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Want to retire at 60
Old 05-23-2016, 10:13 AM   #1
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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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Old 05-23-2016, 10:17 AM   #2
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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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Old 05-23-2016, 02:52 PM   #3
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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?
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Old 05-23-2016, 04:42 PM   #4
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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:

Some Important Questions to Answer Before Asking - Can I Retire?

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.
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Old 05-23-2016, 08:50 PM   #5
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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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Old 05-23-2016, 09:23 PM   #6
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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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Old 05-24-2016, 06:54 AM   #7
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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


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Old 05-24-2016, 10:43 AM   #8
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The 1.1 does not include the 320 cash and cd's ... Good article below about the 4% rule maybe not being the best metric anymore. I don't count on 4% anymore

Is the 4% Rule of Retirement Still Good Advice? -- The Motley Fool
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Old 05-24-2016, 12:37 PM   #9
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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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Old 05-24-2016, 02:57 PM   #10
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Curious what are you're conservative numbers ?


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Old 05-25-2016, 05:17 AM   #11
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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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Old 05-25-2016, 05:44 AM   #12
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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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Old 05-26-2016, 10:44 AM   #13
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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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Old 05-26-2016, 04:09 PM   #14
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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?
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Old 05-26-2016, 09:27 PM   #15
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Yeah, $1.42 million .. you're fine. You should be A-OK
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Old 05-26-2016, 10:27 PM   #16
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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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Old 05-28-2016, 08:23 PM   #17
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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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