Puzzley
Recycles dryer sheets
- Joined
- Sep 3, 2007
- Messages
- 169
I’ve been active on some other forums, but this one is new to me, and is certainly of a topic in which I have great interest. I’m 62, married, and will retire from corporate life in early February of 2009, having just turned 64. Not very early, but still a couple of years ahead of my full retirement age of 66. ( a little fire, anyway )Here’s my plan:
I’m close enough to give an accurate estimate of my retirement liquid assets on my final date. 401(k) $400,000 invested in blue chip stocks, a pension which I will take in a lump sum of $325,000 and roll to my IRA, which currently has about $7,500 in it, and is invested in the Vanguard Index 500. I have $275,000 in a deferred compensation account which pays out over 5 years, commencing the March after I retire. We also have $20,000 in The Vanguard Index 500 outside of my IRA, $35,000 invested in blue chips in a brokerage account, and company stock options worth about $5000.
So, roughly, I intend to live on the proceeds of the deferred compensation account, supplemented by withdrawals from our other assets without touching the 401(k) or the pension benefit for 5 years. My 401(k) also throws off $3000 quarterly in dividends, which I receive now, and will continue to do so. The first year will be the most expensive, since I’ll need to pay about $800.00 a month to continue our health insurance. The year after that, I qualify for medicare, so health insurance should drop some. The next year, I’ll be 66, and will begin SS, as will my wife on a spousal benefit. Our combined benefit should be about $31,000.
Year one, $50,000 (minimum) from deferred compensation, $12,000 from dividends, withdraw about $20,000 for a total of $82,000
Year two, same scenario, but health ins. Should be less.
Year three, $50,000 (min) from deferred compensation, 31,000 from SS, 12,000 (min) from dividends, total of $93,000
Year four and five, same as three.
After year 5, I will begin withdrawing 4% annually from my 401(k) and IRA, in addition to SS and dividends. I expect these two together to be around $1,000,000.00 by then.
We have a farm and house worth about $1M
We will still have about $150,000 left on a mortgage, which the rent on the farm covers every year. No other debt.
So, comments and suggestions are welcome, as are questions.
Does this seem workable to you?
Thanks, John