Lawrencewendall
Full time employment: Posting here.
Am I Ready to Join Your Class?
Long post
Well, I’ve come full circle. I stumbled upon this site back in 2017 looking for an answer to “How much is enough?” Since I’ve been furloughed for 3 weeks now, I’ve really crunched the numbers and I think I’m ready to put those numbers out for feedback. My original plan was to RE in 2021 when I’m eligible for a small pension (12k) but the numbers I have say I can do it this year, as early as May to keep myself in the 12% bracket. I turn 55 this year (DW 54) and can start to pull from my 401(k).
I’ve been tracking monthly expenses for the last 5 years and subtracting the one-off expenses (such as wedding and DS’s college which is over with). 2018 expenses were right at 70k with some room to cut back.
Here’s my numbers:
Military Retirement, COLA’ed, 39k
VA disability, non-taxable, COLA’ed, 14k
DW SSDI, COLA’ed, 85% taxable, 8k
401(k), 100% equities in small and mid-cap index, 288k, 10-year performance >13%
tIRA, 90/10 AA generating 27k annually in dividends, 252k
Roth, started more than 5 years ago, 25k
Brokerage, tax-free, 20k
Combined tIRA, Roth and traditional 10-year performance > 13%
Medical is covered by Tricare. No CC (assuming I ever get paid), mortgage and car payments are included in the 70k expenses. No expensive hobbies (see “what we’re making”). Travel will be limited due to DW’s health. Live in a HCOL area but both adult DS’s bought houses locally so I don’t envision moving.
I enjoy my j*b (National Security related) but the 3-hour daily commute and the 8.5 hour w*rkday is sucking the precious hours of my life away. I already talked to a FA and he really did not have any advice to offer. I think the numbers say I’m ok but would like feedback from the smart people here to show DW, who is antsy every time I bring up the topic of quitting. She sat in on the FA meeting and I think it did ease some of her anxiety. Your responses may help further help her doubts.
My plan is to use some of the 401(k) to cover monthly expenses and convert the remaining amount to the top of the 12% into a total market index fund, average return>10%.
So, you guys/gals are my last-ditch effort. Am I missing anything? Any gotcha's?
EDIT: I calculate Federal tax to be 9k, State tax about 6k, County/property is included in mortgage escrow.
Long post
Well, I’ve come full circle. I stumbled upon this site back in 2017 looking for an answer to “How much is enough?” Since I’ve been furloughed for 3 weeks now, I’ve really crunched the numbers and I think I’m ready to put those numbers out for feedback. My original plan was to RE in 2021 when I’m eligible for a small pension (12k) but the numbers I have say I can do it this year, as early as May to keep myself in the 12% bracket. I turn 55 this year (DW 54) and can start to pull from my 401(k).
I’ve been tracking monthly expenses for the last 5 years and subtracting the one-off expenses (such as wedding and DS’s college which is over with). 2018 expenses were right at 70k with some room to cut back.
Here’s my numbers:
Military Retirement, COLA’ed, 39k
VA disability, non-taxable, COLA’ed, 14k
DW SSDI, COLA’ed, 85% taxable, 8k
401(k), 100% equities in small and mid-cap index, 288k, 10-year performance >13%
tIRA, 90/10 AA generating 27k annually in dividends, 252k
Roth, started more than 5 years ago, 25k
Brokerage, tax-free, 20k
Combined tIRA, Roth and traditional 10-year performance > 13%
Medical is covered by Tricare. No CC (assuming I ever get paid), mortgage and car payments are included in the 70k expenses. No expensive hobbies (see “what we’re making”). Travel will be limited due to DW’s health. Live in a HCOL area but both adult DS’s bought houses locally so I don’t envision moving.
I enjoy my j*b (National Security related) but the 3-hour daily commute and the 8.5 hour w*rkday is sucking the precious hours of my life away. I already talked to a FA and he really did not have any advice to offer. I think the numbers say I’m ok but would like feedback from the smart people here to show DW, who is antsy every time I bring up the topic of quitting. She sat in on the FA meeting and I think it did ease some of her anxiety. Your responses may help further help her doubts.
My plan is to use some of the 401(k) to cover monthly expenses and convert the remaining amount to the top of the 12% into a total market index fund, average return>10%.
So, you guys/gals are my last-ditch effort. Am I missing anything? Any gotcha's?
EDIT: I calculate Federal tax to be 9k, State tax about 6k, County/property is included in mortgage escrow.
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