Hello Folks,
I would like to share my early retirement story and get your comments and feedback on our plan.
We took early retirement this year.
We are in our early fifties. We were both employed in the tech industry in the Bay area, California.
We have been fortunate to have good retirement plans from our employers, which currently stand at 1.5M+ combined. Most of it is in traditional 401k, remaining in Roth. We also have a 2.5M+ in taxable accounts (brokerages, bank/CD/savings bonds).
We have 2 mortgages, one for our current home and the other for a rental property. The rental is almost net cash flow neutral (rental income almost equals rental expenses). Recently we refinanced both mortgages for 30 years.
We have some dividend income that we no longer reinvest. We also have a bank savings/CD and I bonds portfolio. These should cover expenses for the next 4 years, then we will pull some LT capital gains from stocks. During the first 5-8 retirement years we plan to do some Roth conversions while minimizing the tax impact. We do not plan to touch Roth accounts for as long as possible.
For medical insurance, we signed up for COBRA. Insurance under ACA is an option after COBRA expires. At age 55, one of our employer's Retirement Health Insurance Plans becomes available as bridge insurance until we become eligible for Medicare at 65. We are looking into Long Term Care Insurance, not sure if it is worth it.
We hope to live comfortably in the Bay area for the foreseeable future.
I would like to share my early retirement story and get your comments and feedback on our plan.
We took early retirement this year.
We are in our early fifties. We were both employed in the tech industry in the Bay area, California.
We have been fortunate to have good retirement plans from our employers, which currently stand at 1.5M+ combined. Most of it is in traditional 401k, remaining in Roth. We also have a 2.5M+ in taxable accounts (brokerages, bank/CD/savings bonds).
We have 2 mortgages, one for our current home and the other for a rental property. The rental is almost net cash flow neutral (rental income almost equals rental expenses). Recently we refinanced both mortgages for 30 years.
We have some dividend income that we no longer reinvest. We also have a bank savings/CD and I bonds portfolio. These should cover expenses for the next 4 years, then we will pull some LT capital gains from stocks. During the first 5-8 retirement years we plan to do some Roth conversions while minimizing the tax impact. We do not plan to touch Roth accounts for as long as possible.
For medical insurance, we signed up for COBRA. Insurance under ACA is an option after COBRA expires. At age 55, one of our employer's Retirement Health Insurance Plans becomes available as bridge insurance until we become eligible for Medicare at 65. We are looking into Long Term Care Insurance, not sure if it is worth it.
We hope to live comfortably in the Bay area for the foreseeable future.