Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
sanity check on my numbers
Old 05-09-2018, 12:20 PM   #1
Confused about dryer sheets
 
Join Date: May 2018
Location: ENGLISHTOWN
Posts: 6
sanity check on my numbers

Hi my name is Ray. My wife is retiring next month and it got me thinking of my own retirement. I think we are ok but would like a sanity check to see if I missed something. Which forum would be the correct one to post some numbers. It is a little scary to stop working as I have worked my whole adult life and could use a little reassurance as I am the money person in the house and wife has little expertise in this area, as much as I have tried to educate her in 30 years of marriage
__________________

raaizin is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

We are major data nerds here
Old 05-09-2018, 12:59 PM   #2
Thinks s/he gets paid by the post
Mdlerth's Avatar
 
Join Date: Oct 2016
Location: The Shire
Posts: 1,108
We are major data nerds here

Welcome to the forum. This is a good place to start.

It's sufficient to confine your data to percentages, since whether you plan to retire on 10 thousand a year or ten million a year the equations are the same.

For example, "I have 80% of my pile in IRAs invested 75% equities, 25% bonds. The other 20% is split 50/50 in low-fee index funds. No debt. Employer-provided retiree health care coverage up to Medicare age.

When I punch out in 2 years at age 55, I will live off my taxable accounts to age 59.5, at which time a WR (withdrawal rate) of 4.1% from the IRAs will cover all projected expenses. DW will take SS at FRA, and I will at 70; from there our WR drops to 1.4%. FIRECalc gives me 100% success even if I plug in 1.3x our anticipated expense."

If you present a case something like this, everyone will applaud your enviable situation!
__________________

__________________
Paying it forward is the best investment.
Mdlerth is offline   Reply With Quote
Old 05-09-2018, 01:33 PM   #3
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 10,025
Welcome to the forum. For a good sanity check you'll need to present spending (can be as a percentage of nest egg), any income sources (pension? Rental income? Side hustle?).

Plus any thing specific to your plan.... Like 'will sell expensive home and move to a lower cost area'. Or 'enjoy private jet travel and plan to spend 20% of nest egg on travel'.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 05-09-2018, 01:50 PM   #4
Confused about dryer sheets
 
Join Date: May 2018
Location: ENGLISHTOWN
Posts: 6
Ok here not sure how to convert to percentages so I will give pure numbers

I am 57 wife 55


We both get medical and SSI suplemental paid when we hit 65
1.3 mil in 401k 700k in fixed fund yield 2% 600k in primecap mutual fund

wife has 400k in fund which is guaranteed 7% return

700k in non taxable mutual funds.

debts 15k home equity line of credit no other debt
real estate taxes 9k

current income 205k would like to keep current income. I figure not having to pay SSwithho;ding and Medicare will be my raise.

pensions 107k
interest wifes fund 28k
withdraw 70k from my 401k from 57-62yrs take SSI at 62 and decrease withdrawl to 50k since SSI is 20k. Wife would take SSI 70



Any issues, like I said earlier it is hard for me to stop working but would like to get out since work is no longer enjoyable. I just would like a sanity check to see If I am missing something.
raaizin is offline   Reply With Quote
Old 05-09-2018, 02:14 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,600
Quote:
Originally Posted by raaizin View Post
Ok here not sure how to convert to percentages so I will give pure numbers

I am 57 wife 55


We both get medical and SSI suplemental paid when we hit 65
1.3 mil in 401k 700k in fixed fund yield 2% 600k in primecap mutual fund

wife has 400k in fund which is guaranteed 7% return

700k in non taxable mutual funds.

debts 15k home equity line of credit no other debt
real estate taxes 9k

current income 205k would like to keep current income. I figure not having to pay SSwithho;ding and Medicare will be my raise.

pensions 107k
interest wifes fund 28k
withdraw 70k from my 401k from 57-62yrs take SSI at 62 and decrease withdrawl to 50k since SSI is 20k. Wife would take SSI 70



Any issues, like I said earlier it is hard for me to stop working but would like to get out since work is no longer enjoyable. I just would like a sanity check to see If I am missing something.
What is your expected yearly expenses in retirement, or did I not interpret your info correctly?
Also curious, what type of fund guarantees 7%?
__________________
TGIM
Dtail is offline   Reply With Quote
Old 05-09-2018, 02:17 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Posts: 2,633
Quote:
Originally Posted by raaizin View Post
current income 205k would like to keep current income.
Does that mean you hope to spend $205k/year in retirement?

Quote:
pensions 107k
COLA? Joint and survivor?

Quote:
1.3 mil in 401k 700k in fixed fund yield 2% 600k in primecap mutual fund

wife has 400k in fund which is guaranteed 7% return

700k in non taxable mutual funds.
So you have a portfolio of $2.4M in total to carry you for a 40-45 year retirement?
__________________
Old enough to know better.
joeea is offline   Reply With Quote
Old 05-09-2018, 02:57 PM   #7
Confused about dryer sheets
 
Join Date: May 2018
Location: ENGLISHTOWN
Posts: 6
1)4k a month covers expenses....anything over that we can save or spend as we wish

2)205k gross..I figure take home 140k yearly

3)pensions have full survivor benefits

4) 7% guaranteed by union contract NYC

5) 2,400,000/45 years is 53k a year without appreciation..Only taking 70k first 5 years.

Also wife can take SSI which I have not factored in,so I can reduce withdrawls by 20k if she takes at 62 or 30k if she takes at 70

I cant see how we will run out of $$$ besides in all honesty we will not need all 205k just worst ncase scenario..
raaizin is offline   Reply With Quote
Old 05-09-2018, 06:11 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,600
Quote:
Originally Posted by raaizin View Post
1)4k a month covers expenses....anything over that we can save or spend as we wish

2)205k gross..I figure take home 140k yearly

3)pensions have full survivor benefits

4) 7% guaranteed by union contract NYC

5) 2,400,000/45 years is 53k a year without appreciation..Only taking 70k first 5 years.

