot of money, but still used to working and earning) so it will be strange to no longer do so.
After retirement will spend time taking care of the property (house and land need a lot of work), relaxing, and spending time on my passion, competitive shooting. Also planning to take classes, including learning an instrument. All kinds of things I've never had time for before!
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05-15-2017, 08:58 PM
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#16
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Quote:
Originally Posted by Dash man
You may want to use Cobra to get you closer to Medicare.
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I was self employed, so my understanding is the premiums wouldn't be deductible I should "only" be paying $355 for the monthly premiums under the ACA which isn't bad.
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05-15-2017, 09:29 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: South central PA
Posts: 3,486
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Quote:
Originally Posted by TripleT
I was self employed, so my understanding is the premiums wouldn't be deductible I should "only" be paying $355 for the monthly premiums under the ACA which isn't bad.
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If you are self employed health care premiums are a line item deduction on the 1040, up to your earnings, but no more.
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05-15-2017, 10:23 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Location: North
Posts: 4,043
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Quote:
Originally Posted by TripleT
I am considering retiring at the end of the year, and am a little nervous about it. Firecalc says I'm okay, and I spoke with Fidelity and they say I'm okay too.
Still......thought I would ask for another opinion. Giving up a nice income makes me a little nervous.
My current monthly expenses run around $2400 per month. I don't see them changing except as prices rise due to inflation.
My income after retirement would be $2800 per month. It will go up when I turn 70 (in 7 years) and take my own social security (it will increase approximately $1500 per month)
I will be buying my health insurance from the ACA exchange.If it goes by the wayside at some point, I'm two years away from Medicare.
Current investments:
1,100,000 in sep/roth iras.
340,000 non-ira split between a mutual fund and a bond fund.
100,000 cash (my emergency money).
My house is free and clear (worth around $500,000)
and I own two rentals (combined worth around $450,00 with
a mortgage on one of $67,000)
So two questions:
First, do things look good for retiring?
Second, I will shortly be inheriting somewhere between $300,00 to $400,000 in addition to the above. Any idea on what to do with it?
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What are you waiting for? Death? Spend that hard earned money.
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
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05-16-2017, 12:53 AM
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#19
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Full time employment: Posting here.
Join Date: Mar 2017
Posts: 629
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Quote:
Originally Posted by EastWest Gal
If you are self employed health care premiums are a line item deduction on the 1040, up to your earnings, but no more.
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Correct,but I thought it was different with COBRA. No matter though, will get coverage through ACA.
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05-16-2017, 04:43 AM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2015
Location: Michigan
Posts: 5,003
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Invest new money at your desired AA.
__________________
"The mountains are calling, and I must go." John Muir
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