I think I'm Ready?

[Farmer Vic]

Been looking at forum for years now. Learned a lot. Thanks to everyone.
Thought I would post my numbers to see what others think.
Age: DW 49. Me 54
Kids: DD 21 DS#1 17 DS#2 14 Have most of their college covered 80%.
Real Estate: Home paid for. Farm ground paid for. 3 rental houses paid for. Cabin paid for. Farm ground and rentals should bring + or - $50000/yr depending on crop prices.
SS: should be DW $12000 @ 67 Me $24000 @ 67. DW pension $18000 @ 60. She will teach for 4 more years until last son graduates HS and to provide health insurance till then.
IRA's: DW $68000. Me $160000. Invested in stock mutual funds.
After tax funds: $1,056,000 Invested in stock mutual funds.
Equipment Sales: Should add $50,000 to after tax funds in 2019.
Final Years Income: Should add $300,000 to after tax funds in 2018.
Inheritance: Should be way more than $750,000 at some point this is a very low estimate.
Spending: Currently spending has been $85,000 - $100,000 for last 5 yrs. I expect this to continue. Wife makes $40,000 take home /yr.
I want to retire in November after crops are out. DW will join in 4 yrs.
Firecalc says we should be fine.
What does everyone think. Thanks.

 

[street]

You are in good shape the way I see it. Your annual spending is more then average but if things did get tight you maybe able to slim that down. Also SS could be taken earlier if things just turned south,

You should be fine and you have some options if need be.

 

[exnavynuke]

The only thing I'd suggest would be to price out health insurance plans to ensure your estimated expenses don't need an upward adjustment after DW stops working in 4 years.

 

[Farmer Vic]

Thanks for the replies. I agree that there is a lot of room to cut if need be. Expenses should go down after children are out on their own.
As far as health insurance goes. Who knows what the wizards in DC have in store for us four years from now! By that time we'll just adjust the budget to what's necessary. We feel their is plenty room.

 

[rayinpenn]

So the 50 income from the wife plus the 40 from the wife job gives you 90 gross. You say you are living on 85 to 100 The question is net or gross? I assume the wife's job comes with benefits?

Can you retire? Sure. Should you retire? Were it me and I am further down the road not quite yet. I am admittedly cautious... can you go part time?

 

[Taxman59]

Let's see:

4 years of 10K per year - 40k
7 years of 50K per year - 350k
2 years of 32K per year - 64k
5 years of 8K per year - 40k
then nothing needed

Total needed 494k

You have 1250k with additional funds coming in, so the inflation (which is not included in the #s above) and any health insurance surprises should be more than covered. As far as the $$$ are concerned, you are ready to go!

 

[MBAustin]

Nice to have you join us officially, Farmer Vic! If you haven't found them already, we have a helpful list of things to think about before you make the leap:

Some Important Questions to Answer

As others have stated, you seem to have a lot of flexibility with that should help with unpredictables such as health care, and with your significant after-tax savings, you don't have to worry about penalties on tapping tax-advantaged funds early. You might want to look at your asset allocation to see if you are comfortable now that you'll be spending from it.

And feel free to join the Class of 2017!

 

[euro]

Let's see:

4 years of 10K per year - 40k
7 years of 50K per year - 350k
2 years of 32K per year - 64k
5 years of 8K per year - 40k
then nothing needed

Total needed 494k

You have 1250k with additional funds coming in, so the inflation (which is not included in the #s above) and any health insurance surprises should be more than covered. As far as the $$$ are concerned, you are ready to go!

+1 ! Good way to summarize

 

[Farmer Vic]

Thanks for the replies. The spending figures are before tax. Having run many tax estimators many times the taxes with current law seem to be low.
The reason there is any hesitation is because it took my brother, father and I 35+ years to get to where we are. Once a farm is shut down it can not be easily restarted. It's almost impossible. Every thing costs to much. Once contracts are let go they are very difficult to regain. This was some very hard earned money.
If I keep farming I can add $100,000 to $150,000 to savings every year. It's the question contemplated here many times, $ vs. time. It has become very stressful for me to keep farming. Fighting the weather is the worst. You have no control whatsoever. The other large stressor are the 10+ employees. What a pain in the rear.
It might seem that I am complaining. But I am very thankful for what I have and it is very satisfying to have succeeded. Many farmers don't.
I am asked all the time what are you going to do with all the time. My son's play sports. I might actually get to see all their games and not feel guilty for being there instead of working. Also I have many hobbies, woodworking, private pilot/airplanes, gardening, studying Spanish, travel and many more. I am quite good at amusing my self. A retired friend once told me "It just don't take much to piss away a whole day". Looking forward to it.
First on the list a summer road trip in 2018 to Alaska. My son's, wife and I have been looking forward to this for many years. My son's still don't believe this will happen. What a joy to take vacation in summer. Something I have never done.
Thanks again to everyone here. Just need that extra little push to assure me I am not making a big mistake. Thanks.

