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Retirement Scenario Questions
Old 05-30-2013, 07:52 PM   #1
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Retirement Scenario Questions

We are playing around with a few scenarios that involve a reduction in our work load and we're hoping to get some advice on a model we could use or how we should possibly approach this issue….

Husband 43, Wife 50
Cash in Bank = $125K
Stocks in Brokerage Acc = $110K
401K/Small Roths = $925K
Other Investments = $75K
Current Income…Husband $250K, Wife $110K
Educational Expense....Child received full scholarship, so ed IRA will cover living expenses for her at college

Spending…$120K/yr (includes Ed IRAs, mortgages, etc)

Scenario 1…..10 year plan

Husband stops working, but wife continues in role (full benefits). Wife can retire with full benefits in 10 years (age 60) from major company. Husband can pick up occasional work, but would likely be limited to around $25K/yr as a conservative value. Once wife reaches 58, her 401K money becomes available. It will take 15 years for husband to access money w/o penalty. Additionally, by the 15 yr point all mortgages are paid off.

Questions: Is there a model out there that would look at this and predict whether the above scenario is workable?

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Old 05-30-2013, 09:05 PM   #2
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Have you checked out FIRECalc at FIRECalc: A different kind of retirement calculator

It is also covered in various posts on this forum:

I ran my scenario on FIRECalc to confirm where I stand and it gives me comfort knowing I have achieved FI and can RE. Check it out.

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Old 05-30-2013, 09:34 PM   #3
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Quicken Lifetime Planner (part of Quicken Deluxe and higher) is intuitive and easy to use. FireCalc is also very good (but different).
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
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Old 05-31-2013, 08:20 AM   #4
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How much is your mortgage as a percent of your expenses? If you can manage your expenses downwards that would be a start while you have income. Get a handle on your fixed and variable costs and separate discretionary from non to see where you end up.

One of the most obvious places for us was cable, , we were paying $1800 a year for the mid grade and basically watched the news and a few series. Switching to what they call lifeline (I love that terminology) to the tune of $15 a month. It's amazing what you realize is a need vs a want or just a habit.
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Old 05-31-2013, 08:40 AM   #5
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With the income and expenses shown, I would have thought you would have more set aside than you do.... IOW, $240K savings per year adds up quickly... unless there is other stuff, you have about $1.2 mill.. less than 5 years of savings...

Why would you want DH to retire now He seems to be making the big chunk of your money.... I would ride that horse for awhile so you both could retire early....

I did QUICK off the cuff estimate (25X spending)... you would need $3 mill to support your lifestyle... so you need $1.8 mill more (this does not take into account any pensions, SS etc.).... at $240K per year... both of you can retire in about 7 to 8 years without any earnings on investments... if the market goes up, even sooner...
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Old 05-31-2013, 10:50 AM   #6
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You may also want to check out the Optimal Retirement Planner over at

It works differently than most planners in that it does not require you to estimate your requirement expenses up front.

Be aware that it tries to maximize spending over the course of your lifetime and in its default mode, assumes consistent smooth returns (ie the Sequence of Returns problem does not show up in this tool).

I found it interesting to run this tool first without and then with our accrued Social Security benefits included.


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