Downsizing on the house, if you want to, can free up a big chunk of $$'s that you could invest and use for living expenses.
There's a rule of thumb thrown about here -- look at www.retireearlyhomepage.com and at the firecalc link (look at the banner ads here to get to it) for more info -- but it basically says that you can generally take 4% of your initial portfolio balance and adjust that initial amount for inflation and never run out of money.
Using that rule, your $400k in your 401k could support $16k. Add to that your $25k pension would give you $41k annually. How much do you spend annually? If it's $41k or less, you've got a decent chance, I'd say.
Two things to think about :
1. Is the $25k inflation adjusted? If not, it will get ravaged by inflation over the next 30-40 years, and so you'd have to account for that. I think the firecalc can help you with that calculation.
2. How long are you "guaranteed" the employee rate for health care, and how much do you believe the guarantee?
malakito
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