Instead of seeing a Financial Advisor

[SJ1_]

Here is my situation. A few months ago I felt the need to get a financial advisor just to run my finances by before I left the workforce but now I think I can get a better opinion on this site. So I thought I would get feed back here
Basically I think I am financially ready to retire but insecure with the unknown and the fear that I am missing something. I am planning to retire in 2012 at age 60 with a pension. Everyone on my family tends to live into their 90’s and my wife’s mom is a healthy 92 so we have to be prepared.

[mod edit: financial details removed due to privacy concerns]

Any comments? Concerns?
Thanks

 

[packrat44]

Looks good. No concerns, except - do you have medical insurance factored in? That can be a fly in the ointment.

Having your income COLAd it should track expenses without dipping into 401k as you described. Leaving the 401k for unforseen expenditures. Since 2nd SS is planned for 2018. the "excess" should cover any inflation difference over the COLAd income and most other unforeseen costs. Enjoy hearing you are soon to be FIREd.

 

[SJ1_]

Thanks for reading my post - yes I do have the medical insurance factored in. I can keep the same coverage I have now.

 

[Bestwifeever]

I'm figuring you ran those numbers through FireCalc? Looks like you have a good handle on what your spending is. Does the pension provide survivor benefits (if that matters in your scenario)?

 

[clifp]

You are in great shape. Given your strong financial position and history of longevity, I'd certainly consider delaying Social until at least 66 and possibly 70.

Other than that well done both in terms of savings and tracking expenses.

 

[plex]

That looks something like a 1.5-1.8% SWR, and that is before factoring in social security and your rental income. You probably were ready, financially, to retire 8-10+ years ago.

 

[chinaco]

None here.

Just a comment. Consider an exit strategy on the rental units. Do you intend to manage that into your 80s? If you die early can your DW manage it?


You did not describe the circumstances.... but why own a 2nd home? If one of the homes is a vacation home... it is an expense. You could probably lease or rent at a lower overall cost. You might reconsider your options and determine if selling it when the real estate market normalizes is to your advantage. Or alternately you might consider when you want to sell it and proactively plan for the future. Will you be doing the trek in your late 80s? It is a personal choice of course. But you asked for feed back... just my 2 cents.

 

[SJ1_]

survivor benefits

I'm figuring you ran those numbers through FireCalc? Looks like you have a good handle on what your spending is. Does the pension provide survivor benefits (if that matters in your scenario)?

Yes if I die my wife gets that amount I quoted. that is actually a reduced benefit.

thanks

 

[SJ1_]

ssn

You are in great shape. Given your strong financial position and history of longevity, I'd certainly consider delaying Social until at least 66 and possibly 70.

Other than that well done both in terms of savings and tracking expenses.

I like the idea of saving my money and spending theirs.
thanks

 

[SJ1_]

exit on rentals

None here.

Just a comment. Consider an exit strategy on the rental units. Do you intend to manage that into your 80s? If you die early can your DW manage it?


You did not describe the circumstances.... but why own a 2nd home? If one of the homes is a vacation home... it is an expense. You could probably lease or rent at a lower overall cost. You might reconsider your options and determine if selling it when the real estate market normalizes is to your advantage. Or alternately you might consider when you want to sell it and proactively plan for the future. Will you be doing the trek in your late 80s? It is a personal choice of course. But you asked for feed back... just my 2 cents.

I always figured I could sell the rentals and invest the money. If we move
I will have someone manage them. We sold most of our RE on the way down
so we did pretty good since we bought all of the rentals in the 80's and 90's

The second home is a Lake Home on Lake Chatuge. Love spending weekends up there but do not want to retire there.

thanks

 

[SJ1_]

ready financially to retire 10 yrs ago

That looks something like a 1.5-1.8% SWR, and that is before factoring in social security and your rental income. You probably were ready, financially, to retire 8-10+ years ago.

Yea I am starting to realize that.. About a year ago I met this guy at a wine tasting who retired at 47! he is about 67 and never went back to work so I knew he was on to something. He started the process. Talked to him at every wine tasting and became pretty good friends. He pretty much said what you will find on this board. I started reading all the retirement books and running all the calc. waiting for that "oh I missed that" which never came.
Started looking for a financial advisor but figured I would be better off getting the advise of the people here.


thanks