I will retire pretty much right on my 55th birthday, and my wife will continue to work for 3-4 more years. The whole plan looks pretty good now, and is more or less based on the fact that we will not downsize anything in the near term. We are assuming our expenses stay what they are now, plus some inflation on the non fixed stuff. But I am not sure how to weather this single income period.
We presently sock away about 33% of our combined income. One thought is to live on her salary, stop saving the 33% and be in a lower tax bracket and make ends meet without touching the portfolio until she retires.
Another thought, live off one salary, continue to save (10-20%) and pull from the portfolio to make up the shortfall.
One thing not getting much thought is cutting back. Other than my reduced commute/gas/lunches at work expenses, we don't expect much to change in the way we live. We enjoy our travel and dining out and don't see giving that up in early retirement.
Thoughts? The fiscally conservative part of me wants to not touch the portfolio, let it grow until we HAVE to pull from it and make ends meet until she retires somehow. But the other spoiled side of me doesn't want the stress of having to worry about money month to month.
We presently sock away about 33% of our combined income. One thought is to live on her salary, stop saving the 33% and be in a lower tax bracket and make ends meet without touching the portfolio until she retires.
Another thought, live off one salary, continue to save (10-20%) and pull from the portfolio to make up the shortfall.
One thing not getting much thought is cutting back. Other than my reduced commute/gas/lunches at work expenses, we don't expect much to change in the way we live. We enjoy our travel and dining out and don't see giving that up in early retirement.
Thoughts? The fiscally conservative part of me wants to not touch the portfolio, let it grow until we HAVE to pull from it and make ends meet until she retires somehow. But the other spoiled side of me doesn't want the stress of having to worry about money month to month.