Genug
Confused about dryer sheets
Hi, I am 53 and DW is 52. I had an early retirement plan from the beginning of my career. It wasn't a very sophisticated plan, but at least it got us disciplined maxing out 457/401k plans early.
It went something like this. Both spouse and i worked in local government. If we needed 80% of salary in retirement and if we were only currently living on 90% then we would really only need to replace 72% of income. At 50 years old and 25 years in the system we could retire with a pension at 39% with a COLA. That meant I only had to save enough to cover another 33%. If I had a paid off house by then, all would golden.
So we were on autopilot for a number of years, after all it was so far away. We did not budget very tightly because we had paid ourselves first in contributions to retirement. She the spender, me the saver worked quite well in that we did live below our means but would also splurge on nice things once in awhile.
A new job opportunity for DW in the private sector lead to us to relocating to a more expensive coastal community. She traded pension for pay raise and stock options. I changed gear on the paid off house as interest rates declined. We got in early enough to still have equity in the house. But we had crazy equity in 2007, rode the bubble up and down. Rode the stock market up and down a couple of times but kept contributing to our plans. I had always been pretty aggressive 100% stocks because I considered the pension as the safe investment.
It has really only been over the last few years that I have been reading this forum and books to learn more about asset allocation, rebalancing and SWR. I have learned a lot from you all...thanks. Today I am closer to 70/30 allocation and may go 60/40 as I prepare to FIRE.
So as I said, I did not have a great plan, but at least I had a plan . And although a few years late, I plan to fire at the end of the year at 54. We have enough in after tax and 457 that getting to 59 and a half should not be an issue.
I am fortunate to have a pension when combined with DW limited pension should provide for all the basics. We will need to cover healthcare. We will both qualify for SS although WEP will come into play. I am not including SS in my calculations at this time, I need to study the options more carefully.
I have read a lot about SWR. I intuitively like the fixed percent of portfolio with upper and lower limits for my situation. We should be able to adjust for the variable annual payments that this could produce. The tricky part will be to determine what rate and limits i should set. I have read the article on the Vanguard site and although it does provide a lot of info, there are a lot of variables and it is hard for me to see the sweet spot.
So I'm curious to hear thoughts from others. I am thinking 4 1/2 rate and limits at 5 % both upper and lower.
Thanks
It went something like this. Both spouse and i worked in local government. If we needed 80% of salary in retirement and if we were only currently living on 90% then we would really only need to replace 72% of income. At 50 years old and 25 years in the system we could retire with a pension at 39% with a COLA. That meant I only had to save enough to cover another 33%. If I had a paid off house by then, all would golden.
So we were on autopilot for a number of years, after all it was so far away. We did not budget very tightly because we had paid ourselves first in contributions to retirement. She the spender, me the saver worked quite well in that we did live below our means but would also splurge on nice things once in awhile.
A new job opportunity for DW in the private sector lead to us to relocating to a more expensive coastal community. She traded pension for pay raise and stock options. I changed gear on the paid off house as interest rates declined. We got in early enough to still have equity in the house. But we had crazy equity in 2007, rode the bubble up and down. Rode the stock market up and down a couple of times but kept contributing to our plans. I had always been pretty aggressive 100% stocks because I considered the pension as the safe investment.
It has really only been over the last few years that I have been reading this forum and books to learn more about asset allocation, rebalancing and SWR. I have learned a lot from you all...thanks. Today I am closer to 70/30 allocation and may go 60/40 as I prepare to FIRE.
So as I said, I did not have a great plan, but at least I had a plan . And although a few years late, I plan to fire at the end of the year at 54. We have enough in after tax and 457 that getting to 59 and a half should not be an issue.
I am fortunate to have a pension when combined with DW limited pension should provide for all the basics. We will need to cover healthcare. We will both qualify for SS although WEP will come into play. I am not including SS in my calculations at this time, I need to study the options more carefully.
I have read a lot about SWR. I intuitively like the fixed percent of portfolio with upper and lower limits for my situation. We should be able to adjust for the variable annual payments that this could produce. The tricky part will be to determine what rate and limits i should set. I have read the article on the Vanguard site and although it does provide a lot of info, there are a lot of variables and it is hard for me to see the sweet spot.
So I'm curious to hear thoughts from others. I am thinking 4 1/2 rate and limits at 5 % both upper and lower.
Thanks