Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
What do you think?
Old 09-24-2014, 01:36 PM   #1
Dryer sheet aficionado
 
Join Date: Oct 2006
Posts: 37
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?
__________________

__________________
leyland is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-24-2014, 01:44 PM   #2
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,796
Does the 70k include health insurance/out of pocket costs and does it include taxes?

Even if it doesn't and you round up to $100k/year gross spending you're still at a 2.1% withdrawal rate. And that doesn't consider SS.

I'd say you're good to go.
__________________

__________________
rodi is offline   Reply With Quote
Old 09-24-2014, 01:51 PM   #3
Recycles dryer sheets
robertf57's Avatar
 
Join Date: Jun 2014
Posts: 329
as rodi said, looks like you are more than fine given what you have described.
__________________
robertf57 is offline   Reply With Quote
Old 09-24-2014, 01:53 PM   #4
Dryer sheet aficionado
 
Join Date: Oct 2006
Posts: 37
Health insurance costs and taxes would be in addition to the %70K/year. Thanks.

Quote:
Originally Posted by rodi View Post
Does the 70k include health insurance/out of pocket costs and does it include taxes?

Even if it doesn't and you round up to $100k/year gross spending you're still at a 2.1% withdrawal rate. And that doesn't consider SS.

I'd say you're good to go.
__________________
leyland is offline   Reply With Quote
Old 09-24-2014, 02:12 PM   #5
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Run FireCalc using your total spending needs factoring in SS and Medicare eligibility. My back of the envelope look at your numbers says you can probably safely take $150k to $200k from your account without running out of money over the next 30+ years.

I also think you are a little overweighted in equities. I'd suggest 40% to 60%.

You are only working because you want to.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 09-24-2014, 02:16 PM   #6
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 102
Numbers look real good at your spending level. Congratulations....go enjoy!!
__________________
tdv2 is offline   Reply With Quote
Old 09-24-2014, 02:17 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,387
Quote:
Originally Posted by leyland View Post
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?
You are good to go. $70k is only 1.5% of $4.6 but the $70k doesn't include taxes but taxes shouldn't affect it enough to change the decision.

You can get a good idea of what your future taxes might be by sketching out your situation once you retire at Income Tax Calculator - Tax-Rates.org

You can get a good idea of health insurance costs at https://www.healthsherpa.com/
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 09-24-2014, 02:38 PM   #8
Full time employment: Posting here.
Jack_Pine's Avatar
 
Join Date: Apr 2013
Posts: 834
No offence to OP but curious as to why you would think you might not be good to go?

Seems to me you are off the charts ready....................just curious what your specific concerns are.
__________________
The Constitution. It's not just a good idea...it's the law.
Jack_Pine is offline   Reply With Quote
Old 09-24-2014, 03:58 PM   #9
Recycles dryer sheets
 
Join Date: Nov 2013
Posts: 356
Go for it. You should have no problem drawing on your 401(k)s either since you are close to the 59 1/2 year point. Don't have to worry about after tax amounts.
You have not mentioned anything about your tax-free Roth accounts, but it is probably a good idea for you to do some Roth conversions at this point.
__________________
NgineER is offline   Reply With Quote
Old 09-24-2014, 04:01 PM   #10
Dryer sheet aficionado
 
Join Date: Oct 2006
Posts: 37
Health care costs are a concern along with market volatility and inflation. Once I get out of the workplace there is no going back - my skills will erode too quickly and nobody will hire me. We are potentially looking at a long retirements and there is always just fear of the unknown.

Quote:
Originally Posted by Jack_Pine View Post
No offence to OP but curious as to why you would think you might not be good to go?

Seems to me you are off the charts ready....................just curious what your specific concerns are.
__________________
leyland is offline   Reply With Quote
Old 09-24-2014, 04:32 PM   #11
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,406
You can get a pretty good idea of health care costs. Looking at ACA available policies in your state / region, just price one and include co-pays and deductibles. The spreadsheet in this post will help you estimate total potential yearly cost.

Depending on your taxable / tax-deferred split you can minimize taxes and may even be eligible for ACA premium assistance. Still, even w/o assistance your total spending looks to be around 2% of your portfolio, which would be a low risk retirement.
__________________
MichaelB is offline   Reply With Quote
Old 09-24-2014, 04:41 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,387
You can get an idea on health insurance costs at https://www.healthsherpa.com/

Then add in a provision for deductibles and co-pays. IMO it doesn't have to be the deductible limit unless you typically max out your deductible.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 09-24-2014, 05:10 PM   #13
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,513
Quote:
Originally Posted by leyland View Post
Health care costs are a concern along with market volatility and inflation. Once I get out of the workplace there is no going back - my skills will erode too quickly and nobody will hire me. We are potentially looking at a long retirements and there is always just fear of the unknown.
leyland: you've been around here a while according to your join date. You may want to read more frequently and get an idea of when people are jumping into FIRE. It comes up a lot, but you have to read a lot of posts.

