60 yrs old, gave notice 2 hours ago!

[steadystate]

Hello all. Thought I'd introduce myself and see if you all think my financial ducks are lined up right for a nice retirement. I'm 60, my wife is 64, and our 2 sons are 23 and 26. Older is fully independent with a great job, younger graduates this spring and plans a year of Americorps work.

I did a careful calculation of baseline monthly expenses and came up with about $5500. Then added $2500 for travel and unexpected stuff. I used the Fidelity calculator which I recommend highly. It lets you enter time-boxed expenses, like increased medical for the 5 years before I hit 65. The calculator shows we're in good shape even with a significantly underperforming market. Here's the hard numbers:

• About 2.2 million in taxable (401K) accounts. 300k in non-taxable funds. So, 2.5 million total.
  
• Teeny pension, $500 non-COLA (happy meal money)
  
• We own our house, worth 1 million in hot Seattle market right now.
  
• Very likely inheritance, within at most 10 years, of 200 to 500 thousand.
  
• Social security for wife in 6 years at 70, $1300, and for me $3300 in 10 years at 70, total SS $4600 in starting 10 years.
  
• Wife works part time for about $10k per year.
  
• We will probably relocate to a lower cost area some time, freeing up maybe 300k equity from our house.

So ... are we nuts, or on track?? Feeling a little anxious now because I just gave notice. My boss took it very well but was disappointed. We agreed that I could come back on contract for specific tasks. I am very highly regarded here; the most senior engineer of around 600 total.

 

[REWahoo]

Congratulations on pulling the plug - but I have to ask, wouldn't it have been more prudent to ask "are we nuts or on track?" before you gave notice?

To answer your question, here are some additional questions: http://www.early-retirement.org/for...-answer-before-asking-can-i-retire-69999.html

 

[Bamaman]

Nuts? Absolutely not. You've done well enough to take care of yourselves and you'd be nuts not to hit the road.

Disappointed boss? He'll get over it. You have 600 potential replacements lined up behind you, and the job will get done.

My first priority would be to get that house reconditioned and ready for the retail market--when you're ready. (Taken me 10 mos. to get my house ready.)

We Southerners are big on low cost of living places--and low taxes. If you spent $700K down here on another home, you'd be in a very substantial home--6,000 to 7,000 square feet.

 

[exnavynuke]

Quick math tells me with $2.5M alone a 4% withdrawal rate will get you about $8,3xx/month, or enough to cover your current and planned expenses without the pension, inheritance, or SS income. So I'd say you look pretty well good to go financially.

 

[cnocmmz]

Hello all. Thought I'd introduce myself and see if you all think my financial ducks are lined up right for a nice retirement. I'm 60, my wife is 64, and our 2 sons are 23 and 26. Older is fully independent with a great job, younger graduates this spring and plans a year of Americorps work.

I did a careful calculation of baseline monthly expenses and came up with about $5500. Then added $2500 for travel and unexpected stuff. I used the Fidelity calculator which I recommend highly. It lets you enter time-boxed expenses, like increased medical for the 5 years before I hit 65. The calculator shows we're in good shape even with a significantly underperforming market. Here's the hard numbers:

• About 2.2 million in taxable (401K) accounts. 300k in non-taxable funds. So, 2.5 million total.
• Teeny pension, $500 non-COLA (happy meal money)
• We own our house, worth 1 million in hot Seattle market right now.
• Very likely inheritance, within at most 10 years, of 200 to 500 thousand.
• Social security for wife in 6 years at 70, $1300, and for me $3300 in 10 years at 70, total SS $4600 in starting 10 years.
• Wife works part time for about $10k per year.
• We will probably relocate to a lower cost area some time, freeing up maybe 300k equity from our house.

So ... are we nuts, or on track?? Feeling a little anxious now because I just gave notice. My boss took it very well but was disappointed. We agreed that I could come back on contract for specific tasks. I am very highly regarded here; the most senior engineer of around 600 total.

Congrats and looks like you'll be fine. Not sure how much you stated you wanted to live on but I am sure if you stay on target with that portfolio you should fine as long as you wok out the possible tax issues.

 

[Huston55]

Congratulations on pulling the plug - but I have to ask, wouldn't it have been more prudent to ask "are we nuts or on track?" before you gave notice?

Sounds like a case of premature evacuation.

You know, they have pills for that.

 

[Huston55]

Sounds like a case of premature evacuation.

You know, they have pills for that.

OK, now that I filled my smart@ss quota for the day, I have a few serious comments.

- Don't include the inheritance in your calculations. (10 yrs is a long time and, if it's your parents, they might have to spend it on health care of some kind or, they might have to spend it all then ask you for financial help; you just never know how these things go.)

- Make sure your age 60-65 pre-Medicare health coverage is rock solid. (In today's environment, that likely means something other than an ACA exchange).

- If substantially more than $500k of your $1M home would turn into CG upon sale, look hard at alternatives to minimize your CG tax.

Otherwise, looks like you're in very good shape...Congrats!

