chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
It seems to me that TG should be all set and should not have to go back to a job she hates.
With an estimated annual expense of 24K and 6K for insurance. Her 26k pension along with a 4% withdrawal from her pertfolio would generate 40K of income which should be enough in my opinion.
TG,
I am not sure if you used Firecalc but you can plug in your SS benefits at 62, 65 and 70 and compare the results.
Good luck in your retirement.
Hmmm. She's asking for opinions. I am not opposed to a differing points of view.
You shared your opinion and I shared mine.
Of course, each of us is looking at the problem for our individual perspective which shades our opinions.
IMHO it is not about wanting to work vs retirement, rather about securing a viable financial position before retiring. That is fine if you have other resources to fill the gap. In my opinion, her plan is a little weak and the resources are a bit lean if one considers that she is funding a retirement for the next 35 years (possibly). [No offense TG, you are in pretty good financial shape... But the plan seems to need work!]
CBO - I am inclined to agree, it can probably work as long as expenses are managed aggressively (this of course depends on expected expenses as one ages).
There is usually a sizable penalty for early retirement. It sounds like she is valued where she worked (or they would not take her back). There is probably something positive in the mix. Going back for a few years might help.
Could some of the plan's weakness be shored up with a different portfolio strategy? Perhaps. But if she seems market risk averse, working to add to the savings and growing the pensions seems reasonable.
Yes, it is about taking a risk. One's health could fail or they could die. On the other hand they could live into their nineties and we could hit a high inflationary period.
All in all, one rock solid piece of advice that no one should dispute: Do a financial plan (i.e., projection)!
I can see where one's disgust with work could push them into a decision that might not be the best balanced decision. I am struggling with similar issues. I think we all do. I could pull the plug now. I am sitting in a fairly good position. But if I wait another 4 years, I am in rock solid shape. So my decision point is 4 years of work versus going with a workable yet perhaps less solid foundation.
Peace. O0