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48 And Hopefully Getting Close
Old 06-20-2013, 05:53 AM   #1
Confused about dryer sheets
Join Date: Jun 2013
Location: Knoxville
Posts: 6
48 And Hopefully Getting Close


My situation:
48 years old two grown and married children and one sixteen year old (his college is taken care of through a unique scholarship program). Married. Live in East Tennessee.
Work is OK. I have lots of really close friends there so I enjoy that part of the job. The work is just OK. I'm not inspired by it, others there live and breathe the work but that's just not me. I would definitely miss my friends if and when I leave the company but I wouldn't miss the work very much.
Just refinanced the house so I have 30 years of $1800 payments (includes taxes and insurance). The house is quite large (3500+ sq. feet).
Good health.

600K in a 70/30 stock/bond ratio with about 200K in IRAs/401K and the rest in a taxable brokerage account.

Strategy (very fluid at this point):
Contribute maximum 16K (hopefully) to 401K for 7 years.
Semi-retire in 7 years hoping to live off of portfolio and find PT work or run a small business (if low key that's something I enjoy).
I'm thinking I would need about 54K per year (minus any PT income) until I turn 62 and then take about 1200 in Social Security and reduce my drawn down at that point (around 40K).
With all of the kids almost out of the house, I would seriously consider downsizing to about 1/3 sized living quarters (reducing the draw down amount even more).

Travel: a big trip once a year (cruises, international) and lots of little weekend getaways. Also trips to see the kids who are across the country.
Take long walks/hikes.
Go to local sporting events.
Have more time to work out.
Ride my motorcycle as much as possible.
Look for ministry/mentoring/coaching opportunities.

My analysis:
I think that 7 years is a reasonable goal. When I play with the numbers on FIRECalc the biggest impact on the portfolio is time. The longer you wait, the bigger the amount. All of the other variables have a lesser impact.

Is my analysis and strategy sound or off base? What suggestions and tweaks would you offer?

What sort of PT work or small businesses work best for the semi-retired (sorry if I use the wrong term here, I'm the newbie).
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Old 06-20-2013, 08:42 AM   #2
rodi's Avatar
Join Date: Apr 2012
Location: San Diego
Posts: 12,351
Welcome to the board.
One thing that might help you get to the goal faster (the time=bigger pile of money thing) - in the year you turn 50 you can increase your 401k contributions. I started this at age 49 (the year I turned 50) - and am on my 3rd year of maxing out, including catchup. It definitely makes a difference in the pile of money.

Another advantage is that the more income that is deferred - the more you learn to live on less... which helps your retirement budget in the other way - you're used to living on less, so you can budget less in retirement... requiring a smaller nest egg.
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Old 06-20-2013, 04:24 PM   #3
Thinks s/he gets paid by the post
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Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
I agree with you that time has the biggest impact. This is one of the reasons why I am stuck in the OMY syndrome.
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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Old 06-20-2013, 06:01 PM   #4
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Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 30,310
I suggest that you use Quicken Lifetime Planner (included in Quicken Deluxe and higher). It is easy to use and will show your nestegg growing as you work/save and what happens once you retire and whether you will outlive you nestegg. You can try different assumptions to see how they affect your situation.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
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