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Hello All, and I need input
Old 04-06-2007, 09:39 AM   #1
Confused about dryer sheets
Join Date: Apr 2007
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Hello All, and I need input

Okay; I'm a new member of this forum which is so FULL of good information. Thanks to everyone. I'm 54, and would love to retire early next year shortly after I turn 55. I have moved with this co five times over 30 years, and we are ready to go back home. Job is okay, but we are pretty miserable living where we are.

I'm currently within a few hundred dollars of being in six figures. (Counting bonuses, I'm several thou over six as to salary.) Wife is 56 and had breast cancer 17 years ago. We have saved 1.1 mill now and will receive 250k at age 55 from a previous pension. Have about $100k in after tax savings; emergency fund etc..
SS will be around 25k in todays dollars at my age 62. DW is a stay at home mom, with no one left to mommy to. Both kiddos are now on their own and doing fine. They are living in another community which is where we will move after er, to be closer to grandbabies. DW is committed to er; but I'm still a little frightened of leaving a $100k job with ten years before medicare.

I can get employee retiree health insurance but they recently changed the formula and it's incredibly expensive - $900/month now. No telling what the cost will be in 5 years.

Housing market is still stable in this area, and I "should" be able to do okay selling our home, and will be able to build retirement home for the equity in current home. Downsizing a little should should leave us with no house payment.

We both wouldn't mind working part time for a few years to offset the health insurance cost, but don't want to find ourselves where working is not optional.

We live frugally, and currently am saving over $25k a year in 401k. That includes my 18%, 3% catch up, plus employers contribution, and employers retirement cash balance contribution.

If you've read this far, thanks, and what do you think about my chance of success?


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Re: Hello All, and I need input
Old 04-06-2007, 09:52 AM   #2
Recycles dryer sheets
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Join Date: Feb 2007
Posts: 193
Re: Hello All, and I need input


It is all a question of expenses not just the amount that you have. Many do well on much less. I would really take a long look at charting out your after retirement expenses. Be sure to include your insurance plus the cost of replacing vehicles and other big items that come up from time to time.
For money in your 401k you may be able to take as a type 2 (I think) 1099 distribution that will avoid the penalty or if you roll to an IRA you would have to do a 72t distribution with a static amount for 5 years (or 59.5) whichever is longer. It sounds like a safe withdrawal rate of 4% could be done quite easily - again considering your expense figures.

Oh Look, a squirrel!
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Re: Hello All, and I need input
Old 04-06-2007, 09:55 AM   #3
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Re: Hello All, and I need input

Welcome, David.

Your scenario lends itself very well to Firecalc, so spend some time there. Knowing your expenses would be the first step. That should give you a good sanity check on how wise it would be to retire from a cash flow standpoint.
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
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Re: Hello All, and I need input
Old 04-06-2007, 09:56 AM   #4
Thinks s/he gets paid by the post
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Re: Hello All, and I need input

Welcome David.

Originally Posted by David G
We live frugally, and currently am saving over $25k a year in 401k.  That includes my 18%, 3% catch up, plus employers contribution, and employers retirement cash balance contribution.
Your income is 100K, you save 25K annually.  Does that means your current expense including tax is 75K?  That would be too high to be supported by your saving.  But if your expense is in the 50K-60K range, I think you're in good shape.
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