I wanted to update the thread
http://www.early-retirement.org/forums/f30/can-i-afford-to-early-retire-72621.html
which I started almost two years ago but it looks like it is locked now. So I thought I would post some updates in a new thread. Feel very free to critic my plan.
After getting a “slave-driver” manager this year, the situation at work is getting stressful. This pushed me into deciding to pull the trigger. The plan is to ER and relocate this summer and for the kids to attend the new school this fall.
I would be moving out from the SF bay area, selling off my primary residence and a rental property. I would be moving to the northern suburbs of Atlanta in Georgia (no more Dallas as in the original post) and closer to family.
Financial:
My 55/45 portfolio is currently 3.7m. The housing prices in my current area are at all time high. The sale of the rental is expected to add 200k (after commission and taxes) to the portfolio. The primary residence will fetch about 1.5m (after fees), of which 1/3 will be used to pay up the mortgage, 1/3 will be used to fully pay for a home in Georgia and the remaining 1/3 will be added to the portfolio. When the dust settles, I expect to have a portfolio of 4.4m.
Expenses:
I have been tracking my expenses on Mint for the past three years. Almost all the charges go onto the credit card, and in most months, this is less than $3k. Federal and state taxes in Georgia is budgeted to be around $10k a year. Housing (utilities + property taxes) would be around $8k. To that, I would add another $10k for vacation expenses and $15k for healthcare. The total budget a year would be around 36 + 10 + 8 + 10 + 15 = $79k. Let's call it $80k.
I am quite confident that the portfolio can generate $80k easily (1.8% withdrawal rate) in perpetuality. I am 47 and my spouse is 45 and we are both eligible for social security at the typical retirement age.
My wife ER'ed last year and enjoys the time she spends volunteering at the school. I might join her but I have a few personal projects which I plan to do when I ER.
Are there any recommendations or advice for me?
PS. College expenses is funded separately in 529 plans and not included in the above portfolio.
http://www.early-retirement.org/forums/f30/can-i-afford-to-early-retire-72621.html
which I started almost two years ago but it looks like it is locked now. So I thought I would post some updates in a new thread. Feel very free to critic my plan.
After getting a “slave-driver” manager this year, the situation at work is getting stressful. This pushed me into deciding to pull the trigger. The plan is to ER and relocate this summer and for the kids to attend the new school this fall.
I would be moving out from the SF bay area, selling off my primary residence and a rental property. I would be moving to the northern suburbs of Atlanta in Georgia (no more Dallas as in the original post) and closer to family.
Financial:
My 55/45 portfolio is currently 3.7m. The housing prices in my current area are at all time high. The sale of the rental is expected to add 200k (after commission and taxes) to the portfolio. The primary residence will fetch about 1.5m (after fees), of which 1/3 will be used to pay up the mortgage, 1/3 will be used to fully pay for a home in Georgia and the remaining 1/3 will be added to the portfolio. When the dust settles, I expect to have a portfolio of 4.4m.
Expenses:
I have been tracking my expenses on Mint for the past three years. Almost all the charges go onto the credit card, and in most months, this is less than $3k. Federal and state taxes in Georgia is budgeted to be around $10k a year. Housing (utilities + property taxes) would be around $8k. To that, I would add another $10k for vacation expenses and $15k for healthcare. The total budget a year would be around 36 + 10 + 8 + 10 + 15 = $79k. Let's call it $80k.
I am quite confident that the portfolio can generate $80k easily (1.8% withdrawal rate) in perpetuality. I am 47 and my spouse is 45 and we are both eligible for social security at the typical retirement age.
My wife ER'ed last year and enjoys the time she spends volunteering at the school. I might join her but I have a few personal projects which I plan to do when I ER.
Are there any recommendations or advice for me?
PS. College expenses is funded separately in 529 plans and not included in the above portfolio.