Greetings from Montana
Hi, I am a state employee that is planning on retiring the end of 2020. I am 58. My wife is 54. I love the outdoors and have been fortunate enough to have had a wonderful career in the natural resource field for the past 35 years with outdoor adventures in the Northwoods of Wisconsin and Minnesota, Arkansas, SE Alaska, New Mexico, Wyoming and Montana. The most I have earned is $66,000 per year. My wife also had a state job for 21 years but lost her job due to an addiction 8 years ago. We have not been able to save any money since her illness. My wife is currently on the coast working on her recovery where there is adequate support. If she does not recover, we will probably end up divorced. So far, my wife is doing well but the divorce is a big risk. I started investing when I was 18 and have been working with a financial planner for the past 13 years, so I think I am still good to go. Nevertheless, I would like to find out what others on this forum think about my situation.
Our house ($250,000) is paid off. My wife and I need $3,500/month to meet our needs. However, we would like to live on $7,000 or more per month if our pensions and retirement investments are sufficient to support this. I ran our numbers in FIRECalc and this looks doable. We are hoping to spend our time gardening, cooking, camping, fishing, hunting, bicycling, hiking, kayaking and traveling during the winter as snowbirds. we intend to spend about $125,000 to fix up our house and for a truck and travel trailer.
Here is what we have for retirement:
2021 - $40,000 my pension (3% COLA)
2027 - an addition $20,000 Wife’s Pension (3% COLA)
2032 - an addition $48,000 SS for both of us
Investments: Total $1,250,000
Brokerage: 40% (I have been selling investments each year to raise the cost basis)
We plan on buying our health insurance from the exchange until my wife is 65 if this is still an option. Therefore, we do not plan on withdrawing any money from our pretax accounts until my wife is 65 so we can qualify for subsidies. We may also purchase a qualified longevity annuity with a nursing home rider later in life to defer some of our RMD taxes and to help pay for any potential nursing home expenses.
We may also look for part time jobs that fulfill our passions. Please let me know what you think.