Hi all! I have been enjoying this forum for a couple of years now. Having LBYM for years I’m hoping that my joining the retired class of 2013 is a permanent one. Or at least allows me the options to stay retired.
Mega Corp has given me notice and the end of May will be the last days here. It is a great, as I was hoping for this and the package that comes with it. But I would value other opinions on how the financials stack up.
I have everything on a spreadsheet and use FIRECALC, which shows 100% success.
Me = 57, DW = 55
After Tax = $350k
Retirement Funds = $1.25M
Pension at 62 (Me) = $42k/yr
Pension at 65 (DW) = $5500/yr
SS (me) at 65 = $20k/yr
SS (DW) at 65 = $14k/yr
House is about $430k with a $50k mortg outstanding (no other loans or debts)
gives me pay through Jan ’14, along with HI. After Jan ’14 I can get the HI through COBRA. I am also eligible for Retiree Health Insurance through previous employer at about $1k/month for the two of us. And, of course, changes in HI are in the offing, so who knows which one I’ll pick.
Annual income until Severance ends is $150k and DW is part time and makes ~$15k/yr.
Expenses have mainly been tracked through Fidelity Full View and the last year through Mint.
= $54k/yr plus an additional $12k/year until Mortg is paid off.
= $27k/yr. (This includes $10k/yr for travel)
– We plan on some immediate renovations to the house that should be about ~$60k in 2013.
My son has graduated college and on his own. My daughter graduates this May and has found gainful employment and I expect her to be on her own too.
My plan is to use the after tax dollars to bridge the expenses until 60 and then tap in to the retirement funds. As I mentioned earlier Firecalc shows 100% success(providing I did it correctly) and my spread sheet assumes inflation at 2.5% until 60 and then 3% after that. It also assumes 5% return. So essentially a 2 – 2.5% real return. The results indicate I will run low on funds at age 99. I'm good with this!
I would love to hear how others feel my success may be given this data. I think my main concern, or item I need to research more on is the strategy to withdrawing the funds in the most efficient manner.
Thanks in advance!