[Coach]

Quote:

Originally Posted by Nords Welcome to the board, Coach. I'm assuming you've counted your healthcare premium payments as part of your $40K/year expenses? Your portfolio looks like it could make it, but your initial withdrawal rate of $40K from $711K is about 5.6%. Of course that withdrawal rate will drop when you receive Social Security and trust distributions. Since you're pushing the margin of safe withdrawals you might want to look out for large "one-time" expenses-- a new roof, a replacement vehicle, a fantasy vacation, or other surprises. Even rising property taxes could perhaps put a crimp in your plans. You might want to check your Social Security distribution. The mailed statement assumes you're going to work until age 62 but as an ER your distributions will be lower. You're going to want to enter your entire earnings history (from the mailed statements) into their detailed online calculator and then add zeros for your income between ~56-62. But even if you retire into the middle of a recession, would there be a part-time or consulting market for your skills? A little of that can do a lot of good for a marginally-funded portfolio.

Nords, thanks for your input. My budget does include health insurance, but I think I'd better up the amount in anticipation of greater than inflation price increases. In general I've tried to be conservative in my planning, such as a 20% income tax rate and $500 a month budgeted for "lumpy" expenses like car and appliance replacement. I'm used to living modestly and don't anticipate changing, although I do plan to up my greens fee expenditures significantly -- but just at the local muni. Your suggestion that I verify my anticipated SS is a good one and something that I'll do immediately.

My bailout position is to go back to work if my plan isn't working. I won't make as much as I do now, but I figure I can make expenses and give the retirement funds a few years relief from withdrawals. I do have this sense of time going by, and I'll be really mad if I die before I have a chance to enjoy the retirement I've been saving for 30 years for