Hey all, thanks for all the great advice. I’d like to introduce myself and try perhaps to get a reality/sanity check on our ER plans.
Me: 50 next month, about 100K/Yr
She: 50 next month, 125K-135k/Yr plus 4K gross/mo. pension from State job after 26 years in.
I would like to stop working in three years though figure I would work PT doing something fun to bring in about $1K /Mo. until at least when she wants to stop working at about 57-58.
We have:
· $275K Mortgage. Bought last year, 4.375% 30 years.
· No children, no other debt whatsoever.
· Expenses are about $7K-8K per month but expect it to drop to about $6.5K in retirement.
· $325K in her 457 deferred comp plan which we could tap without the IRS 10% penalty
· $125K in an Indexed Deferred Annuity that can be tapped at about age 60 for about $2K per month. (probably not the smartest move; long story).
· By 53, when I want to stop, we should have $100K savings in an after tax brokerage account, (Mutuals, ETF’s, maybe MLP’s)
· Maxing out our current 401(K) plans, including the catch-up, we should have another $350K-400K by the time she stops working at 58 and depending on what the market does.
Our tentative plan is:
· Pay $1000 additional mortgage payment so we can pay off the mortgage by about age 62. (or sell and move and maybe downsize but regardless have no mortgage after age 62).
· Roll-over $200k of her 457 plan into an IRA and perhaps use Fidelity’s Blackrock Income ETF program. This keeps $125K in her 457 which can be tapped at any time penalty free to fund any gap, (perhaps from 58-59 ½ if needed.
· Use the 100k after tax $ in the brokerage account to also fund that two year gap until 59 ½ (If she still works FT until 58, and I earn $1K/mo PT, we should not need to tap much if anything to augment during that gap; mostly because of her pension).
· Once we hit 59 ½ , the Blackrock money can kick in, as would the 401(k). Annuity kicks in at 60. SS at 62 for me, maybe 66 for her.
Does this sound do-able? Any moves I should be making or not making? I feel like we have one chance to get this right so any insight is most appreciated.