Forgive me if this has been posted before, but I have learned so much over the last few weeks from this community that I want to share something I've just figured out.
I am planning to retire this year at 55. Ideally I would like to live off my DB pension and taxable assets until I am 70, and then (and only then) tap SS and my tIRA's.
So in Fidelity RIP I put in a planning horizon of 15 years, deleted all my 401(k), 403(b), tIRA and Roth accounts, put my and DW's SS starting at 70, pushed the button and voila! I got the likelihood of running through my taxable accounts before age 70. Obviously can do the same exercise in FIREcalc, although haven't tried it yet.
Turns out I only have a 34% chance of this working, but worst case (90% confidence) I would run out of taxable assets at 65 and this is assuming my company stock price goes nowhere for a decade as I put all my options in at the current in-the-money value.
Hope this tip is useful to someone.
Hmmm maybe I should be taking some tIRA withdrawals before RMD's required or at least doing some Roth conversion while I am in low bracket before SSx2 kicks in - but that is another topic. Maybe need to consult ORP tool to answer that one.
I am planning to retire this year at 55. Ideally I would like to live off my DB pension and taxable assets until I am 70, and then (and only then) tap SS and my tIRA's.
So in Fidelity RIP I put in a planning horizon of 15 years, deleted all my 401(k), 403(b), tIRA and Roth accounts, put my and DW's SS starting at 70, pushed the button and voila! I got the likelihood of running through my taxable accounts before age 70. Obviously can do the same exercise in FIREcalc, although haven't tried it yet.
Turns out I only have a 34% chance of this working, but worst case (90% confidence) I would run out of taxable assets at 65 and this is assuming my company stock price goes nowhere for a decade as I put all my options in at the current in-the-money value.
Hope this tip is useful to someone.
Hmmm maybe I should be taking some tIRA withdrawals before RMD's required or at least doing some Roth conversion while I am in low bracket before SSx2 kicks in - but that is another topic. Maybe need to consult ORP tool to answer that one.