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Is this do-able?
Old 11-20-2007, 01:40 PM   #1
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Is this do-able?

Plan on retiring april of 08 with 30.5 years and age 55.

I will have $1,400,000 saved at that time +/- the market. After moving back home, may go back to work on part time basis for 3 days a week, and at age 62, will receive about $1600 ss + wifes ss of aprox $600.

Appears to be do-able. Looking for income in the $60k to $65k range, which is about half of current income. However, with the kids out, we are living on that much now, and saving the rest. Dang but I hate to give up that savings potential, but we're ready to go. Sure would appreciate input/opinions of others. house will be paid for. Both vehicles are 2006 and 2007 models and are both paid for. health ins will cost $850 per month.

thoughts?
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Old 11-20-2007, 01:55 PM   #2
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Old 11-20-2007, 02:29 PM   #3
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Quote:
Originally Posted by bentley View Post
Plan on retiring april of 08 with 30.5 years and age 55.

I will have $1,400,000 saved at that time +/- the market. After moving back home, may go back to work on part time basis for 3 days a week, and at age 62, will receive about $1600 ss + wifes ss of aprox $600.

Appears to be do-able. Looking for income in the $60k to $65k range, which is about half of current income. However, with the kids out, we are living on that much now, and saving the rest. Dang but I hate to give up that savings potential, but we're ready to go. Sure would appreciate input/opinions of others. house will be paid for. Both vehicles are 2006 and 2007 models and are both paid for. health ins will cost $850 per month.

thoughts?
Looks very doable. Welcome in a few short months to FIRE!

If you take a conservative SWR of 3.3%, then the $1.4 million plus the SS of you and DW will give you a bit more than $72000 annual at age 62. So you could still save at that time as you say you are living on $60-$65k. And the low SWR of 3.3%from $1.4 million will likely let you be "saving" in effect in that pot anyway.

You would need to get from age 55 to age 62 to get the SS, and you would need some income in the meantime to keep you in the $60-$65k range. But you mention maybe working part-time. If you SWR'd from the $1.4 million at 4% for those seven years that gives $56k, so you wouldn't need much from parttime work to gap the difference.

Another little variation, take $200k set aside as emergency fund for med expenses, house repair, whatever. Then the remaining $1.2 million at a still conservative SWR of 3.5% plus SS still gives over $68k yearly at age 62.

Looks like lots of ways to do it at 55 if you want. House and cars paid for and kids gone. Hooray for you!!
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Old 11-20-2007, 09:40 PM   #4
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Quote:
Originally Posted by bentley View Post
Plan on retiring april of 08 with 30.5 years and age 55.

I will have $1,400,000 saved at that time +/- the market. After moving back home, may go back to work on part time basis for 3 days a week, and at age 62, will receive about $1600 ss + wifes ss of aprox $600.

Appears to be do-able. Looking for income in the $60k to $65k range, which is about half of current income. However, with the kids out, we are living on that much now, and saving the rest. Dang but I hate to give up that savings potential, but we're ready to go. Sure would appreciate input/opinions of others. house will be paid for. Both vehicles are 2006 and 2007 models and are both paid for. health ins will cost $850 per month.

thoughts?
It certainly sounds doable to me, particularly since you are ready to work part time. I believe that your wife will receive $800/mo SS since she gets the higher of her own SS or 50% of yours.
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Old 11-20-2007, 10:06 PM   #5
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Depends on what happens between now and the new 2 years. If things pick up a bit, it looks pretty safe. If we get any further tanking for the next year, it might be a little on the weak side. First couple of years in ER are the big ones. You make it to 5+ years intact and on spending plan, you're good.
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Old 11-23-2007, 07:33 AM   #6
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It certainly sounds doable to me, particularly since you are ready to work part time. I believe that your wife will receive $800/mo SS since she gets the higher of her own SS or 50% of yours.
I could be mistaken, but as I understand it, my wife will be able to draw approximately 35% of what my ss is at age 62. Couple of factors here. She does not have the 40 quarters required to be eligible on her own, and if we start taking ss at age 62, then her's is reduced. If she and I were the same age, she would draw 35%. My DW is almost two years older than I, so I believe she will draw approx 38%, but she cannot sign up for ss until I do.

If I'm mistaken, someone please correct me.

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Old 11-23-2007, 10:17 AM   #7
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I could be mistaken, but as I understand it, my wife will be able to draw approximately 35% of what my ss is at age 62. Couple of factors here. She does not have the 40 quarters required to be eligible on her own, and if we start taking ss at age 62, then her's is reduced. If she and I were the same age, she would draw 35%. My DW is almost two years older than I, so I believe she will draw approx 38%, but she cannot sign up for ss until I do.

If I'm mistaken, someone please correct me.

b
You are probably correct about this but you'll need to check with SS.

I just ran your figures through FIRECALC assuming your SS figures as stated but no allowance for the part time job and you'll still be fine. (100% success rate).
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