corn18
Thinks s/he gets paid by the post
- Joined
- Aug 30, 2015
- Messages
- 1,890
I posted this on bogleheads and someone immediately spotted a hole in it. Drat. So I wanted to ask the ER world to take a look as well and see if I am missing something.
52, planning to retire @ 55. All values in 2017 dollars.
$1,826,900 portfolio value @ retirement 60/40 25% international
$43,757 COLA pension, goes up to $46,812 @ 72 (survivor benefits paid off)
$53,196 SS @ 70
My plan is to bridge to SS and use a SWR for the remainder.
55-70
$43,757 pension
$53,196 SS bridge
SWR
70+
$43,757 pension
$53,196 SS
SWR
To determine the SWR amount, I take what is left of my portfolio @ age 70 (after bridging to SS) and use a 4% SWR.
$1,028,960 Portfolio left @ 70 (assumes no growth) = $41,158 @ 4% SWR
So this is what it looks like:
55-70
$43,757 pension
$53,196 SS bridge
$41,158 SWR
$138,111 Total
70+
$43,757 pension
$53,196 SS
$41,158 SWR
$138,111 Total
Expenses:
$75k base (some discretionary but no travel budget, includes health care)
$15k +20% for lumpy stuff like cars, major home repair, etc...
$25k Travel
$15k taxes (per iORP)
$130k Total expenses
Seems like if I stick to the plan and have $1.8M in Mar 2021, I can FIRE.
The hole they found on BH was survivor benefits if I die. I have term life insurance to cover that until age 78, but then I have a hole to fill. Haven't figured that bit out yet, but thinking on it.
Appreciate your thoughts.
52, planning to retire @ 55. All values in 2017 dollars.
$1,826,900 portfolio value @ retirement 60/40 25% international
$43,757 COLA pension, goes up to $46,812 @ 72 (survivor benefits paid off)
$53,196 SS @ 70
My plan is to bridge to SS and use a SWR for the remainder.
55-70
$43,757 pension
$53,196 SS bridge
SWR
70+
$43,757 pension
$53,196 SS
SWR
To determine the SWR amount, I take what is left of my portfolio @ age 70 (after bridging to SS) and use a 4% SWR.
$1,028,960 Portfolio left @ 70 (assumes no growth) = $41,158 @ 4% SWR
So this is what it looks like:
55-70
$43,757 pension
$53,196 SS bridge
$41,158 SWR
$138,111 Total
70+
$43,757 pension
$53,196 SS
$41,158 SWR
$138,111 Total
Expenses:
$75k base (some discretionary but no travel budget, includes health care)
$15k +20% for lumpy stuff like cars, major home repair, etc...
$25k Travel
$15k taxes (per iORP)
$130k Total expenses
Seems like if I stick to the plan and have $1.8M in Mar 2021, I can FIRE.
The hole they found on BH was survivor benefits if I die. I have term life insurance to cover that until age 78, but then I have a hole to fill. Haven't figured that bit out yet, but thinking on it.
Appreciate your thoughts.