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56 and wife 55 are we ready for ER needs advises
Old 04-22-2013, 09:50 AM   #1
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Join Date: Apr 2013
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56 and wife 55 are we ready for ER needs advises

This is a great forum and I thank you in advance for your help. I will try to be as detail as possible as the time frame for my ER is closer than I thought. I am 56 and turning 57 this summer, my wife turning 56 this summer. Work hard all our life and with ups and down in life the ER is coming up for me whether I like it or not. I fit into many member posts where we are driven by our work and see no end in sight. Our twin daughters, one just got married and the other one in June. Here is our situation.

Income: $120K wife $55K
401K $750K 60% income fund and 40% company stock YTD 6% wife $250K index fund YTD 8%
Saving in cash was $270k minus $50K each for our daughters' wedding and downpayment for their houses, minus $50K loan to my wife sister house under water. Now at $125K.

We have $44K remaining at 5% or $825/month for 4.5 years. No other debt or car payments.
We lived in the same house for the last 25 years although worth more but have no interest to down size due to CA property tax is 1.25% and our tax is $4k with home value at $700K.

Our total expenses now is about $5k/month. This covers evrything. We save the rest into 401 or max out. With my daughters leaving the house, we may lower the expense but not by much.

My job is Plant Manager, pretty intense...I feel like a recent post ( 55 and ready to pull the plug ). My wife will keep working for as long as possible. I will use her insurance coverage at $500/month for both of us. We have simple lifestyle but there is a gap until 59 1/2 and firecalc showed good result for my $750K and her $250K at combined annual return at $36k/ $3K month.

I will qualify for a $3k/month pension and my wife $1K. We both work over 35 years and at age 62 social security for me at $1700 and my wife $1200. We both planned to collect at that time.
BTW my wife suggest to collect $600 less in my pension to put my daughters name due to her health issue.

Our health issues, my wife had a kidney transplant 10 years ago and I lost my right eye in a industrial accident 7 years ago. Recently I had couple near missed driving at night and know my time is coming. We are lucky that our daughters both graduated from college with no student loan as we paid for their school and now they have good jobs as RN. One less thing to worry about. I am at a cross road, and getting ready to let HR knows where I stand on ER while I am still at a high note.
My wife still enjoys her work and like to stay as long as possible until 60. Her kidney recently acting up and we are crossing our fingers.

Based on the numbers, I am nervious because I am short $2k a month until SS. I am also not clear how 2014 health care requirement will affect us if I retire this year. Thanks a lot!!!
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Old 04-22-2013, 12:26 PM   #2
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Good Golly Miss Molly! 40% in company stock? Danger!
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
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Old 04-22-2013, 12:41 PM   #3
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Originally Posted by heeyy_joe View Post
Good Golly Miss Molly! 40% in company stock? Danger!

$2k risk on $5k requirement is a 40% shortfall for 10 years and would put you at substantial risk. When do your pensions start ? Is there any way you can cut your expenses ? Do you currently track your detailed spending ?
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11

ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
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Old 04-22-2013, 02:03 PM   #4
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Originally Posted by 51togo View Post
... and I lost my right eye in a industrial accident 7 years ago. Recently I had couple near missed driving at night and know my time is coming. ...
just curious ... what highway are you taking home from work at night?
"It is better to have a permanent income than to be fascinating". Oscar Wilde
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Old 04-26-2013, 05:14 PM   #5
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Welcome aboard, 51togo.
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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