Circa One Year Update

[WyomingLife]

Original Post Here: http://www.early-retirement.org/for...-to-fire-but-health-considerations-93775.html

Differences from that post are:

Ages: 55/59

Status: Still W$rking

AA: De-risked down from 85/15 to roughly 62/32/6 (equity/fixed/cash); I think I we should de-risk further, perhaps to 50/44/6. Thoughts?

NW: $4M (with house); $3.7M (without house); it is remarkable to see the market at work

Monthly budget: We are down to roughly $5000 (can provide more details if desired); this would increase under a non-subsidy ACA scenario, however

Health Needs: Still a worry

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I think our SWR is now at 1.6%, which would seem to be pretty dang conservative

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Based on the above, I'm still w$rking for largely spousal and psychological reasons; looking for an exit but these considerations are more challenging than one might expect, in my personal view

 

[freedomatlast]

Looks like you are good to go financially with close to a 2X factor of safety. Go for it. I did about 6 months ago and haven't regretted it for a second. As far as your asset AA is concerned, I have a higher percentage in equities but also a higher percentage in cash in case I need to ride out a market downturn.

 

[flybynight]

+1. Go for it. I pulled the plug at the end of September and I'm loving it. I've got similar numbers to you except a more aggressive AA at 76/12/12. As noted above I've got a big cash/short term bond cushion to ride out the inevitable correction. With the flat yield curve and thin spreads between MM and ST bonds I cannot justify a larger bond allocation so I do have lot's of cash.

 

[Teacher Terry]

Based on your numbers I am confused about why you haven’t retired. If you are worried about health that should be pushing you to go. Doesn’t your wife want you to retire?

 

[WyomingLife]

Based on your numbers I am confused about why you haven’t retired. If you are worried about health that should be pushing you to go. Doesn’t your wife want you to retire?

Correct. That's a major issue.

But nobody here can deal with that situation, and we're fortunate. Not complaining. I'm aware of all the posts over at MMM (and elsewhere) regarding bringing SO's on-board. Just have failed to implement successfully to date, but that isn't the end of the world.

Thank you all for the help over the years. It is reassuring to have the kind and experienced folks here say everything will be fine.

Onward and upwards.

 

[HI Bill]

Original Post Here: http://www.early-retirement.org/for...-to-fire-but-health-considerations-93775.htmlAA: De-risked down from 85/15 to roughly 62/32/6 (equity/fixed/cash); I think I we should de-risk further, perhaps to 50/44/6. Thoughts?

Given the likely lower rate of return on bonds (than historic rates), I think you're taking on one type of risk to eliminate another. The risk of inflation is much greater than the risk of market volatility, IMHO. However, at a 1.6% WR, it may not matter much in your case.

 

[ckelly78z]

I have 1/10 of what you have saved so far, and consider myself very lucky with all of the health concerns I have had, that I am still active, and working. I fully understand not wanting to trust ACA for all of your benefits, but it appears that even something catastrophic could be paid for easily if insurance dropped the ball.

 

[WyomingLife]

I have 1/10 of what you have saved so far, and consider myself very lucky with all of the health concerns I have had, that I am still active, and working. I fully understand not wanting to trust ACA for all of your benefits, but it appears that even something catastrophic could be paid for easily if insurance dropped the ball.

You are certainly right; thank you for your kind and encouraging words. And best wishes for your health.

@freedomlast: Thank you for the observations about AA.

Happy holidays to all. I'm quite indebted to the many kind folks on these boards who have provided inspiration and guidance over many, many years, including a long period of lurking. You all seem like the kind of folks who would be great to have as neighbors. Take care.