...and I thought I was ready

[FLD3C]

One caveat.
Tuition, room, board and books even at a public university may exceed 100k for 4 years.
For example for an instate student at Penn State costs are estimated at 140k for 4years

[USGrant1962]

Quote:

Originally Posted by FLD3C One caveat. Tuition, room, board and books even at a public university may exceed 100k for 4 years. For example for an instate student at Penn State costs are estimated at 140k for 4years

Your point is well taken, but Penn State is a bad example. It is not part of the state university system, and is actually a weird hybrid between public and private. It is not state-owned but rather state-related, but it does get some money through appropriations. So are Temple and Pitt.

Here's their own discussion of it: https://sites.psu.edu/psutuitionrefo...rivate-debate/

[Out-to-Lunch]

Quote:

Originally Posted by USGrant1962 Here's their own discussion of it: https://sites.psu.edu/psutuitionrefo...rivate-debate/

I will admit to learning something from that link. But you do recognize that was a submission (laden with typos and grammatical errors ) from some random student for a class project, don't you?

[USGrant1962]

Quote:

Originally Posted by Out-to-Lunch I will admit to learning something from that link. But you do recognize that was a submission (laden with typos and grammatical errors ) from some random student for a class project, don't you?

No, I missed that. But already knew the basics from going to school just down the road, and in modern times checking it out again for DS1 and wondering why PSU was so much more expensive than Maryland, Rutgers, etc.

[Gumby]

Quote:

Originally Posted by USGrant1962 No, I missed that. But already knew the basics from going to school just down the road, and in modern times checking it out again for DS1 and wondering why PSU was so much more expensive than Maryland, Rutgers, etc.

Cost for our flagship University of Connecticut, for an in-state student, is currently $33,937 per year, which would be approximately $136k over the 4 years. https://admissions.uconn.edu/cost-aid/tuition

[pb4uski]

Yeah, but who pays full retail?

[WhenIsItTime]

You have a solid nest egg. Congrat’s. At that point, life to short to be miserable at work. Would only suggest you make sure you are comfortable with spend (health insurance, travel when Covid clears, hobbies, club memberships, etc). Also, I second the notion on thinking through 2nd home rental. For me, that would be a hassle, wear and tear, too limiting on how I’d fit it out and when I could use it, tax implications. But, for sure many folks go the rental route.

[RandomPJ]

Retire! I was in the same position, but single with lower income. I retired the minute I could retain my med insurance and get a pension. I have had to supplement with a p/t job every once in a while, but I love the job and it's good to get out. Always been a creative and now I'm living the life intended for me. YOLO. Blessings to you!

[2cheap2eat]

Looks like your good to go, congrats! Especially if you hate your job, I would call it a day!

[Live Large]

Quote:

Originally Posted by cat4ever I played it pretty well with my investments and my net worth was down 20% in March which was a little scary, and I think there were a large percentage of folks down 30% or more. If you're anywhere near the edge it makes you think twice, especially for such a one off event as this.

of Retirement

Not Ez just to walk away from what most consider “security” of income ~ your job? Then there are the gyrations of the market we all feel, the ups and downs ~ you have done a great job as most in this thread would attest. We worked way through college > expensive in 80’s but still cost money! $100K for each kid? FIREcalc #’s good but Hate your job? I’ll look forward to your - I pulled the plug post in two weeks say no later than mid Aug.

TIME over Money ~ we only get so much ‘play’ time you’ve worked hard and even if the kids need just a little more to supplement that final year of college,
you will have the means. I’ll repeat what has been posted already ~ Go, leave, retire, Now! Polite notice.

Our second home, condo 1ba/1bd 700sf Hills w/view of SF owned since 2002 ~ never rented just 70mi from primary ranch home in Central Valley Ca 3/2 2500sf. Condo is pop’in place went to the Ocean yesterday 40min from coast ~ just had coffee on the condo balcony...oh it’s Saturday? I thought yesterday was...lol ~everyday! That’s what your country retreat will be...really, why give up spontaneity that’s why you retire, isn’t it? Your Time.

Lost condo use 1x allowed two week stay~realized then air B&B or renting, sub-renting was NOT the purpose-~no thanks to the income, we’ve managed, love our privacy!

