Am i good to go?

[SunBlueSky]

Congratulations, and glad to hear you are enjoying your new freedom. It took me a while to get comfortable with not having a paycheck.

 

[flybynight]

Retirement update - 4 years in

Hello all! I just realized that I never posted a follow up on my retirement on 9/28/19. As you can read from the beginning, this forum was very valuable to me in gaining the insight and courage to pull the plug. I am happy to report that retirement has been fantastic and I've had absolutely no regrets. It certainly helps that my financial plan has performed very well despite a pandemic and 2 bear markets. Incredible that in this landscape SORR has not been an issue...yet. So here are the headlines:

Financial: NW is at $5.6M including $475 paid off home (conservative as Zillow is $550K) and $1.2M company equity (valued after tax at 50% current FMV). Financial assets at $3.9M (85% equities w/85% indexed and 15% cash/ST bonds). The company equity is not liquid until a transaction which will occur at some point in the future but who knows when. NW is $4.4M excluding this. Amazing that in spite of all that has occured in the markets since retirement plus withdrawing a total of $222K, that my portfolio has increased a net $1.1M. My wife continues to work so my withdrawal rate has averaged about .9% per year.

Non Financial: I'm also very fortunate that my pre retirement plans for retirement have mostly all worked out. I've been coaching HS athletics on a volunteer basis for the past 4 years, and I'm also entering my 4th year as a part time faculty member teaching at a local university. This plus a couple of great hobbies has kept me happy and engaged. Not going to say that I've never had a bored moment but they have been few and far between.

I think I have my SS strategy established. The one item I'm still not settled on are Roth conversions. With my wife still working, her salary plus our investment income has us in the 22% bracket. We have a sizeable $2.4M in IRA's so RMD's will be a tax issue down the road. Just can't stomach paying at this rate in advance plus my analysis so far is not compelling. Anyway, I'm still thinking on this. If she retires soon then that certainly will change the analysis.

No big anticipated spending on the horizon except for this...we are contemplating a move to our dream house in dream location which may mean spending $500-$750K. Not sure if I'm comfortable with reducing our portfolio by that amount. So we'll see.

So that's the update. So far so good and thanks to all on this forum for your insights and encouragement!

 

[HI Bill]

..we are contemplating a move to our dream house in dream location which may mean spending $500-$750K. Not sure if I'm comfortable with reducing our portfolio by that amount.

I guess it depends on three things: your spending level and WR (once your wife retires), and your company stock status. Either way, unless you're spending $200K+ annually, it looks to me at first blush that you could easily afford the upgraded house location!

 

[AZsniper]

Thanks for providing an update to your situation. You are in good shape!

 

[flybynight]

I guess it depends on three things: your spending level and WR (once your wife retires), and your company stock status. Either way, unless you're spending $200K+ annually, it looks to me at first blush that you could easily afford the upgraded house location!

Thanks for the input Bill. Our spending as averaged about $120K in the last few years. Last year it was at $158K but that included a couple of big one-time events. My plan would be a WR of 3-3.5% after she retires. Of course that will drop at age 70 once SS kicks in. I'm just a whimp thinking about taking a chunk out to buy a house. I need to get over this.

 

[AZsniper]

Thanks for the input Bill. Our spending as averaged about $120K in the last few years. Last year it was at $158K but that included a couple of big one-time events. My plan would be a WR of 3-3.5% after she retires. Of course that will drop at age 70 once SS kicks in. I'm just a whimp thinking about taking a chunk out to buy a house. I need to get over this.

BUY THE HOUSE! Between the sale of yours and another couple 100k, no brainer! Die with zero! You have done well.

 

[glasswave]

Adjunct positions at many institutions are pretty close to volunteering. Including “professor” in the title sounds impressive, but they’re not a large or reliable income source.

Yet many people live off what they make via adjunct instruction. I did for several years.

The community college here pays $1000 per class weekly contact hours for a 15 week class. IOW, a class that meets 5hrs a week pays $5000 over 15 weeks.

Not much, but a few classes can keep food in the cupboard.



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[flybynight]

Yet many people live off what they make via adjunct instruction. I did for several years.

The community college here pays $1000 per class weekly contact hours for a 15 week class. IOW, a class that meets 5hrs a week pays $5000 over 15 weeks.

Not much, but a few classes can keep food in the cupboard.



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I teach 1 class a semester that meets once per week for 2.5 hrs. The pay is $3,300 so it's pizza and beer money. I do it because I really enjoy it. I'd likely do it for free, but don't tell them that...

 

[glasswave]

I teach 1 class a semester that meets once per week for 2.5 hrs. The pay is $3,300 so it's pizza and beer money. I do it because I really enjoy it. I'd likely do it for free, but don't tell them that...

I like pizza. I love beer. And I enjoy teaching.

I don't enjoy starving, living in a rental and having a unreliable rust bucket to drive.

I am glad I secured a full-time contract 30 years ago.



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[livingalmostlarge]

did your wife retire yet and join you?

 

[flybynight]

did your wife retire yet and join you?

My wife is still working. However I think that her BS bucket is getting filled up so my guess is that she pulls the plug anywhere from 1-3 yrs. Our average WDR has been 1.4% post covid. When she retires it will increase to ~3%.