54 plan to go at 62

[X501]

Hello all,
Have been reading postings for a while and learning quite a bit, great forum!

Found the reading recommendations very useful, also enjoyed John P. Greaney's site and his reading recommendations

Working LBYM towards being in good nestegg shape by 62, have over the last couple years worked up to saving 50% of gross salary

Current assets 100% in stock index funds and will luckily also have a pension from dear megacorp. I am viewing the pension as the bond portion of my total portfolio. Hoping to be able to delay SS to 70 for me, wife will take it at her full retirement age.

X501

 

[travelover]

Welcome X501. Sounds like you are on your way.

 

[dex]

Current assets 100% in stock index funds and will luckily also have a pension from dear megacorp. I am viewing the pension as the bond portion of my total portfolio.

What is the ratio of stock/bonds?

Hoping to be able to delay SS to 70 for me, wife will take it at her full retirement age.

X501

Why are you hoping for that? If you didn't do that would you be able to retire earlier than 62?

 

[X501]

If I assume 4% of savings assets to convert to an annual payout, then stocks would be 66% and pension payment (bond substitute) would be 33%.

I am hoping to delay SS to 70 for two reasons, I to get a higher level of COLA'd payout which I view as quite valuable (pension is not COLAd) and to allow at a lower income level and therefore lower taxes, between 62 and 70 conversion of more of the 401K assets to ROTH before required minimum withdrawals are imposed. Of course if we see health issues coming up we will change course.

 

[dex]

If I assume 4% of savings assets to convert to an annual payout, then stocks would be 66% and pension payment (bond substitute) would be 33%.

I am hoping to delay SS to 70 for two reasons, I to get a higher level of COLA'd payout which I view as quite valuable (pension is not COLAd) and to allow at a lower income level and therefore lower taxes, between 62 and 70 conversion of more of the 401K assets to ROTH before required minimum withdrawals are imposed. Of course if we see health issues coming up we will change course.

Welcome, it looks like you have thought it out and have a good plan.

 

[X501]

Update pulled the plug end of Nov 2019

Update. Took a bit longer than I projected but I have pulled the plug with a slight incentive push from Megacorp. Looking back at my original post I have reached the target I was shooting for, having enough assets to maintain the standard of living into retirement.

 

[Rianne]

Update. Took a bit longer than I projected but I have pulled the plug with a slight incentive push from Megacorp. Looking back at my original post I have reached the target I was shooting for, having enough assets to maintain the standard of living into retirement.

Good for you! Congrats. I'm trying to teach my 22 yr. old niece to LBYM and follow a savings plan like yours. Keep up your posts and let us know how you're doing. Success is sweet!

 

[Dtail]

Update. Took a bit longer than I projected but I have pulled the plug with a slight incentive push from Megacorp. Looking back at my original post I have reached the target I was shooting for, having enough assets to maintain the standard of living into retirement.

Congrats. 9 year update impressive..

 

[Katiek]

Congrats and thank you for the update!

 

[ckelly78z]

I am currently 54 looking at 62 also, so this thread interested me. What sort of incentive push did your Megacorp offer ?

I work in the auto manufacturing supplier arena, and it appears that our company is spiraling downward with a few years to go, so also hoping for an early retirement offer.

Congrats on your success, and have a happy retirement.

 

[X501]

I am currently 54 looking at 62 also, so this thread interested me. What sort of incentive push did your Megacorp offer ?

I work in the auto manufacturing supplier arena, and it appears that our company is spiraling downward with a few years to go, so also hoping for an early retirement offer.

Congrats on your success, and have a happy retirement.

It was a package with the biggest element being a payment based on years of service, one week's pay per year of service, that was enough for me to pull the trigger.

 

[ckelly78z]

It was a package with the biggest element being a payment based on years of service, one week's pay per year of service, that was enough for me to pull the trigger.

Yea, at 25 years service for me, that would be half a year's pay....not bad, and it becomes the decision maker.