Hi I will retire this month!

[bfrank12]

Hello,

I am 57 and has been on this forum for several years. I was able to learn about early retirement from books : How Much Can I Spend in Retirement? , I-Orp calculator, MaxiFi planner, and many more.

1) I have tracked my cost of living since 2017 and determined cost of living.

2) I have 3 buckets : 401k, 403b and taxable account. My husband is 61 and plan to work until at least 65 years.

3) We will draw SS at 70 yrs.

4) I have made a tax bracket projection during retirement and identify the years after retirement and before SS and RMD to determine ROTH conversion. SS was calculated at 25% reduction in benefit.

5) I have determined the income level during retirement years and estimated MAGI for IRMAA will be. This is used to plan ahead for not reaching higher IRMAA level if possible.

6) The taxable portfolio is 57% stock & 44% cash/bond. The bond is made of I-series and ladder T-bill and cash . This portion is enough for 5 years living expenses.

7) The other 2 buckes also has a bond/government security portion to provide 5 year of living expenses.

8) Withdrawal rate will be low since Pension & capital gain/dividend will provide income. When SS and RMD start the tax bracket will go up to 22% to 24%. This is where the plan is to do ROTH conversion early when in 12% bracket.

I enjoyed reading about experiences and questioned asked on the forum. I have been learning as the situation arises. So the next part of the puzzle is ROTH conversion. However, having been on this forum I know that the numbers are okay. I am taking advice to use my years before 65 and relax and on my own schedule. I learned someone said that by blessing, hard work and sacrifices that one can "Live like Riley" -a happy life with little to no worries. My favorite song is Frank Sinatra " I did it My Way." Thank you so much for adding more enjoyment in my years with your knowledge.

 

[MarieIG]

Congratulations on your retirement.

 

[Time2re]

Congrats. Great work. I retired at 57, worried what I would do with all that free time. Took me about 2 months to figure it out. Livin the dream!

 

[Out-to-Lunch]

Congratulations! Enjoy.

8) Withdrawal rate will be low since Pension & capital gain/dividend will provide income.

Note that capital gains and dividends ARE withdrawals from your portfolio, and should be considered as part of your withdrawal rate.

 

[Exchme]

Congratulations! Sounds like you've made a comfortable financial plan, now you just have to go enjoy yourself!

 

[bfrank12]

Withdrawal rate that I will theoretically use is a possible 4.1% for 10% failure rate with 35 years horizon when portfolio has optimal asset 56% stock/44% bond. per Pfau, Wade . I plan to use the dynamic spending strategy for withdrawal.

I just realized that heirs must empty the Roth IRA also within 10 years of original owner's death. Legacy is an issue that I am not certain about and must learn in the future to transfer wealth. Thank you everyone for all your encouragement.

 

[pacergal]

Congratulations!
How do you envision spending your days in retirement?
Looking forward to hearing more from you!

 

[bfrank12]

Hello pacergal, I love to read books and have many hobbies.
I also have develop some new friends this past 2 years but seems to be too busy to see friends. So now I can relax and make my own schedule .

I have recently learned about the internet archive website that allow download of books and audiobooks free. I also use our on-line library for audiobook. After retiring maybe I will be more discipline and read books instead of just listening audio version.

I also started canning tomatoes from local Amish farmer market. I cross-stitch during the winter. I like to machine quilt but have been busy last two years after semi-retirement to do so. I used to crochet as a beginner but has forgotten how to now. This is a "enormous" learning curve project for me.

Also I have started going back to local church recently. Local gardens and parks are my go-to destination. We also have started to learn & do some bird-watching from back-yard and at wildlife refuge.

I also am focus on spending more time with family and adult children.
I would like to spend more quality & relaxing time with my husband rather than work-chores, or remodeling.

I would like to learn Instapot Mediterranean cooking and food-prep.
I figure it is best to spend time with my elder Mom while she is still healthy. This was the primary reason for my early retirement. I hope being retire will offer me the opportunity these things.

 

[pacergal]

Sounds like a great retirement plan! It is so nice to be able to do what you want with your time.

 

[TheWizard]

Congratulations, yes.
I have a minor terminology point.
A "bucket" strategy, which I don't use and don't recommend, is a strategy that some people use where they have a stocks bucket, a bonds bucket, and a cash bucket and they do transfers from the first two to the cash bucket at supposedly opportune times and then spend from the cash bucket.

What you, the OP, have are three separate accounts, although the 401(k) and 403(b) are siblings in the tax-deferred category.
Hopefully you will have an increasing Roth account (tax free!) In coming years as well...

 

[ImThinkin2019]

Hi bfrank12

Congratulations on your upcoming retirement! We also learned a lot from this forum and are in good shape.

A couple things we've started up are a local hiking group which takes 1 morning a week, and 2 book clubs at our local small library. We like both of these things.

We're also fortunate to have our kids and grandkids close, so we do some child care, transport to dance and swimming lessons, etc.

And, DW and I each have a parent alive so we're spending as much time as we can with them while we have them. Can't replace that!

Best wishes to you on all the things you are doing!

 

[Midpack]

Congratulations. You’ve done a very good job of covering all the planning bases - kudos.