Disney Loving gal, ready to call it quits. Opinions

[bclover]

Hello all,
I've been lurking here for a few months and really enjoy the forums. So here goes my attempt at a often ask question. I apologize if this is long

Can I retire?

First, Let me say one part of this is emotional. I am a recent widow, lost my husband at 55 to cancer 13 months ago and I lost my baby brother to cancer at the 52 years young. I totally admit, I'm pissed. both were great men who did the right thing, saved, lived below their means and didn't get to see the results. So why the hell am I sacrificing only to drop dead. (lol are you running for the hills yet) what's the point?

Second I hate my job (more on that later)


So here is the information.

I am 55 years old. I am an Analytical Chemist. salary is 73,000 annually. I live in Philadelphia PA

IRA (disney stock) 12,883.00
Individual stock mutual fund 483,029.00
Annuity( yes I've been told over and over about how horrible they are) 452,328.00
IRA investment account from late husbands pension 828,953.15
my 401K 182,931.46
roth IRA 6505.00
Vanguard account 7,000

I currently put 8% pretax into my ira and 6% in my roth 401K and my company matches 6% plus an extra 3% if the company makes a profit at the end of the year.

I am also one of the "last of the mohicans" in that I do get a company pension. although it will be greatly reduced but if I wait until I'm 60 I will get an additional 1000.00

I also get social security, I haven't calculated it yet. I'm trying to figure out the rules around applying for my husbands ss. he made twice my salary so I think his benefits will be bigger. that will be my second question on this forum, LOL

I have two children. one 21 year old college junior. the second is a 25 year old special ed adult. He is an asperger kid and is for the most part working toward independent living

 

[bclover]

Oh forgot to give the bills.
Sorry.


Right now my monthly bills are ~4500

I have a house. my mortgage is 212,000 dollars. house value is 725,000

monthly mortgage including property taxes and insurance is 1263.00
I have 6 months left on my car note. 300.00 bucks.
600 utilities and cable
250 cell phones (all three of us)
400 car insurance 3 cars
100 umbrella insurance policy
500 vacation account
200 student loan (this is from me, i went back to school, balance of 6000)
650 food (how is it possible for 2 young men to inhale so much food?)
120 gasoline
100 automatic savings into vanguard
90. disney vacation timeshare dues.
100 home upkeep fund.

I'd like to retire October 2016. my job has become extremely toxic, it's going through a hostile takeover and the stress is becoming unbearable. It's beginning to effect my health, I'm on meds for sleeplessness and anxiety. I do want to work at some thing as I don't have the sit at home type of personality.

I have done fireclac but the wildcard is of course health insurance as I do have great health insurance and have not researched how much insurance on the outside would cost.

 

[pb4uski]

healthsherpa.com should give you a notion of what your health insurance would be. Be sure to include a provision for deductibles and co-pays.

As I understand it, you would get your late husband's SS amount instead of yours, but check with SSA to verify.

Run firecalc but I suspect you will get a green light to retire.

 

[Gill]

You have 2-1/4 million dollars and SS and a pension in the future. Sure looks to me as if you could retire now.
Bruce

 

[MichaelB]

Welcome to the forum, bclover. You've had more than your fair share of life's challenges, hopefully they are now behind you.

As part of your search for information, here are some questions you may find helpful. http://www.early-retirement.org/for...re-asking-can-i-retire-69999.html#post1399715

 

[Walt34]

You have 2-1/4 million dollars and SS and a pension in the future. Sure looks to me as if you could retire now.
Bruce

+1 here too.

A wild card perhaps is the special needs child - if the plan to get him to independent living status does not work, how does that affect your resources?

I'm unfamiliar with Philadelphia real estate values but that sounds like a largish house so is it possible to downsize without significantly affecting your quality of life? Is there anything holding you to the Philadelphia area or will you have the freedom to move anywhere you want after leaving employment? That would open up a lot of opportunities to reduce fixed expenses.

 

[bclover]

+1 here too.

A wild card perhaps is the special needs child - if the plan to get him to independent living status does not work, how does that affect your resources?

I'm unfamiliar with Philadelphia real estate values but that sounds like a largish house so is it possible to downsize without significantly affecting your quality of life? Is there anything holding you to the Philadelphia area or will you have the freedom to move anywhere you want after leaving employment? That would open up a lot of opportunities to reduce fixed expenses.

Thanks Walt,

My house is about 3000 square feet. I will definitely have to move eventually because like most urban townhomes, the real estate goes up. LOL It's a 4 story job and I'm assuming that the stairs and my knees are not going to be friends forever. my dream is to actually be a snow bird. Philadelphia is a wonderful city, relatively low cost of living for the east coast. PA tax wise is very favorable to older americans and there is tons to do here, along with excellent medical facilities.
Jobless it has been having a bit of an explosion but it's a very fluid city. our public school system is abysmal at best so what has been happening is that we get a lot of young adults moving here for jobs but once they marry and begin a family they leave because no one that has any choice will put their kids in the schools. But I definitely can and probably will move to a smaller condo.

My oldest kid is a high functioning Autistic, he's actually doing quite well, he's got a part time job at ups and is trying to complete a plumbers apprenticeship program but he struggles with day to day things that we generally take for granted, like simple banking. so I know he will always need some type of "advice". truthfully him and his younger brother are extremely, extremely close so even if some thing happen to me today I think he would have a few people in his corner.

 

[Walt34]

I know about knees and stairs. We bought a rambler for that reason - I'm fine now but I think I inherited my mother's bad knees and there is almost certainly a new knee joint or two in my future.

We are tentatively planning a move to a CCRC in PA mostly because of proximity to family but PA being tax friendly to retirees doesn't hurt either.

 

[bclover]

healthsherpa.com should give you a notion of what your health insurance would be. Be sure to include a provision for deductibles and co-pays.

As I understand it, you would get your late husband's SS amount instead of yours, but check with SSA to verify.

Run firecalc but I suspect you will get a green light to retire.

Thanks pb4uski,
firecalc, did give me a great scenario, (96% of money lasting to age 90) I do love real live opinions. a lot of times you guys ask questions that really make me think and investigate, which is what I need.

 

[Philliefan33]

Just a rough calculation in my head tells me that you could pay your current expenses with less than 3% withdrawal per year from your retirement/ investment accounts. Your expenses will go down in a couple of years as your younger son graduates from college and gets off your payroll. Plus you have the option to downsize a bit and further cut expenses if needed.

Can you retire at 56 and defer your pension until your 60? Or does the extra $1000 come only if you work until 60?

My gut feeling is that you are good to go.

 

[Nemo2]

One thing I'd suggest, (having years ago lost a spouse to cancer....she didn't make 53), is don't rush into anything.........at the time I thought I was "Handling things pretty well...considering"......like hell I was...I was totally screwed up.

Just coast for a while.

 

[38Chevy454]

I agree with the others, gut feel is your assets are sufficient with a safe withdrawal rate to keep up your lifestyle. Health insurance is a big factor for many (me included, still working because this factor is significant), so it is important to know the status for you with respect to health ins. Your younger son should be on his own soon, and that should help your expenses a little. Sounds like oldest son at least has some income and can contribute toward his living costs.

Sorry for your loss of husband and brother, two tough losses there to deal with. Having work turmoil on top and I can see where you are stressed a bit! Now that 1 year has passed since your husband's death, it seems you have a good idea on your new life and finances. Continue to read up on here and educating yourself, when you are ready you will have the knowledge and confidence to make the successful transition to retirement.