Currently 50 and thinking of retiring at 60...thoughts?

[GOAT12]

50 years old. I'm hoping to quit working in 10 years. I know a lot can change, but here are my current "stats" and just wondering if I'm on track?

Mortgage - 80k left (Plan is to pay off in next 3-4 years)
401k - (910k)
Company stock -ESPP and RSU's - (150k)
529 plan - (90k) 11 year old child
Rainy Day fund - 40k
Other inestments -50K
HSA Account - 16K

Max out my 401k every year - 19,500 + $6,500

No credit card debt or car loans

 

[Gumby]

50 years old. I'm hoping to quit working in 10 years. I know a lot can change, but here are my current "stats" and just wondering if I'm on track?

Mortgage - 80k left (Plan is to pay off in next 3-4 years)
401k - (910k)
Company stock -ESPP and RSU's - (150k)
529 plan - (90k) 11 year old child
Rainy Day fund - 40k
Other inestments -50K

Max out my 401k every year - 19,500 + $6,500

No credit card debt or car loans

Welcome to a Tom Brady fan.

Looks like you are doing well on saving, but the most important thing you will need to determine is how much you will spend in retirement, which is most easily done by knowing how much you spend now and adjusting it for things that you know will change.

My suggestion is that you take a look at this list of questions https://www.early-retirement.org/fo...-answer-before-asking-can-i-retire-69999.html and answer them to yourself. The FIREcalc calculator is here https://firecalc.com/ and there is a link to it at the bottom of every page. Just remember that you'll need to gross up your spending number to account for taxes.

Once you've done that, you'll be in a better position to ask more specific questions and get more detailed answers.

 

[Midpack]

What does https://firecalc.com/ say?

You’re doing well congrats, but no one can give you a meaningful answer without knowing what you plan to spend in retirement just for starters. You may well be on track for X spending, but not for 1.5X spending. Retirement success depends on portfolio value, spending, longevity, AA/returns and even then there are many unknowns you have to make assumptions for. Retirement plans are axes not scalpels, however a plan with a 150% probability of success is more likely to succeed than a plan with a 70% probability of success of course. Only you can decide what probability of success you can accept.

 

[GOAT12]

Welcome to a Tom Brady fan.

Looks like you are doing well on saving, but the most important thing you will need to determine is how much you will spend in retirement, which is most easily done by knowing how much you spend now and adjusting it for things that you know will change.

My suggestion is that you take a look at this list of questions https://www.early-retirement.org/fo...-answer-before-asking-can-i-retire-69999.html and answer them to yourself. The FIREcalc calculator is here https://firecalc.com/ and there is a link to it at the bottom of every page. Just remember that you'll need to gross up your spending number to account for taxes.

Once you've done that, you'll be in a better position to ask more specific questions and get more detailed answers.

Thanks! I will check it out.

 

[HawkeyeNFO]

How much does the GOAT spend every year?

 

[GOAT12]

How much does the GOAT spend every year?

Probably as much as what the real GOAT has in his wallet...

I really haven't figured that out, but will have to.

 

[NgineER]

50 years old. I'm hoping to quit working in 10 years. I know a lot can change, but here are my current "stats" and just wondering if I'm on track?

Mortgage - 80k left (Plan is to pay off in next 3-4 years)
401k - (910k)
Company stock -ESPP and RSU's - (150k)
529 plan - (90k) 11 year old child
Rainy Day fund - 40k
Other inestments -50K
HSA Account - 16K

Max out my 401k every year - 19,500 + $6,500

No credit card debt or car loans

No consumer debt and almost no mortgage debt. It appears as if you have your head on straight and that you are a saver vs. a reckless spender. With your mortgage paid off it could be that you are ready to retire at that time.

But your current income/spend will guide you. Do you have a pension coming as well?

 

[GOAT12]

No consumer debt and almost no mortgage debt. It appears as if you have your head on straight and that you are a saver vs. a reckless spender. With your mortgage paid off it could be that you are ready to retire at that time.

But your current income/spend will guide you. Do you have a pension coming as well?

Thanks. No, no pension. I'm in software sales.

 

[ivinsfan]

IMO your biggest wild card is health care. Anyone who says they know what health will look like and or cost in 10 years is selling snake oil.


However under the rules that exist today it would behoove you to start getting a bigger pile of after tax cash/stock savings. In your shoes I might do that buy not paying extra on your house and funneling that money to cash/stocks as you get closer to 60 and see the rules for ACA you will actually need CASH after tax to try and control your HI costs.



Just something to think about.

 

[laurence]

You can up that 401k contribution at 50, by the way.

EDIT: I think that's what you meant, read it at first as company match. You only have to make it a few years to social security so it looks good.

 

[SnowballCamper]

You could just be earning to much to contribute to a Roth, but if you aren't I'd open a Roth IRA (it can be used for college expenses as well). Also, as others have mentioned, getting a big chunk in a brokerage account that has already had income tax paid on it gives you a lot of flexibility to manage your income level early in retirement. This is helpful for health insurance subsidies.

 

[GOAT12]

You can up that 401k contribution at 50, by the way.

EDIT: I think that's what you meant, read it at first as company match. You only have to make it a few years to social security so it looks good.

Correct. I do the catch up for over 50.

 

[GOAT12]

You could just be earning to much to contribute to a Roth, but if you aren't I'd open a Roth IRA (it can be used for college expenses as well). Also, as others have mentioned, getting a big chunk in a brokerage account that has already had income tax paid on it gives you a lot of flexibility to manage your income level early in retirement. This is helpful for health insurance subsidies.

Thanks. Yes, that’s correct I make too much to open a Roth.

I’m going to look into your tip.

 

[JeffyD]

If it helps, I was at very similar NW when I was 50.
I am now 57 and with the blessing of the markets, FIRECALC and other tools and an advisor say I am good to go now with 100k after tax WR, at least

DW is helping out with kids college by staying in the rat race 3 more years.

Nothing takes the place of running the numbers yourself with your data and expectations. .

 

[GOAT12]

If it helps, I was at very similar NW when I was 50.
I am now 57 and with the blessing of the markets, FIRECALC and other tools and an advisor say I am good to go now with 100k after tax WR, at least

DW is helping out with kids college by staying in the rat race 3 more years.

Nothing takes the place of running the numbers yourself with your data and expectations. .

That’s great! Congrats!

 

[young-ish]

You are doing great!

The answers to your specific question all depend on your spending in retirement, your investment returns & when you want to deplete your savings.
Also have you looked at SS? You may be pleasantly surprised by the benefits of delaying until 70.
Look forward to hearing more from you.