 

[Whisper66]

.......Just need that extra little push to assure me I am not making a big mistake. Thanks.

PUSH....PUSH

Congrats You appear to be in excellent financial shape. Enjoy your next phase in life!

 

[38Chevy454]

Welcome to the forum Farmer Vic. I agree it seems you are quite good position to implement your plan at end of this year. Read up on here and you will gain more confidence in your decision.

 

[427Vette]

... can you go part time?

Admittedly I chuckled when I read this. If he is like most farmers he is already working half days. Usually from 6:00 to 6:00. Planting season is upon us so I suppose it will change to 3/4 days shortly from 6:00 AM to midnight. The other part of the day he can do whatever he wants.

 

[flyingaway]

I guess the farm is yours and you can lease it to others.

 

[Farmer Vic]

All three of us, Dad Brother and me, have our own farm ground. Dad owns most of the machines which he allows to use in return for our management and the daily running of the farm. We also pay him a substantial annual payment for machine use. Dad has been retired for 15+ years and is now in the nursing home. He is 86. Unfortunately he is very ill.

 

[Philliefan33]

Do any of your kids or nieces/ nephews want to take over the farm? If so, does it make sense to keep it running until they are ready to take the reins?

 

[Farmer Vic]

Nobody seems to interested in farming. I might even have a tough time renting the ground. If that occurs then selling the ground is the next option.
All my children are very blessed with many talents. All three are talented pianists. My daughter is a very talented horse trainer and barrel racer. She will graduate college next may with a degree in wildlife management. My two son's are straight A students. The oldest one should be valedictorian of his class and wants to be an engineer. He is also a very talented guitarist and drummer. The youngest also wants to be an engineer.
They have all looked at farming and say way to much work and way to hard. I hope their lives turn out to be much easier than mine. Hopefully they can achieve a better work vs. life balance and they wont have to miss as many of their children's activities as I did.
There is an error in the numbers on my first post. The after tax funds balance should be $828,000. I didn't subtract the IRA's from the $1,056,000. Not an insignificant error. It was not repeated in the firecalc analysis so shouldn't change much.
Thanks for the encouragement. I think I can really do this. How tremendously exciting.

 

[kimcdougc]

Go forward and enjoy the rest of your life. Congrats.

 

[Farmer Vic]

Quick update. Joining the class of 2017. Rented all my farm ground to my brother. Last day of being involved with running of the farm was 11/30/17. Was a very hard decision but was made easier with the current bull market. My father also passed on 4/30 so don't have him to make happy anymore. I'm still trying to get used to the idea but it feels very freeing. The project schedule is filling up fast.
DW and I will celebrate our 25 anniversary on 12/12. Then a 12 day trip to Arizona for the whole family starting 12/26. I'm pretty sure I'm going to love being retired.
Going to end up with about 200k more than I figured on, so should be in good shape $ wise.

 

[flintnational]

Congratulations on your retirement and anniversary. Sorry about your father's passing. Looks like you are in great shape. Enjoy your retirement.

 

[flyingaway]

Quick update. Joining the class of 2017. Rented all my farm ground to my brother. Last day of being involved with running of the farm was 11/30/17. Was a very hard decision but was made easier with the current bull market. My father also passed on 4/30 so don't have him to make happy anymore. I'm still trying to get used to the idea but it feels very freeing. The project schedule is filling up fast.
DW and I will celebrate our 25 anniversary on 12/12. Then a 12 day trip to Arizona for the whole family starting 12/26. I'm pretty sure I'm going to love being retired.
Going to end up with about 200k more than I figured on, so should be in good shape $ wise.

Congratulations. I am interested in knowing what you plan to do in your retirement.

 

[Farmer Vic]

Mostly I plan to live a very unhurried and calm life. Farming during the growing season is such a go go go exsistence that there is no time to relax. I will very much enjoy not having to run anymore.
My wife and I are interested in finding a place in a warmer climate to spend the winter months but that won't happen until youngest son graduates HS. So I have 3.5 years to find something we both like. It will be a fun and enjoyable search.