PS: I'm also a big fan of Fido's retirement planning tool.

 

[brucethebroker]

Well done. Congratulations and welcome.

 

[ivinsfan]

looks to me that you could do better on the SS with your DW taking a spousal at FRA...I'd run that number ...

 

[Ronstar]

Congrats and Welcome! And no you're not nuts - looks like you have a solid plan and you're on track.

 

[street]

I wish you a great retirement and have fun, looks like you have won.

 

[kimcdougc]

We retired with less in our 50's. So far so good. Welcome to the forum and enjoy the rest of your life doing what you want to do. Congrats.

 

[Yarnstormer]

Congrats! Certainly sounds doable to me! I second don't count on the inheritance but it looks like you have planned so many extra expenses in that you are covered.

 

[Katiek]

Congratulations and welcome!

 

[MacsNMore]

Welcome aboard and congrats on your well planned FIRE!

 

[rodi]

Welcome.

You look to be in great shape. One factor you might consider... You have you and your wife taking SS at age 70. You might look at taking it when she goes on medicare... SS's cola will limit how much she'll pay for her medicare part B. They can't raise the part B premiums more than the SS increase. But that only works if you're already on SS. SS is theoretically actuarialy neutral.

Something to consider... but it won't make a huge difference.

I plan on evaluating when to take SS on a year by year basis once I'm 62... But that will be one of the considerations...

 

[pb4uski]

Here is a good site that will analyze your best social security strategy and allow you to compare strategies.

SSAnalyze - Bedrock Capital Management

 

[RobbieB]

Why relocate?

If you like your house and your location enjoy them!

 

[Earl E Retyre]

I believe your numbers look good. At least I hope so since mine are not too different than yours. The one comment I would make is that I believe your spouse can take the greater of 50% of your Social Security or her own qualifying amount - whichever is greater.

 

[athena53]

Your numbers look just fine to me- I retired almost 3 years ago at age 61 with similar numbers except that I had a small mortgage (under $1,000/month). Every year has had an "oh, crap" expense- unexpectedly expensive downsizing (but the expected lower ongoing costs afterwards), replacing the HVAC, a giant tax bill this year due to 2016 capital gains. But, like you, I have pretty low fixed costs so can back off on travel and charity if I have a lean year. So far so good. I leave for Central America in April!

 

[IMATERP]

P A R T Y !

Looks Good to Me!

 

[mijoy]

Your situation, sounds to me, that you are in a, more than good situation, but rather, you are fortunate way beyond your self-imposed requirements.

Reading your post makes me second guess my situation.Which is much more modest and with much smaller margins.

As I see it, you are well within reason and are going to be just fine.

Congrats!!

 

[JohnnyBGoode]

Why relocate?

If you like your house and your location enjoy them!

+1

We are in the Bay Area (similar RE environment to Seattle) and own our own home with a paid off mortgage. I get why folks would want to downsize and relocate to a lower cost area, but I don't consider it a must-do if your financial ducks are in a row. Our house is paid off, the property taxes are low (thanks to CA Prop 13), and thanks to the nice weather (kinda like Seattle) energy costs for heating/cooling aren't that bad. Politically/culturally it is a good fit too - as Seattle may be for you.

I think your financial situation looks good (similar to mine, actually ) so just go with it - don't leave unless you *really* want to.

 

[euro]

Hello all. Thought I'd introduce myself and see if you all think my financial ducks are lined up right for a nice retirement. I'm 60, my wife is 64, and our 2 sons are 23 and 26. Older is fully independent with a great job, younger graduates this spring and plans a year of Americorps work.

I did a careful calculation of baseline monthly expenses and came up with about $5500. Then added $2500 for travel and unexpected stuff. I used the Fidelity calculator which I recommend highly. It lets you enter time-boxed expenses, like increased medical for the 5 years before I hit 65. The calculator shows we're in good shape even with a significantly underperforming market. Here's the hard numbers:

• About 2.2 million in taxable (401K) accounts. 300k in non-taxable funds. So, 2.5 million total.
  
• Teeny pension, $500 non-COLA (happy meal money)
  
• We own our house, worth 1 million in hot Seattle market right now.
  
• Very likely inheritance, within at most 10 years, of 200 to 500 thousand.
  
• Social security for wife in 6 years at 70, $1300, and for me $3300 in 10 years at 70, total SS $4600 in starting 10 years.
  
• Wife works part time for about $10k per year.
  
• We will probably relocate to a lower cost area some time, freeing up maybe 300k equity from our house.

So ... are we nuts, or on track?? Feeling a little anxious now because I just gave notice. My boss took it very well but was disappointed. We agreed that I could come back on contract for specific tasks. I am very highly regarded here; the most senior engineer of around 600 total.

From the info you provided, you are more than ready to go! And go, you did! Congratulations and: ENJOY!!!

 

[REWahoo]

Looks like Jeff gave notice, posted here then left the building. Hasn't logged on again since his first and only post two days ago...