Go for Launch?

rocketjockey

rocketjockey

Recycles dryer sheets
Joined
Apr 4, 2017
Messages
71
Location
Vandenberg AFB, CA
Been around, posted a bit, but finally formally introducing myself.

As the username implies, aerospace engineer (orbital rockets) by trade. The usual salary slave dilemma of most of the money in pre-tax accounts.

Had a few family members get hit with serious illnesses lately (60 y.o. BIL had a stroke last week - lifelong vegetarian, non-smoker, non-drinker, very fit), accelerating the DW call to retire ASAP. I have always been on board with an early out (it was my idea she retire 2 years ago), but now that the edge of the cliff is within view, getting shaky.

Using Personal Capital to track expenses for past 2 years, COL is at $75k/yr in HCOL California. Some small fluff in there but also no big items like new cars or house emergencies. House only 8 years old so no major failures expected for a while.

The usual bugbear, healthcare…Planning to bump up to $80K to account for PTC deductibles/premiums.

I am aiming at managing income with our DW pension/cash/post-tax/RSUs to keep in the PTC zone for at least the next 3-4 years. If nothing changes in the ACA by then, will have to pull out bigger pre-tax amounts to pay the full cost it seems like.

We are ok with moving to a lower cost/smaller local house when/if needed. Not in our “forever” home.

FireCalc says 100%, even 100% at higher expenditures like $90K/yr or $100K.

The Facts:
Me: 49, DW: 56 (retired 2 years)
Wife: Excellent health, me – 15lb overweight, BP creeping up into bad zone if I am being honest. CoVID certainly not helping the cause on either front.
No kids!
No parents to support either.

The Funds:
Taxable $108K (cheating ex-wife in my past really wiped this one out)
RSUs $260K (can only sell sporadically when a certain eccentric billionaire decides - usually once or twice a year, but not guaranteed)
Roth IRA $80K ($53K in contributions and seasoned conversions)
403(b) $360K (Available now due to DW Rule of 55)
401(k)/IRA $1.33M
Cash $200K
HSA $11K
Home $800K
No debt
Total NW = $3.1M

Pensions:
DW: $17K/year with COLA – active now
Me: $14K/year starting at 55 (grows if I take it later)

SS:
DW: Minimal expected due to WEP & GPO
Me: hard to estimate being so far out, but I have pegged the tax limit for a long time. Using worst case of $2K/mo at 62

Everything seems ok per FireCalc and other sims, but ya know how it is when your hand is on the ejection handle……

Aiming for January 2021, but only for the silly reasons of hitting all the free money company holidays (Xmas shutdown) and getting the medical at low cost. No big bonuses out there I'd miss.

Thanks in advance if you made it this far....

Thoughts?
 
What is the plan to tap the 1.33M before 59.5?

Next I think you plan where the $80k + taxes comes from for each year up through 65/Medicare.

I am 49 as well. 50 to 65 is a long haul. We have 3 kids in various college/high school ages. Health insurance would be $18K+ + $8k deductible.

ACA helps if you can manage your income down in that $40k range. You likely can while tapping taxable/cash, but that won't last that long.

Your home equity would be a nice savior. If you had a nice $300k house in AZ and $500k more taxable/cash that extends things. The small pensions help a bit.

Roth Conversions are helpful, but you need tax to pay the tax bill and it doesn't work as well if you have to spend the Roth converted amount to live off.

The length is the difficult part. I'm aiming for 55 as that gives us 4.5 years to 59.5.

If taxable/cash and 401k were flipped around, you'd be fine. Plot every year out.
 
Reply

bloom2708 said:
What is the plan to tap the 1.33M before 59.5?

Next I think you plan where the $80k + taxes comes from for each year up through 65/Medicare.

If taxable/cash and 401k were flipped around, you'd be fine. Plot every year out.
Click to expand...

1) IF needed would be a 72(t) - But between DW 403(b) and post tax have around $900K accessible now.

2) From a combo of that $900K - I know might not make it all the way for me, but wife is 9 years away and I am 10 years from 59.5 as you said.

3) Oh I have, infinity times. Did I mention I am an aerospace engineer?:LOL: I have the Excel sheet for the ages.
 
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I lost a younger sibling at 56 and a very good friend at 65. Several acquaintances in their mid 50's. I bailed as soon as I could.

My favorite FIRE cartoon. I think this says it all:
 

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Chuckanut said:
I lost a younger sibling at 56 and a very good friend at 65. Several acquaintances in their mid 50's. I bailed as soon as I could.

