takeprofits
Confused about dryer sheets
- Joined
- Feb 5, 2013
- Messages
- 2
Hello, been lurking for a few years…
Planning to early retire sometime in 2015 at 57, maybe saving 5+ weeks of vacation until summer starts and easing myself out with 3 day weeks for about 4 months, until the end. Portfolio is about $1.8 mil, split roughly in thirds between taxable account, IRAs (2/3 Roth & 1/3 Trad.) and 401K. Invested 33/67 Stocks/Fixed Income, with half of “fixed” in 2-3% CDs & 401K stable value at 2.5%). Debt free, no mortgage on $300K house. Plan to actually increase stock allocation in next 5+ years (see Wade Pfau Rising Glide Path Thumbs Down on a Retiree Rule of Thumb-Kiplinger), investing excess earnings, but afraid of taking a big market hit, right at the start of retirement.
Over 30 years with Megacorp will yield me retiree healthcare and a yearly pension of about $35 – 40K depending on 50%/75%/100% spouse survivor option (leaning towards 75%). No COLA. I also have option of taking about 45% of it as a lump sum, with remaining as pension. Struggling with decision on that, and formula changes, making partial lump option look better at end of 2014, than next year, though final comparison for 2015 not out until mid-Dec. So there is still a slight chance I’ll bolt at the end of this year, 2014. I’ve looked at the Megacorp pension bucket, as my safest money, so if I take the partial lump, wondering if I should invest like rest of portfolio, or buy immediate annuities over several years. Annuities from insurance companies about match what I’d get from Megacorp by not taking that partial lump, but offer more non-spouse survivor options (10-20 yr guaranteed payouts, cash refunds, etc. to survivors), and would split my risk, if Megacorp’s pension went belly up. Family has longevity.
Expenses tracked for 3 years, run $65,000 per year. If I take the pension, I should need no more than 2% return on my assets to fund my yearly costs. Will figure out when to take Social Security once we get to 62, but will probably wait until 66 or so, which is my full retirement age. Wife has not worked since kids were born.
I was close to retiring in the last 1-2 years, but decided I wasn’t quite ready to hang it up and working several days per week from home makes it easier. Kids are on their own. Decided these last couple working years were ones for the DW and I to take some big trips which we have done & spend more money than two normally frugal people usually do.
Definitely planning more travel, volunteering (what ?) and time for hobbies, but still struggling with what will keep me engaged and meaningfully fill my time once retired, especially in cold Midwest winters.
I welcome thoughts and comments.
Planning to early retire sometime in 2015 at 57, maybe saving 5+ weeks of vacation until summer starts and easing myself out with 3 day weeks for about 4 months, until the end. Portfolio is about $1.8 mil, split roughly in thirds between taxable account, IRAs (2/3 Roth & 1/3 Trad.) and 401K. Invested 33/67 Stocks/Fixed Income, with half of “fixed” in 2-3% CDs & 401K stable value at 2.5%). Debt free, no mortgage on $300K house. Plan to actually increase stock allocation in next 5+ years (see Wade Pfau Rising Glide Path Thumbs Down on a Retiree Rule of Thumb-Kiplinger), investing excess earnings, but afraid of taking a big market hit, right at the start of retirement.
Over 30 years with Megacorp will yield me retiree healthcare and a yearly pension of about $35 – 40K depending on 50%/75%/100% spouse survivor option (leaning towards 75%). No COLA. I also have option of taking about 45% of it as a lump sum, with remaining as pension. Struggling with decision on that, and formula changes, making partial lump option look better at end of 2014, than next year, though final comparison for 2015 not out until mid-Dec. So there is still a slight chance I’ll bolt at the end of this year, 2014. I’ve looked at the Megacorp pension bucket, as my safest money, so if I take the partial lump, wondering if I should invest like rest of portfolio, or buy immediate annuities over several years. Annuities from insurance companies about match what I’d get from Megacorp by not taking that partial lump, but offer more non-spouse survivor options (10-20 yr guaranteed payouts, cash refunds, etc. to survivors), and would split my risk, if Megacorp’s pension went belly up. Family has longevity.
Expenses tracked for 3 years, run $65,000 per year. If I take the pension, I should need no more than 2% return on my assets to fund my yearly costs. Will figure out when to take Social Security once we get to 62, but will probably wait until 66 or so, which is my full retirement age. Wife has not worked since kids were born.
I was close to retiring in the last 1-2 years, but decided I wasn’t quite ready to hang it up and working several days per week from home makes it easier. Kids are on their own. Decided these last couple working years were ones for the DW and I to take some big trips which we have done & spend more money than two normally frugal people usually do.
Definitely planning more travel, volunteering (what ?) and time for hobbies, but still struggling with what will keep me engaged and meaningfully fill my time once retired, especially in cold Midwest winters.
I welcome thoughts and comments.
