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Old 09-17-2015, 05:58 AM   #61
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Thanks to everyone who posted here and thanks for the private messages I got as well. There is some great advice here, much of it confirming what I myself have figured out but the great thing about the forum of course is to hear alternative approaches or thoughts from people who are a bit further down the tracks and living in a situation that I hope to approach soon.

I fully realize that I am a HNW individual and my next egg will be far greater than 95% of retirees. Very thankful.

To the questions about how I got to where I am I have been lucky to work for a great, privately held, mid cap size company for more than 25 years. I have been management for more than 15 of those years and the past 5 years on the executive team. In the past few years we have been owned by a PE firm and have performed well. As most of you know, when you work for PE, you can make a lot of money if you deliver results. Now we are selling the company once again and I have the opportunity to cash out at 53. I am being pressured of course to "sign on for the next round" because we have a great team and I am "only 53", but to the point of "how much is enough"? My answer is 5 - 7M is enough. The rest of the team will do just fine without me.

Once I get through the next few months and can move on, I will be spending much more time here and doing the things I have not done enough of like spending time with my family. We have lived below our means during all of my career and that's not really going to change. My wife is still driving our 10 year old Minivan and I expect it will still be in the driveway even after the cash out. My ride is not much better which is a constant source of ribbing at the office. We are debt free except for a modest mortgage on our primary residence.

So yes, I feel we have won the game so to speak and really appreciate the help getting to the next phase of things.

Will be going back underground for a few days - have to work a few more 12 hour days. Thanks Again Folks.
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Old 09-17-2015, 07:38 AM   #62
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Congratulations on your path to get here and the results you've achieved.

You are in better shape than 99.5% of retirees I suspect, and you've earned the right to do whatever you want of course. So, go do whatever you want!
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Old 09-17-2015, 08:51 AM   #63
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Quote:
Originally Posted by 53anddone View Post
Thanks to everyone who posted here and thanks for the private messages I got as well. There is some great advice here, much of it confirming what I myself have figured out but the great thing about the forum of course is to hear alternative approaches or thoughts from people who are a bit further down the tracks and living in a situation that I hope to approach soon.

I fully realize that I am a HNW individual and my next egg will be far greater than 95% of retirees. Very thankful.

To the questions about how I got to where I am I have been lucky to work for a great, privately held, mid cap size company for more than 25 years. I have been management for more than 15 of those years and the past 5 years on the executive team. In the past few years we have been owned by a PE firm and have performed well. As most of you know, when you work for PE, you can make a lot of money if you deliver results. Now we are selling the company once again and I have the opportunity to cash out at 53. I am being pressured of course to "sign on for the next round" because we have a great team and I am "only 53", but to the point of "how much is enough"? My answer is 5 - 7M is enough. The rest of the team will do just fine without me.

Once I get through the next few months and can move on, I will be spending much more time here and doing the things I have not done enough of like spending time with my family. We have lived below our means during all of my career and that's not really going to change. My wife is still driving our 10 year old Minivan and I expect it will still be in the driveway even after the cash out. My ride is not much better which is a constant source of ribbing at the office. We are debt free except for a modest mortgage on our primary residence.

So yes, I feel we have won the game so to speak and really appreciate the help getting to the next phase of things.

Will be going back underground for a few days - have to work a few more 12 hour days. Thanks Again Folks.
Tax is a big factor in your planning. If you can tell us the income you need (or desire) then we can take a stab at how your assets might be used to generate it.
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Old 09-17-2015, 09:08 AM   #64
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Conservatively I am hoping to generate 220 - 240k after tax for the next 14 years until I am 67. I know I will need to take some withdrawals to do that and in my analysis it works out to almost 50:50 withdrawals to generated income on investments.

(Realistically I think we can live on more like 170, but want to be conservative for planning purposes.)

My spreadsheet shows around a 15% effective tax rate once I stop working.
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Old 09-17-2015, 04:24 PM   #65
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Originally Posted by 53anddone View Post
Conservatively I am hoping to generate 220 - 240k after tax for the next 14 years until I am 67. I know I will need to take some withdrawals to do that and in my analysis it works out to almost 50:50 withdrawals to generated income on investments. (Realistically I think we can live on more like 170, but want to be conservative for planning purposes.) My spreadsheet shows around a 15% effective tax rate once I stop working.
I'd definitely look at a ladder if tax free muni bonds. Those will net you 4% tax free. You probably don't want to put everything in munis so combine that with some dividend paying stocks and you should come close to your target after tax income. You'll want to run some different asset allocations and see the tax and income implications. You could also take say $1M and buy some rental property. Where I live that might get you four apartments that might give you a total of $80k in rent. There'd be expenses but you could depreciate the cost of the apartments and get a nice reduction in tax.
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“So we beat on, boats against the current, borne back ceaselessly into the past.”

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Retired Mar 2014 at age 52, target WR: 0.0%,
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Old 09-17-2015, 08:16 PM   #66
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When I started ER planning, I was comfortable with 7% SWR. Now I think 4% is aggressive!
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Old 09-17-2015, 08:40 PM   #67
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When I started ER planning, I was comfortable with 7% SWR. Now I think 4% is aggressive!
I don;t have a massive retirement nest egg, so I've arranged things so my withdrawal rate is 0% or less. he OP has substantial savings so they have ore freedom in their planning and spending.
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“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
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Old 09-18-2015, 11:47 AM   #68
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Quote:
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I don;t have a massive retirement nest egg, so I've arranged things so my withdrawal rate is 0% or less. he OP has substantial savings so they have ore freedom in their planning and spending.
A good friend just retired last December. He is using 6%. I said 4% is better for the next 30 years but 6% is ok while he is young and active. Plus I think he will discover his actual expenses are lower than he planned.
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Old 09-27-2015, 04:40 PM   #69
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The thread here is interesting. I never thought 30 years ago that we would ever even make the top 10%, so the fact that we appear to be in that bracket--barring another '09 event--tends to seem unreal, a bit like Monopoly money.

I think the advice to consider munibonds, preferreds, and perhaps REIT/dividend funds makes sense. Even more is to hire a fee-based advisor with tax expertise, since the tax implications have to be more important than to most of us on the board.
I would think at 270k spending per year, given the pension base, the OP is safe with a series of different strategies, although he/she may want to leave a large legacy (hence the fee-based advisor).
I also plan to withdraw 4-6 percent until SS kicks in (and after DW retires), and 6% shortterm from my 403b while DW continues to work. That should be cut back to 3.5-4 after SS and after DW retires.
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Old 09-27-2015, 07:01 PM   #70
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Look into HYD. It's tax free (fed, some state) and it pulls in close to five.
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Old 09-27-2015, 07:26 PM   #71
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Buy some PFF @ 6%, 65% qualified divs. I'm holding some and need some new buyers to come in.
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