Marc1962
Recycles dryer sheets
Hello, everyone. I happened upon this forum a few days ago and am impressed with the quality of discourse and abundance of information here. This seems like an excellent community, and I look forward to participating.
I'm 47 and my wife is 51. Our kids are 21, 19, 17, 15, and 12. The oldest two boys are in college, the next two boys are in high school, and our daughter is still at home. (My wife teaches the kids through eighth grade.) College savings supplied by my parents provide for an in-state education for all the kids. My income provides a comfortable life here in Evansville, IN, but our annual savings have been modest, just 6% for the 401K.
I would describe our financial style as moderate, neither frugal nor profligate. We're not status seekers, drive older vehicles, and live in a rambling older home, but the house has a pool, and we eat very well. Our only debt is our home mortgage. I expect our expenses to diminish steadily as the kids graduate from college and begin supporting themselves.
Prior to the events of this month, our primary retirement plan was to hope for a liquidity event for the substantial stock allocation I received in 1998 as an early executive participant in a privately held company. Our backup plan was to work until my mid-60s and retire at a lower standard of living than the one we enjoy now.
As it happens, our company was sold to another company in our industry earlier this month, and after the expected December closing and after paying off our house we expect to have liquid assets equal to about 26 times our annual income. Only 6% of those assets will be in tax-deferred accounts.
I will know a lot more next week as integration planning begins Tuesday, but currently I think I'm likely to be needed for the next year or so. Continuing to work for the acquirer after that is possible but not the most likely outcome. At least one other professional opportunity is likely to be open to me here in town, and starting a new business is also a possibility.
Of course, all of this also has me thinking about early retirement. I'm pretty sure that 3.8% is a sustainable withdrawal rate, and the fulfillment of our financial obligations to our children over the next 10 years should allow us to reduce that to 3.3% or less. While I can imagine being energized by a new work role, I confess to some ennui and find the prospect of more leisure time enticing.
I do wonder if I'll become bored, shiftless, and self-indulgent in retirement. Will I find enough to do, and what will it be like to be the only age peer I know who doesn't work? My initial focus would be on investing. I'm confident that I could spend six months reading, studying, planning, and managing the portfolio. I don't yet have a feel for how much longer I might want to spend lots of time on that. I wonder how much time the other DIY investors here spend managing money.
Anyway, thanks for reading this far. If you have any comments or suggestions, I'm all ears.
I'm 47 and my wife is 51. Our kids are 21, 19, 17, 15, and 12. The oldest two boys are in college, the next two boys are in high school, and our daughter is still at home. (My wife teaches the kids through eighth grade.) College savings supplied by my parents provide for an in-state education for all the kids. My income provides a comfortable life here in Evansville, IN, but our annual savings have been modest, just 6% for the 401K.
I would describe our financial style as moderate, neither frugal nor profligate. We're not status seekers, drive older vehicles, and live in a rambling older home, but the house has a pool, and we eat very well. Our only debt is our home mortgage. I expect our expenses to diminish steadily as the kids graduate from college and begin supporting themselves.
Prior to the events of this month, our primary retirement plan was to hope for a liquidity event for the substantial stock allocation I received in 1998 as an early executive participant in a privately held company. Our backup plan was to work until my mid-60s and retire at a lower standard of living than the one we enjoy now.
As it happens, our company was sold to another company in our industry earlier this month, and after the expected December closing and after paying off our house we expect to have liquid assets equal to about 26 times our annual income. Only 6% of those assets will be in tax-deferred accounts.
I will know a lot more next week as integration planning begins Tuesday, but currently I think I'm likely to be needed for the next year or so. Continuing to work for the acquirer after that is possible but not the most likely outcome. At least one other professional opportunity is likely to be open to me here in town, and starting a new business is also a possibility.
Of course, all of this also has me thinking about early retirement. I'm pretty sure that 3.8% is a sustainable withdrawal rate, and the fulfillment of our financial obligations to our children over the next 10 years should allow us to reduce that to 3.3% or less. While I can imagine being energized by a new work role, I confess to some ennui and find the prospect of more leisure time enticing.
I do wonder if I'll become bored, shiftless, and self-indulgent in retirement. Will I find enough to do, and what will it be like to be the only age peer I know who doesn't work? My initial focus would be on investing. I'm confident that I could spend six months reading, studying, planning, and managing the portfolio. I don't yet have a feel for how much longer I might want to spend lots of time on that. I wonder how much time the other DIY investors here spend managing money.
Anyway, thanks for reading this far. If you have any comments or suggestions, I'm all ears.
