ReadyForRetirement
Dryer sheet aficionado
Hello, I have been reading the forum for a short time. However, I have learned a lot in that short time and appreciate all of the wisdom and experience you all are kind enough to offer!
I am 53 and my wife is 55. I would like to retire mid-year 2015 and she plans on working through 2016. We are in mostly low risk investments now, with a large position in cash/CDs. It’s been hard to push back into the market over the last few years. I fear another crash and what it might do to my overall confidence to retire early. I have included as much information as possible below. I ran the numbers through FireCalc. I used Bernicke's Reality Retirement Plan, total market portfolio mixed 50/50, 50 years duration. FireCalc gave me a 100% success rate. I think I am at FIRE if I gain the confidence to move everything back to the market. I would like the forums opinion on our position and thoughts on steps to move forward with confidence. THANKS
Core Expenses
Average Spending over last two years has been $60 k, excluding taxes (fed only; live in FL) and the purchase of auto ($27 k). Have great benefits through wife’s company, medical insurance is $130/mo. For planning purposes I built up a separate budget, including $10 k for Medical insurance and included estimated taxes and expense to offset the periodic costs for big ticket items like auto and appliances. My retirement budget is $80 k per/year. Children are grown; expect no financial need from them. Parents have good pension, LT care, etc. We own a condo without a mortgage. Maintenance fees are included in monthly expense, so not many surprise expenses to consider.
Tax-Deferred Investments
$800 k (Mostly Mutual Funds – Target Retirement 2020)
Taxable Investments
$300 k Stocks
$900 k Cash/CDs
$500 k Condo (Paid)
Pensions (Both are non-Cola and 100% Joint & Survivor)
Mine - $28 k per year starting at age 65 (2027)
Wife’s - $6 k per year starting at age 65 (2025)
SS
Mine - $34 k per year starting at age 65 (2032)
Wife’s - $23.5 k per year starting at age 65 (2030)
Income (Net)
2015 $130 k
2016 $70 k
I am 53 and my wife is 55. I would like to retire mid-year 2015 and she plans on working through 2016. We are in mostly low risk investments now, with a large position in cash/CDs. It’s been hard to push back into the market over the last few years. I fear another crash and what it might do to my overall confidence to retire early. I have included as much information as possible below. I ran the numbers through FireCalc. I used Bernicke's Reality Retirement Plan, total market portfolio mixed 50/50, 50 years duration. FireCalc gave me a 100% success rate. I think I am at FIRE if I gain the confidence to move everything back to the market. I would like the forums opinion on our position and thoughts on steps to move forward with confidence. THANKS
Core Expenses
Average Spending over last two years has been $60 k, excluding taxes (fed only; live in FL) and the purchase of auto ($27 k). Have great benefits through wife’s company, medical insurance is $130/mo. For planning purposes I built up a separate budget, including $10 k for Medical insurance and included estimated taxes and expense to offset the periodic costs for big ticket items like auto and appliances. My retirement budget is $80 k per/year. Children are grown; expect no financial need from them. Parents have good pension, LT care, etc. We own a condo without a mortgage. Maintenance fees are included in monthly expense, so not many surprise expenses to consider.
Tax-Deferred Investments
$800 k (Mostly Mutual Funds – Target Retirement 2020)
Taxable Investments
$300 k Stocks
$900 k Cash/CDs
$500 k Condo (Paid)
Pensions (Both are non-Cola and 100% Joint & Survivor)
Mine - $28 k per year starting at age 65 (2027)
Wife’s - $6 k per year starting at age 65 (2025)
SS
Mine - $34 k per year starting at age 65 (2032)
Wife’s - $23.5 k per year starting at age 65 (2030)
Income (Net)
2015 $130 k
2016 $70 k