Cat-tirement
Recycles dryer sheets
- Joined
- Mar 30, 2013
- Messages
- 285
I have been lurking on and off for a few months, and now decided it was time to jump in. I am currently 54, DW is 52, and we recently bought a house for our future ER in Bend, OR. We are renting it out until we are ready to retire and move from the NE. I am wondering how many other folks have done home purchases in advance like this, and what you did with them until moving in. In our case, it doesn't work very well as a vacation home, being on the opposite side of the country.
For a while, our plan was for me to ER at 60 and work for a while on preparing our current house for sale, while DW continues to work (and cover health insurance). We would then move the following year. However, since buying the house, I have developed an increasing desire to ER sooner. Contributing to that desire is that my job at MegaCorp has lost most of its appeal since I had to move to a different project. DW is OK with her job, but wouldn't mind leaving earlier too.
I think we are in pretty good shape financially. We have no debt except for the new house (at 3%) which we plan to pay off when we sell the current house. I have been playing with Financial Engines for over a year, and recently tried Fidelity's Retirement Income Planner and FIRECalc. We both have grandfathered pensions available, though my benefit isn't really growing since MegaCorp discontinued it for new employees. My pension of $25k would start at 60, while DW pension has significant reductions if taken before 65, when it would be $21k (assuming she works until 60). Our estimated SS at full age (again assuming work until 60) is about $29k and $24k. Current combined 401k of about $650k, rollover IRAs of $300k, and Roths of $165k (overall AA stocks 70%, bonds 25%, cash 5%). DW might continue to work part-time for a while after ER to get reduced cost for health insurance, depending on what happens with the state exchange.
At this point I would invoke the plan next year at 55 instead of 60, as I believe even the reductions in pensions and SS would still leave us with sufficient income, but there is one catch. We can't really leave the area yet, as we are the only family and support system (not financially) for DW's parents. One is in a nursing home, and the other is still living independently but in marginal health. I am sure that there are others who have been in similar situations of waiting.
I'm interested in any comments or observations by forum members.
For a while, our plan was for me to ER at 60 and work for a while on preparing our current house for sale, while DW continues to work (and cover health insurance). We would then move the following year. However, since buying the house, I have developed an increasing desire to ER sooner. Contributing to that desire is that my job at MegaCorp has lost most of its appeal since I had to move to a different project. DW is OK with her job, but wouldn't mind leaving earlier too.
I think we are in pretty good shape financially. We have no debt except for the new house (at 3%) which we plan to pay off when we sell the current house. I have been playing with Financial Engines for over a year, and recently tried Fidelity's Retirement Income Planner and FIRECalc. We both have grandfathered pensions available, though my benefit isn't really growing since MegaCorp discontinued it for new employees. My pension of $25k would start at 60, while DW pension has significant reductions if taken before 65, when it would be $21k (assuming she works until 60). Our estimated SS at full age (again assuming work until 60) is about $29k and $24k. Current combined 401k of about $650k, rollover IRAs of $300k, and Roths of $165k (overall AA stocks 70%, bonds 25%, cash 5%). DW might continue to work part-time for a while after ER to get reduced cost for health insurance, depending on what happens with the state exchange.
At this point I would invoke the plan next year at 55 instead of 60, as I believe even the reductions in pensions and SS would still leave us with sufficient income, but there is one catch. We can't really leave the area yet, as we are the only family and support system (not financially) for DW's parents. One is in a nursing home, and the other is still living independently but in marginal health. I am sure that there are others who have been in similar situations of waiting.
I'm interested in any comments or observations by forum members.