clifp
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 27, 2006
- Messages
- 7,733
A couple of thoughts, by my tally you guys are saving $72k+ a year a bit more than 30%, congrats. This means you are really talking about replacing a combined income of 168K or so. Your income is really in the sweet spot for taxes since you each barely exceed the FICA caps. I'd estimate that you'll save 15K+ in medicare/FICA taxes a year after retirement.
If you end up retiring in a state that doesn't tax pension, make sure your taxable portfolio throws off lots of capital gains and dividends etc, you can probably save another 30-50K in state and federal taxes. This means you'll need to replace roughly 110-130K between your pension, IRA withdrawals and income from your taxable portfolio to maintain the same life style.
If your spending is really 130K, than I don't think you have the portfolio to support in the next couple of years especially since the pension will be reduced. I think 110K is rather risky, but you certainly look like you are in good shape to retire at 56 or so.
I'd echo the comments of needing to get better handle on your expenses before jumping into retirement along with sitting down with a CPA/turbo taxes to look at your tax situation.
If you end up retiring in a state that doesn't tax pension, make sure your taxable portfolio throws off lots of capital gains and dividends etc, you can probably save another 30-50K in state and federal taxes. This means you'll need to replace roughly 110-130K between your pension, IRA withdrawals and income from your taxable portfolio to maintain the same life style.
If your spending is really 130K, than I don't think you have the portfolio to support in the next couple of years especially since the pension will be reduced. I think 110K is rather risky, but you certainly look like you are in good shape to retire at 56 or so.
I'd echo the comments of needing to get better handle on your expenses before jumping into retirement along with sitting down with a CPA/turbo taxes to look at your tax situation.