Hi,
So I'm only 42 and run lots of retirement calculators and most of them say I could retire now. As an engineer in Telecom I've survived 60+ layoffs and I would really like to step away from the corporate BS and may be forced to by year end at least find something new.
Current Age:42
Spouse: 43
No Kids and no plans to
Annual Expenses: $52K, expect to reduce to $40K once we move out of Chicago to Denver, CO.
Net Worth: $1.1M
- $450K 401K (Vanguard 2035 Fund
- $50K ROTH IRA (Vanguard 2035 Fund
- $50K Traditional IRA (Vanguard 2035 Fund
- $390K Stock Investment (10% bonds, 35% Dividend Funds, 55% Stock)
- $52K Money Market
- $96K Home (factoring in real estate agent and closing costs)
- Pension of $2,050/yr no inflation adjustment started 3 years ago
- Dividend funds generate $12K/yr
- Assumed $500/month for each of us for insurance plus $6k in a HSA. Currently no medical conditions and on no medicines.
Plan to sell Home in Chicago, move to Denver, rent for a year and then buy a small condo/townhome on a 20 year mortgage which would reduce costs by $1000/month.
My spouse plans to continue to work through age 65, but as a writer his income is not dependable so I've assumed only a minimal $10K per year contribution.
Running through FIRE,
- Age 90, retire now
- $50K withdrawel adjusted for inflation
- $2K pension + $10K spouses income
came to 97% chance of success .. yet I just feel like I'm missing something...I know I've insanely saved for 20 years.. usually 35% plus of my salary...so 35 to government including a 9K property tax and 11.5% sales tax in Chicago, 35 to savings, left me with only about 30% to live on...which is why I feel $50K is totally doable if I'm no longer saving or living in TAX R US Chicago. $50K gives me $8K extra each year for "life happens'.
Its not like I may not work going forward.. I just want the option NOT to work and not be stressed out if I lose my job. I think my biggest concern is that I'm looking at 50 years.. doesn't seem like $1.1M is enough to last that long. Not sure how people walk away...and not sure if mine is more just mental or if I am missing something in the math.
So I'm only 42 and run lots of retirement calculators and most of them say I could retire now. As an engineer in Telecom I've survived 60+ layoffs and I would really like to step away from the corporate BS and may be forced to by year end at least find something new.
Current Age:42
Spouse: 43
No Kids and no plans to
Annual Expenses: $52K, expect to reduce to $40K once we move out of Chicago to Denver, CO.
Net Worth: $1.1M
- $450K 401K (Vanguard 2035 Fund
- $50K ROTH IRA (Vanguard 2035 Fund
- $50K Traditional IRA (Vanguard 2035 Fund
- $390K Stock Investment (10% bonds, 35% Dividend Funds, 55% Stock)
- $52K Money Market
- $96K Home (factoring in real estate agent and closing costs)
- Pension of $2,050/yr no inflation adjustment started 3 years ago
- Dividend funds generate $12K/yr
- Assumed $500/month for each of us for insurance plus $6k in a HSA. Currently no medical conditions and on no medicines.
Plan to sell Home in Chicago, move to Denver, rent for a year and then buy a small condo/townhome on a 20 year mortgage which would reduce costs by $1000/month.
My spouse plans to continue to work through age 65, but as a writer his income is not dependable so I've assumed only a minimal $10K per year contribution.
Running through FIRE,
- Age 90, retire now
- $50K withdrawel adjusted for inflation
- $2K pension + $10K spouses income
came to 97% chance of success .. yet I just feel like I'm missing something...I know I've insanely saved for 20 years.. usually 35% plus of my salary...so 35 to government including a 9K property tax and 11.5% sales tax in Chicago, 35 to savings, left me with only about 30% to live on...which is why I feel $50K is totally doable if I'm no longer saving or living in TAX R US Chicago. $50K gives me $8K extra each year for "life happens'.
Its not like I may not work going forward.. I just want the option NOT to work and not be stressed out if I lose my job. I think my biggest concern is that I'm looking at 50 years.. doesn't seem like $1.1M is enough to last that long. Not sure how people walk away...and not sure if mine is more just mental or if I am missing something in the math.