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I "feel" like I'm doing the right thing
05-08-2013, 06:46 PM
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#1
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Confused about dryer sheets
Join Date: May 2013
Posts: 2
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I "feel" like I'm doing the right thing
Hello everyone. So here's my script to the plan:
- 52, married, stay at home wife, two adult kids living their own dream
- Primary residence, current market value $395K; no mortgage
- Rental property, current market value $170K; no mortgage
- No auto payments (2013 Jeep wrangler and 2002 Dodge Dakota)
- Money Market/savings, $120K
- Traditional IRA, $150k
- Monthly income (pension [cola]+rent)= $6,100
- Monthly Expenses = $3,220
- Retired Military Medical
- Term life on both wife and I $150K
- Deferred FERS @ 62 ~$650 per month
- SS for both wife and I (not sure the amount)
I'm currently working civil service under FERS but plan to resign and take a deferred retirement.. I "feel" I can pull this ER thing off.
Based on what you know, am I there?
Thank you
Doug
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05-08-2013, 07:01 PM
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#2
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Recycles dryer sheets
Join Date: Mar 2013
Location: San Antonio
Posts: 143
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Doug,
Welcome! With your income (got to love a military pension!) almost twice your expenses, I think you are there. Your FERs and SS are great icing when you draw them.
That said, reccommend you run fire calc to make sure you are clear. Hard to see anything but success based on the info you provided. I'd also double check my expenses, and add in a buffer for emergencies
Best of luck!
P.s. Thanks for your service!
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05-08-2013, 07:46 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
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If it feels good, do it.
__________________
_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
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05-08-2013, 09:23 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,376
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Quote:
Originally Posted by haloFIRE
... That said, reccommend you run fire calc to make sure you are clear. Hard to see anything but success based on the info you provided. I'd also double check my expenses, and add in a buffer for emergencies
Best of luck!
P.s. Thanks for your service!
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+1 Run your numbers through FireCalc and/or Quicken Lifetime Planner but from what you outlined it seems like you are good to go whenever you want.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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05-10-2013, 07:17 AM
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#5
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gone traveling
Join Date: Sep 2003
Location: DFW
Posts: 7,586
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With almost a $2900 buffer above your monthly expenses, healthcare taken care of of and cola pension, unless you plan to dramatically change your lifestyle, this is as close to a no brainer as I've seen.
Makes me wish I had pursued a military career after college . Came close, I wanted to fly but couldn't qualify, and then the Navy offered me a lieutenant spot in the Seabees which I prompty said
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05-10-2013, 01:05 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
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I'd say you are there! Double check with Firecalc, and then go for it!
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05-10-2013, 02:46 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Aug 2011
Posts: 3,609
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I would like to know:
#1 How much of the $6,100 /month is Cola pension vs rent?
#2 Does the $3,220/month of expenses include taxes? replacement costs?
#3 How much Social Security has been earned to date?
You might also want to check out one or both of Henry K. Hebeler's (aka Bud Hebeler) books if you would like a critical view of you retirement plans.
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05-10-2013, 04:01 PM
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#8
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Recycles dryer sheets
Join Date: Apr 2012
Location: Birmingham, AL
Posts: 195
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The numbers, as you've laid them out, look favorable and medical is no issue with Tricare.
Since your Military and FERS pensions are key parts of your retirement income, how are you protecting your spouse's income should you die first? Both pensions have a Survivor's benefit option and you can find companies that propose strategies such as insurance or annuities. SBP/Survivors benefit decisions are complex enough that they often have long threads of their own on this and other forums...just curious how you've considered this in your planning.
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05-10-2013, 04:06 PM
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#9
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Full time employment: Posting here.
Join Date: Apr 2013
Posts: 834
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Quote:
Originally Posted by gauss
I would like to know:
#1 How much of the $6,100 /month is Cola pension vs rent?
#2 Does the $3,220/month of expenses include taxes? replacement costs?
#3 How much Social Security has been earned to date?
You might also want to check out one or both of Henry K. Hebeler's (aka Bud Hebeler) books if you would like a critical view of you retirement plans.
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Agree. Especially #1. The rent portion has a cost as well.
Seperatley, Folks always say "no car payments". That is meaningless to me, unless your vehicle is going to last for 30-40 years.
__________________
The Constitution. It's not just a good idea...it's the law.
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05-11-2013, 04:26 PM
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#10
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Confused about dryer sheets
Join Date: May 2013
Posts: 2
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Thank you everyone for your insight. To answer a few of the thoughts: $5,666 after taxes on the pension end and $600 on the rental. I rent to my daughter and her husband so the rent is low. I did select SRB to protect my wife. We have both paid into SS since we were kids, but I have not researched SS numbers. So the kicker, I have multiple myeloma and my wife has PKD....another reason we're ready to give this a try. Life is short, and we plan to enjoy it. Thank you again for taking the time to share your thoughts.
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05-11-2013, 06:03 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 3,681
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Quote:
Originally Posted by utah1016
So the kicker, I have multiple myeloma and my wife has PKD....another reason we're ready to give this a try. Life is short, and we plan to enjoy it. Thank you again for taking the time to share your thoughts.
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Go for it!
I hope you both enjoy every minute of retirement.
__________________
Married, both 69. DH retired June, 2010. I have a pleasant little part time job.
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05-12-2013, 03:04 PM
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#12
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Recycles dryer sheets
Join Date: Mar 2013
Location: Columbus, OH
Posts: 97
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Quote:
Originally Posted by utah1016
Hello everyone. So here's my script to the plan:
- 52, married, stay at home wife, two adult kids living their own dream
- Primary residence, current market value $395K; no mortgage
- Rental property, current market value $170K; no mortgage
- No auto payments (2013 Jeep wrangler and 2002 Dodge Dakota)
- Money Market/savings, $120K
- Traditional IRA, $150k
- Monthly income (pension [cola]+rent)= $6,100
- Monthly Expenses = $3,220
- Retired Military Medical
- Term life on both wife and I $150K
- Deferred FERS @ 62 ~$650 per month
- SS for both wife and I (not sure the amount)
I'm currently working civil service under FERS but plan to resign and take a deferred retirement.. I "feel" I can pull this ER thing off.
Based on what you know, am I there?
Thank you
Doug
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Welcome to the forum. Congratulations! It sounds like you are situated well. I echo the others in suggesting toy run firecalc with and without SS numbers.
Good luck to you both!
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05-13-2013, 05:03 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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I agree with this comment.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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