bada bing
Full time employment: Posting here.
Hello all,
My first post. I've been lurking for a few weeks. In the last couple months I've been on a research kick, looking into retirement. I know I'm a little late with the new interest, especially around this community of retirement overachievers. Better late than never (I hope for my case).
I'm a happily single (divorced 12 years ago) male with no kids. I work in the oil patch and have a pretty stable and secure job in spite of the current turmoil in the oil biz. I started my "career" in the oil patch late, at 39. Prior to that I spent a couple of great decades in the boom and bust world of commercial fishing in Alaska. Made some good money occasionally back in those days but not much tangible remains. What I have now is the result of my most recent 20 years as a wage earner working for big, evil Megacorp Oil. I started realizing that my time with Megacorp oil is ending someday, most likely within 3-4 years if I go on my terms. Thus my sudden fascination with retirement planning.
What I currently have:
$850K total saved, 33% tIRA,33% Roth 401K and 34% taxable, all in 70/30 stock/bond indexes
$2000/month non-COLA pension at 65, less earlier, lump summable(~$250K value currently.)
Maxed SSI 35 years, current contributions gain nothing.
$20K in HSA + $60K in retiree reimbursment account for retiree medical costs
Paid for house - $300K value
$200K in side business assets, easily liquid
no debts, a few months expenses in a checking account
My "getting ready" plan for the next 3-4 years:
I discovered the "Mega backdoor roth conversion" recently. I will make after tax 401K contributions up to the yearly all source max $59K and convert the after tax portion yearly. My 401k allows all this.
I will make non-deductible IRA contributions of $6500 per year and convert them.
I probably can make $10K per year addition to taxable savings.
What I want to have happen:
I want to retire from the oil patch in either June 2019 or June 2020 (June is the best month for me to go, regardless of year)
I want to continue earning $25K/year from my side commercial fishing business until 2027, then sell out for $200K
I'll need to start withdrawals from my stash of (predicted) $1.2mm starting at retirement.
I'll need/want at least $70K per year from all sources steady income, so say $45K above my predicted part time side biz income until SSI and/or pension is elected. More spending $$$ is always better. I don't particularly want to leave much $$$ in an estate for my shiftless nieces and nephews.
Questions (If you've read this far):
1. Is my plan rational and conservative enough?
2. First impressions; should I consider lump summing from pension or annuitize?
3. I know this is a complex topic, but I think I should delay taking social security while I still have some earned income and maybe use the lower earning years to roll some tIRA money to Roth? The trade off is the heavier hit to my stash in the early years though. One offset is the sale of my business assets when I take SSI will put some $$$ back in.
4. Am I likely to be surprised, and if so to the upside or downside ?
I'd appreciate any helpful comments or even face punches. I need to be ready to leave work soon, because getting old in the oil patch will suck. But I'm also attracted to shiny gadgets, loud motors and aged scotch, so I "need" more than austerity to go voluntarily.
My first post. I've been lurking for a few weeks. In the last couple months I've been on a research kick, looking into retirement. I know I'm a little late with the new interest, especially around this community of retirement overachievers. Better late than never (I hope for my case).
I'm a happily single (divorced 12 years ago) male with no kids. I work in the oil patch and have a pretty stable and secure job in spite of the current turmoil in the oil biz. I started my "career" in the oil patch late, at 39. Prior to that I spent a couple of great decades in the boom and bust world of commercial fishing in Alaska. Made some good money occasionally back in those days but not much tangible remains. What I have now is the result of my most recent 20 years as a wage earner working for big, evil Megacorp Oil. I started realizing that my time with Megacorp oil is ending someday, most likely within 3-4 years if I go on my terms. Thus my sudden fascination with retirement planning.
What I currently have:
$850K total saved, 33% tIRA,33% Roth 401K and 34% taxable, all in 70/30 stock/bond indexes
$2000/month non-COLA pension at 65, less earlier, lump summable(~$250K value currently.)
Maxed SSI 35 years, current contributions gain nothing.
$20K in HSA + $60K in retiree reimbursment account for retiree medical costs
Paid for house - $300K value
$200K in side business assets, easily liquid
no debts, a few months expenses in a checking account
My "getting ready" plan for the next 3-4 years:
I discovered the "Mega backdoor roth conversion" recently. I will make after tax 401K contributions up to the yearly all source max $59K and convert the after tax portion yearly. My 401k allows all this.
I will make non-deductible IRA contributions of $6500 per year and convert them.
I probably can make $10K per year addition to taxable savings.
What I want to have happen:
I want to retire from the oil patch in either June 2019 or June 2020 (June is the best month for me to go, regardless of year)
I want to continue earning $25K/year from my side commercial fishing business until 2027, then sell out for $200K
I'll need to start withdrawals from my stash of (predicted) $1.2mm starting at retirement.
I'll need/want at least $70K per year from all sources steady income, so say $45K above my predicted part time side biz income until SSI and/or pension is elected. More spending $$$ is always better. I don't particularly want to leave much $$$ in an estate for my shiftless nieces and nephews.
Questions (If you've read this far):
1. Is my plan rational and conservative enough?
2. First impressions; should I consider lump summing from pension or annuitize?
3. I know this is a complex topic, but I think I should delay taking social security while I still have some earned income and maybe use the lower earning years to roll some tIRA money to Roth? The trade off is the heavier hit to my stash in the early years though. One offset is the sale of my business assets when I take SSI will put some $$$ back in.
4. Am I likely to be surprised, and if so to the upside or downside ?
I'd appreciate any helpful comments or even face punches. I need to be ready to leave work soon, because getting old in the oil patch will suck. But I'm also attracted to shiny gadgets, loud motors and aged scotch, so I "need" more than austerity to go voluntarily.