Do I need to go back to work?

[unixfreak]

Firecalc actually give me 100% as long as I don't retire until 2022 (62) and take the SS money then. That's also assuming the freelance gig goes on for a few years at 12k a year. Spending is constant spending power. Portfolio investments are total market. The spending is 60k and the portfolio is 500k. If the freelance gig goes away that takes me down to 78% but then if I reduce my spending to 50k then I'm back to 100%.

[YoungSaver]

As a young saver, I'm struggling to grasp at where your money went over the last 30 years. You make 150k per year but only have $16k in savings. Where is your 100k (net pay) per year going? Sorry, I just don't understand.

[ulrichw]

Quote:

Originally Posted by unixfreak Firecalc actually give me 100% as long as I don't retire until 2022 (62) and take the SS money then. That's also assuming the freelance gig goes on for a few years at 12k a year. Spending is constant spending power. Portfolio investments are total market. The spending is 60k and the portfolio is 500k. If the freelance gig goes away that takes me down to 78% but then if I reduce my spending to 50k then I'm back to 100%.

I'd strongly recommend waiting until at least FRA (Full Retirement Age) to take your SS benefit, and I'd at least consider waiting until 70.

You have enough money to bridge the gap, and SS gives you inflation protection that no other investment vehicle does.

Your wife will also benefit from a larger survivor's benefit the longer you delay.

One way to think about it: While the SS reduction/benefit is roughly "actuarially fair", meaning that people will statistically collect the same total amount regardless of when they start their benefit, the fact that your wife is so much younger than you means your benefit will likely be paid out considerably longer than most people's. Therefore, the longer you wait, the better off you (as a couple) will be.

[unixfreak]

Quote:

Originally Posted by YoungSaver As a young saver, I'm struggling to grasp at where your money went over the last 30 years. You make 150k per year but only have $16k in savings. Where is your 100k (net pay) per year going? Sorry, I just don't understand.

Well ......I haven't made 150k per year for the past 30 years. When I got into my field full time, my starting pay was 27k. I've been married twice. I'll spare the gory details, but raising kids in a family of 5 is not cheap. I've raised 6 children in total. Doctor bills, cars and groceries are NOT cheap. Also the divorce wasn't cheap. You get the point.

Sure ... I could have done better, but it is what it is.

[YoungSaver]

I see. Thanks

[unixfreak]

Quote:

Originally Posted by YoungSaver I see. Thanks

No problem. Another point that I just thought of was that I didn't have a 401k until 21 years ago at 38 years old and gave up half of it after 7 years of savings. That'll knock ya back a bit.

[Carpediem]

Quote:

Originally Posted by unixfreak No problem. Another point that I just thought of was that I didn't have a 401k until 21 years ago at 38 years old and gave up half of it after 7 years of savings. That'll knock ya back a bit.

Lost my VG IRA to a similar tragedy in 2013. And 8.5 years alimony on top of it. GRRRR

[unixfreak]

So I had a job literally fall into my lap paying me the same as the 130k that I'll be recieving for the next 102 weeks of severance. So needless to say, I'll not be retiring. Obviously I'm maxing out as many IRAs as I can .. in addition to the HSA.

[Dtail]

Quote:

Originally Posted by Carpediem Lost my VG IRA to a similar tragedy in 2013. And 8.5 years alimony on top of it. GRRRR

13 years of alimony for me when adding cash plus the house. Cost me 600k not including the lost investment potential.

[unixfreak]

Quote:

Originally Posted by Dtail 13 years of alimony for me when adding cash plus the house. Cost me 600k not including the lost investment potential.

Ouch. That hurts me to hear it.

[gayl]

I cannot emphasize enough that you need to save 100% of that severance in that the new position is enough

[Running_Man]

The best chance of making it long term is to deplete your savings and utilize Social Security as a back stop. When you hit 70 your wife will be 61 and one year from claiming. Your social Security will be $3,770/mo at age 70. Inflation protected and by itself at $45,240 above your annual spend need of $42,000 per year. Your wife will be able to claim an additional $1,100 per month 13,200 per year for a total of $4,870 per month for a total from Social Security of $58,440. It will be a more efficient tax method.
This means you need a nine year plan from age 61 to age 70.

You would need I think to plan for a life insurance policy to cover for contingencies of income reduction with the first death. Also how health insurance would be covered.

In general I would state this: When one is so close to the edge on being able to make it or not make it and has a long time to go, Social Security is far more effective than counting on individual investments. It is far easier to plan on the next 11 years and build from that point than to quit working at 61 and assume a plan will work for the 50 years your wife needs to plan for.

[Teacher Terry]

Congrats on the new job. Unless your wife is disabled she really should be working to increase savings.

[unixfreak]

Thanks! I’m pretty stoked! You’re kidding about the wife working, right?

[kimcdougc]

Quote:

Originally Posted by EarlyBirdly "I can do cobra until about 65 so I'll need to pay what ... a couple of grand per month until medicare?" Uh...why would you ever mess with Cobra when the ACA is available to you?

In my experience, we took Cobra for 18 months because it was cheaper than the ACA and it had way better coverage than ACA. Just my experience. We have been on ACA for the last 4 years now and I sure do miss mega health care insurance. ACA sucks for me. Again, just my 2 cents.

[ivinsfan]

Quote:

Originally Posted by kimcdougc In my experience, we took Cobra for 18 months because it was cheaper than the ACA and it had way better coverage than ACA. Just my experience. We have been on ACA for the last 4 years now and I sure do miss mega health care insurance. ACA sucks for me. Again, just my 2 cents.

Yes but do you miss working? That's the trade off you make for ER... would you go back to work to have better insurance?

[Carpediem]

Quote:

Originally Posted by kimcdougc In my experience, we took Cobra for 18 months because it was cheaper than the ACA and it had way better coverage than ACA. Just my experience. We have been on ACA for the last 4 years now and I sure do miss mega health care insurance. ACA sucks for me. Again, just my 2 cents.

Can you tell me more about what sucks about ACA? I'll be facing this decision soon so I'm curious (and concerned). Thanks.

[unixfreak]

Well as the OP of this thread, here's a little update. Not retiring was a great decision. I'm working a great job that I don't have to work; that really helps the mentality at times. I'm making a ton of money as my old job is paying me as well as the new. I have to work a year before I can get into the 401k. I rolled mine over to an IRA, maxed out another IRA, maxed out my HSA, about to open an IRA for the spouse and max it. House is paid off, no debt. The IRAs are at 495k. I found that after my house paid off my credit dropped 44 points. It's 777 so I'm not complaining. Life is good .... not retired! But .... it's such a blessing to have this opportunity to solidify retirement further.

[HadEnuff]

Quote:

Originally Posted by unixfreak Well as the OP of this thread, here's a little update. Not retiring was a great decision. I'm working a great job that I don't have to work; that really helps the mentality at times. I'm making a ton of money as my old job is paying me as well as the new. I have to work a year before I can get into the 401k. I rolled mine over to an IRA, maxed out another IRA, maxed out my HSA, about to open an IRA for the spouse and max it. House is paid off, no debt. The IRAs are at 495k. I found that after my house paid off my credit dropped 44 points. It's 777 so I'm not complaining. Life is good .... not retired! But .... it's such a blessing to have this opportunity to solidify retirement further.

Good going! IMO you'll enjoy your retirement much more if you're not feeling strapped. I'm glad this is working out well for you.

[unixfreak]

Quote:

Originally Posted by HadEnuff Good going! IMO you'll enjoy your retirement much more if you're not feeling strapped. I'm glad this is working out well for you.

Thank you!