Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Hello everyone. I guess this will be my intro post.
I am married and we have plans to retire in 2014 (if things look ok)
We are not where I would really like to be right now, but we are saving every penny and hopefully will get there. We have $420K in 401Ks, $55K in traditional IRA, $30K in Roths for a total of $505K in tax deferred (50% stock, 50% bond). In taxable we have $200K in cash (bank saving account), $200K in VTI, $100K in VXUS, and $30K in Ibonds, for a total of $530K. We have a house that we will sell for a $150K profit (hopefully). We have two new cars and no debt other than the house.
Income is about $200K a year, of which we save about $105K (including the 401K contribution). Taxes are reasonably heavy because we have no kids and a small mortgage, few deductions.
The 200K in cash we have is from a company stock sale and has already been taxed. It needs to go into some investment soon.
I guesstimate that we will look like this in 2 years after selling the house(retiring fall 2014):
tax deferred total: $560K
taxable total: $800K
Ok, here is where it gets tricky. We will only be 45 years old when we want to ER. That is a long ways away from SS. We do live fairly cheaply, but want to move around a bit, enjoying an area for 3 months to a year then try something different. Initially we thought RV, but now I am thinking we buy a Fuso box van (which can hold our enduro motorcycles) and use it to move from point to point, possibly with some extended camping trips in the southwest (I love Nevada and Utah). We want to rent a tiny place in the Florida keys for 3 monthsduring the winter, spend a summer in Maine, spend summer in Alaska, etc.
$1.36M portfolio. Sounds like a lot to some, not much at all to others. I am not sure it can last us until 85 or 90 unless we go with a really really low SWR, like 1.5% or maybe 2%.
Let us be optimistic and take 2% SWR and further assume that it allows the portfolio to keep up with inflation. That would give us a yearly income of $27,200 (ouch). Because a lot of our money has already been taxed (the 200K in cash we have now and the 150K from the house), we will pay no federal tax. I will choose a home base state that has no income tax or tax on capital gains. So we can use the full $27,200 figure for our budget.
$27,200 annual income
$2266 monthly income
Monthly expenses:
$800 housing + utilities
$400 healthcare (the great big unknown, may keep us from retiring)
$400 food
$100 vehicle insurance, fees
$100 vehicle maint.
$300 gas
$166 everything else
I think we will have to do some supplemental work (software contract work) during some years because this is very tight. If we camp out in Nevada for a summer, housing might be cheaper, but it will be more expensive in places like the Florida keys even in a tiny 1bd.
I do wonder if the $400 for healthcare is high or low. $400 is 17.6% of our income, which is much higher than the Obamacare calculators say it will be. I actually worry that we will be forced onto medicaid and few doctors will take us. As mentioned in my other thread, I will have no good clue about all of this until 2014, and I need to start selling our house in 2013.
Thanks for reading. I am open to any suggestions. Great forum!
I am married and we have plans to retire in 2014 (if things look ok)
We are not where I would really like to be right now, but we are saving every penny and hopefully will get there. We have $420K in 401Ks, $55K in traditional IRA, $30K in Roths for a total of $505K in tax deferred (50% stock, 50% bond). In taxable we have $200K in cash (bank saving account), $200K in VTI, $100K in VXUS, and $30K in Ibonds, for a total of $530K. We have a house that we will sell for a $150K profit (hopefully). We have two new cars and no debt other than the house.
Income is about $200K a year, of which we save about $105K (including the 401K contribution). Taxes are reasonably heavy because we have no kids and a small mortgage, few deductions.
The 200K in cash we have is from a company stock sale and has already been taxed. It needs to go into some investment soon.
I guesstimate that we will look like this in 2 years after selling the house(retiring fall 2014):
tax deferred total: $560K
taxable total: $800K
Ok, here is where it gets tricky. We will only be 45 years old when we want to ER. That is a long ways away from SS. We do live fairly cheaply, but want to move around a bit, enjoying an area for 3 months to a year then try something different. Initially we thought RV, but now I am thinking we buy a Fuso box van (which can hold our enduro motorcycles) and use it to move from point to point, possibly with some extended camping trips in the southwest (I love Nevada and Utah). We want to rent a tiny place in the Florida keys for 3 monthsduring the winter, spend a summer in Maine, spend summer in Alaska, etc.
$1.36M portfolio. Sounds like a lot to some, not much at all to others. I am not sure it can last us until 85 or 90 unless we go with a really really low SWR, like 1.5% or maybe 2%.
Let us be optimistic and take 2% SWR and further assume that it allows the portfolio to keep up with inflation. That would give us a yearly income of $27,200 (ouch). Because a lot of our money has already been taxed (the 200K in cash we have now and the 150K from the house), we will pay no federal tax. I will choose a home base state that has no income tax or tax on capital gains. So we can use the full $27,200 figure for our budget.
$27,200 annual income
$2266 monthly income
Monthly expenses:
$800 housing + utilities
$400 healthcare (the great big unknown, may keep us from retiring)
$400 food
$100 vehicle insurance, fees
$100 vehicle maint.
$300 gas
$166 everything else
I think we will have to do some supplemental work (software contract work) during some years because this is very tight. If we camp out in Nevada for a summer, housing might be cheaper, but it will be more expensive in places like the Florida keys even in a tiny 1bd.
I do wonder if the $400 for healthcare is high or low. $400 is 17.6% of our income, which is much higher than the Obamacare calculators say it will be. I actually worry that we will be forced onto medicaid and few doctors will take us. As mentioned in my other thread, I will have no good clue about all of this until 2014, and I need to start selling our house in 2013.
Thanks for reading. I am open to any suggestions. Great forum!