donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Skimming through it sounds like most people are advising you as I would to look at expenses and sources of funds to meet them. Your portfolio (and pensions, SS, etc.) are your sources of funds. Your mortgage is an expense, but one that will stop at some point. Your house is a static asset but a very useful one as it gives you a rent free place to live (after considering taxes and maintenance).
Unless you plan to sell and switch to rent in the foreseeable near term, leave the house equity out of the ER equation. It's still in your net worth since it will pass to your beneficiaries when you kick but won't be a source of funds unless you are planning on a reverse mortgage in which case, you are probably pulling the plug to early.
If you think in those terms it is pretty easy to make the calculations. Take a hard eyed look at expenses over a few years back and figure out what they will be if you retire. Taxes will continue but will be quite different. No payroll taxes, lower income taxes over the short term, ramping back up when you take RMDs. Once you have the expenses figured out take the same hard eyed look at sources of funds. Pensions - when, how much, any COLA? SS - when and how much? Portfolio - how much, how diversified, what is your view on a SWR? That last figure, SWR from your portfolio, will answer whether your are in good shape to ER. Take some time on that one.
Unless you plan to sell and switch to rent in the foreseeable near term, leave the house equity out of the ER equation. It's still in your net worth since it will pass to your beneficiaries when you kick but won't be a source of funds unless you are planning on a reverse mortgage in which case, you are probably pulling the plug to early.
If you think in those terms it is pretty easy to make the calculations. Take a hard eyed look at expenses over a few years back and figure out what they will be if you retire. Taxes will continue but will be quite different. No payroll taxes, lower income taxes over the short term, ramping back up when you take RMDs. Once you have the expenses figured out take the same hard eyed look at sources of funds. Pensions - when, how much, any COLA? SS - when and how much? Portfolio - how much, how diversified, what is your view on a SWR? That last figure, SWR from your portfolio, will answer whether your are in good shape to ER. Take some time on that one.
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