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05-23-2016, 09:13 AM
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#1
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Dryer sheet aficionado
Join Date: May 2014
Location: Philadelphia
Posts: 32
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Want to retire at 60
I will be 60 in 2017. I will have about 1.1 million between lump sum buyout at work and 401K. Also have 320,000 in CD's and cash savings. Pretty sure I could get by on 45,000/yr after taxes. I will have to pay health care until I am 62 (company I am with now will then pay till I am 65). Soc Security kicks in at 62 (about 1800/mth).
Would anyone out there comment as to whether this is reasonable ? I live pretty conservatively, no big travel plans, jut want to get out. I see alot of people on here have gotten out before 60, just want to know if you able to enjoy life.
thanks,
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05-23-2016, 09:17 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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You're going to do just fine. It's okay to live conservatively, but don't give up on seeing the world while you have your health.
Everyone needs something to look forward to every day.
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05-23-2016, 01:52 PM
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#3
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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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With an assumption for taxes, that puts you at about a 3.5% WR, which should be doable. Have you run FIRECALC?
__________________
"The mountains are calling, and I must go." John Muir
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05-23-2016, 03:42 PM
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#4
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Moderator
Join Date: Jul 2010
Posts: 7,941
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Just eyeballing it, you look ok, but if you haven't seen them yet, there are two excellent resources here that have been useful to many:
http://www.early-retirement.org/foru...ire-69999.html
and
Early Retirement FAQs - Early Retirement & Financial Independence Community
After you've run some scenarios on FIREcalc, let us know if you have specific questions.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
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05-23-2016, 07:50 PM
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#5
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Full time employment: Posting here.
Join Date: Jul 2014
Posts: 930
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The only thing that gives me pause is the phrase "pretty sure I could get by on $45,000 per year after taxes". Is that an estimate or have you tracked your actual expenses over a year or two and adjusted for specific things likely to change (either up or down) with retirement (such as commuting, health care etc.).
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05-23-2016, 08:23 PM
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#6
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Dryer sheet aficionado
Join Date: May 2014
Location: Philadelphia
Posts: 32
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As of now, I go out to lunch almost daily and go out to eat about 5 times a week for dinner ... Not good. I like to cook, but live alone and that can be a hassle.. I figure in retirement, I will less likely go out to lunch and cook more at home. Maybe even have some leftovers. This will cut out some money I know spend. Firecalc says I am in good shape. I really enjoy bouncing things off people who have done this already. Pretty certain I am ready to join the class of 2017 for retire early. Thanks
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05-24-2016, 05:54 AM
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#7
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Recycles dryer sheets
Join Date: Nov 2014
Location: Texas
Posts: 164
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Joe was that 1.1 or all together 1.4mil with the 320 in cash ? Personally I have run numbers until I am blue in the face. At 1.1 should be good but will not have any left to leave behind. But it should take you through your 90s with ss in the mix
Sent from my iPhone using Early Retirement Forum
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05-24-2016, 11:37 AM
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#9
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Dryer sheet aficionado
Join Date: May 2014
Location: Philadelphia
Posts: 32
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Fircalc has me consistently at 90 - 95% lasting for 30 years, even touched 100% once by using some conservative numbers...
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05-24-2016, 01:57 PM
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#10
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Recycles dryer sheets
Join Date: Nov 2014
Location: Texas
Posts: 164
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Curious what are you're conservative numbers ?
Sent from my iPhone using Early Retirement Forum
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05-25-2016, 04:17 AM
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#11
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Dryer sheet aficionado
Join Date: May 2014
Location: Philadelphia
Posts: 32
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Gotta redo my firecalc numbers. I put in some wrong info. Just learning how this firecalc works. Does it take into account taxes. In other words, when it asks for soc security info, should I put in gross amount or estimate my net
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05-25-2016, 04:44 AM
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#12
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,715
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FIRECalc assumes taxes are like any other expense, which means you need to include them as part of your yearly expenses.
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05-26-2016, 09:44 AM
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#13
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Recycles dryer sheets
Join Date: May 2015
Posts: 148
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So you have 1.4 M plus in your retirement kitty. Need to bridge two years until you are 62 and need no more than $60,000 per year [expenses and taxes] for the next two years.
I'd take $60,000 out of the kitty for the next two years for living expenses. SS kicks in and you still have 1.2M plus @ 62.. With SS, your WR is 3.2% or less.
I'd have no problem leaving the rat race. Seems very doable.
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05-26-2016, 03:09 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
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Check out taxcaster and the calculator at tax-rates.org for taxes or do a trial retirement tax return but I suspect you are talking about $3-4k a year for state and federal income tax combined. I think you are good to go if you want to.
You would include this in expenses... so bump your expenses from $45k to $48-49k a year. SS would be the entire $21,300/year.
But why wait until 2017?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-26-2016, 08:27 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Posts: 1,972
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Yeah, $1.42 million .. you're fine. You should be A-OK
__________________
No to consumerism, Living a simple life, enjoying the experience - not the material stuff
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05-26-2016, 09:27 PM
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#16
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Recycles dryer sheets
Join Date: Jan 2015
Posts: 206
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I am just curious how much you are budgeting for healthcare & health insurance until your company starts picking it up? Can your company rescind this benefit after you retire?
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05-28-2016, 07:23 PM
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#17
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Dryer sheet aficionado
Join Date: May 2014
Location: Philadelphia
Posts: 32
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I am going budget 12,000 / year for two years. That is an worst case. Maybe I can find something better depending on what I want.
Can your company rescind this benefit after you retire? Good question. There is nothing that can stop them from doing that .... they have not as of now, no rumors of them doing, but in this economy, it is a gamble that I will need to handle if it happens. Maybe work at Home Depot ..
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