What a GREAT forum this has been! I found it two months ago and started thinking about my own retirement. I'm 48 and DW is 43. My Acct. is with Fidelity and have never met my rep..I'm planning to meet him for advise this quarter. My financial statistics are as follow:
Joint After Tax: 1600K
My 401K/IRA: 500K
DW’s IRA: 150K
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TOTAL 2250K
My Social Security: 20K(will take at age 70 in 2034)
DW’s Social Security: 9K(will take at age 62 in 2032)
No Pension for either of us
No Corporate Medical Insurance for either of us
I lost lots of money around .com crash and has
about 500K loss which I can offset with Capital Gain in coming future, hopefully.
Kids' 529 Plan
DD’s 529: Age 16 92K May be Scholarship – No contribution
DS’s 529: Age 8.5 78K $375/Month Automatic Deposit
DS’s 529: Age 8.5 78K $375/Month Automatic Deposit
My house is paid up(700K value) but I do not count that in my asset. I’m planning to sell it in future and pay down payment for my boys’ house…probably 15-20 years from now.
I ran two scenarios….with 8% return, I’ll have 3060K in 2017. If I count 6% return for 7 yrs then I’ll have 3375K in 2020.
If I retire in 2017:
FireCalc w SS: 94.1% Success Rate for 40 years 120K
i-ORP w SS and 6% Return: 40 years(3.5% Inflation) 127K
If I retire in 2020:
FireCals w SS: 93.1% Success Rate for 37 years 135K
i-ORP with SS and 6% Return: 37 years(3.5% Inflation) 149K
I know assumption may not always come true. Just to give myself some buffer for plan to succeed, I’ll be putting away 25K/year in 401K from now till retirement which I’ve not included in above calculation.
I’ll be fine with 120K in 2017. I can take 25% cut for poor return years. Once I retire, my only income will be from capital gain/dividents. I ran obamacare calculator for family of 4(
Health Reform Subsidy Calculator - Kaiser Health Reform) and the cost comes out to be around 9K with subsidy.
My questions are:
1) Am I dreaming or my plan is real?
2) Is the Kids education plan listed above enough?
3) Is 9K premium cost for Obamacare real? 400% poverty line will be around 104K in 2017 for family of 4. My MAGI will be around 100K.
4) Have I missed anything or any suggestions you may have?
5) I like results of i-ORP…Have I run the Calc correctly or entered any wrong info?