Colleagues, I was referred to this forum from a fellow Boglehead after posting the following early retirement question. I received highly valuable input from many esteemed Bogleheads colleagues but thought it would also be beneficial to gain some of your ER forum thoughts with this group's specific emphasis on early retirement. I must also confess that I have lurked from time-to-time on this forum and want to say thanks to all as I do appreciate all of the valuable information that has been provided to date.
In my particular case, recently I became unemployed at age 51 and am now considering retirement from Corporate America life but am still unsure whether I realisitically can or not at this point. I am married (wife is a homemaker) and have two teenage children (13 shortly and 16).
Personal finances are as follows:
$880K in TIRA in Vanguard Target Retirement Income fund
$2.3M in after tax accounts broken out as follows:
~ $1M in low withdrawal penalty 5 year CDs
~ $1M in liquid savings accounts earning 1.65%
~ $260K in liquid savings account earning 1.05%
$40K in iBonds
Home worth ~$500K (paid off)
No debt
Additional factors:
From a risk perspective, as evidenced by my portfolio allocation above, I have become a very conservative investor over the past few years as my willingness to take risk has decreased as my net worth and savings have increased.
Children college expenses (likely at a public university) will be starting in the latter half of 2013 estimated around $300K total (hopefully) to be funded out of the above after-tax savings.
I am eligible to start receiving a pension (non-COLA) valued at $60K per year at age 55 (4 years from now) and my wife who is 48 will begin receiving a COLA-based pension worth $8K at age 60 (12 years from now).
My wife and I are both eligible for SS at 62 if we choose to begin taking at that point with my latest SSA estimation at $18.6K and my better half's valued at $8K per year. From a healthcare perspective, I am presently bridged in my ex-company's pre-retiree healthplan and eligible for subsidized retiree health insurance at age 55.
Our annual living expenses are roughly $90-$100K (provided average on high side at this point) but I am presently only generating roughly $50K income from my "after tax" savings accounts above so we will have to dip into these savings accounts for the next four years until my pension kicks in to bridge the gap.
My Request:
I am looking for some colleague advice on whether we have enough to consider retirement at this point and your specific thoughts on what other "income-producing investments" we should consider in lieu of / in addition to the what we have as listed above to narrow the gap and assist in increasing our probability of success. A sincere thanks in advance for your valued input.
In my particular case, recently I became unemployed at age 51 and am now considering retirement from Corporate America life but am still unsure whether I realisitically can or not at this point. I am married (wife is a homemaker) and have two teenage children (13 shortly and 16).
Personal finances are as follows:
$880K in TIRA in Vanguard Target Retirement Income fund
$2.3M in after tax accounts broken out as follows:
~ $1M in low withdrawal penalty 5 year CDs
~ $1M in liquid savings accounts earning 1.65%
~ $260K in liquid savings account earning 1.05%
$40K in iBonds
Home worth ~$500K (paid off)
No debt
Additional factors:
From a risk perspective, as evidenced by my portfolio allocation above, I have become a very conservative investor over the past few years as my willingness to take risk has decreased as my net worth and savings have increased.
Children college expenses (likely at a public university) will be starting in the latter half of 2013 estimated around $300K total (hopefully) to be funded out of the above after-tax savings.
I am eligible to start receiving a pension (non-COLA) valued at $60K per year at age 55 (4 years from now) and my wife who is 48 will begin receiving a COLA-based pension worth $8K at age 60 (12 years from now).
My wife and I are both eligible for SS at 62 if we choose to begin taking at that point with my latest SSA estimation at $18.6K and my better half's valued at $8K per year. From a healthcare perspective, I am presently bridged in my ex-company's pre-retiree healthplan and eligible for subsidized retiree health insurance at age 55.
Our annual living expenses are roughly $90-$100K (provided average on high side at this point) but I am presently only generating roughly $50K income from my "after tax" savings accounts above so we will have to dip into these savings accounts for the next four years until my pension kicks in to bridge the gap.
My Request:
I am looking for some colleague advice on whether we have enough to consider retirement at this point and your specific thoughts on what other "income-producing investments" we should consider in lieu of / in addition to the what we have as listed above to narrow the gap and assist in increasing our probability of success. A sincere thanks in advance for your valued input.
