Just retired at 62 and I hope I saved enough??

[pb4uski]

The only limit is what you can stomach paying in taxes.

One caveat... if you have any plans to redomesticate to a no state income tax state you might be better to wait until state income taxes no longer apply.

 

[Franklin]

Seems i got a tax issue either way.

 

[pb4uski]

Yup, but if you are subject to state income tax then you have a bigger tax issue.

 

[Oz investor]

Thanks Scratch. I agree it ain’t a slam dunk unless I can cut back in expenses. The model assumes I’ll double my spending in my 80’s and I doubt would happen. Per your recommendation I did run I orb and it was helpful. The wifey does not want to watch the expenses but I am frugal and keep tabs. I am gonna get hit hard on taxes when the RMD time comes. My mix for now is about 50/50 with the bonds in muni’s. I lost value in the bond funds when rates began to rise. My overall returns this year are flat at best.

i would keep that doubling of future expenses in the equation ... inflation is coming/starting and only the best clairvoyants will know where inflation peaks.

PS don't expect to win in the investment game every year ( or all those FAs would be trillionaires ) , the best you can do is resist regular negative outcomes and maximize your strategy in those good years

good luck

 

[Nomad4hire]

OK, Ive run the models and think I am ready. Lets me share my numbers and get your advise or expertise.

I am 62 and my wife is 55. Both are now gladly retired. We have saved $6,000,000 in an IRA and have $2,100,000 in cash and bonds. So a total investable egg of $8,100,000. The house will be paid off next year. We will spend bout $250K annually after tax on enjoying life. My immediate worry is bridging to 65 Medicare and will just pay Corba until then. I think I've got this covered but would like your opinions. My calculators say I am ready for take off but this is scary to a guy who has worked since hi school.

I am the youngest of 3 boys and both died at 65. My brother just passed from a stroke after receiving 3 SS checks. The 3rd check was recalled because he died a week into the period. All this was sobering enough for me to say it's time to stop and smell the flowers!!.

Opinions?

I don’t know whether to congratulate you, or say that you are the ultimate showoff!!! Seriously, congratulations! And by the way, $250,000 annual living expenses? We could live on that for 6-years! I would offer this advice: retire now!


—Nomad

 

[Franklin]

Ive been a member for 1 week and that was my first post. Admittedly these number are high compared to other post Ive read. I've been retired for only a few months and was in search of opinions (it aint something you can ask your neighbor about). My situation is good investable assets yet I worry about the spend....that was my question. Members with way lower assets and low spend could have a much better position. While I think I am OK I still run the match just about every way I can. So, my questions were very sincere as I hope u know. I am still learning the site with its acronyms, quirks, etc. Ive gotten some valuable info and appreciate the opportunity. My financial advisor charges me 1% for this information so at least Ive now seen how I can save that $$ expense.

 

[HI Bill]

What most of us can't fathom is needing to spend $250K/year! If you had a couple of boats, a few houses, a few condos....or race cars or race horses, it would be easy. So, the real question is, Franklin, how much of that do you really need to spend to be satisfied, and how much of that are you just used to spending? Obviously, you could easily cut back if you needed to, regardless of whether you'd want to. SO, if retirement (time) is more important than money, you know the answer.

 

[pb4uski]

and in your case, 1% is some serious scratch!

 

[samcat]

OK, Ive run the models and think I am ready. Lets me share my numbers and get your advise or expertise.

I am the youngest of 3 boys and both died at 65. My brother just passed from a stroke after receiving 3 SS checks. The 3rd check was recalled because he died a week into the period. All this was sobering enough for me to say it's time to stop and smell the flowers!!.

Opinions?

Sorry for your loss. Retire and enjoy it!

Re SS. My mother in law died on August 24 a long time ago. She received her ss payment about a week later and then they pulled it back a couple days after that. As my husband said, the long arm of the government!

 

[Scratchy]

. My situation is good investable assets yet I worry about the spend....that was my question. Members with way lower assets and low spend could have a much better position.

Am really curious what are the big things in your budget? (Other than taxes.) I spend $160k/year and thought I was high. My big categories last twelve months were travel $28k housekeeping $16k, restaurants 15k, medical insurance 15k, car leases 12k, insurances $11k.

 

[Franklin]

Sure, I do have 2 houses but will be selling one asap. not included in assets yet. What has me spending today is assisted living for my mom at $4K per month (she is 93). I also am covering for a son who lost his job and living in another state. This all is hopefully temporary but it eats up disposable $. My #'s are similar to yours except what mentioned and taxes.

