Ronstar
Moderator Emeritus
3.1M is enough, but you're spending too much IMO to retire at 53 with 2 college educations yet to pay for
How much is that financial "planner" charging you?
I'm surprised no one else commented on this giant red flag:
If you received a "small refund" on taxes, that doesn't mean you don't get a free ride on taxes with a $150k budget in ER, because you won't have taxes magically withheld from your income by someone else! You still have to pay them. So you will need to withdraw quite a bit more from your portfolio and SS to end up with $150k cash to spend each year on whatever you want. Maybe $175k-$180k?
My mega energy company says I could get severance and retire early at 53. If I did that, I would have $3.1MM total. I'd get $23k/yr SS at 62 in today's dollars and my wife would get $9k/year SS when I'm 67. We have twins who go to college next year and assuming that will be $200k over 4 years. We spend $140k/yr right now and my retiree medical would add another $8k/yr on top of that. I ran ***** and I think it only had a 70% sucess assuming we could get it back to $140k spending.
The thing is that, if I stay, it takes me 1.5 years here to get to the same $3.1MM I could get right now with the severance. So I'm thinking maybe leave now and have that time for myself?
What do you think?
On spending, we actually spent $150k in 2014. A lot I know. But don't know if we could get down to even $110k with family of 4 and mortgage. I really don't want to retire to a life of pinching pennies (yeah I know $110k is not pinching pennies but you know what I mean).
I have my finacial planner guy running cases at $130k spending and a 5.5% return to see what it looks like, with taxes modeled etc.
It's shameful, I know, but I wear a disguise when I leave the house now...
No one should have to endure the indignity of living on less than $150,000 a year. Keep working.
I'm going to live under an I-10 bridge!
.....
The $150k includes property taxes, school taxes, etc. But not Fed taxes. We actually got a small refund on Fed taxes.
Good comments. The other catch is that I have a short window to decide. They are looking for another job for me. When they find it, severance is off the table.
On spending, we actually spent $150k in 2014. A lot I know. But don't know if we could get down to even $110k with family of 4 and mortgage. I really don't want to retire to a life of pinching pennies (yeah I know $110k is not pinching pennies but you know what I mean).
I have my finacial planner guy running cases at $130k spending and a 5.5% return to see what it looks like, with taxes modeled etc.
How much is that financial "planner" charging you?
I'm surprised no one else commented on this giant red flag:
If you received a "small refund" on taxes, that doesn't mean you don't get a free ride on taxes with a $150k budget in ER, because you won't have taxes magically withheld from your income by someone else! You still have to pay them. So you will need to withdraw quite a bit more from your portfolio and SS to end up with $150k cash to spend each year on whatever you want. Maybe $175k-$180k?
I live in Houston but not sure if you're talking to meOP what city do you live in?
OP = Original Poster.I live in Houston but not sure if you're talking to me
Working a couple of years only to end up at the same place really has me bugged. I have a welding hobby that I really like and I actually sell some of the stuff, very small amounts but it pays for materials. I would love to do more welding. I also do some music stuff. I'd have more than enough to do. And me and the wife could travel around the US. She doesn't work. Yes, I'm considering it because the company may give me severance. Otherwise I wouldn't.
We currently have a similar budget with your $200k, but 3x of your assets, and we are still working. When we retire (DH slightly older than you), we will definitely look to cut our budget down by 1/4.