My favorite FIRE cartoon. I think this says it all:
Click to expand...

This cartoon was right in the front of my mind when I wrote this, my favorite as well. And my 2nd favorite website after this one..
I call it Rich?Broke? or Dead?

Says 50% chance of dead by 80 years old, no chance of broke at 80k/yr (of course future performance not guaranteed based on past returns, blah, blah)
 
As someone in a similar field (my group occasionally sent payloads to Vandenberg) who could've probably retired at 50 but chickened out until 55 I encourage you to go sooner than later. I'm 60 now and, while fit enough, have a bunch of age related physical problems starting to creep up. Enjoy your younger body while you can.
 
rocketjockey said:
This cartoon was right in the front of my mind when I wrote this, my favorite as well. And my 2nd favorite website after this one..
I call it Rich?Broke? or Dead?

Says 50% chance of dead by 80 years old, no chance of broke at 80k/yr (of course future performance not guaranteed based on past returns, blah, blah)
Click to expand...
+1! I love the Rich, Broke or Dead website. My high school class web page has a section for those who passed. The bell curve, some 35 years later, is ramping up, but the first deaths started a year or two after graduation. I have no desire, and no intention, of making it to 95, but my wife might, so I'm planning on her longevity, not mine. After watching friends and relatives get dementia, have physical problems, and no longer be able to travel by age 80, I'm not inclined to save for that rainy day. Life in even the best assisted living facility is not for me [I stayed several days at a high-end facility last year with a friend's mom from college and while it was nice, it's not something I'm willing to endure], especially if I had significant physical or mental decline. Carpe diem, while it's still your day!
 
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We live in The Rocket City, and there are a few thousand aeronautical engineers living here working for NASA, subcontractors, missile companies, anti-ballistic missile companies, rocket companies, think tanks, and helicopters.

Are you going to continue living on the HCOL West Coast?
 
Bamaman said:
We live in The Rocket City, and there are a few thousand aeronautical engineers living here working for NASA, subcontractors, missile companies, anti-ballistic missile companies, rocket companies, think tanks, and helicopters.

Are you going to continue living on the HCOL West Coast?
Click to expand...

If/when we evac from California, would likely move to Las Vegas to cut taxes/costs and be within driving distance of DW family in SoCal. Still far more expensive than Huntsville though. Although I am not hard set on anything except has to be West of the Rocky Mts since humidity sucks!:LOL:

I have spent plenty(too much) time at Cape Canaveral/Kennedy Space Center working on launch pads in the middle of summer and/or night. Strict anti-bug/anti-humidity stance.
 
Move down to Ventura County. We have the lowest infection and death rate right now. i will be happy to show you around.

LV is too hot in the summer.
 
rocketjockey said:
After “One More Month”ing it, finally dropped the retirement notice today. April Fools Day will be first day of freedom.
Click to expand...
Congratulations!
 
rocketjockey said:
After “One More Month”ing it, finally dropped the retirement notice today. April Fools Day will be first day of freedom.
Click to expand...


Congratulations! [emoji324][emoji898][emoji323]

And what was the deciding factor that finally convinced you?
I’ve been doing“one more quarter”
For a few quarters now. It’s submitting that final notice that keeps getting me.
 
Irishgirlyc58 said:
Congratulations! [emoji324][emoji898][emoji323]

And what was the deciding factor that finally convinced you?
I’ve been doing“one more quarter”
For a few quarters now. It’s submitting that final notice that keeps getting me.
Click to expand...

I was down to one more week-ing it, and then the President of the company (who hired me and made special provisions for my situation), announced she was departing on April 1st. That seemed like a good sign, as the only thing holding me back was not letting her down since she went out of her way to bring me on board. With new management now, no sense of regret.
 
Congratulations, that is some sweet timing, I have to say. The standard answer of "nobody is irreplaceable, they will survive, you owe them nothing" gets a little old to say. Now you two can share a toast out the door :)
 
Congratulations! Living on the southeast coast of Florida, I'm privileged, now and then, to see a rocket launch while jogging on the beach in the early a.m. What a sight that is. Like a big orange moon rising, and then the first stage falls off into the ocean, creating a glow on the horizon that lasts for at least 15 minutes.

Have fun!

rocketjockey said:
Been around, posted a bit, but finally formally introducing myself.

As the username implies, aerospace engineer (orbital rockets) by trade. The usual salary slave dilemma of most of the money in pre-tax accounts.

?
Click to expand...
 
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