I finally FIRED today - Got my last paycheck

Shinge1233 said:
Hi cyber888, I am planning to retire at 58 too. Actually 4 years from today. When I reach 58, I will have full coverage insurance of medical, $7200 / month pension, $2300 / month 401k withdraw (4% rule), and no debt... Similar case with you but you even are better. I hope you will enjoy very much your retirement life��. I believe my case not very rich but enough...��
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That's great Shinge! You're set for life. Congratulations. You're in a better income level than me with about $9,500/month.
I hope your State does not tax you on retirement income. We don't pay State tax for SS. Good luck to you Man, you can blow the dow !
 
cyber888 said:
That's great Shinge! You're set for life. Congratulations. You're in a better income level than me with about $9,500/month.
I hope your State does not tax you on retirement income. We don't pay State tax for SS. Good luck to you Man, you can blow the dow !
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Thanks...
I am living in California... All retirement is subject to tax....😞
 
Shinge1233 said:
Thanks...
I am living in California... All retirement is subject to tax....😞
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No problem my friend. Even if your $9500/month gets taxed, your net is still about $8000+/month. You can blow the dough. Buy a sports car and spend your time in Big Sur or the nice beaches.
 
cyber888 said:
No problem my friend. Even if your $9500/month gets taxed, your net is still about $8000+/month. You can blow the dough. Buy a sports car and spend your time in Big Sur or the nice beaches.
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Yes, also we can drive uber a little if we need some extra money or spend time. 🙂.
 
cyber888 said:
... I'm purchasing a joint lifetime annuity now at 7.12% rate so that will go a long way, since I have no pension. Last month it was 6.9%, so its the right time to get this annuity. With SS and this annuity, we'll be getting around $5000/month income.
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militaryman said:
>7% -- I have not seen rates this high, where do I look for these? :D
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I'm betting that 7% is the annuities payout rate and not the rate of return. The IRR is probably more like 4-5%. The payout rate is higher because a portion of each annuity benefit payment is a return of your own principle. It is a common misunderstanding.
 
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If a lot of the OPs seven figure balance is tax deferred, he may want to look into what his tax situation will be come RMD time and see if Roth conversions would be beneficial if he lives long. If they are, it might be a good reason to delay SS.
 
militaryman said:
>7% -- I have not seen rates this high, where do I look for these? :D
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Right now, their highest rate is 6.75% if you're just starting (see link below, and try to scroll down for their rates)
Since I've been with them 20+ years, they give a bonus for long-term clients.

This is a joint lifetime annuity, so I'm getting a lower rate of 7.12%-7.13%, but for a single lifetime annuity, I could get close to 8%

As several retirees on this retirement forum has attested, TIAA is a AAA+ rated institution and their annuities have keep on increasing over the years. Meaning, if you buy an annuity from them, historically, they will increase that rate upwards. Link below.

Since you are a military man, you might have access to TIAA, since they cater to universities, govt. employees, military and healthcare workers.


https://www.tiaa.org/public/land/crediting-rates-increase
 
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pb4uski said:
If a lot of the OPs seven figure balance is tax deferred, he may want to look into what his tax situation will be come RMD time and see if Roth conversions would be beneficial if he lives long. If they are, it might be a good reason to delay SS.
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Thanks pb4uski, I have about $250K in cash and iBonds earning 4.2% - 5% for the cash, and my iBonds have been earning 7.1%, 9.62% and 6.84%.

My state does not tax socials security, so that's to my advantage. Roth conversion will come to play when the nest egg gets bigger than I'm comfy with.
 
pb4uski said:
I'm betting that 7% is the annuities payout rate and not the rate of return. The IRR is probably more like 4-5%. The payout rate is higher because a portion of each annuity benefit payment is a return of your own principle. It is a common misunderstanding.
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Yup, I completely understand it is a payout rate. Annuities are always about payout rates. Since I'm only 59 and they are giving me that 7.12% payout rate now, I will get my principal back when I hit 73-74 years old. If I live to 120, it's all good :D
 
Fired

Congratulations on reaching FIRE at 59. It took me years to figure out that lack of consumerism leads to a simpler, easier, less "stuff" in my life....
Hope that the next few years you are at peace with the decision and life an adventurous and happy life !! I am 50, been life long teacher, pivoting career, but hope to at least "semi" retire at age 55 so I (and wife) can travel on off peak times !!!
 
You are correct Jman.
At some point, you stop buying stuff you do not really need.
For us the priority is food and travel. We have enough clothes, stuff and our 2 vehicles with 30K+ miles should last us another 8-10 years before any of our 2 vehichles reach 80,000 miles.

jman said:
Congratulations on reaching FIRE at 59. It took me years to figure out that lack of consumerism leads to a simpler, easier, less "stuff" in my life....
Hope that the next few years you are at peace with the decision and life an adventurous and happy life !! I am 50, been life long teacher, pivoting career, but hope to at least "semi" retire at age 55 so I (and wife) can travel on off peak times !!!
Click to expand...
 
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