 

[Eastfolk]

Am really curious what are the big things in your budget? (Other than taxes.) I spend $160k/year and thought I was high. My big categories last twelve months were travel $28k housekeeping $16k, restaurants 15k, medical insurance 15k, car leases 12k, insurances $11k.

I’m also very curious as to what your expenses look like. You mentioned $48k for assisted living. What makes up the other $200k? Still seems like a very high number. Are you planning on supporting your son indefinitely?

Congrats btw $8.1 mil might be the highest I’ve seen on this forum

 

[Franklin]

lord no, i've been doing it now for 8 months and its a month to month thing. Mom could go on indefinitely sorta....the rest is upkeep on the 2 houses. One in Cali (Tax and Ins $35K). That is the one I am selling asap . The other is on a river in Savannah Ga. (where I plan to move). The cost there is prop tax $18K annually and Ins around $4k annually. The cali home proceeds will payoff the Georgia home so I don't expect any debt. I could cut in more areas but hey I am going to try to NOT WORRY and enjoy things. Have lost 2 brothers recently and my mom in assisted living made me rethink many things. Son and wife expecting baby so i am gonna do what I can to help them out. I am the real sandwitch generation!!

 

[rb460]

Have been Retired 18 years with 1/4 your assets. You are in great shape financially. Set aside reserves for health insurance. Most importantly get in good physical condition and stay that way. Good Luck!

 

[Archman]

We have saved $6,000,000 in an IRA and have $2,100,000 in cash and bonds. So a total investable egg of $8,100,000. The house will be paid off next year. We will spend bout $250K annually after tax on enjoying life. My immediate worry is bridging to 65 Medicare and will just pay Corba until then. I think I've got this covered but would like your opinions.

Puh-leez.

 

[Dtail]

Have been Retired 18 years with 1/4 your assets. You are in great shape financially. Set aside reserves for health insurance. Most importantly get in good physical condition and stay that way. Good Luck!

First post after 13 years.
Any good advice for us being retired through 2000 and 2008?

 

[DawgMan]

Interesting reading the comments here. OP - you are not alone, there are some of us lurking in the shadows that have the same "rich people" problems, but don't always respond with their specifics in the fear of being called out/suggesting they are being "punked"... perhaps those comments are tongue and cheek .

I am in your boat, but 8 yrs younger and about 18 months from launching if I don't chicken out. Regardless of asset balances, I believe the same concerns often exist for someone with $8M vs $1M. I would suggest that those who have higher balances created through their business/income/investments (as opposed to a big inheritance/winning the lotto) have probably settled into a higher spend rate and gotten used to some of the finer things in life along the way. Like OP, I have a DW who indulges in the goodies a good bit more than me, but I would be lying if I said the "creep" has not affected all of us. I am targeting a $300K or slightly higher taxable RE spend as well, but it is not based on "needs", but "wants". I think the tension is the same and it all comes back to you and DW doing personal and joint assessments of what is most important to you (I am working hard on this with my DW). The hardest thing sometimes is going backwards on some of the goodies when you have been accustomed to them for a while (i.e. Caymus to Two Buck Chuck... that's a tough one!). None the less, I am working hard on this exercise. In an effort to appease my propensity to over analyze everything, I have developed 3 RE budgets... 1) Preferred budget with all the planned goodies ($300K budget), 2) Markets are down/concerns about where economy/investments are headed budget... trip to Europe becomes trip to FL, and 3) SHTF/it's 2008 all over again budget... looks like pizza again tonight! These are the Jedi mind tricks I need to play on myself to be comfortable in launching as soon as I reign in DW

Congrats on your success!

 

[Dtail]

Interesting reading the comments here. OP - you are not alone, there are some of us lurking in the shadows that have the same "rich people" problems, but don't always respond with their specifics in the fear of being called out/suggesting they are being "punked"... perhaps those comments are tongue and cheek .

I am in your boat, but 8 yrs younger and about 18 months from launching if I don't chicken out. Regardless of asset balances, I believe the same concerns often exist for someone with $8M vs $1M. I would suggest that those who have higher balances created through their business/income/investments (as opposed to a big inheritance/winning the lotto) have probably settled into a higher spend rate and gotten used to some of the finer things in life along the way. Like OP, I have a DW who indulges in the goodies a good bit more than me, but I would be lying if I said the "creep" has not affected all of us. I am targeting a $300K or slightly higher taxable RE spend as well, but it is not based on "needs", but "wants". I think the tension is the same and it all comes back to you and DW doing personal and joint assessments of what is most important to you (I am working hard on this with my DW). The hardest thing sometimes is going backwards on some of the goodies when you have been accustomed to them for a while (i.e. Caymus to Two Buck Chuck... that's a tough one!). None the less, I am working hard on this exercise. In an effort to appease my propensity to over analyze everything, I have developed 3 RE budgets... 1) Preferred budget with all the planned goodies ($300K budget), 2) Markets are down/concerns about where economy/investments are headed budget... trip to Europe becomes trip to FL, and 3) SHTF/it's 2008 all over again budget... looks like pizza again tonight! These are the Jedi mind tricks I need to play on myself to be comfortable in launching as soon as I reign in DW

Congrats on your success!