Also wife can take SSI which I have not factored in,so I can reduce withdrawls by 20k if she takes at 62 or 30k if she takes at 70

I cant see how we will run out of $$$ besides in all honesty we will not need all 205k just worst ncase scenario..
I am not the expert, but it looks like the numbers work. It doesn't look like you will be higher than 3% net WR.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 05-09-2018, 06:19 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Mar 2015
Posts: 2,633
Quote:
Originally Posted by raaizin View Post
I cant see how we will run out of $$$ besides in all honesty we will not need all 205k just worst ncase scenario..
Okay, so then what is your question?
__________________
Old enough to know better.
joeea is offline   Reply With Quote
Old 05-10-2018, 02:17 PM   #10
Confused about dryer sheets
 
Join Date: May 2018
Location: ENGLISHTOWN
Posts: 6
Quote:
Originally Posted by joeea View Post
Okay, so then what is your question?

I think it is a solid plan, do you see anything wrong with my plan
raaizin is offline   Reply With Quote
Old 05-10-2018, 03:22 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Nov 2016
Posts: 2,413
raaizin >>> things look great the way I see what you have. I'm no expert but your plan looks solid.
street is offline   Reply With Quote
Old 05-10-2018, 04:06 PM   #12
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 200
Mdlerth
Do not want to steal the conversation but Iíve always wondered if one retires at 55 and doesnít collect until at least 62 not sure how it is calculated? So, for instance when I go my SS page it will tell me what my ss would be at 62; however, that # is taken in to account that I would be working up to that age and not retiring early and then waiting to collect?
cnocmmz is offline   Reply With Quote
Old 05-10-2018, 04:30 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,600
Quote:
Originally Posted by cnocmmz View Post
Mdlerth
Do not want to steal the conversation but Iíve always wondered if one retires at 55 and doesnít collect until at least 62 not sure how it is calculated? So, for instance when I go my SS page it will tell me what my ss would be at 62; however, that # is taken in to account that I would be working up to that age and not retiring early and then waiting to collect?
If you use the "retirement estimator" site, you can fill in zeros from now until 62 and the results will reflect this information accurately.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 05-10-2018, 04:43 PM   #14
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 200
Which retirement calculator
cnocmmz is offline   Reply With Quote
Old 05-10-2018, 05:01 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,600
Quote:
Originally Posted by cnocmmz View Post
Which retirement calculator
Sorry, see below link.

https://www.ssa.gov/benefits/retirement/estimator.html
__________________
TGIM
Dtail is offline   Reply With Quote
Old 05-10-2018, 05:41 PM   #16
Thinks s/he gets paid by the post
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 2,954
Quote:
Originally Posted by raaizin View Post
...
4) 7% guaranteed by union contract NYC ...
I'd have someone who is financially savvy, like an investment-oriented CPA look under the hood at that one, specifically: what money is backing the "guarantee?" There are a lot of people in Illinois who think they have guaranteed pensions and who are going to be surprised and disappointed when Illinois goes bankrupt. Chicago may not be far behind and California is a long shot to tank as well. Good thing it is not a larger portion of your assets.

Detroit recent history: https://www.detroitnews.com/story/ne...lity/24156301/
OldShooter is offline   Reply With Quote
Old 05-10-2018, 05:52 PM   #17
Recycles dryer sheets
 
Join Date: Jan 2015
Posts: 200
Quote:
Originally Posted by Dtail View Post


Yep, just went through it. It seems even though I have been working and paying in, if I leave the work force the numbers tell I would lose a little bit monthly leaving the workforce prior to 62
cnocmmz is offline   Reply With Quote
Old 05-10-2018, 06:44 PM   #18
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 3,600
Quote:
Originally Posted by cnocmmz View Post
Yep, just went through it. It seems even though I have been working and paying in, if I leave the work force the numbers tell I would lose a little bit monthly leaving the workforce prior to 62
I left at 57 and so had 35 years of earnings, but first few years not maxed out.
IIRC, not working to 62 caused ~50 monthly decrease.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 05-10-2018, 08:26 PM   #19
Recycles dryer sheets
Backpacker's Avatar
 
Join Date: Feb 2011
Location: On a dirt road
Posts: 239
Quote:
Originally Posted by Dtail View Post
I left at 57 and so had 35 years of earnings, but first few years not maxed out.
IIRC, not working to 62 caused ~50 monthly decrease.
Sounds similar to what I calculated. I intend to stop working at 55 and the zero income years between 55 & 62 made very little difference. Really helpful in my decision process to RE.
__________________
"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
Backpacker is offline   Reply With Quote
Old 05-11-2018, 06:30 AM   #20
Confused about dryer sheets
 
Join Date: May 2018
Location: ENGLISHTOWN
Posts: 6
Quote:
Originally Posted by Dtail View Post


Thanks for the link. Just entered info and my number didnt change. My salary has been pretty consistant so I guess I had enough credit not to decrease my benefit.
__________________

raaizin is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Need a sanity check or just to bounce this off of others frayne Other topics 15 12-18-2011 09:04 PM
First Post - Financial plan sanity check GaryK Hi, I am... 35 08-10-2008 09:01 PM
1973 sanity check twaddle FIRECalc support 2 11-17-2007 10:32 PM
Shoot holes in my plan or give me a sanity check frayne FIRE and Money 4 04-04-2004 03:48 PM

» Quick Links

 
All times are GMT -6. The time now is 12:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.