Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
TexasGal ERing now, looking for perspective/help
Old 07-25-2007, 01:28 PM   #1
Recycles dryer sheets
TexasGal's Avatar
 
Join Date: Jul 2007
Posts: 229
TexasGal ERing now, looking for perspective/help

Greetings to all! I have been reading for a little while and finally signed up and decided to post. SO many of you are so much more advanced than I am regarding understanding what is required to ER or even, for that matter, to retire period!

I am a 60 yr old female, live in Texas (no state income tax), divorced almost half my life, one daughter and 4 grandkids, and have just ER’d from a 24-year position with one of the world’s Big 4 accounting/consulting firms. I am not an accountant or consultant . . . . was more into corporate HR and operations, i.e. administrative rather than generating revenue for the company.

I never dreamed that I would retire before my full retirement age of 66, and did not even begin to save towards retirement until I was 40. Due to a very nice salary for the last 5 years I have been able to build a nice little nest egg which could have been double if I had known all along I was going to retire at 60. Oh well, it is what it is.

Increasingly over the last 3-4 years I became more and more unhappy with my position and role in the business world. Business just does not make sense to me any longer and most of it is just total chaos guided by people with little common sense. My father became quite ill with Alzheimer’s and I came to stay with him in early 2007 until he passed away 3/30. I am an only child and now my 90 yr-old mother is seriously ill, and I decided to stay with her until the end whenever that will be. I have since decided to ER so this all very new.

My decision to retire now at age 60 evolved over a 2-month period, and I had never even given it serious thought before. I just simply reached total burnout and could not stand the thought of returning to all of the work b/s. I left the company on good terms and can return either full or part-time at any time in the next year or two (or at least that is what they told me) if I want to “un-retire”.

After checking into possible benefits I found that I could retire at 60 with a decent pension (albeit half of what it would have been in just 6 more years) and will get reduced but ok social security in 2 years. So 2 yrs from now the pension + s/s will be about $42K (I will be living very frugally for the next 2 yrs on pension only until age 62) and the nest egg is $400K and not likely to get much more in the way of after-tax contributions from me. My pension is NOT cola’d which is a bummer.

Official retirement date is Aug 3, and I will get COBRA for 18 mos @ $300/mo. After COBRA for 3-1/2 yrs until Medicare I will get a policy equivalent to what I had at work through company retiree benefits although it will cost me $500/mo. My $500/mo policy covers 100% of most things and there is no deductible and no lifetime maximum up to age 65. Overall it is pretty good although the $500/mo blew me away momentarily.

I will live in a mortage-free small 3/2 home built in 1995, very low utilities because it is so energy efficient, have zero debt of any kind, credit card or otherwise. I will need to buy a car in 2 years, but that is the only big purchase I foresee. Of course “foresee” is the operative word here. I live very simply and do not require “things” to keep me entertained. Once I get more comfortable with my financial situation, I'll work on quality of retirement life and what in the heck I am going to do for the rest of my life (after mom has passed away).

I need about $36K after tax dollars to live comfortably, and FIRECalc indicates I can receive $40K for 30 years with 100% success by leaving nothing to my heirs which is ok with me. I know it is inflation-adjusted, but what about the tax treatment? Does FIRECalc take into consideration the tax burden?

I think I am ok financially, but what do you think given my comments above? I welcome any comments you would care to make on my financial situation. Since retirement happened rather suddenly, I did not even come close to the level of income and nest egg I had originally planned to have. I keep wondering if I am in la-la land on being okay to retire now and am feeling fairly insecure at the moment. I hope that I can find some perspective, suggestions, and thoughts here to help me become a bit more comfortable so thanks in advance! I love this forum and consider myself lucky to have come across it!

Look forward to your comments.

Regards,
Tex
__________________

__________________
TexasGal 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!

Old 07-25-2007, 02:04 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,036
Welcome,
Sorry to hear about your parents .There are several of us on the board (me included ) that have gone or are going through the same things with our parents .Once you retire you'll be so glad to be out of the rat race that you'll make it work . I spend a lot less in retirement .I never realized how much stress shopping I did .
__________________

__________________
Moemg is offline   Reply With Quote
Old 07-25-2007, 02:09 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Welcome, Texas Gal!

With $42k in pension and SS, plus $16k (4% of your $400k), you can easily meet the $36k figure.
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 07-25-2007, 06:02 PM   #4
Recycles dryer sheets
ScottFromUtah's Avatar
 
Join Date: Jul 2007
Location: Orem/Provo
Posts: 231
Welcome, and congratulations on your ER. Hope all goes well in taking care of your mom.

About the taxes, you need to factor them into your living expenses. A company pension is taxable, but SS is not (someone, correct me if I'm wrong). Money you receive from tax-sheltered savings are taxed when you withdraw them--which you must start doing on April 1 after the year that you turn 70½.
__________________
ScottFromUtah is offline   Reply With Quote
Old 07-25-2007, 06:28 PM   #5
Thinks s/he gets paid by the post
Coach's Avatar
 
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
Hi Tex, and welcome! It looks to me like you've got the retirement thing figured out. That's terrific. Every day that goes by is lost forever, and it sounds like you have a plan to make the most of them.

Just so you know, FIRECalc doesn't do anything about taxes. So when it says you can draw $40K, that's before taxes--you need to include taxes in your budget.

You might also look at The Optimal Retirement Planner. It takes a somewhat different approach, but is great when you want to look at the withdrawal phase in more detail.

Coach
__________________
Coach is offline   Reply With Quote
Old 07-25-2007, 06:32 PM   #6
Recycles dryer sheets
TexasGal's Avatar
 
Join Date: Jul 2007
Posts: 229
Thanks for the info about taxes and the well wishes. I went through the ORP too and things still look ok. Now that I know about taxes and FIRECalc I can do a little better planning.

You are all wonderful, keep those comments and suggestions coming!

Cheers,
Tex
__________________
TexasGal is offline   Reply With Quote
Old 07-25-2007, 09:00 PM   #7
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,182
Unfortunately, I'm pretty sure at least some of your Social Security $$ will be taxed. Here's a SS link:

Are Your Social Security Benefits Taxable?

and there's plenty more info out on the web on this subject.
__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is online now   Reply With Quote
Old 07-25-2007, 11:14 PM   #8
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 377
Quote:
Originally Posted by Coach View Post
Hi Tex, and welcome! It looks to me like you've got the retirement thing figured out. That's terrific. Every day that goes by is lost forever, and it sounds like you have a plan to make the most of them.

Just so you know, FIRECalc doesn't do anything about taxes. So when it says you can draw $40K, that's before taxes--you need to include taxes in your budget.

You might also look at The Optimal Retirement Planner. It takes a somewhat different approach, but is great when you want to look at the withdrawal phase in more detail.

Coach
That one only works for 40 year old or greater!
__________________

__________________
Bigritchie 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
Anyone have any stories about ERing earlier than you had planned? glen12 Life after FIRE 39 08-12-2012 02:34 PM
Here's a guy that won't be ERing bosco Other topics 15 06-18-2006 08:18 PM
Imagine: Can lots of people ERing make things better for everybody? ESRBob Life after FIRE 50 07-02-2005 07:47 PM

 

 
All times are GMT -6. The time now is 08:03 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.