Out_the_Door
Recycles dryer sheets
Hi All,
5 years past my envisioned retirement age of 55. I’m anxious about taking the leap and wanted to know if my strategy is sound or if I’m being too conservative and/or if there’s something I’ve overlooked.
I’m looking to exit in Jan 2020. I’ve never been a high earner, but I’ve managed to save even while living in SOCAL. Aside from two years of expenses in an online bank all my other money is in a tax deferred account (401k).
Unmarried/no kids and in the process of establishing domestic partnership status with my GF so that I can be on her insurance. Luckily, I’ve haven’t suffered through any major illnesses and I go to the gym five-days a week and lead a hiking group once-a-week.
My current take-home pay (43K) allows for me to pay all my bills, have fun and still manage to save to my emergency fund. In addition, I do have a side hustle that nets about $9k a year which pays for my hobbies.
I estimate that under the current tax laws that a gross salary of $57,500 (50k after taxes) will cover my expenses and then some.
My yearly expenses are 35K a year (minus vacation/savings)
Credit Card paid in full each month
4-year old car (paid cash and previous car lasted 13 years)
The only other asset I have is a Condo valued at $440k (Zillow) with a $140k remaining mortgage ($945 mortgage payment).
My current retirement income/strategy is as follow:
401k Balance: 900K: will be rolled over into a Vanguard IRA (3-Fund portfolio strategy)
[20%] 180K in CDs/Money Market Fund for the first three years (60k a year)
[20%] 180K in Bonds to cover years 4 through 10
[60%] 540K in Stocks
I won’t need to withdraw as much from year 5 to 10 as I have a 29k a year non-COLA pension starting in 2024 and 29k a year in SS in 2026. I’m planning on keeping a 70/30 stocks/bonds split once pension kicks in in 2024.
My main concern is just covering the gap years from retirement to pension/SS and not run out of money late in the game. Obviously, if my GF and I split or we get married, I'll have to adjust the above (for the better or the worse)
.
5 years past my envisioned retirement age of 55. I’m anxious about taking the leap and wanted to know if my strategy is sound or if I’m being too conservative and/or if there’s something I’ve overlooked.
I’m looking to exit in Jan 2020. I’ve never been a high earner, but I’ve managed to save even while living in SOCAL. Aside from two years of expenses in an online bank all my other money is in a tax deferred account (401k).
Unmarried/no kids and in the process of establishing domestic partnership status with my GF so that I can be on her insurance. Luckily, I’ve haven’t suffered through any major illnesses and I go to the gym five-days a week and lead a hiking group once-a-week.
My current take-home pay (43K) allows for me to pay all my bills, have fun and still manage to save to my emergency fund. In addition, I do have a side hustle that nets about $9k a year which pays for my hobbies.
I estimate that under the current tax laws that a gross salary of $57,500 (50k after taxes) will cover my expenses and then some.
My yearly expenses are 35K a year (minus vacation/savings)
Credit Card paid in full each month
4-year old car (paid cash and previous car lasted 13 years)
The only other asset I have is a Condo valued at $440k (Zillow) with a $140k remaining mortgage ($945 mortgage payment).
My current retirement income/strategy is as follow:
401k Balance: 900K: will be rolled over into a Vanguard IRA (3-Fund portfolio strategy)
[20%] 180K in CDs/Money Market Fund for the first three years (60k a year)
[20%] 180K in Bonds to cover years 4 through 10
[60%] 540K in Stocks
I won’t need to withdraw as much from year 5 to 10 as I have a 29k a year non-COLA pension starting in 2024 and 29k a year in SS in 2026. I’m planning on keeping a 70/30 stocks/bonds split once pension kicks in in 2024.
My main concern is just covering the gap years from retirement to pension/SS and not run out of money late in the game. Obviously, if my GF and I split or we get married, I'll have to adjust the above (for the better or the worse)
.
