Hi there,
I'm Sunny and I'm really looking forward to retirement. I read the FAQs at the top of the forum, so hopefully I have this covered and would really appreciate any feedback.
I'm 55 and live and work in a high cost of living area (DC). I'm divorced and my only child is in college and those expenses are pre-paid.
My annual expenses run between $45K-$50K, with the biggest chunk going toward rent. I've sold my home in anticipation of moving to a lower cost of living area. These expenses are after my max contributions to my 401k (TSP) and IRA and HSA. I expect to spend less after retirement in living costs, but more in vacation costs.
If I wait 3 more more years to retire, I can continue my employee health care in retirement, with my premiums remaining the same as any regular federal employee. If I leave early, I think I would purchase insurance through the ACA. I checked up a typical Bronze plan (my first time ever on the site). It looks like $200/month with a $7K deductible. Knock on wood, I am healthy so far.
I think this is the key point...trying to mentally stick it out for 3 more years for healthcare, since I really want to retire sooner.
I am not concerned about leaving money behind for my child after I pass. She has already been taken care financially through money set aside for her by other family members.
As mentioned, I sold my home here, so my home maintenance expenses are zero. I hope to travel for the first few years of retirement through a combination of house sitting and apartment stays and then when I tire of it - rent in a lower cost area, perhaps Florida...while looking for a home purchase - that would hopefully be my final home.
I do not plan any major lifestyle changes beyond that. Being mobile after so many years of being chained to this area due to my job, is a big enough change. I plan to stay in different places, some that are very low cost, balanced out by time spent in some areas that may be more expensive. I am a creative person who uses miles and points and travel rewards to cover many expenses.
Retirement Income Sources:
Two pensions, Social Security & Withdrawals from accounts. One pension has a COLA.
I have gotten pension estimates for retirement scenarios in 2017 and 2019. One pension (from an earlier employer) is an amount that is now escalating for each month that I wait to start taking it...it will max out at age 65, so I plan to start taking it before then. There is no COLA on that pension. The second pension is my federal pension. The earliest I can take it is age 62. If I take it sooner, there is a 5% deduction per year.
Social Security calculates my monthly payment, beginning at age 62, as roughly $2,000. if I stop working before then, obviously that amount will be reduced.
As of now, I have 34 years of creditable service for Social Security.
I'm a bit fuzzy on what my tax scenario in retirement will be - obviously my income taxes will go way down. I won't own property for awhile. I am currently reviewing different withdrawal scenarios to investigate tax implications.
My nest egg is approximately $1.5M, inclusive of the present value of the two pensions - but does not include any calculation for the value of Social Security.
I am confused by FIRECalc. I ran the numbers and it came up wtih something like out of 116 scenarios, the chance of my nestegg lasting 30 years is 0%. Considering that my nestegg is approximately 30X my expenses, I am missing something. I ran it twice to make sure - so obviously there might be a user error? Anyway, I am excited to be here and discuss all these topics to get ready for my release on good behavior LOL. yahoo!
I'm Sunny and I'm really looking forward to retirement. I read the FAQs at the top of the forum, so hopefully I have this covered and would really appreciate any feedback.
I'm 55 and live and work in a high cost of living area (DC). I'm divorced and my only child is in college and those expenses are pre-paid.
My annual expenses run between $45K-$50K, with the biggest chunk going toward rent. I've sold my home in anticipation of moving to a lower cost of living area. These expenses are after my max contributions to my 401k (TSP) and IRA and HSA. I expect to spend less after retirement in living costs, but more in vacation costs.
If I wait 3 more more years to retire, I can continue my employee health care in retirement, with my premiums remaining the same as any regular federal employee. If I leave early, I think I would purchase insurance through the ACA. I checked up a typical Bronze plan (my first time ever on the site). It looks like $200/month with a $7K deductible. Knock on wood, I am healthy so far.
I think this is the key point...trying to mentally stick it out for 3 more years for healthcare, since I really want to retire sooner.
I am not concerned about leaving money behind for my child after I pass. She has already been taken care financially through money set aside for her by other family members.
As mentioned, I sold my home here, so my home maintenance expenses are zero. I hope to travel for the first few years of retirement through a combination of house sitting and apartment stays and then when I tire of it - rent in a lower cost area, perhaps Florida...while looking for a home purchase - that would hopefully be my final home.
I do not plan any major lifestyle changes beyond that. Being mobile after so many years of being chained to this area due to my job, is a big enough change. I plan to stay in different places, some that are very low cost, balanced out by time spent in some areas that may be more expensive. I am a creative person who uses miles and points and travel rewards to cover many expenses.
Retirement Income Sources:
Two pensions, Social Security & Withdrawals from accounts. One pension has a COLA.
I have gotten pension estimates for retirement scenarios in 2017 and 2019. One pension (from an earlier employer) is an amount that is now escalating for each month that I wait to start taking it...it will max out at age 65, so I plan to start taking it before then. There is no COLA on that pension. The second pension is my federal pension. The earliest I can take it is age 62. If I take it sooner, there is a 5% deduction per year.
Social Security calculates my monthly payment, beginning at age 62, as roughly $2,000. if I stop working before then, obviously that amount will be reduced.
As of now, I have 34 years of creditable service for Social Security.
I'm a bit fuzzy on what my tax scenario in retirement will be - obviously my income taxes will go way down. I won't own property for awhile. I am currently reviewing different withdrawal scenarios to investigate tax implications.
My nest egg is approximately $1.5M, inclusive of the present value of the two pensions - but does not include any calculation for the value of Social Security.
I am confused by FIRECalc. I ran the numbers and it came up wtih something like out of 116 scenarios, the chance of my nestegg lasting 30 years is 0%. Considering that my nestegg is approximately 30X my expenses, I am missing something. I ran it twice to make sure - so obviously there might be a user error? Anyway, I am excited to be here and discuss all these topics to get ready for my release on good behavior LOL. yahoo!
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