Hey all, as the title states, I'm having a real issue with this and just not sure how best to protect ourselves if such protection exists.
Quick snapshot on us. DW and I are almost 53 planning to pull the plug in 2-4 years. On our 55th birthday, based on our savings rate, we should exit with about $800K in 401K and $375K in a diversified brokerage portfolio.
DW is already collecting $47K/yr in a non-cola'd pension. I have an annuity that can start paying about $15K/Yr when I turn 61. (bad decision that but live and learn). SS for both will help out later. The best news is that as she is a retiree from state government, we have health and dental insurance for life at about $100/Month.
We also have $60K in emergency savings that with her pension, should last us 2 years in a down market if we tighten the belt.
So with an annual need of about $80K-85K after taxes, I think we are ok considering her pension will take care of almost have that. BUT, if the market tanks a month after we stop working, I'm worried it will be Home Depot for us. Is that two year cushion enough?
I'm asking you all what strategies you may have implemented to mitigate this risk. And if we are indeed doing all we can do, how do you deal with this uncertainty that keeps me up at night. I feel we literally have only one chance in this lifetime to get this right or our retirement will be a hot mess.
Thanks much and please excuse the length of the post.
Quick snapshot on us. DW and I are almost 53 planning to pull the plug in 2-4 years. On our 55th birthday, based on our savings rate, we should exit with about $800K in 401K and $375K in a diversified brokerage portfolio.
DW is already collecting $47K/yr in a non-cola'd pension. I have an annuity that can start paying about $15K/Yr when I turn 61. (bad decision that but live and learn). SS for both will help out later. The best news is that as she is a retiree from state government, we have health and dental insurance for life at about $100/Month.
We also have $60K in emergency savings that with her pension, should last us 2 years in a down market if we tighten the belt.
So with an annual need of about $80K-85K after taxes, I think we are ok considering her pension will take care of almost have that. BUT, if the market tanks a month after we stop working, I'm worried it will be Home Depot for us. Is that two year cushion enough?
I'm asking you all what strategies you may have implemented to mitigate this risk. And if we are indeed doing all we can do, how do you deal with this uncertainty that keeps me up at night. I feel we literally have only one chance in this lifetime to get this right or our retirement will be a hot mess.
Thanks much and please excuse the length of the post.