Great ideas here, I appreciate reading others posts!
ER just wished me Happy B.day recently, my 54th.
pulled the plug 3.5yrs ago after a 30yr run...Do it😂
☀️ Sun is out no overcast clouds so play time...think we’ll take a ride back to the Ocean...why Not?

[kimcdougc]

Retire already! life on the other side is fantastic. Life is short.

[cat4ever]

I did notify employment of impending retirement sometime in august. Pretty sure I've settled on August 25 to maximize time I stay on company insurance when considering my remaining vacation time. Official date would be Nov 1, but I would keep my insurance until Nov 30 when likely COBRA would start.

I like the feedback from the 2nd home question. I was thinking about something that's a little too far away for spontaneous trips to occur that often, and if I could produce some income from it I could of course afford a nicer house/location. But I'm still listening.

[Markola]

Congrats on making your decision! 🥳🥂[emoji898]

[cat4ever]

Quote:

Originally Posted by FLD3C One caveat. Tuition, room, board and books even at a public university may exceed 100k for 4 years. For example for an instate student at Penn State costs are estimated at 140k for 4years

First child has chosen in town private university and is living at home (smart kid). His spend looking to be well under 100K as tuition with books is only 15K/year after scholarship. I told him any costs under 100K he keeps the difference, he can decide, and he did.

Will be the same decision for second kid, we will see.

[cat4ever]

Quote:

Originally Posted by WhenIsItTime Would only suggest you make sure you are comfortable with spend (health insurance, travel when Covid clears, hobbies, club memberships, etc).

I've been keeping track of the budget the last several months. Of course they are Covid months but don't think it will be a problem, especially considering it includes money for 2 kids at home which won't last forever. And I am including a travel budget item that will remain growing until the virus mess is over. Should have a good amount saved by then.

Of course the big wildcard is the market, which is pretty scary I admit. I've pulled some money out with the recent highs, but can't maintain the level I have in cash long term. This isn't a finance forum though, so I digress.

[kimcdougc]

Congratulations on making a decision. That is one of the hardest part preparing for retirement. Choosing the "right" date for you and your family.

[cat4ever]

Quote:

Originally Posted by USGrant1962 You are good to go. Following on from prior posts, for a complete picture: -Does your $120K include taxes?

This one topic has been bugging me. When I estimate my yearly spend for FIRECalc, should I be including income tax costs that I'll have to pay whenever I pull money out of a non-taxable account like a traditional IRA? That's one I may have missed, which would up my spend possibly 30K (is that right?). Although the Roth will help, there's a good chance this number is going to rise in the future.

Upping my yearly spend to $150,000 I'm still at 100% for 40 years, but only just barely with finishing range:

$252,213 to $52,117,595

Maybe I should wait on the vacation home.

[braumeister]

Quote:

Originally Posted by cat4ever This one topic has been bugging me. When I estimate my yearly spend for FIRECalc, should I be including income tax costs that I'll have to pay whenever I pull money out of a non-taxable account like a traditional IRA?

Yes. FIRECalc says spending is spending, whether it's for groceries, automobiles, taxes or anything else.

[USGrant1962]

Quote:

Originally Posted by cat4ever This one topic has been bugging me. When I estimate my yearly spend for FIRECalc, should I be including income tax costs that I'll have to pay whenever I pull money out of a non-taxable account like a traditional IRA? That's one I may have missed, which would up my spend possibly 30K (is that right?). Although the Roth will help, there's a good chance this number is going to rise in the future. Upping my yearly spend to $150,000 I'm still at 100% for 40 years, but only just barely with finishing range: $252,213 to $52,117,595 Maybe I should wait on the vacation home.

It is unlikely you would need $30K for Federal income taxes on $120K of ordinary income - more like $12-14K. Or less with child/education-related credits. So with state income tax, perhaps $20K estimated income taxes for a $140K spend rate.

[cat4ever]

Quote:

Originally Posted by USGrant1962 It is unlikely you would need $30K for Federal income taxes on $120K of ordinary income - more like $12-14K. Or less with child/education-related credits. So with state income tax, perhaps $20K estimated income taxes for a $140K spend rate.

Yeah, looking at last year’s tax return you pretty much nailed it. Right at 20k for fed and state on $130k gross taxable. Of courses taxes may rise soon, unless they go after payroll taxes I guess.