Well after lurking for several months, I finally feel comfortable in trying to join the conversation.
First let me say thanks to so many of you for the wealth of information that has been shared on this site. It has been deeply appreciated. Now for a brief rundown of my current financial picture.
I’m 55, retired from the fire service, but still working in another profession and looking to fully retire this summer. DW is 61 and retired for the past 4 years with no pension. She will apply for SS next month and will receive approx. $14,000 annually. My pension from the fire service has started and is currently $40,000 annually with a yearly 3% COLA provision. I will be eligible for SS at 62 and it is estimated to be at about $12,000 taking into account the windfall offset. We have no dependents.
We own our home with no mortgage, have no debt and have roughly $720,000 in retirement savings with about $410,000 of that in pretax accounts. Current allocation is probably too conservative with a 50/50 bond – equity split especially after reading many of the posts that explain the idea of looking at the defined benefits of the pension/SS in a new light .
We are both healthy with no preexisting conditions, as we will have to provide our own healthcare until we are eligible for Medicare.
In reviewing our spending, it appears that we currently spend approx. $70,000 per year in after tax money to maintain our current standard of living. Recognizing that while my healthcare expenses will increase, I believe that it will be offset somewhat by the reduction of my work related expenditures and am anticipating needing between $75,000 and $80,000 per year as a starting point in retirement.
Now the big question Will it work?
I have used the FireCalc software and it appears that I should be OK but I’m not sure if I’m missing something.
Thanks in advance for your comments and insight, it’s a great forum!
First let me say thanks to so many of you for the wealth of information that has been shared on this site. It has been deeply appreciated. Now for a brief rundown of my current financial picture.
I’m 55, retired from the fire service, but still working in another profession and looking to fully retire this summer. DW is 61 and retired for the past 4 years with no pension. She will apply for SS next month and will receive approx. $14,000 annually. My pension from the fire service has started and is currently $40,000 annually with a yearly 3% COLA provision. I will be eligible for SS at 62 and it is estimated to be at about $12,000 taking into account the windfall offset. We have no dependents.
We own our home with no mortgage, have no debt and have roughly $720,000 in retirement savings with about $410,000 of that in pretax accounts. Current allocation is probably too conservative with a 50/50 bond – equity split especially after reading many of the posts that explain the idea of looking at the defined benefits of the pension/SS in a new light .
We are both healthy with no preexisting conditions, as we will have to provide our own healthcare until we are eligible for Medicare.
In reviewing our spending, it appears that we currently spend approx. $70,000 per year in after tax money to maintain our current standard of living. Recognizing that while my healthcare expenses will increase, I believe that it will be offset somewhat by the reduction of my work related expenditures and am anticipating needing between $75,000 and $80,000 per year as a starting point in retirement.
Now the big question Will it work?
I have used the FireCalc software and it appears that I should be OK but I’m not sure if I’m missing something.
Thanks in advance for your comments and insight, it’s a great forum!