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Can I retire or am I missing something?
10-15-2013, 01:05 PM
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#1
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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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).
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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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10-15-2013, 01:23 PM
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#2
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
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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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10-15-2013, 01:36 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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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.
__________________
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
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10-15-2013, 02:00 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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Quote:
Originally Posted by 2B
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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+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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10-15-2013, 02:17 PM
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#5
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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Quote:
Originally Posted by rodi
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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Hmmm.... no back up plan if wife stops liking work...
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10-15-2013, 02:19 PM
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#6
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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Quote:
Originally Posted by 2B
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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Thanks for the advice, I needed others opinion as mine is biased on the matter.
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10-15-2013, 02:22 PM
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#7
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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Quote:
Originally Posted by daylatedollarshort
+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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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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10-15-2013, 02:38 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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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.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
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10-15-2013, 02:41 PM
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#9
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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Quote:
Originally Posted by nun
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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Agreed, I am not FI with out the wife's income. Darn !
DW = 75K
Me = 100K +
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10-15-2013, 02:52 PM
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#10
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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Quote:
Originally Posted by 2B
I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling.
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Attempted to use FIRECALC but didn't understand where to put in all the factors.
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10-15-2013, 03:29 PM
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#11
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Dryer sheet aficionado
Join Date: May 2013
Posts: 34
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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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10-15-2013, 03:34 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Apr 2011
Location: Madison
Posts: 1,337
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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.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
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10-15-2013, 03:48 PM
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#13
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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Quote:
Originally Posted by butterfly
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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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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10-15-2013, 03:55 PM
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#14
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Recycles dryer sheets
Join Date: Aug 2009
Location: Vancouver/Gulf Islands/Baja
Posts: 479
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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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10-15-2013, 03:58 PM
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#15
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Recycles dryer sheets
Join Date: May 2010
Posts: 497
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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.
Bob
__________________
You've got to ask yourself one question: Do I feel lucky? Well, do ya, punk?
Retired July '11 investments in very low cost index and mutual funds, balance once a year at best.
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10-15-2013, 04:15 PM
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#16
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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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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10-15-2013, 04:28 PM
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#17
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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Quote:
Originally Posted by Sea Kayaker
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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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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10-15-2013, 07:31 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by workmyfingerstothebone
She works a little longer in a job she likes and eventually I get ER (I draw the line at 60).
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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
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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10-16-2013, 07:40 AM
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#19
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 117
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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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10-16-2013, 03:00 PM
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#20
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Dryer sheet aficionado
Join Date: May 2013
Posts: 34
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Good luck OP. Keep tweaking that budget and you will there very soon.
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