...and I thought I was ready

[cat4ever]

Newbie here. Thought I was ready to pull the trigger by end of July but after reading the "62 with a 12 and 14 year old" post I'm thinking if he's not even sure, I'm not even close.

Actually I think he's way way way overly cautious and every day he waits is a day he'll regret he lost, but I'm a blunt guy.

Anyway, here's my stats...

56 YO, 17 and 19 YO, and stay at home wife.
529's fully funded for college. (100K a piece)
2.5 million in taxable IRA/401K savings and 1.1 million in a ROTH/after tax.
No mortgage or any other debts
Pension starts at 65, $36k/year (no inflation protection).
Would like to buy a rental/vacation property in the mountains.
Planning on spending about 120K/year including health insurance which I estimate $20K/year

Firecalc giving me a 100% right now. $3.6 million to $56 million after 40 years.

I HATE my job and have several passions I can't wait to pursue.

Everything looking OK? Am I missing something?

 

[Bamaman]

You have not missed anything.

There are just so many days in one's life. And we're not in control of those days. Misery is telling you it's time to make a change.

Go for it.

My brother in law is president of the Elk River Club. Pretty lovely mountain location with a Jack Nicklaus golf course and a private airport in NW NC. Highest ski mountains in the East are close by. elkriverclubnc.com

 

[pb4uski]

.... Everything looking OK? Am I missing something?

+1 I think your in good shape. $3.6m - $0.4m for rental/vacation property = $3.2m... * conservative 3.75% WR = $120k spending target... plus you have pension and SS as cherries on top.

With $1.1m in Roth and taxable accounts, you might be able to manage your income to take advantage of ACA subsidies and trim that $20k a year health insurance cost down a bit.

Also, a 72t/SEPP might help avoid having to tap the taxable accounts too much.

 

[DrRoy]

Looks good. Pull the cord.

 

[Dtail]

I also put your numbers in Firecalc using the default AA and you are good to go.
You could also put in some estimate of expected SS and calculate your maximum spending which should give you further comfort.

 

[Toocold]

If I were you, I'd pull the trigger - especially since you hate your job.

 

[Markola]

If the job is your opponent and you’ve won the game, why keep playing?

 

[flybynight]

Give your notice today and start pursuing those passions! I just retired last October and it's been a really cool change of pace. And I liked my job...but it was not as good as freedom!

 

[USGrant1962]

You are good to go. Following on from prior posts, for a complete picture:

-What does your SS look like?
-How much are you budgeting for vacation house purchase?
-Does your $120K include taxes?
-Does your $120K include taxes, utilities, and maintenance on your mountain house?
-Have you tried the various options on the Investigate tab in FIRECalc? Looking at your situation from different angles helps you better understand where you are.
-Have you studied your state's ACA marketplace for health insurance costs? You should be able to manage your AGI to stay under the family-of-4 ACA cliff by drawing, say, half from taxable/Roth each year.

I doubt any of these answers will change the fact that you are ready, but rather covering all the bases increases your own comfort with pulling the trigger.

 

[cat4ever]

Yeah, I would have left already, but there are several rounds of layoffs going around that come with 6 months pay attached. They are supposed to be complete by the end of July, so if I don't get one I'll pull the trigger then.

 

[cat4ever]

USGrant, good points...

SS: If I wait until 70 it will be 64350/year per SS site estimate (includes mine and wife's, who gets half mine since she's stay at home, at least that's how I understand it)
Vacation House: 400K +- 50K
Spending: No, that's real spending, but will likely go down once the kids are out the house. Downsizing house is likely in the cards as well at that point.
Mt. House Utils: No, but am hoping to break even at least on rentals from the house when we're not there. Maybe wishful thinking.
FIRECalc: I'm put in several different options as far as investment style and reduced spending as we age, which is likely. They all come out 100% unless I go way conservative investing.
ACA: Yeah, I will have to do the math on the ACA and Roth withdrawals. Was planning on using COBRA for 18 months first though. Am thinking that may pay off on kids college costs as well as far as applying for aid, but again haven't investigated at all.

