Working on the Last Steps--Advice Needed

[healthyandfun]

Greetings ER friends. Joined recently and looking for advice. I have lived a frugal life, always beneath my means. My passions are traveling, hiking, and reading. I’m a single female, 57, planning to leave paid employment in December 2013. I’ll qualify for a $46,000.00 pension with healthcare costing $280.00/mo. The pension will easily cover all basic expenses with some $$ left over. I have $306,000 in a 403(b), $39,000 in a Roth IRA, and taxable accounts of $108,000. They contain a diversified selection of mutual funds/stocks/bonds. I have $41,000 cash in a vehicle/emergency/home repair fund. I have no debts and own a modest home and car. Will qualify for about $28,000 of accumulated sick leave and can take it as income in a lump sum or put $22,500 in the 403(b) for 2014. Ideas on how I should handle it are welcome. I plan to take a couple of dream trips, spend about 3 years traveling part-time in the U.S. (staying in hostels and returning to my home during cold weather), and then move on to other parts of the world. The one incomplete is long term healthcare. I have looked, but have not purchased. I have a year and a half until retirement to continue to add $$ (I’ll get a $2,100/yr. raise in Aug.) and do any needed tweaking. I’m open to all comments, suggestions, or ideas. Thanks in advance.

 

[omni550]

Welcome to the board, healthyandfun.

Sounds like you prepared well for you upcoming retirement. Look forward to seeing more posts from you.

omni

 

[Helen]

Welcome. I am also a member of the class of 2013.

How are the expenses in your 403b? Will you keep your money there or roll it over to somewhere else?

It does sound like you are well prepared for retirement, congratulations!

 

[Bestwifeever]

...The one incomplete is long term healthcare. I have looked, but have not purchased....

You have a nice nest egg there of just under $500K with your pension that more than covers your expenses--very nice! Will your pension be adjusted for cost of living increases? Will you collect SS too?

If you do a search here for "long-term care" or "LTC" you will find some discussions about it. Some people might feel your $500K if not needed otherwise could be a form of self-insurance for LTC, especially if you're not partial to leaving an estate to anyone. So if that's the last piece of your ER puzzle, you're in great shape even without getting the LTC policy lined up yet, IMHO.

 

[Moemg]

Welcome and enjoy your retirement !

 

[Milton]

Welcome aboard!

I'll qualify for a $46,000.00 pension ... Will qualify for about $28,000 of accumulated sick leave.

Lucky you! Would I be right in assuming you are a teacher? If so, you'll find quote a few colleagues here.

 

[healthyandfun]

Continuing on the FI Path

Thanks for the welcomes, comments and advice.

Yes, I am a teacher and will not be eligible for Social Security. I plan on keeping the 403b account as is. The fees are reasonable and the selection of mutual funds are quite good and varied. I do not plan on leaving much in my estate since I have no children. The pension has no set plan of cost of living increases, but does increase on occasion. I anticipate using some of my savings for living expenses in my later years as a result. Also, I plan to use some of it for traveling. I will spend some time reading the LTC postings here and put more thought into that decision. I have read lots of retirement books and have downloaded several to my Kindle that were suggested on this site. I'll work through those over the next few months. I feel good about the progress I have made toward FI. I do want to beef up my cash reserves even more before retirement. The stories, information and advice from all the contributors has been inspiring. My hat is off to all of you.