Early Retirement & Financial Independence Community - View Single Post - Mid-40s And Ready To Stop Working???

cc3159 · 06-26-2009, 05:53 PM

My wife recently took a package from her job at a large company. Lately, I’ve been thinking about how great it would be if I could also stop working full time at megacorp in the next few years or do something more enjoyable part-time. We’ve always been aggressive savers - I’ve played around with a lot of different calculators (including FIRECalc), but would appreciate some advice on our situation.

My wife is 47 and I am 44. We have three young children. I’ve left out the value of their 529s below.
Investments/Cash: 401Ks -- $ 750K
IRAs -- $ 50K
Roth IRAs -- $ 50K
Mutual Funds/Stocks - $ 500K
Cash/CDs $ 150K
Total $ 1,500K

Asset allocation on investments is currently 75% stocks / 15% bonds / 10% cash/CDs We also have a house worth $ 250K and still owe a $ 100K mortgage on it, which will be paid off in 2018. No other debt.

My assumptions:
- Spending $ 70K
- Portfolio $ 1,500K
- Years 50
- Retire in 2011
- SS for me $ 15K/yr in 2028
- SS for her $ 14K/yr in 2025

This yields a success rate of 98% in FIRECalc. The $ 70K spending assumption covers $s to fund the 529s and other kid-related costs, plus our remaining mortgage payments -- so we think our spending will really be much less by 2020 -- more like $ 50K. I haven’t tried to bake this reduction into FIRECalc. Also, we may both work part-time at some point -- which is also not included in the current 98% case.

Overall it seems too good to be true. Are there other considerations I may be missing? Any suggestions or advice would be greatly appreciated.

06-26-2009, 05:53 PM	#1
cc3159 Confused about dryer sheets Join Date: May 2008 Posts: 7	My wife recently took a package from her job at a large company. Lately, I’ve been thinking about how great it would be if I could also stop working full time at megacorp in the next few years or do something more enjoyable part-time. We’ve always been aggressive savers - I’ve played around with a lot of different calculators (including FIRECalc), but would appreciate some advice on our situation. My wife is 47 and I am 44. We have three young children. I’ve left out the value of their 529s below. Investments/Cash: 401Ks -- $ 750K IRAs -- $ 50K Roth IRAs -- $ 50K Mutual Funds/Stocks - $ 500K Cash/CDs $ 150K Total $ 1,500K Asset allocation on investments is currently 75% stocks / 15% bonds / 10% cash/CDs We also have a house worth $ 250K and still owe a $ 100K mortgage on it, which will be paid off in 2018. No other debt. My assumptions: - Spending $ 70K - Portfolio $ 1,500K - Years 50 - Retire in 2011 - SS for me $ 15K/yr in 2028 - SS for her $ 14K/yr in 2025 This yields a success rate of 98% in FIRECalc. The $ 70K spending assumption covers $s to fund the 529s and other kid-related costs, plus our remaining mortgage payments -- so we think our spending will really be much less by 2020 -- more like $ 50K. I haven’t tried to bake this reduction into FIRECalc. Also, we may both work part-time at some point -- which is also not included in the current 98% case. Overall it seems too good to be true. Are there other considerations I may be missing? Any suggestions or advice would be greatly appreciated.