Lisa99
Thinks s/he gets paid by the post
- Joined
- Aug 5, 2010
- Messages
- 1,440
Now that we're between a year and 18 months from ER I'd like to see if you guys would do a sanity check on our planning. I've learned a lot here and I've read the related FAQ but I'd love a sanity check to make sure we don't have a 'gotcha' waiting around the corner. I'll be about 53 and DH will be 49 when we retire. I know this is a long post but I greatly appreciate your input.
1. Budget - We know our budget and how much we need to live the lifestyle we want. I've modeled a 40-year retirement in FireCalc, ORP, Quicken and others and they all agree that our plan has a 95% chance of success. We've been living within our retirement budget for the last two years so know it is reasonable. I know one of us has a good chance of exceeding 40 years, but I have a contingency plan that I outline in #7. Expense wildcard is healthcare insurance.
2. Healthcare costs - we'll know this number in November when the ACA rates are available. We'll compare those rates to what I'd be charged via my company retiree plan. Company retiree doesn't kick in until 55 so we'd have to have a bridge if we go that route. Although I need to verify that if I quit before 53 that I can get retiree medical at 55.
3. Long term care insurance - undecided on this. I want to take a wait and see approach to see how the product matures before deciding.
4. Money (after tax) - more than 50% of our investments are in after tax so no issues with having funds available before age 59 1/2.
5. Money (401k) - I've confirmed that both of our megacorps allow roll-over to IRA upon termination.
6. Money (Roth IRA) - we've been above the income threshold so don't have Roth. Also our taxes will be much lower in retirement so we don't plan to do conversions. I think this is the right thing to do. Do you agree?
7. Money (yearly checkup) - I know the money floor that we have to maintain to fund our living expenses. I plan to run a yearly check and if we start getting close to the floor we'll consider buying an SPIA.
8. Life insurance - we don't plan to have life insurance since our plan has a 95% success rate.
9. Pension - I have a small pension that starts on my 55th b-day. We've determined the payout type that we want.
10. Social Security - FireCalc shows that our success rate is higher by starting SS at 62 for both. I've modeled 50% of our expected payout rather than 100%.
11. Housing - we're planning to relocate and will pay cash for our retirement house. This expense is included in our budget numbers.
12. Family - both sides know we plan to move and while they aren't thrilled about it, they've accepted it. We're not terribly close so it's not an issue.
13. Wills, HC POA, etc - We have wills, living wills, and HC POA. We don't have any trusts and don't really know under what conditions we'd need one.
14. What will we do all day - the list is endless... that question isn't a problem.
I know there is a lot more in the FAQ related to lifestyle, getting medical and dental taken care of and giving notice, but have I missed anything that once we pull the trigger it would be hard to recover from? Other thoughts on what I've outlined?
Your insight is greatly appreciated!
1. Budget - We know our budget and how much we need to live the lifestyle we want. I've modeled a 40-year retirement in FireCalc, ORP, Quicken and others and they all agree that our plan has a 95% chance of success. We've been living within our retirement budget for the last two years so know it is reasonable. I know one of us has a good chance of exceeding 40 years, but I have a contingency plan that I outline in #7. Expense wildcard is healthcare insurance.
2. Healthcare costs - we'll know this number in November when the ACA rates are available. We'll compare those rates to what I'd be charged via my company retiree plan. Company retiree doesn't kick in until 55 so we'd have to have a bridge if we go that route. Although I need to verify that if I quit before 53 that I can get retiree medical at 55.
3. Long term care insurance - undecided on this. I want to take a wait and see approach to see how the product matures before deciding.
4. Money (after tax) - more than 50% of our investments are in after tax so no issues with having funds available before age 59 1/2.
5. Money (401k) - I've confirmed that both of our megacorps allow roll-over to IRA upon termination.
6. Money (Roth IRA) - we've been above the income threshold so don't have Roth. Also our taxes will be much lower in retirement so we don't plan to do conversions. I think this is the right thing to do. Do you agree?
7. Money (yearly checkup) - I know the money floor that we have to maintain to fund our living expenses. I plan to run a yearly check and if we start getting close to the floor we'll consider buying an SPIA.
8. Life insurance - we don't plan to have life insurance since our plan has a 95% success rate.
9. Pension - I have a small pension that starts on my 55th b-day. We've determined the payout type that we want.
10. Social Security - FireCalc shows that our success rate is higher by starting SS at 62 for both. I've modeled 50% of our expected payout rather than 100%.
11. Housing - we're planning to relocate and will pay cash for our retirement house. This expense is included in our budget numbers.
12. Family - both sides know we plan to move and while they aren't thrilled about it, they've accepted it. We're not terribly close so it's not an issue.
13. Wills, HC POA, etc - We have wills, living wills, and HC POA. We don't have any trusts and don't really know under what conditions we'd need one.
14. What will we do all day - the list is endless... that question isn't a problem.
I know there is a lot more in the FAQ related to lifestyle, getting medical and dental taken care of and giving notice, but have I missed anything that once we pull the trigger it would be hard to recover from? Other thoughts on what I've outlined?
Your insight is greatly appreciated!