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Can I retire or am I missing something?
Old 10-15-2013, 02:05 PM   #1
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Can I retire or am I missing something?

Can I retire or am I missing something?

I hope I'm providing enough information so I can get some accurate analysis on whether I can retire now. Thanks in advance for your input.

Currently 54. DW = 47
DW wife plans to retire at 60 (she likes her job).

Living off one income for 16 years currently = 75K (gross)
We've been banking the other salary.

Current Annual Expenses = 55K


Only debt is 86K on a rental that is rented out for the mortgage payment, only 12 yeas left on mortgage.
No other debt including home (value = 350K).

--------
Basically we will live off wife's income and then start collecting pensions and social security as they become available. Then as we reach 71 we'll start taking the mandatory 4% withdrawls from our retirement accounts.

Pension Income starting @60 = 27K
Social Security @62 = 18.5K
Rental Inc @65 = 12.6K
Wife's Pension (I'll be 67) = 30.0 K
Wife's SS (I'll be 74) = 9K

Pensions adjust according to COLA of approximately 2%.
Health Insurance - I'm on the hook for 40% of the company's premium (est. my initial cost = 6K/yr).


I don't plan to use my retirement savings until I have to withdrawl the minimum 4% at age 71.
As well, we won't use the wife's retirement to live off of till she has to take the minimum 4% withdrawl at 71.

Retirement savings = 110K [Expect 5% growth for 18 yrs = 240K]
DW Retirement savings = 240K [Expect 5% growth for 24 yrs = 770K]
Cash savings = 40K


Rough estimate of expenses = Annual | Monthly
prop tx (starts at 3K/yr) = 4200 | 350
elec 2k/yr = 2000 | 167
water/sewer/garbage 1700/yr = 1700 | 142
home gas 500/yr = 500 | 42
food 100/wk = 5200 | 433
cell phone 1k/yr = 1000 | 83
clothes 500/yr = 500 | 42
tv/internet 600/yr = 600 |50
home Ins 600 each/yr = 1200 | 100
car ins 1200/yr = 1200 | 100
medical 8K/yr = 8000 | 667
gas- vehicles 3K yr = 3000 | 250
misc 6K/yr 500/mon = 6000 | 500
vacations 10k/yr = 10000 | 833
home repair/imprv 5K/yr = 5000 | 417
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Old 10-15-2013, 02:23 PM   #2
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If the wife is ok with this - and you can live on her salary... you're good to go.

As a wife, who's husband is retiring this coming year, I'm having issues with continuing work. But then again - I don't love my job... it's pretty miserable lately. So that's a big issue.

Do you have a backup plan if something happens to wife's job or if she stops being so happy at work?
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Old 10-15-2013, 02:36 PM   #3
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I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling. Your $350K in retirement savings isn't very high with pensions and SS still a long way off. If DW is happy to have you as a "kept man" so much the better but you have the risk of her job going away one way or another.

Can you do it? I think the answer is "yes.... but." You won't have much wiggle room and DW will be key to making it work.
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Old 10-15-2013, 03:00 PM   #4
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I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling. Your $350K in retirement savings isn't very high with pensions and SS still a long way off. If DW is happy to have you as a "kept man" so much the better but you have the risk of her job going away one way or another.

Can you do it? I think the answer is "yes.... but." You won't have much wiggle room and DW will be key to making it work.
+1. I am very cautious, so personally I would want more cushion. I would probably still work, but shift to something enjoyable.

Between age discrimination, economic cycles, and health issues, it is great if your wife can keep working until 60, but for many middle aged people that isn't always an option.
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Old 10-15-2013, 03:17 PM   #5
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Quote:
Originally Posted by rodi View Post
If the wife is ok with this - and you can live on her salary... you're good to go.

As a wife, who's husband is retiring this coming year, I'm having issues with continuing work. But then again - I don't love my job... it's pretty miserable lately. So that's a big issue.

Do you have a backup plan if something happens to wife's job or if she stops being so happy at work?

Hmmm.... no back up plan if wife stops liking work...
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Old 10-15-2013, 03:19 PM   #6
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Quote:
Originally Posted by 2B View Post
I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling. Your $350K in retirement savings isn't very high with pensions and SS still a long way off. If DW is happy to have you as a "kept man" so much the better but you have the risk of her job going away one way or another.

Can you do it? I think the answer is "yes.... but." You won't have much wiggle room and DW will be key to making it work.

Thanks for the advice, I needed others opinion as mine is biased on the matter.
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Old 10-15-2013, 03:22 PM   #7
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+1. I am very cautious, so personally I would want more cushion. I would probably still work, but shift to something enjoyable.

Between age discrimination, economic cycles, and health issues, it is great if your wife can keep working until 60, but for many middle aged people that isn't always an option.

