Hi there,
I am a single 51 year old male and have been browsing this site pretty frequently.
I'm in the software industry and the writing is on the wall that my career is unlikely to last much longer, so I've been in the severe savings mode for many years now. I'm ready to retire, especially since I have several low-cost hobbies and other interests to pursue. Travel doesn't interest me since I love the mountains where I live where life and history is affordable and rich!
Here is my plan for funding retirement for the next 11 years before I can take SS & pension at age 62.
Summary:
Assets:
For the next 11 years:
Firecalc:
Here is a firecalc run, where I think I entered the information correctly, and it says 100% success rate:
https://www.firecalc.com/index.php?...oor=0&callprocess=Submit&FIRECalcVersion=3.0&
Is my plan workable? Any gotchas? Other considerations?
Thanks so much!
I am a single 51 year old male and have been browsing this site pretty frequently.
I'm in the software industry and the writing is on the wall that my career is unlikely to last much longer, so I've been in the severe savings mode for many years now. I'm ready to retire, especially since I have several low-cost hobbies and other interests to pursue. Travel doesn't interest me since I love the mountains where I live where life and history is affordable and rich!
Here is my plan for funding retirement for the next 11 years before I can take SS & pension at age 62.
Summary:
Assets:
- $712k: taxable money market accounts (was earning 1.5% but going down)
- $125k: Traditional IRA (VMMXX)
- $370k: 401k (S&P 500 Index Fund)
- Total $1.2M where 69% is in cash/equivalent and 31% is in the market
- $23.4k for Social Security
- $18.4k for pension (not inflation adjusted)
- Total $41.8k/year
- $25k/year though am budgeting for $30k/year including income taxes.
- Will increase spending (probably) at age 62+.
For the next 11 years:
- I plan to live primarily off my cash savings, so say $330k if I actually spend $30k/year.
- I plan to qualify for ACA subsidies by keeping my income a bit higher than 138% FPL, so say $20k/year to keep things simple.
- $7k/year Interest income on cash savings (assume 1% rate for now)
- $13k/year Roth conversion from my Traditional IRA into a Roth IRA*
Firecalc:
Here is a firecalc run, where I think I entered the information correctly, and it says 100% success rate:
https://www.firecalc.com/index.php?...oor=0&callprocess=Submit&FIRECalcVersion=3.0&
Is my plan workable? Any gotchas? Other considerations?
Thanks so much!