Lukeee
Recycles dryer sheets
- Joined
- Feb 20, 2018
- Messages
- 145
I suppose it’s going to be one of the longest 940 days for me and it’s not that I am wishing away the next 2+ years of my life .. but the finish line... or should I say the next starting line seems so much more exciting.
Little nudges that made me google retiring early:
- the passing of my parents and realizing that they didn’t enjoy life later on for various reasons - health mainly
- a personal career that seems less and less meaningful and rewarding
- vacations that used to be “nice mental breaks” from the work routine have become “oooo this is nice and I wished I had more time to travel”
The plan since starting my career was ER at 60, 60 became 58, now it’s been pushed forward a few years to early 50s as I started seriously working through the math.
DW’s SS benefits + my SS benefits + 2 pensions should cover our projected expenses @62. But I’m expecting inflation to out grow COLA - so the pre tax retirement account (currently at $1.3M) will be used to bridge the difference at some point.
My current monthly expenses is about $8K with 2 kids. College savings has been taken care of so I’m not adding this to my expected expenses. I’m expecting ER expenses to drop $2K (72K annually)
Expected Increased monthly costs at retirement:
health insurance (ACA) (TBD difference between work and ACA)
Grocery bills (+200)
Life insurance (+300)
Travel (+1000)
Expected Decreased monthly costs:
Savings for kids college and expenses on sports. (-3500)
Going from 2 to 1 car (-200)
The cost of working... clothes, gas, eating out, dry cleaning (-300)
Am I missing any obvious retirement vs working costs changes?
Outside my 401K I have been transitioning from 90/10 stocks/cash to 50/50 stocks/cash with the cash currently in 2.75-3% 2-3 year CDs. My goal was $900K at the end of the 940 days to bridge the 9 years to 62. I find myself more and more risk adverse with this pot of savings and feel the urge go 0/100 stock/Cash as that should get me to the $900K goal. Besides CDs, should I consider other safe investments that are low risk and have lower tax implications.
Love this place BTW.
Little nudges that made me google retiring early:
- the passing of my parents and realizing that they didn’t enjoy life later on for various reasons - health mainly
- a personal career that seems less and less meaningful and rewarding
- vacations that used to be “nice mental breaks” from the work routine have become “oooo this is nice and I wished I had more time to travel”
The plan since starting my career was ER at 60, 60 became 58, now it’s been pushed forward a few years to early 50s as I started seriously working through the math.
DW’s SS benefits + my SS benefits + 2 pensions should cover our projected expenses @62. But I’m expecting inflation to out grow COLA - so the pre tax retirement account (currently at $1.3M) will be used to bridge the difference at some point.
My current monthly expenses is about $8K with 2 kids. College savings has been taken care of so I’m not adding this to my expected expenses. I’m expecting ER expenses to drop $2K (72K annually)
Expected Increased monthly costs at retirement:
health insurance (ACA) (TBD difference between work and ACA)
Grocery bills (+200)
Life insurance (+300)
Travel (+1000)
Expected Decreased monthly costs:
Savings for kids college and expenses on sports. (-3500)
Going from 2 to 1 car (-200)
The cost of working... clothes, gas, eating out, dry cleaning (-300)
Am I missing any obvious retirement vs working costs changes?
Outside my 401K I have been transitioning from 90/10 stocks/cash to 50/50 stocks/cash with the cash currently in 2.75-3% 2-3 year CDs. My goal was $900K at the end of the 940 days to bridge the 9 years to 62. I find myself more and more risk adverse with this pot of savings and feel the urge go 0/100 stock/Cash as that should get me to the $900K goal. Besides CDs, should I consider other safe investments that are low risk and have lower tax implications.
Love this place BTW.