Inspired and Ready to Make it Happen
Hello ER community,
I've been reading your words of wisdom for some time and you've inspired me to start a concrete plan for my own ER. I've worked pretty hard at various megacorps for 22 years - in mostly fun jobs, thankfully. But in that time, I've become a virtual stranger to nature, and since moving to a new city for work more than a decade ago, I don't get to spend enough time with my extended family. Then there's the bucket list... Anyway, you get the point. I have so much to do!
I'm currently 45 YO and contemplating ER as early as July 2018. DP is 49 and playing catch up on savings. With two pensions (1 state, 1 fed), she will be in great shape to retire in 8 years when she hits her next major tenure milestone for federal pension. We currently manage most expenses jointly, contributing a percentage of our incomes to household, but retirement saving has been separate since we came together well into our careers. (And frankly, she didn't start saving until we met.) That said, since my salary is considerably more than hers, I've upped my contribution to household so she can max out TSP and Roth catch-up without being stretched.
I recently tipped 2M in assets, currently invested moderately aggressively: 1.2M taxable (75 equities/25 fixed), 650k tax-deferred (80/20), 150k in RE. Separately, house is valued at 580k with a 250k mortgage (interest rate is so low, I'm not rushing to pay it down in this market). I have a pension that will pay 16k/yr, starting at age 65 (no COLA); SS estimate is 27k/yr at full age of 67. LTC policy is locked in at $90/mo. I plan to sock away an additional 70k between now and next July.
Finally, I have about 100k in deferred comp that will be paid out over the 2 calendar years following my departure from work, so I'll have some income (at a lower tax rate, yay!) in my first 24 mos. of ER.
All-in annual expenses are 72k. I expect expenses to remain level. I'll maintain my current level of contribution to HH so that DP can continue to catch up and maybe knock a couple years off of her own plan.
The big unknown is healthcare. I'm curious to understand how others are planning for healthcare, given all the uncertainty with the ACA, when there is significant time before Medicare kicks in. (There is the possibility of going on DP benefits, but we're not married for now, so I'd like to factor separately.)
Otherwise, what am I missing? Both the FIRE calc and my advisor put my scenario above a 90% success rate. What do you think?
Thanks for the inspiration!