thinking of retiring on 12/31/2010
I am 49 and thinking of retiring here in Texas, but am unsure. Firecalc is saying it should work but is not saying how it will feel.
Current situation is 1.1M in a market-index fund (300k of which is a 401k), no debt, 100k in cash, an owned house, and 60k that is slated for my daughter's college education. Up until 2 months ago I was paying $2100/mo to my ex-wife and for the last 15 years have been living in a (owned) 5 bedroom house that averages $1500/mo in taxes, maintenance and utilities. $800 this month for electricity alone - can't wait to move away from that! Selling the house will produce another 250k or so.
Several years ago I moved into a high-pressure sales job which has paid on average 300k/year of which I paid 75k in taxes, saved 120k, distributed 25k to the ex, and lived on the other 75k. My plan now is to sell the house and move into a 1 bedroom apartment and also quit my job. I project future monthly spending to be as low as 1500/mo to as high as 3000/mo. The reason for the large range is I do not really know how its going to feel watching the net worth chart - these last few years have been a period of fast growth with little concern for market downturns so now I figure that by being even more frugal than necessary will perhaps minimize my worries(?). I get a kick out of being cheap and drive a 40mpg car and until I started reading this board thought I was the cheapest guy around! After one big year 2008 (saved 510k that year) I told myself to get out of this job as soon as my youngest moved out, and now that time is here. The job is now paying maybe 150k/year but is no less stressful than it used to be, which also is making me want to move on. Two open questions I have about this move are what am I going to do every day and how will market downturns feel with no new constant savings to offset them. My only future income aside from asset growth is social security - there is no pension coming from the job. I have zero interest in moving to some other job, at least right now. Any input is welcome - thanks