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Hi. I'm Steve 52. FIRE at of 58.
01-25-2017, 10:17 AM
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#1
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Dryer sheet aficionado
Join Date: Jan 2017
Location: Chattanooga
Posts: 48
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Hi. I'm Steve 52. FIRE at of 58.
25 year veteran of megacorp Inc. Age now is 52 and I plan to FIRE at 58.
No pension.
100% of my pre-SS retirement is tied to 401k. Risky, I know.
2 kids will exit college fully funded by 529's about the time I pull the trigger on RE.
My 401k is well funded, but to be able to retire at 58 and have enough money for a comfortable retirement, I will not touch (withdraw) the 401k until I'm 60. Therefore, i'll have to find a way to live for two years, ages 58 and 59. These two years are post RE and before I touch the 401k. I'll likely use cash savings, selling all LTCG, and drawing on Roth contributions. My tax footprint should be near zero those two years and I'll likely qualify for low cost health insurance.
If plan fails, I'll go back to work.
My retirement philosophy:
Honestly, I don't plan to go back to work after age 58. I'll make due.
I will always have a boat. If I'm broke, it will be the 19 foot boat I have now. If I'm rich it will be a 40 ft sailing catamaran. However, I will still have a boat.
Same with my other hobbies. I'll always have a motorcycle. If Im broke, it will be the bike I ride now. If Im rich, I'll have a BMW GS1200.
I'll always have a gym membership. If I'm broke, I'll work parttime as a lifeguard for the gym membership. If I'm rich, I'll join a nice gym near the beach.
Same with all my hobbies. Its not a matter of having to limit what I do. Its a matter of scale.
Great website guys.
Take Care.
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01-25-2017, 10:30 AM
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#2
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Full time employment: Posting here.
Join Date: May 2013
Posts: 756
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Quote:
Originally Posted by tn3sport
I will always have a boat. If I'm broke, it will be the 19 foot boat I have now. If I'm rich it will be a 40 ft sailing catamaran. However, I will still have a boat.
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These are wise words (myself, a rabid serial boat-owner) - it will allay your "what will I do in retirement" fears.
Besides, if you have a boat (even as much as a canoe), you are automatically rich in my book.
__________________
“Believe me, my young friend, there is nothing - absolutely nothing - half so much worth doing as simply messing about in boats.” ― Kenneth Grahame, The Wind in the Willows
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01-25-2017, 11:02 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,506
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Sounds a lot like us; we are out at 56/57 with almost everything in 401k/IRA accounts. Just enough in taxable to tide us over for three/four years of aggressive roth conversions.
I don't see that fund location as being especially risky at all. As long as the tax deferred account(s) will cover your spending, you'll be fine. How closely have you tracked the spending (excluding kid and work related expenditures)? Will that spending change much in retirement? Sounds like you also have the benefit of flexible spending if needed, which is a definite positive.
Big question--what beach is the gym at in Chattanooga?
Hah--I'm another Steve in Tennessee.
__________________
OMY * 3 2ish Done 7.28.17
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01-25-2017, 11:02 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,544
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Quote:
Originally Posted by tn3sport
25 year veteran of megacorp Inc. Age now is 52 and I plan to FIRE at 58.
No pension.
100% of my pre-SS retirement is tied to 401k. Risky, I know.
2 kids will exit college fully funded by 529's about the time I pull the trigger on RE.
My 401k is well funded, but to be able to retire at 58 and have enough money for a comfortable retirement, I will not touch (withdraw) the 401k until I'm 60. Therefore, i'll have to find a way to live for two years, ages 58 and 59. These two years are post RE and before I touch the 401k. I'll likely use cash savings, selling all LTCG, and drawing on Roth contributions. My tax footprint should be near zero those two years and I'll likely qualify for low cost health insurance.
If plan fails, I'll go back to work.
Take Care.
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Sport, you have 6 years to fund some after tax accounts that could easily (depending on your expenses) carry you from 58 to 59.5.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie
" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
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01-25-2017, 11:56 AM
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#5
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Moderator
Join Date: Jul 2010
Posts: 7,942
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Welcome tn3sport! If you haven't seen them yet, we have a pretty comprehensive list of things to consider before pulling the plug:
http://www.early-retirement.org/foru...ire-69999.html
as well as a FAQ:
Early Retirement FAQs - Early Retirement & Financial Independence Community
Biggest factors are careful tracking of expenses and checking your scenarios in a calculator such as Firecalc. And as suggested above, you might consider putting some of your new savings into regular (not tax-advantaged) accounts over the next 5 years to build up that cash for 58-59.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
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01-25-2017, 12:57 PM
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#6
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Dryer sheet aficionado
Join Date: Jan 2017
Location: Chattanooga
Posts: 48
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Quote:
Originally Posted by 2017ish
Big question--what beach is the gym at in Chattanooga?
Hah--I'm another Steve in Tennessee.
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Haha. Good catch. I have property in St. Augustine that I'll build on eventually. I'll always have something here in TN or even NC because the climate is so nice and the motorcycle riding is superb. But, I was born and raised in FL and will ultimately return. Hence, the love of boating...
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