In my last year before retirement 54 Now plan to hang it up in December. *
Life has been good to me, but once I stop, no going back especially at these income level. *Make tons, but spend a fair amount. *Figure I want about 200k after tax annual, that is actually small percent of current income but I devote most of my money to savings and tuition for kids (about to end)
Will exit assuming market doesn't change too much. *Hard to cut the cord. *So looking for advice on how you all did it. *I watch people years my senior as they get within a few years of retirement run scared, less for money reasons and more because they are their job. *So far I amholding holding it together but can't decide if that is just because I am naive as to risk. *Guidance of all sorts appreciated.
Finance facts:*
Will close out year with almost 5 mill on head
2.5 in tax deferred rest in taxable. *
May be able to work some roth conversion strategies to reduce my tax load as I can have virtually nontaxable income if I choose for a couple of years. *So could conniver 50k a year without facing an effective tax rate north of 15 percent.*
Current investments 17% international 50% domestic (some dogs and cats in stock but all in close to s&p 500 with a modest current overweight financials and energy) 25% cash or cash equivalents and 8% bonds
Will get pension of *1000 month but no adjusting for inflation
No debt but prop tax, insurance of all sorts including health and utilities tv internet pushes me to about 60k fixed cost before I hit food clothes and fun. *So have some spend flexibility but reasonably high fixed nut. *But I live in the woods with lots of land so high prop tax but I like what I have got and I am not down sizing.
Wife does everything in moderation so sure to live'to 95
**Worried that I never have had financial stress as We have always made more than We need. *Hence the savings and no debt. But never had to deny ourselves anything so reasonably spoiled(helps that our wants run towards Chevys,trail horse, and family, *not jags and country clubs)
Read all this stuff about needing 70 percent of pre retirement income but think *and hope it is nonsense as I live well on what I am projecting at 200k annual -- aside from what I think of as exceptional kids cost -- *they are all out of house but you know how that is -- even once I have their colleges covered (Putting the last of three through college now) and I am close, they come with surprises and needs.
Also would like some guidance on what you all think ofnannutiites. *I know the buckets of money guy says cover half your nut with annuities is best, but I hat insurance like projects, always feel I am justmlettingothers make the skim and the though of taking a couple of mill so someone can rake format he top in order to put it where I would anyway makes me nuts - but that may be ego not smarts talking.
Sorry for length but looking to learn!
Life has been good to me, but once I stop, no going back especially at these income level. *Make tons, but spend a fair amount. *Figure I want about 200k after tax annual, that is actually small percent of current income but I devote most of my money to savings and tuition for kids (about to end)
Will exit assuming market doesn't change too much. *Hard to cut the cord. *So looking for advice on how you all did it. *I watch people years my senior as they get within a few years of retirement run scared, less for money reasons and more because they are their job. *So far I amholding holding it together but can't decide if that is just because I am naive as to risk. *Guidance of all sorts appreciated.
Finance facts:*
Will close out year with almost 5 mill on head
2.5 in tax deferred rest in taxable. *
May be able to work some roth conversion strategies to reduce my tax load as I can have virtually nontaxable income if I choose for a couple of years. *So could conniver 50k a year without facing an effective tax rate north of 15 percent.*
Current investments 17% international 50% domestic (some dogs and cats in stock but all in close to s&p 500 with a modest current overweight financials and energy) 25% cash or cash equivalents and 8% bonds
Will get pension of *1000 month but no adjusting for inflation
No debt but prop tax, insurance of all sorts including health and utilities tv internet pushes me to about 60k fixed cost before I hit food clothes and fun. *So have some spend flexibility but reasonably high fixed nut. *But I live in the woods with lots of land so high prop tax but I like what I have got and I am not down sizing.
Wife does everything in moderation so sure to live'to 95
**Worried that I never have had financial stress as We have always made more than We need. *Hence the savings and no debt. But never had to deny ourselves anything so reasonably spoiled(helps that our wants run towards Chevys,trail horse, and family, *not jags and country clubs)
Read all this stuff about needing 70 percent of pre retirement income but think *and hope it is nonsense as I live well on what I am projecting at 200k annual -- aside from what I think of as exceptional kids cost -- *they are all out of house but you know how that is -- even once I have their colleges covered (Putting the last of three through college now) and I am close, they come with surprises and needs.
Also would like some guidance on what you all think ofnannutiites. *I know the buckets of money guy says cover half your nut with annuities is best, but I hat insurance like projects, always feel I am justmlettingothers make the skim and the though of taking a couple of mill so someone can rake format he top in order to put it where I would anyway makes me nuts - but that may be ego not smarts talking.
Sorry for length but looking to learn!