24601NoMore
Thinks s/he gets paid by the post
- Joined
- Dec 8, 2015
- Messages
- 1,166
Hi, everyone.
I’ve been following the forum for a while, but am just now getting around to registering and introducing myself.
I just turned 52 and DW is 58, and we’re looking to RE ASAP after each putting 30+ years into our respective careers (me – software tech sales..DW – Director at F500 company).
We’ve been blessed to have paid off our home and have zero debt. Also no kids to plan expenses for.
Current portfolio assets consist of three ‘buckets’: a cash cushion (50%), a retirement portfolio (44% - Cash, Equities & FI that are mostly funds but also some individual stock) and ~5% in DW’s company stock (RSUs). Combination of 401K, IRAs and taxable investments. No pensions (unfortunately..am surprised by how many people still seem to have these..)
Retirement bucket (the 44%) is also heavy cash at 30%, 22% US stock funds + individual issues, 20% Foreign Stock funds and 25% Bond funds. Equities are mixed over L/M/S and Growth/Value.
DW’s entire team was RIF’d in September, after she worked 30+ years for the company (nice.. thanks, guys!). She will stay on another few months and is deciding to RE or look for another job. At 58 and with some health issues, the RE option is the most likely. I just joined a new company a few months back and am still determining if the gig will work out or not – it’s much different than expected. So, we will either be down to one income (most likely ‘best case’) or maybe even down to NO income – at 52 and 58 respectively.
We have a good handle on our expenses, and I’ve been looking at strategies to minimize our premium cost for “A”CA, presuming I can keep “income” under 400% FPL, which we would definitely do.
I built a pretty detailed Excel spreadsheet that projects out income & expenses to 90+. Income would be interest (CD ladder), dividends (REIT, MLP, FI - likely Muni Bonds), etc. It also determines max ACA premium based on AGI and includes expected out of pocket healthcare, although it might be understated for later years – 70s+. Expenses increase yearly with an assumed inflation of 2%. I haven’t factored in catastrophic things like LT care or “A”CA or SS going away at some point but all else looks pretty solid.
If I’ve done this right, I figure we can get to the point we’re both > 65 and only burn down <25% of the existing cash cushion with the retirement bucket untouched (aside from market fluctuations). That’s because the CDs and dividends will cover a good part of our expenses so we don’t have to pull significantly from savings – although we will have to pull ‘some’ from the cash bucket. Note this assumes I can get >=2.5% 5-year CDs after the Fed raises rates this week.
I’ve worked through the #s till my head spins, and “think” we are beyond fine to RE TODAY if needed. I do plan to work as long as I can and would like to get at least 3 more years, but the new gig is definitely not what I expected. And, I’ve switched jobs often enough that I’m not in any hurry to look for something else. I’m either going to do this, or probably RE to a nice cabin in the woods somewhere.
I know this a lot of info, but would appreciate any opinions on our plan.
Thanks, and I look forward to being an active contributor here as we enter this next (somewhat frightening yet exciting) stage of our lives.
- RS
I’ve been following the forum for a while, but am just now getting around to registering and introducing myself.
I just turned 52 and DW is 58, and we’re looking to RE ASAP after each putting 30+ years into our respective careers (me – software tech sales..DW – Director at F500 company).
We’ve been blessed to have paid off our home and have zero debt. Also no kids to plan expenses for.
Current portfolio assets consist of three ‘buckets’: a cash cushion (50%), a retirement portfolio (44% - Cash, Equities & FI that are mostly funds but also some individual stock) and ~5% in DW’s company stock (RSUs). Combination of 401K, IRAs and taxable investments. No pensions (unfortunately..am surprised by how many people still seem to have these..)
Retirement bucket (the 44%) is also heavy cash at 30%, 22% US stock funds + individual issues, 20% Foreign Stock funds and 25% Bond funds. Equities are mixed over L/M/S and Growth/Value.
DW’s entire team was RIF’d in September, after she worked 30+ years for the company (nice.. thanks, guys!). She will stay on another few months and is deciding to RE or look for another job. At 58 and with some health issues, the RE option is the most likely. I just joined a new company a few months back and am still determining if the gig will work out or not – it’s much different than expected. So, we will either be down to one income (most likely ‘best case’) or maybe even down to NO income – at 52 and 58 respectively.
We have a good handle on our expenses, and I’ve been looking at strategies to minimize our premium cost for “A”CA, presuming I can keep “income” under 400% FPL, which we would definitely do.
I built a pretty detailed Excel spreadsheet that projects out income & expenses to 90+. Income would be interest (CD ladder), dividends (REIT, MLP, FI - likely Muni Bonds), etc. It also determines max ACA premium based on AGI and includes expected out of pocket healthcare, although it might be understated for later years – 70s+. Expenses increase yearly with an assumed inflation of 2%. I haven’t factored in catastrophic things like LT care or “A”CA or SS going away at some point but all else looks pretty solid.
If I’ve done this right, I figure we can get to the point we’re both > 65 and only burn down <25% of the existing cash cushion with the retirement bucket untouched (aside from market fluctuations). That’s because the CDs and dividends will cover a good part of our expenses so we don’t have to pull significantly from savings – although we will have to pull ‘some’ from the cash bucket. Note this assumes I can get >=2.5% 5-year CDs after the Fed raises rates this week.
I’ve worked through the #s till my head spins, and “think” we are beyond fine to RE TODAY if needed. I do plan to work as long as I can and would like to get at least 3 more years, but the new gig is definitely not what I expected. And, I’ve switched jobs often enough that I’m not in any hurry to look for something else. I’m either going to do this, or probably RE to a nice cabin in the woods somewhere.
I know this a lot of info, but would appreciate any opinions on our plan.
Thanks, and I look forward to being an active contributor here as we enter this next (somewhat frightening yet exciting) stage of our lives.
- RS