Trying to determine whether or not I can join the ER group. The bad news I am losing my job next year at age 55, I am not rich and never made "big" money. The good news I am single, no kids, no credit card debit, and in good health, knock on wood, and low expense. Both my parents gone, my siblings are doing very well. No one is depending on me. I have come up with a retirement plan that involves spending down my savings and depending on pension, 401K, social security and other qualified money at 65.
Here are my numbers:
Liquid Cash : +411K
Brokerage (non-qualified) : +$110K
IRA, Annuity, Stock (qualified) : $100K
Lump Sum value of Pension and 401K about (50/50) (qualified): +$550K
Home Equity : +600K
Mortgage : -225K
My current expenses:
Today, excluding the mortgage payment, I need only 2K per month based on today's needs. This is a pretty low amount. I am not counting the mortgage payment for a reason.
My Plan:
After leaving employment: Pay off my house and live off of cash and brokerage, (non-qualified money) until 65. There will be some captial gains from the brokerage account. I will not have income, and largest payment will be property tax. Some people might think that is a crazy idea, but I am not interested to acquire wealth and die with money. I will likely have some cash left over, how much depends on how much I spend. I will have medical coverage until 65. I suspect I will start getting worried as cash supply gets depleted, but it should be doable. I haven't ruled out working again if the opportunity arises. Everything I have read, it is harder to find work over 55.
At 65 (normal retirement age): My pension benefit will have increased, hopefully my 401K as well. Medicare begins. Start taking the pension and 401K. This amount will be higher than what I was living on last 10 years, so I should have some breathing room. I have a 20 year withdrawal plan for my 401K which takes me to 85, (still alive, not sure). Social Security should sweeten the pot, but I am not counting on it being there for me, but will take it at 70 if it still exists. The other IRAs, small Annuity and company stock (worth $100K today, should have increased) are also a consideration for withdrawal at this point.
As most of you might have already guessed, I own an average car, and take public transportation. Being single all my life, I have already done most things I want to do, therefore I don't think I will need much money in retirement. My hobbies right now do not cost a great deal, and I have no interest in traveling, long vacations, etc. I need to figure out what is next.
So my golden years would involve freedom, and limited income. But it appears my needs would be met. At any point in the game, I could sell my house and downsize. I could also choose to leave the house to other family members, or sell the house in order to pay for a care facility, if the time arose. I am not particularly motivated to leave anything to anyone, best case scenario a clean exit with nothing.
Would appreciate any words of wisdom from people who have been in simular financial situation as me.
Here are my numbers:
Liquid Cash : +411K
Brokerage (non-qualified) : +$110K
IRA, Annuity, Stock (qualified) : $100K
Lump Sum value of Pension and 401K about (50/50) (qualified): +$550K
Home Equity : +600K
Mortgage : -225K
My current expenses:
Today, excluding the mortgage payment, I need only 2K per month based on today's needs. This is a pretty low amount. I am not counting the mortgage payment for a reason.
My Plan:
After leaving employment: Pay off my house and live off of cash and brokerage, (non-qualified money) until 65. There will be some captial gains from the brokerage account. I will not have income, and largest payment will be property tax. Some people might think that is a crazy idea, but I am not interested to acquire wealth and die with money. I will likely have some cash left over, how much depends on how much I spend. I will have medical coverage until 65. I suspect I will start getting worried as cash supply gets depleted, but it should be doable. I haven't ruled out working again if the opportunity arises. Everything I have read, it is harder to find work over 55.
At 65 (normal retirement age): My pension benefit will have increased, hopefully my 401K as well. Medicare begins. Start taking the pension and 401K. This amount will be higher than what I was living on last 10 years, so I should have some breathing room. I have a 20 year withdrawal plan for my 401K which takes me to 85, (still alive, not sure). Social Security should sweeten the pot, but I am not counting on it being there for me, but will take it at 70 if it still exists. The other IRAs, small Annuity and company stock (worth $100K today, should have increased) are also a consideration for withdrawal at this point.
As most of you might have already guessed, I own an average car, and take public transportation. Being single all my life, I have already done most things I want to do, therefore I don't think I will need much money in retirement. My hobbies right now do not cost a great deal, and I have no interest in traveling, long vacations, etc. I need to figure out what is next.
So my golden years would involve freedom, and limited income. But it appears my needs would be met. At any point in the game, I could sell my house and downsize. I could also choose to leave the house to other family members, or sell the house in order to pay for a care facility, if the time arose. I am not particularly motivated to leave anything to anyone, best case scenario a clean exit with nothing.
Would appreciate any words of wisdom from people who have been in simular financial situation as me.
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