Well, my job is very enjoyable so working longer shouldn't be an issue. I just have other interests that I'd enjoy equally as well, but they don't pay anything .
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Old 10-15-2013, 03:38 PM   #8
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You mention one salary of $75k (is that yours?) but not the amount of the second salary. If you can live on one salary until SS and pensions start you can make it, but you are not financially independent and if that salary goes away you'd be in trouble.
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Old 10-15-2013, 03:41 PM   #9
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You mention one salary of $75k (is that yours?) but not the amount of the second salary. If you can live on one salary until SS and pensions start you can make it, but you are not financially independent and if that salary goes away you'd be in trouble.
Agreed, I am not FI with out the wife's income. Darn !

DW = 75K
Me = 100K +
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Old 10-15-2013, 03:52 PM   #10
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I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling.

Attempted to use FIRECALC but didn't understand where to put in all the factors.
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Old 10-15-2013, 04:29 PM   #11
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Hi

you stated that you have been living off one income for 16 years that is 75k (you wife's?) and saving the rest (yours?) which is 100k+.

Where is that income been saved to? What passive income, if any, can you glean from that?

I would be hestitant on the figures that you have given. Can you work another 5 years, save 500k and then consider it?
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Old 10-15-2013, 04:34 PM   #12
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As long as the DW works you are OK. If she gets laid off (i.e. outsourced) you may be a bit short, but looks like you could handle even that.
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Old 10-15-2013, 04:48 PM   #13
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Hi

you stated that you have been living off one income for 16 years that is 75k (you wife's?) and saving the rest (yours?) which is 100k+.

Where is that income been saved to? What passive income, if any, can you glean from that?

I would be hestitant on the figures that you have given. Can you work another 5 years, save 500k and then consider it?
Apologize for the statement (as it can be misleading), "We've been banking the other salary". Basically we payed off the house and increased emergency savings. I expect to pay off the rental late next year (so I guess I won't be taking ER ).

Also not making the full 100K for 16 yrs, again sorry for the confusion. It's challenging determining how much information to initially post.
We lived off one salary while the other finished college, then the other went to college (we were late starters). Once both completed college we still lived on one salary. The 100K is current salary, took a few years to get there, same for the wife's salary.
Hope that clears up some things...

Definitely can work another few years.... just getting anxious about ER.
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Old 10-15-2013, 04:55 PM   #14
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Very interesting - a lot of similarities to my own upcoming (hopefully) ER, especially the "kept man" aspect. My DW insists that she still enjoys going to work every day, but once I stop working, I wonder if her views will change.
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Old 10-15-2013, 04:58 PM   #15
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looks pretty good...if you want a detailed answer you might check out esplaner program ...it is not free but very detailed...I bought it and enjoyed playing with it. It will show you if it is better to wait to 70 to take SS.

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Old 10-15-2013, 05:15 PM   #16
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ESPlaner.... I'll check out the app and see if it meets my needs. I've been using Excel and it has sufficed.
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Old 10-15-2013, 05:28 PM   #17
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Very interesting - a lot of similarities to my own upcoming (hopefully) ER, especially the "kept man" aspect. My DW insists that she still enjoys going to work every day, but once I stop working, I wonder if her views will change.
I have no qualms about being a "kept man" after 26 years of marriage. The brunt of managing a secure financial future fell mainly on my shoulders. If I managed finances badly then I would not even be here. So the wife gets a fairly secure financial situation (ie... no bills, house paid off, savings, retirement income, rental income...ect.).
She works a little longer in a job she likes and eventually I get ER (I draw the line at 60).

After my passing (far in the future hopefully) she should have more than enough financial income to live well and eventually leave an inheritance if she so pleases.

Hmm...., of course that is if my calculations are right .
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Old 10-15-2013, 08:31 PM   #18
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She works a little longer in a job she likes and eventually I get ER (I draw the line at 60).

.
Wow, only 13 more years of heading off for work for DW while you turn over for bit more ZZZs. What could possibly go wrong?

Ha
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Not yet ER material
Old 10-16-2013, 08:40 AM   #19
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Not yet ER material

After reading the posts I've resolved myself to the fact that I'm not yet ER material. Looks like I need to discover and after tax income of 55K, otherwise the plan is to dependent on the wife. I'm resetting my ER date to be when I turn 58 .

Thanks for all your comments as it helped convince be that I was only dreaming of ER at 52. The good news is if I ER at 58 we will have enough pretax income (without the wife's income) to meet the 55K in yearly expenses. .

Just needed to be hit over the head with reality to get it .
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Old 10-16-2013, 04:00 PM   #20
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Good luck OP. Keep tweaking that budget and you will there very soon.
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