Hi,
Thanks to those in this forum, I have read many posts and answers... informative, varied and always respectful.
Here is my situation and I welcome different points of view:
Work had become very stressful and I have little personal reward. I’ve been basically the same role for the last 10 years and the next two year will have even more stress and strain, during a time my parents move to a retirement home, my kids are still home before we go empty nest, I could spend quality time with my wife and my beloved dog is in his last years. With bonus, I am near $250k annually but will not miss work at all if I can pull the trigger now.
Financially, we have $6M total assets. I am very thankful for that, some luck and good choices got us there. Roughly $750k in house, $2M in tax differed (assuming at take lump sums now for pension), $3.5M in taxable investments. We owe $275k on house at 2.75% paid off in 7 years. Private school and college in next 7 years will cost $300k to be conservative. Our portfolio has a balanced/aggressive mix but my accountant says current tax exempt bonds, no salary and capital gains will lower my tax rate overall to 5% federal and 5% state since the first near $80k of cap gains has ZERO tax.
Our expenses today, not including the education costs, with a conservative $30k a year assumption for our own healthcare and anticipated taxes, will be $165k a year. We plan to move to Florida and downsize in 7 years when our costs should drop to around $90k and lose the 5% state tax. I have used Quicken for over 30 years, so I am solid on spending assumptions. (Whole history Still in same database)
By my math, we are at a 3.5% withdrawal rate if I pay off education and house now even with our current higher expenses. In 7 years, it gets better.
I’m just very nervous and want to be sure. I didn’t seriously research all this until the last few weeks.
Is this close? A Slam Dunk? FireCalc seems really optimistic. I tried that and maybe 30 other on line simulations and they vary wildly. I don’t want to die with a huge legacy and the next few years could have high personal reward.
Thanks all for any advice.
Thanks to those in this forum, I have read many posts and answers... informative, varied and always respectful.
Here is my situation and I welcome different points of view:
Work had become very stressful and I have little personal reward. I’ve been basically the same role for the last 10 years and the next two year will have even more stress and strain, during a time my parents move to a retirement home, my kids are still home before we go empty nest, I could spend quality time with my wife and my beloved dog is in his last years. With bonus, I am near $250k annually but will not miss work at all if I can pull the trigger now.
Financially, we have $6M total assets. I am very thankful for that, some luck and good choices got us there. Roughly $750k in house, $2M in tax differed (assuming at take lump sums now for pension), $3.5M in taxable investments. We owe $275k on house at 2.75% paid off in 7 years. Private school and college in next 7 years will cost $300k to be conservative. Our portfolio has a balanced/aggressive mix but my accountant says current tax exempt bonds, no salary and capital gains will lower my tax rate overall to 5% federal and 5% state since the first near $80k of cap gains has ZERO tax.
Our expenses today, not including the education costs, with a conservative $30k a year assumption for our own healthcare and anticipated taxes, will be $165k a year. We plan to move to Florida and downsize in 7 years when our costs should drop to around $90k and lose the 5% state tax. I have used Quicken for over 30 years, so I am solid on spending assumptions. (Whole history Still in same database)
By my math, we are at a 3.5% withdrawal rate if I pay off education and house now even with our current higher expenses. In 7 years, it gets better.
I’m just very nervous and want to be sure. I didn’t seriously research all this until the last few weeks.
Is this close? A Slam Dunk? FireCalc seems really optimistic. I tried that and maybe 30 other on line simulations and they vary wildly. I don’t want to die with a huge legacy and the next few years could have high personal reward.
Thanks all for any advice.