kurtzoe
Confused about dryer sheets
DW and I are 60 and looking forward to retiring ASAP. I’ve been in sales and DW is a teacher:
The assets:
$1.675M portfolio (will roll 500k of this into wife’s pension to increase annual payout)
With this rollover DW pension will be:
• 30k annually cola’d
• 43k annually non-cola’d (this is from the rollover)
• I am protected on 67% of this if DW predeceases me
My SS will be 25k per year starting in 2019
DW is not SS eligible
Owe 40k on mortgage
Practically debt free but for a car payment of $400 for 2.5 more years
Remaining portfolio will be $1,135M after paying off mortgage and investing in DW pension as above
The expenses:
60-65 106/year
65-75 92/year
75+ 88/year
I can’t say that I have been tracking this carefully but went through all 2016 spending last year and this is what I estimate. (getting this right is the part that concerns me the most)
Is there a way to plug these values into Firecalc? I’m afraid that the Bernicke’s model is too aggressive and I’m trying to be as conservative with this modeling as possible. I therefore used the constant spending model.
The results:
With-
• $1M portfolio (1.675k minus 500k for the pension buy up, 40k for the mortgage buy off and 135k to make up for lost income until SS kicks in; along with other misc. expenses, car replacement etc.)
• 98k annual spend
• Constant spending power
• 100k withdrawal in 2020 (for wedding expenses that may or may not come)
• 1% investment fees
• Pension and ss income as listed above
• 70/30 equity to fixed income mix
100% success rate-
I think I’ve done this very conservatively but I’m not sure I have the spend right. I have 24.5k in annual taxes in my expense number. 5.5k of that is property and the rest income. I do foresee ultimately leaving CT which taxes SS & pension income for maybe PA which does not.
Health care I have at 19k till 65 then dropping to 6k when Medicare kicks in and I only have to buy a supplement.
Feedback please…….
The assets:
$1.675M portfolio (will roll 500k of this into wife’s pension to increase annual payout)
With this rollover DW pension will be:
• 30k annually cola’d
• 43k annually non-cola’d (this is from the rollover)
• I am protected on 67% of this if DW predeceases me
My SS will be 25k per year starting in 2019
DW is not SS eligible
Owe 40k on mortgage
Practically debt free but for a car payment of $400 for 2.5 more years
Remaining portfolio will be $1,135M after paying off mortgage and investing in DW pension as above
The expenses:
60-65 106/year
65-75 92/year
75+ 88/year
I can’t say that I have been tracking this carefully but went through all 2016 spending last year and this is what I estimate. (getting this right is the part that concerns me the most)
Is there a way to plug these values into Firecalc? I’m afraid that the Bernicke’s model is too aggressive and I’m trying to be as conservative with this modeling as possible. I therefore used the constant spending model.
The results:
With-
• $1M portfolio (1.675k minus 500k for the pension buy up, 40k for the mortgage buy off and 135k to make up for lost income until SS kicks in; along with other misc. expenses, car replacement etc.)
• 98k annual spend
• Constant spending power
• 100k withdrawal in 2020 (for wedding expenses that may or may not come)
• 1% investment fees
• Pension and ss income as listed above
• 70/30 equity to fixed income mix
100% success rate-
I think I’ve done this very conservatively but I’m not sure I have the spend right. I have 24.5k in annual taxes in my expense number. 5.5k of that is property and the rest income. I do foresee ultimately leaving CT which taxes SS & pension income for maybe PA which does not.
Health care I have at 19k till 65 then dropping to 6k when Medicare kicks in and I only have to buy a supplement.
Feedback please…….