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gut check
Old 11-19-2015, 02:58 PM   #1
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gut check

I've been reading and occasionally contributing to this this website for several years now. I'm wondering if now is the time to RE, or not. My situation:

Ages: 60 (me) & 56 (DW), both plan to live to 95
Kids are all launched.

Assets:
1) tIRA: $1,000,000 invested 71% stock index funds, 21% bond index funds, 8% in a MMF within the tIRA.
2) Roth IRA: $69,000 invested in stock index funds.
3) Intend to retire-in-place and not sell home

Planned cash flow:
1) Expenses: $72K/year after taxes
2) Pension from former megacorp: $24K/yr after taxes (collecting now)
3) Withdraw from IRAs: $48K first 2 years, $24K thereafter when SS starts
4) SS: $23K (me starting in 2 years at age 62). DW's SS will be $11.5K when she starts collecting at her age 65.

I could add many more facts which I think would simply clutter up the real question: Do you think I can jump?
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Old 11-19-2015, 04:10 PM   #2
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Is your pension COLA'd? Have you calculated tax hit on tIRA withdrawal? Those two factors will make a big difference in your withdrawal.
It looks good to me for 72K withdrawal but check with firecalc.
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Old 11-19-2015, 05:18 PM   #3
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Quote:
Originally Posted by trapperjohn View Post
I've been reading and occasionally contributing to this this website for several years now. I'm wondering if now is the time to RE, or not. My situation:

Ages: 60 (me) & 56 (DW), both plan to live to 95
Kids are all launched.

Assets:
1) tIRA: $1,000,000 invested 71% stock index funds, 21% bond index funds, 8% in a MMF within the tIRA.
2) Roth IRA: $69,000 invested in stock index funds.
3) Intend to retire-in-place and not sell home

Planned cash flow:
1) Expenses: $72K/year after taxes
2) Pension from former megacorp: $24K/yr after taxes (collecting now)
3) Withdraw from IRAs: $48K first 2 years, $24K thereafter when SS starts
4) SS: $23K (me starting in 2 years at age 62). DW's SS will be $11.5K when she starts collecting at her age 65.

I could add many more facts which I think would simply clutter up the real question: Do you think I can jump?
Sorry, pulled the plug on a reply without any reply. This is a little tight for me. You are very close to my situation but I have 2x the portfolio. I'd work right up to 62 and review economy. I assume your house is paid off. As with myself I'm P/T and will retire fully in April or August. My wife's SS starts this Jan. Is medical part of your pension? For two people you need to budget a considerable amount to cover this.

Good luck
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Old 11-19-2015, 05:36 PM   #4
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Thanks for the responses so far. Let me provide a bit more information.

Pension is not COLA'd. House is paid off.

Healthcare is covered through wife's employer (public school system). She is a staff member (not teacher). She is (almost) working just for our healthcare right now. I will be on Medicare before she retires. When she retires, she will go right onto Medicare (or ACA).

Firecalc gives me 100% certainty when I plug my numbers in. Even when I take taxes into account and only use $700,000 instead of $1,000,000 for tIRA, firecalc gives me 100%.
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Old 11-19-2015, 05:38 PM   #5
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Quote:
Originally Posted by trapperjohn View Post
Thanks for the responses so far. Let me provide a bit more information.

Pension is not COLA'd. House is paid off.

Healthcare is covered through wife's employer (public school system). She is a staff member (not teacher). She is (almost) working just for our healthcare right now. I will be on Medicare before she retires. When she retires, she will go right onto Medicare (or ACA).

Firecalc gives me 100% certainty when I plug my numbers in. Even when I take taxes into account and only use $700,000 instead of $1,000,000 for tIRA, firecalc gives me 100%.
Did not take your wife's work into account. Nice feature on the insurance. That helps a ton.
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Old 11-19-2015, 07:09 PM   #6
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You look good to go with current plan if you both live that long . The only concerns are Does your pension pass on to DW if something happed to you?
I would also look at delaying Your SS till to bring up your monthly benefit based on your age assumption you would receive more lifetime benefit and provide more income for your wife if something happened to you. You might a long term tax benefit by Delaying your SS.
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gut check
Old 11-20-2015, 07:40 PM   #7
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gut check

Personally I think you're late. I think you could have retired prior to this point.


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Old 11-21-2015, 03:04 PM   #8
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Looks good to me!
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Old 11-21-2015, 03:10 PM   #9
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About where were when we retired in February 2015 and our finances are doing great. Go for it. Looks good to me!
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gut check
Old 11-22-2015, 05:30 AM   #10
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gut check

Get on with retirement. Life is short. You can modulate your spending I am sure.

You'll have 50k of 72k covered by pension and SS within two years. SS is cola adjusted so some protection there

You'll need to spend about 25k of your nest egg to cover the difference.

Wife income not counted in this talk.

Reality check: You're 60. You're tired. You're old. The sand in the hour glass is dropping faster and faster. Your body is aging rapidly. Your energy level is starting to drop off. You've lost some friends to cancer or heart attacks... You're thinking about your own longevity. You see many in their 60s in the obituary page of the newspaper. They didn't make it to 70 let alone 95 ... Hell dude, I'm In my 40's and thinking those same thoughts.

You now have about 42 years of cash assuming zero real market returns. Zero.

I'd have been gone 15 years ago and enjoying life.

Keep it in perspective.
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