Folks retiring from Hampton Roads

[cnocmmz]

Well it's getting close (two years out) for us the retire. DW is 6 years older I am 57 this year. This our
Situation:
-both have 401k type( me TSP/DW 401k) with almost 500k total
-100k cash for emergency fund
-150k in an annuity for LTC (just in case)
- I am retired Mil so med should no be an issue
-DW has 30 years w/small company
Combined monthly pensions net take home is about
$5,600.00
If she takes ss at 65 It will be about $ 800 after taxes and Medicare deduction. So total of $6400.0 ( net).
Still have a house payment of almost 1600.00 monthly, no other bills except monthly home expenses like cable, food etc.
*ran pension and investments through firecalc and I seems I can live on 100k annually at 100% [emoji3][emoji106]
Also seems I can pull $10-25-25k at different yearly intervals for big purchases and still keep 100k annually.
Would love feedback to make sure I am in the right ball park. Thanks for [emoji101]

 

[cnocmmz]

Well it's getting close (two years out) for us the retire. DW is 6 years older I am 57 this year. This our
Situation:
-both have 401k type( me TSP/DW 401k) with almost 500k total
-100k cash for emergency fund
-150k in an annuity for LTC (just in case)
- I am retired Mil so med should no be an issue
-DW has 30 years w/small company
Combined monthly pensions net take home is about
$5,600.00
If she takes ss at 65 It will be about $ 800 after taxes and Medicare deduction. So total of $6400.0 ( net).
Still have a house payment of almost 1600.00 monthly, no other bills except monthly home expenses like cable, food etc.
*ran pension and investments through firecalc and I seems I can live on 100k annually at 100% [emoji3][emoji106]
Also seems I can pull $10-25-25k at different yearly intervals for big purchases and still keep 100k annually.
Would love feedback to make sure I am in the right ball park. Thanks for [emoji101]

Forgot to mention that I added in my firecalc info my ss of monthly $1500.00 at age 62

 

[sheehs1]

Firecalc is only one way to look at it.

How did you come up with $100K annually? Were you taking a 4% withdrawal from investments to make up the difference?

Your combined pension of $5,600 monthly = $67,200 yearly. Add in her SSN at 65 of $6,400 net = $73,600 yearly net. This is without touching investments. Also, they appear to be guaranteed income sources so that is good.

It all depends on what your true expenses are and how comfortable you are in the event we have another 2008 and investments go down 50%. At age 57 and assuming you will be 59 when retiring, what ever dollars you pull from your investments need to last 25 to 30 years for the extra dollars outside of your guaranteed income sources.

What happens to either of your pensions at either of your deaths? Is the other protected with survivor rights?

The pensions give you a good base for guaranteed income. If you can live within that and have each other protected at death, you are in a good position.

Edit: Your added SSN of $1,500 puts you at $91,600 for guaranteed income sources - so that's even better. At age 62, and if you plan on any earned income, one can not make more than the yearly SSN earned income limit without a dollar for dollar SSN reduction for every dollar over the limit. It is currently somewhere in the neighborhood of $15,XXX. At some point it goes to a dollar reduction for every three dollars made over the limit. I can't remember at the moment if this goes away at Full Retirement Age or not. You can check the rules.

 

[cnocmmz]

Firecalc is only one way to look at it.

How did you come up with $100K annually? Were you taking a 4% withdrawal from investments to make up the difference?

Your combined pension of $5,600 monthly = $67,200 yearly. Add in her SSN at 65 of $6,400 net = $73,600 yearly net. This is without touching investments. Also, they appear to be guaranteed income sources so that is good.

It all depends on what your true expenses are and how comfortable you are in the event we have another 2008 and investments go down 50%. At age 57 and assuming you will be 59 when retiring, what ever dollars you pull from your investments need to last 25 to 30 years for the extra dollars outside of your guaranteed income sources.

What happens to either of your pensions at either of your deaths? Is the other protected with survivor rights?

