FI (theoretically) but won't pull trigger quite yet

[madsquopper]

Well, ran the numbers using a variety of calculators (including Firecalc) and I'm pretty much there, although I'd like to have a bit more cushion given the uncertainty of the markets and the rest of the world right now. So won't quit just yet; job is relatively interesting, low stress (except for occasional commute hassles), pays great, and I'm only working 4 days a week (32 hours) anyhow. Might cut back to 3 days soon, and if management ever started being a pain in the ass I'd just bag it completely.

Some of the general assumptions I used were:
3.75% withdrawal rate, inflation adjusted
Live to 100, no need to leave anything
3% inflation average over time
Take SS at 66 (I'm 56) but only assume I'll get 75% of actual by that point
approx 65/35 equity/bond mix

Larry

 

[Rich_by_the_Bay]

Sounds like you've got the bases covered if your actual numbers work for you.

What will you do for health insurance?

 

[walkinwood]

Congratulations! Isn't it a wonderful feeling to be FI?

If you can live on 3.75% (inflation adjusted) until you take SS, will you be giving yourself a big raise then? I need to figure this out for myself too.

After 2008, I moved my AA balance from 65/35 to 60/40. The drop was just too gut wrenching for me when I wasn't earning. A much worse drop in my portfolio during the tech crash didn't bother me as much because I was working then & adding to it.

All the best.

 

[obgyn65]

Hi Larry - My numbers are pretty similar except that I use 3.6% withdrawal rate, cut off 95, inflation 3.5% and I take SS at 62. Good idea to cut down to 3 days.

Might cut back to 3 days soon, and if management ever started being a pain in the ass I'd just bag it completely.

 

[CoolChange]

Congratulations!

Keep us posted on how/if this impacts your actions, life, attitudes, etc. (I am still trying to figure this out for myself.)

 

[madsquopper]

I'm piggybacked onto my spouse's health plan (she's a retired teacher with the state); not the cheapest plan but at least highly rated (Blue Cross Mid Atlantic). The main decision right now is what to do about the mortgage (when/if to pay off); we recently refinanced into a 15 year at 4%, 150K principal but the house is probably worth 650- 700K. For now I'm assuming no early payoff.

Larry

 

[Finance Dave]

Congrats! Looks like you're in very good shape and your assumptions are very conservative, IMO, except maybe your asset allocation. Do you have long-term care? If not, may want to consider it.

Dave

 

[madsquopper]

Yes, decided to get LTC a few years ago. Ideally we'd never have to use it but after watching 3 out of 4 of our parents need it, probably not sorry.

 

[youbet]

3% inflation average over time

Using 3% average inflation over time isn't a good idea as it's not very typical. For example, if your retirement has high inflation at the beginning followed by lower inflation later and that "averages" to 3% inflation, you'll have very different results than if inflation is near 3% every year. And also very different from having low inflation at the beginning followed by high inflation but also "averaging" 3%.

I'd suggest you let FireCalc run using historical inflation rates. And try to stay away from "average" returns on investment as well.