I agree with you Dawgman even though not in your NW league. There are definitely others on this site in the 8-10mm NW range.
Sometimes there can still be a jealousy of sorts despite that person having 2-3mm, which is more than enough for them.
When I was 21 y.o. and supported a trader earning 5mm YEARLY back then, I learned to take it in stride.
It depends more on the person's makeup and Franklin and yourself appear very cautious about what can happen, so that is fine too.

Not everyone reaches FIRE the same way and it nice to hear different variables and situations from all walks of life.

 

[pb4uski]

$250k spend on $8.1m is the same risk as $100k spend on $3.2m... I don't see the big deal.

 

[DawgMan]

$250k spend on $8.1m is the same risk as $100k spend on $3.2m... I don't see the big deal.

One other concern I might point out for higher NW folks “struggling” with thier RE decisions, the old saying the bigger they are, the harder they fall can haunt many of us. Yes, it is relative, but in real $$, it can feel more impactful. Eg. using a 4% WR, if a $1m portfolio loses 20% that is an $8k hit on the WR while it’s a $64K hit on $8m. While both are relatively significant, I might argue the $64k hit might hurt more psychologically, thus often adding some more tension/OMY analysis to the higher NW guys. Just another perspective.

 

[timemoveson]

Ive been a member for 1 week and that was my first post. Admittedly these number are high compared to other post Ive read. I've been retired for only a few months and was in search of opinions (it aint something you can ask your neighbor about). My situation is good investable assets yet I worry about the spend....that was my question. Members with way lower assets and low spend could have a much better position. While I think I am OK I still run the match just about every way I can. So, my questions were very sincere as I hope u know. I am still learning the site with its acronyms, quirks, etc. Ive gotten some valuable info and appreciate the opportunity. My financial advisor charges me 1% for this information so at least Ive now seen how I can save that $$ expense.

Congratulations!

Some of us have what you have or more (me) and spend what you intend to spend (me). 95% DIY in my case.

As far as a first impression from someone who actually has relevant experience with this level of wealth and spending, your situation looks strong to me. PM me if you want a personal discussion in general terms on anything useful to you (Canadian, so tax and healthcare specifics of course different, some better some worse!).

 

[Cruise42]

Are Your Numbers Correct ?

This is nuts. You have way more than you need. Taxes will go down, but with that insane IRA, you’ll still be in a high tax bracket when RMDs kick in.

At $3.4K, FIRECalc says I need to spend about $120K/yr every year before there are any failures.

You should have quit last year. I envy your nest egg. But I’m glad most of mine is in after tax portfolio, 2/3 in stepped up basis from a rearrangement done 2015-16 when I wasn’t working.

EastWest Gal...Did you mean $3.4 million ? Not $3.4 thousand ?

About 9 years ago I "was retired" by company I worked for over 40 yrs. I manage my money pretty well but we are talking a whole, whole, whole lot less then our friend Franklin. Do I have have concerns...sure...but life is way too short, and I keep reminding myself there are others worst off because of the cards they were dealt in life.

 

[trumpeting_angel]

Reading Franklin’s post and the responses, and jealous myself, I have to remind myself that I have much more than many of my friends, and many of them would be surprised and jealous of me. This is changing as I get older and more of my friends are retired. But some people I know are in debt and semi-employed, at 50 and older. (One whose net worth, job, and nearly paid-off debt were all ruined in a natural disaster, no fault of her own.).

I’m working a little longer than I need to, to diminish my anxiety, but I know I’m lucky as well as cautious, frugal, and hard-working.

 

[cnocmmz]

RUN RUN RUN while you still can. Congrats

 

[JustCurious]

In an effort to appease my propensity to over analyze everything, I have developed 3 RE budgets... 1) Preferred budget with all the planned goodies ($300K budget), 2) Markets are down/concerns about where economy/investments are headed budget... trip to Europe becomes trip to FL, and 3) SHTF/it's 2008 all over again budget... looks like pizza again tonight!

How much is your number 2 budget?