What do you think?

I am 59 and my wife is 62. She is retired and I still work. I am trying to figure out if I can retire. We have $4.6M - about 70% in retirement accounts. The asset allocation is about 70% (for both retirement and non-retirement accounts) in equities, 20% in bonds, and 10% in cash. Our house is paid for and we have no kids. We will put off SS till at least 66, perhaps longer, and I will draw the max or close to it. We spend about $70K/year and will have to pay for health insurance until age 65. Based on family histories, it is conceivable that we will both make it to our 90s. Thoughts on whether I can retire?

Really?? You actually have to ask if you could retire? (Duh..) :)
 
The extremely short answer is that your are FINE, and ready to retire today.. Your 4.6 MM in assets should be more than enough to carry your forward. As you know, you will need to assess your Sources of Income relative to your Sources of Retirement Expense, to see what your burn rate per year will be (assuming that it is a burn rate). You should set up a spreadsheet to track all of the following (list may not be all inclusive for you);

Sources of Retirement Revenue:


  • Monthly pre-retirement income from jobs
  • Monthly pre-retirement tax-deferred plan contributions
  • Monthly pre-retirement tax-free plan contributions
  • Monthly retirement income from jobs
  • Monthly Social Security retirement income
  • Monthly pension retirement income
  • Monthly asset investment returns
Source of Retirement Expense:


  • Alimony
  • Auto Financing
  • Bank Fees
  • Brokerage Monthly Minimum Fee
  • Burial/Funeral Costs
  • Cable/Satellite Internet Service
  • Cable/Satellite Land Line Telephone
  • Cable/Satellite TV
  • Cable/Satellite High-speed Internet
  • Car Gasoline
  • Car Insurance/Umbrella Policy
  • Car Maintenance
  • Cell Phone
  • Charitable Donations
  • Child Support
  • Clothing
  • Clubs/Classes
  • Computer Supplies
  • Education/College Costs
  • Electric Utility
  • Emergencies
  • Entertainment
  • Filtered Water Expense
  • Food
  • Fuel Oil/Gas
  • Gifts
  • Home Repairs
  • Homeowner’s Insurance
  • Household Items
  • Lawn Care
  • Life Insurance
  • Long-term Care Insurance
  • Lottery Tickets
  • Medical/Dental Insurance
  • Medical/Dental out-of-pocket
  • Medicare Premium
  • Miscellaneous
  • Mortgage
  • Movie package (e.g., Netflix)
  • Newspapers/Magazines
  • Pets
  • Pool Maintenance
  • Postage
  • Real Estate Taxes
  • Rent
  • Taxes (Federal, State, Local - other than R.E. Taxes)
  • Vacations
  • Water Bill
Based on the above, you should be able to determine your burn rate per year, and how long your assets will last you.

Additionally, the variables that will affect your retirement nest egg lasting also include the following:


  • Age of Retirement
  • Tax Filing Status (effects how Social Security benefits are taxed)
  • Annualized Inflation Rate
  • Annualized Percentage of Investment Return on Existing Assets
  • Tax Rate Percentage (this will vary on a state-by-state basis)
Lots to coalesce, but once you spend some time analyzing all of this, you will be set in determining how long your assets will last. Again, it appears that you will be fine with all that you mentioned, although you didn't quantify how expensive your healthcare costs will be, prior to being a Medicare recipient (and this can vary greatly depending on what state you live in).

Personally, although the stock market keeps going on its unbelievable northern trajectory, I would throttle back on the 70% stock allocation. If you are planning on retiring sooner rather than later, having that much allocated in risk assets is in itself, a risk, IMO. You've obviously done well to this point. As you get closer and closer to retirement, why would you want to risk a Major correction in the stock market -- something of that magnitude would surely impact your retirement assets negatively. You may want to go into more of an asset preservation mode.

In any event, good luck, and enjoy retirement!
 
OP - You are a Bragger !!
Way to go, now stop working immediately.
I have run similar numbers on Calculators like this one:
Retirement Planning Tool - Visual Calculator
And they show even with low earnings and high inflation, you will make it to 95.
Do you really want to fall over in say 3 years with a heart attack or stroke, and miss out on visiting family and taking long vacations because you wanted to stuff more $$$ into the overflowing bank ?
 
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