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Between 2 trees - a door to a new world...
Old 10-28-2014, 04:39 PM   #1
Confused about dryer sheets
Join Date: Oct 2014
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Between 2 trees - a door to a new world...

Hello - (with apologies to John Muir....)

1 year lurking - first post.....

DW and I are in seemingly perpetual OMY...

$2.2 MM in investments - details follow

$1.3 MM in pretax - 60/40 mix of equities/bonds
$300k cash (security blanket)
$400k total in 2 vacation rental properties ($10k net annual cash flow each)
$200k in post tax annuities and cash value life insurance (avg approx 5% annual appreciation)

$300k house

DW and I both work, and will draw about $19k each at 62 in today's $ (assuming no SS cuts)

No debt. No children. No dependents. No expected eldercare expenses (they have great pensions and guaranteed healthcare for life)

Budget - $60k for overall expenses, adding $15k for "fun" like travel - total $75k

I am 48 - DW is 56

Not ready to pull the plug, but reading about others dreams and success, thinking about taking a "long walk in the woods" and believing that we might be FI - is all sugar that helps make the tough days easier.....

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Old 10-28-2014, 04:43 PM   #2
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Welcome Rocky Top! Your numbers look good to me, but Id recommend running it through Firecalc (link on the bottom of each page). You'll know when you're ready to pull the plug. I was like you - not ready to pull the plug - but knew when it was time.

Good luck! and keep us posted

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Old 10-28-2014, 04:58 PM   #3
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Welcome! Adding to Firecalc, consider these questions.
I heard the call to do nothing. So I answered it.
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Between 2 trees - a door to a new world...
Old 10-29-2014, 09:23 AM   #4
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Between 2 trees - a door to a new world...

Welcome to the tribe lol. You appear to be in the ballpark for ER providing, and I ALWAYS add this caveat, your budgeted expenditures are accurate and you can stick to them. Once one or both of you hit 62, the extra income becomes gravy, but I see no reason you can't go now, should you wish to.

But +1 to Walts post, and once you've arrived at the numbers, make sure you can live within them. Then go enjoy ER ...

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Old 10-29-2014, 09:33 AM   #5
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Welcome Rocky Top. I enjoyed your intro reference. Your numbers look to be in the ballpark. Just work them until you feel compfortable.

“Of all the paths you take in life, make sure a few of them are dirt.” John Muir
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Old 10-29-2014, 09:40 AM   #6
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Welcome to the posting side of the world!

Does the $60K include taxes? If it does, then you're in for a pleasant surprise because as you spend your after tax money (usually the recommendation), you'll have no income to pay tax on.

I like i-orp to see how it recommends which accounts to pull from. Too bad we don't have a withdrawl optimization calculator that takes into consideration the PPACA subsidies and one that properly handles variable annuity withdrawls (gains pulled first, then tax-free on the principle, pulled later).

Now with the PPACA, you don't need to worry about health insurance. In fact, spending as little as you do, you'll probably qualify for a subsidy for many years before you need to pull from the pre-tax accounts.

You know about "the year you turn 55" rule for 401(k) money? If your DW quit, she'd have penalty-free access without using a 72t.

Especially if you have any concerns about longevity, and you think you'll be happy on $60K/yr, then, at first glance, it looks promising for you to FIRE any time.
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Old 10-29-2014, 10:39 AM   #7
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Welcome! As you know there is a lot of great info here, now you can ask your own questions! Taking that step gave me the confidence to ER and I'm so glad I did!
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
ER'd Oct. 2010 at 53. Life is good.
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Old 10-29-2014, 10:56 AM   #8
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Agree with the rest, you seem good shape. Maybe you started posting so that others can confirm your suspicions that you can retire any time you want? If so, assuming you have good idea and control of expenses, it seems that you are in position to make the switch from work to retirement. Only real slightly difficult part is to bridge the time between stopping work until SS kicks in.

Welcome to the forum as a member and no longer lurker.
The advice we're giving you is invaluable, that's why it's free
Experience is a good teacher, but the tuition can get expensive real fast

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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Old 10-29-2014, 11:16 AM   #9
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Welcome Rocky Top! IMO you are already FI in that you could walk away anytime and still have enough to support your lifestyle. Your $75k expenses with fun included, less $20k from your rentals is a $55k need which is only 3.1% WR in relation to $1.8M of your financial assets.

I worked part-time for about 5 years prior to ER and enjoyed it a lot. Did 4 days a week at first and 2 1/2 days a week later on. If this is an option for you you might consider it.

If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 65/35/0 AA TBD
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