But welcome to the club. I have nothing to talk about. I'm an OMYer right now.

Finally, as someone else said, since you have so much, you might want to get a bit more conservative on your allocations.
__________________
JoeWras is offline   Reply With Quote
Old 09-24-2014, 05:24 PM   #14
Recycles dryer sheets
Willers's Avatar
 
Join Date: May 2013
Posts: 480
Quote:
Originally Posted by pb4uski View Post
You can get an idea on health insurance costs at https://www.healthsherpa.com/

Then add in a provision for deductibles and co-pays. IMO it doesn't have to be the deductible limit unless you typically max out your deductible.

Thanks for the link!

Great site for estimating costs in the various retirement locations we're considering.


Sent from my iPhone using Early Retirement Forum
__________________
If you don't do it this year, you will be one year older when you do. - Warren Miller
Willers is offline   Reply With Quote
Old 09-24-2014, 05:30 PM   #15
Full time employment: Posting here.
Jack_Pine's Avatar
 
Join Date: Apr 2013
Posts: 834
Quote:
Originally Posted by leyland View Post
Health care costs are a concern along with market volatility and inflation. Once I get out of the workplace there is no going back - my skills will erode too quickly and nobody will hire me. We are potentially looking at a long retirements and there is always just fear of the unknown.
I get the no going back thing. We are in the same boat. Our plan also has us retiring at 60 and 65 (me/DW). We, however, only have about 80% of your portfolio. I feel pretty good about our place and m ready to go.

Good luck.
__________________
The Constitution. It's not just a good idea...it's the law.
Jack_Pine is offline   Reply With Quote
Old 09-24-2014, 06:34 PM   #16
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,123
$4.6M? What are you waiting for? A blessing from this forum members? You got my blessing . If you lose half of $4.6M in Las Vegas tomorrow, come back and post here. That would be more interesting discussion. As is, you got way more than what you need to retire unless you have other concerns we don't know about.
__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 09-24-2014, 06:48 PM   #17
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,123
Quote:
Originally Posted by leyland View Post
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?
BTW, assuming you live to 90, $4.6M / 30 year = $153k per year. That's twice more than $70k/year you are spending now and that' not even counting you & your spouse's SS kicking in as 66. The question should not be whether you can retire or not. More appropriate question is, IMHO, how would you spend the money in retirement, and which charities should you consider leaving your legacy with?
__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 09-24-2014, 08:16 PM   #18
Dryer sheet aficionado
 
Join Date: Oct 2006
Posts: 37
Thanks for your thoughts. I haven't been to the forum in some time. I know I have to do something with my asset allocation.

Quote:
Originally Posted by JoeWras View Post
leyland: you've been around here a while according to your join date. You may want to read more frequently and get an idea of when people are jumping into FIRE. It comes up a lot, but you have to read a lot of posts.

But welcome to the club. I have nothing to talk about. I'm an OMYer right now.

Finally, as someone else said, since you have so much, you might want to get a bit more conservative on your allocations.
__________________
leyland is offline   Reply With Quote
Old 09-24-2014, 11:12 PM   #19
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,469
I have $3.2M and estimate $80-90K per year including taxes and health insurance. Some years will be more or less depending on travel plans. Firecalc gives me 100% success every way I do it. With $4M+ you should do great, and even be able to fly first class when you travel. I have licensing issues that will make it tough to go back, and anyway I can no longer stomach the stress.

Go out and enjoy.


Sent from my iPhone using Early Retirement Forum
__________________
EastWest Gal is offline   Reply With Quote
Old 09-25-2014, 07:20 AM   #20
Dryer sheet aficionado
 
Join Date: Oct 2006
Posts: 37
Are you including SS in the $80-90K/year number? Thanks.


Quote:
Originally Posted by EastWest Gal View Post
I have $3.2M and estimate $80-90K per year including taxes and health insurance. Some years will be more or less depending on travel plans. Firecalc gives me 100% success every way I do it. With $4M+ you should do great, and even be able to fly first class when you travel. I have licensing issues that will make it tough to go back, and anyway I can no longer stomach the stress.

Go out and enjoy.


Sent from my iPhone using Early Retirement Forum
__________________

__________________
leyland is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
I think I can. I think I can. Gil24 Hi, I am... 26 01-22-2014 05:48 PM
I think I'm close, what do you think? erinsd Hi, I am... 6 04-08-2012 08:30 PM
55 and anxious to retire, I think I can, I think I can 56mga Hi, I am... 6 10-09-2007 05:12 PM
I think I can, I think I can, but why am I afraid? behappy Hi, I am... 30 09-26-2007 11:29 PM
You Can If You Think You Can Eagle43 Other topics 0 02-21-2006 02:39 PM

 

 
All times are GMT -6. The time now is 06:28 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.