 

[P.S.]

Congratulations!!
May I respectfully note that, having laid out your info, your actual name is not your username correct?

 

[finnski1]

Yeah, I would have left already, but there are several rounds of layoffs going around that come with 6 months pay attached. They are supposed to be complete by the end of July, so if I don't get one I'll pull the trigger then.

I was going to say what (the hell, to be blunt like you)are you waiting for.
But this reason makes sense to me.
Either way you won't be long and by my standards you are more than golden.
Congratulations!

 

[mystang52]

Congratulations!!
May I respectfully note that, having laid out your info, your actual name is not your username correct?

Heed this. (oh, I agree that since you hate your job you should pull the plug.....on August 1).

 

[cat4ever]

user name

Congratulations!!
May I respectfully note that, having laid out your info, your actual name is not your username correct?

Well... I have to admit it is my actual name. Is the main reason that someone from work may see, or is it more about getting hacked or something else? I'll have to look into changing my username.

 

[REWahoo]

I'll have to look into changing my username.

Send a PM to one of the mods and request a name change.

 

[P.S.]

Is the main reason that someone from work may see, or is it more about getting hacked or something else?

Yes.
And a 1000 other reasons that criminal minds connive...

 

[Montecfo]

cat4ever-

Looks good from here!

 

[Retire2013]

Since you "HATE" your job, I'd say GO FOR IT. You can pull the plug NOW.

 

[SenorDave]

Mt. House Utils: No, but am hoping to break even at least on rentals from the house when we're not there. Maybe wishful thinking.

How often are you planning to rent out your vacation home, and do you need to do that in order to afford it?
Each person has a different level of comfort with that scenario.
Personally, there is no way that I'd rent out my home if I had plans to utilize it myself.

 

[statsman]

Nearly everyone deciding to FIRE who are posting their financials recently would seem to put them well ahead of most on this forum who have already retired.

I guess the first half of 2020 has caused many to question their plans or whether there ever is enough money.

 

[Gumby]

Nearly everyone deciding to FIRE who are posting their financials recently would seem to put them well ahead of most on this forum who have already retired.

I guess the first half of 2020 has caused many to question their plans or whether there ever is enough money.

There will never be enough money. But Tom Cruise provided us with the answer in his first big hit movie 37 years ago.

 

[Dtail]

USGrant, good points...

SS: If I wait until 70 it will be 64350/year per SS site estimate (includes mine and wife's, who gets half mine since she's stay at home, at least that's how I understand it)
Vacation House: 400K +- 50K
Spending: No, that's real spending, but will likely go down once the kids are out the house. Downsizing house is likely in the cards as well at that point.
Mt. House Utils: No, but am hoping to break even at least on rentals from the house when we're not there. Maybe wishful thinking.
FIRECalc: I'm put in several different options as far as investment style and reduced spending as we age, which is likely. They all come out 100% unless I go way conservative investing.
ACA: Yeah, I will have to do the math on the ACA and Roth withdrawals. Was planning on using COBRA for 18 months first though. Am thinking that may pay off on kids college costs as well as far as applying for aid, but again haven't investigated at all.

Bolded by me - The wife receives half the SS while you are still collecting it?
Either way when you add in even just your SS, you are definitely good to go.
Life is short.

 

[cat4ever]

Bolded by me - The wife receives half the SS while you are still collecting it?
Either way when you add in even just your SS, you are definitely good to go.
Life is short.

Here's what I keep seeing about non-working spouses...

Your retirement benefit if you are a non-working spouse would be the greater of your own Social Security benefit or a percentage of your spouse’s benefit. For a rough calculation, you could expect to receive about 35% of your spouse’s disability benefit if you file at age 62. If you wait until your full retirement age, you’d get about 50%.

 

[cat4ever]

I guess the first half of 2020 has caused many to question their plans or whether there ever is enough money.

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.