Golfquest20
Dryer sheet wannabe
Hello, been lurking and have decided to join in. Sometime in the next 6 months I hope to be quite active here; learning and sharing. Because it is within that timeframe that we hope to FIRE.
I would appreciate feedback on our situation. We have used Firecalc, and ran various scenarios. The outcomes have been in the 100% success range but I’m not certain I’m using the tool to its fullest potential. We have carefully tracked our annual spend rate for the past 5 years. Anyway..
• Me: 49
• DH: 52
• One son: 16
• No debt
• 5 year old house paid off
• Two new cars, both 2019 models, paid off plus used car for son also paid off. All vehicles will be kept for 10 yrs +
• College paid in full in advance, 90% held in 529K/remaining 10% in cash, $ not included below
• With employer I am eligible to purchase retiree health insurance for 3 of us/no subsidy/$36,000 per yr which includes medical, dental and vision. Very expensive but good insurance
• We are also exploring me staying on retiree health insurance so that we have the option to go back to all of us being covered if affordable care falls apart. If we all opt out now, we can never return to the plan. But in the meantime, husband and son would purchase separate policy in the marketplace to lower our overall health insurance costs
• We purchased a single premium long-term insurance policy with an inflation rider. Would cover 60% of nursing home stay for both for 3 years, remainder potentially coming from home sale if care ends up being necessary
• Our current spend rate is $64,000 after tax, including all fixed expenses, discretionary spending, and a lumpy category for home repairs, future cars, etc. We do have room to lower this requirement slightly if necessary; all hobbies and travel are included
• Total annual spend requirement, including $36,000 for health insurance is $100K/yr. between now and age 65 Medicare for both. At that point, I would hope our required spend would be at least 10% to 20% less. Planning horizon would be 95 years old for both. Hopefully $36k for health insurance is the worst possible scenario, we think we can get cost down to under $28K with a part retiree insurance/part affordable care hybrid of sorts
• DH may work part time for next 4 years but would not make more than $20K per year
• $1,976,000 tax deferred (401ks, Trad’l IRA’s) 45 stock/30 bond/25 cash
• $1,355,000 taxable (Including first 4 years spending in laddered CD’s) 46 stock/29 bond/25 cash
• $30,000 Savings/Emergency
• Additional $ set aside not included here for eventual son wedding and to cover his car insurance premium until 24
• All taxable and deferred savings are at Vanguard, Fidelity and T Rowe. CDs at Capital One and local banks
• S.S. retiring now, zeroes for remaining years prior to 65 then taken at 65 for both: $16,500 DH and $15,500 DW if we reduce payout by 40%. At 100% projected payout, also both retiring at 65: $27,000 DH and $26,000 DW. Waiting to draw at 70 more yet but I didn’t run the numbers at that age
• One DH pension/no cola/$7,100 per year at 65 with joint survivorship
• When Dow reached 29,000 we got cold feet and moved some stock fund earnings to cash, hence the conservative allocation above. We got anxious as we are close to pulling the trigger. I guess we just can’t bear to see a large back-up at this point. The fear will pass and at some point we will look for a buying opportunity to get back to 50+ in stocks.
We have many hobbies and like to travel…always seeking ways to travel for less. For the number crunchers here, would we be ok to retire May 1 of this year? Any suggestions on things to do differently?
Thank you so very much!
I would appreciate feedback on our situation. We have used Firecalc, and ran various scenarios. The outcomes have been in the 100% success range but I’m not certain I’m using the tool to its fullest potential. We have carefully tracked our annual spend rate for the past 5 years. Anyway..
• Me: 49
• DH: 52
• One son: 16
• No debt
• 5 year old house paid off
• Two new cars, both 2019 models, paid off plus used car for son also paid off. All vehicles will be kept for 10 yrs +
• College paid in full in advance, 90% held in 529K/remaining 10% in cash, $ not included below
• With employer I am eligible to purchase retiree health insurance for 3 of us/no subsidy/$36,000 per yr which includes medical, dental and vision. Very expensive but good insurance
• We are also exploring me staying on retiree health insurance so that we have the option to go back to all of us being covered if affordable care falls apart. If we all opt out now, we can never return to the plan. But in the meantime, husband and son would purchase separate policy in the marketplace to lower our overall health insurance costs
• We purchased a single premium long-term insurance policy with an inflation rider. Would cover 60% of nursing home stay for both for 3 years, remainder potentially coming from home sale if care ends up being necessary
• Our current spend rate is $64,000 after tax, including all fixed expenses, discretionary spending, and a lumpy category for home repairs, future cars, etc. We do have room to lower this requirement slightly if necessary; all hobbies and travel are included
• Total annual spend requirement, including $36,000 for health insurance is $100K/yr. between now and age 65 Medicare for both. At that point, I would hope our required spend would be at least 10% to 20% less. Planning horizon would be 95 years old for both. Hopefully $36k for health insurance is the worst possible scenario, we think we can get cost down to under $28K with a part retiree insurance/part affordable care hybrid of sorts
• DH may work part time for next 4 years but would not make more than $20K per year
• $1,976,000 tax deferred (401ks, Trad’l IRA’s) 45 stock/30 bond/25 cash
• $1,355,000 taxable (Including first 4 years spending in laddered CD’s) 46 stock/29 bond/25 cash
• $30,000 Savings/Emergency
• Additional $ set aside not included here for eventual son wedding and to cover his car insurance premium until 24
• All taxable and deferred savings are at Vanguard, Fidelity and T Rowe. CDs at Capital One and local banks
• S.S. retiring now, zeroes for remaining years prior to 65 then taken at 65 for both: $16,500 DH and $15,500 DW if we reduce payout by 40%. At 100% projected payout, also both retiring at 65: $27,000 DH and $26,000 DW. Waiting to draw at 70 more yet but I didn’t run the numbers at that age
• One DH pension/no cola/$7,100 per year at 65 with joint survivorship
• When Dow reached 29,000 we got cold feet and moved some stock fund earnings to cash, hence the conservative allocation above. We got anxious as we are close to pulling the trigger. I guess we just can’t bear to see a large back-up at this point. The fear will pass and at some point we will look for a buying opportunity to get back to 50+ in stocks.
We have many hobbies and like to travel…always seeking ways to travel for less. For the number crunchers here, would we be ok to retire May 1 of this year? Any suggestions on things to do differently?
Thank you so very much!