Well, recent newbie to the board. Lots to learn, trying to absorb.
Background first:
Two of us, no kids, pretty worthless neices/nephews, could easily die broke, if there is a remainder would go to local college for scholarships.
Both worked in prof jobs all our lives since late 70's, in our early 50's, wife in public sector, me the private. Let's just say her retirement is 2x mine, even with maxing out my 401k's, etc. Both fairly conservative, moderate risk adverse investors. I've had health issues at 45 heart condition. her folks passed away in mid 60's. My Dad at 72 with 15 years of tough medical issues, my mom still kicking at 80 and doing well.
have $1.2M in taxable accounts, 6 months expenses in cash, $200k in cars, other saleable assets and $300k+ equity in realestate (primary home), saving $50k/year.
DW pension is worth $2100/mo at 30 years (3 years from now) and that's her target retirement date. I have a small pension; worthabout $100k lump sum ($500/mo) at 65. Can take these early if needed.
Our jobs blow. i mean they really suck, mines been in manuf, and most of you know what happened there over the past 20 years. Work 50+ hours on a short week. DW the same, maybe crazier due to a insane workaholic boss. We really need out as soon as we think we can afford it. However, we dont want to stress about money, either.
Questions:
1. Understand the 4% SWR recommended. In our situation can we pull 4-5 years at a higher rate, say 6-7% until SS kicks in? We get another $3300/mo then at 62. We would then return to a 4% or less SWR.
2. I've read about bucket theory, die broke theory, asset allocation, and several other methods of withdrawl, any additonal that others can recommend? Want something not too complicated, KISS principle applies.
3. Really don't want to have to worry about money, so may consider annutization at some point. heard that at about 60 years of age SPIA's outrank bonds (especially when interest rates are going to rise) and better than the equity market at age 75 or so do to the survivorship credit. Any comments on that?
Thanks and love the forum, glad I found you guys. Cheers.
Background first:
Two of us, no kids, pretty worthless neices/nephews, could easily die broke, if there is a remainder would go to local college for scholarships.
Both worked in prof jobs all our lives since late 70's, in our early 50's, wife in public sector, me the private. Let's just say her retirement is 2x mine, even with maxing out my 401k's, etc. Both fairly conservative, moderate risk adverse investors. I've had health issues at 45 heart condition. her folks passed away in mid 60's. My Dad at 72 with 15 years of tough medical issues, my mom still kicking at 80 and doing well.
have $1.2M in taxable accounts, 6 months expenses in cash, $200k in cars, other saleable assets and $300k+ equity in realestate (primary home), saving $50k/year.
DW pension is worth $2100/mo at 30 years (3 years from now) and that's her target retirement date. I have a small pension; worthabout $100k lump sum ($500/mo) at 65. Can take these early if needed.
Our jobs blow. i mean they really suck, mines been in manuf, and most of you know what happened there over the past 20 years. Work 50+ hours on a short week. DW the same, maybe crazier due to a insane workaholic boss. We really need out as soon as we think we can afford it. However, we dont want to stress about money, either.
Questions:
1. Understand the 4% SWR recommended. In our situation can we pull 4-5 years at a higher rate, say 6-7% until SS kicks in? We get another $3300/mo then at 62. We would then return to a 4% or less SWR.
2. I've read about bucket theory, die broke theory, asset allocation, and several other methods of withdrawl, any additonal that others can recommend? Want something not too complicated, KISS principle applies.
3. Really don't want to have to worry about money, so may consider annutization at some point. heard that at about 60 years of age SPIA's outrank bonds (especially when interest rates are going to rise) and better than the equity market at age 75 or so do to the survivorship credit. Any comments on that?
Thanks and love the forum, glad I found you guys. Cheers.