The pensions give you a good base for guaranteed income. If you can live within that and have each other protected at death, you are in a good position.

Edit: Your added SSN of $1,500 puts you at $91,600 for guaranteed income sources - so that's even better. At age 62, and if you plan on any earned income, one can not make more than the yearly SSN earned income limit without a dollar for dollar SSN reduction for every dollar over the limit. It is currently somewhere in the neighborhood of $15,XXX. At some point it goes to a dollar reduction for every three dollars made over the limit. I can't remember at the moment if this goes away at Full Retirement Age or not. You can check the rules.

Since my wife is 6 years older I guess our mortality is close to each other by statistics. Both pensions are cola'd and we do have an additional 150k for LTC and will continue to grow until I start withdrawal.
I forgot to mention I will have another small government $500.00 net pension cola'd at age 62. I guess that is why the firecalc said it is good take 100k total monthly which was my goal even though we may not need it and mostly likely will leave something for family.
Actually can live very comfortable with 8k monthly but if we were travel a lot as everyone knows this is. Actually plan is to stay 3-4 months overseas in Philippines during the cold months in Virginia. I guess we wanted some constructive feedback with others. Thanks

 

[Sunset]

Forgot to mention that I added in my firecalc info my ss of monthly $1500.00 at age 62

Seems like you are taking it early and giving up the increased value for yourself and/or spouse when you already have lots of income.

I think Medicare does not cover you overseas. Yet you will need to keep paying it or get hit with penalties of extra increased cost.

 

[cnocmmz]

Seems like you are taking it early and giving up the increased value for yourself and/or spouse when you already have lots of income.

I think Medicare does not cover you overseas. Yet you will need to keep paying it or get hit with penalties of extra increased cost.

Very valid point, I could wait for mine; maybe take the DW' s at 65 amd wait till 67 to pull mine. Either way, we just want to enjoy the next 30 years or so of functional retirement lol. Yes, medicare in PI is not working but medical Tricare (retired mil) is available so we should be fine for the 3-4 months there. The cost of renting overseas though has to be worked out and budgeted for. Bottom line, I guess if I decided to pull chalks here in a few years 2020 latest we would be fine. As stated, will have an100K emergency fund and additionally, normally keep separate buckets for Home maintenance bucket, car maintenance bucket, travel bucket, etc. each with about 5-7K in them.
-I will still contribute 30K a year to our 401K's until 2020 as well.
The only thing really causing hesitation is the "what if"?
Also, I had a 37 ft RV a few years back and really enjoyed but we sold it because of work and not enough time to enjoy. The cost of the diesel RV I want now is about 100K and of course the maintenance budget that goes along with it.... lol. Well, those are choices we all make lol.

 

[bearkeley]

We are on Year 2 (me) and 1 (DH) of our FIRE and still have the "what if" lingering, despite all the planning, calculations and recalculations and 2 years of living the way we want to and still coming in at or under budget. We have been fortunate enough to have traveled 5 months last year (Australia and Philippines) and on month 4 of a 5 month trip now until mid April when the weather warms back up in Virginia (Australia, Vietnam, Cambodia and Philippines). We have expensive hobbies (scuba diving) so we have been smart about our travel lifestyle (campervan in Australia, housesitting, smart use of hotel /travel points, etc) but have never felt like we have to spend less than what we used to, and so far, so good!

Hotel prices are rising in the Philippines, especially in tourist areas, but if you plan in advance and book a house for a few months, it's still very reasonable. We planned to do the same at some point, but while we are young figured we should travel around first.

Key thing to remember....you can always make more money, but you can never make more time. Congrats on the upcoming retirement and thank you for your service!

 

[cnocmmz]

Yes, plan on going to pi next year. Overall I am worried about finances as always. Maybe it is because of the way I was raised. We will have about 72k annually (net) coming in at my age 57 and my DW is 63, this is not counting 700k in investments

 

[cnocmmz]

Hi Bearkeley
what part of Virginia are you from?