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Married 56 yo, debt free, pension, $1.7 mill saved.
Old 03-18-2020, 07:40 AM   #1
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Married 56 yo, debt free, pension, $1.7 mill saved.

Hi All,

The internet is powerful. Glad you are here.

I retired from the military (E7) in 2003. I get around $1700 after taxes. I have a rental property, paid off, that rents for about $800 after fees.

Sorry this bounces around, my chrome mini laptop is tough to cut and paste.

Anyway...please read on...

I will take any and all advice on retirement etc. I was feeling mentally ready to retire 10 years ago when we paid off my 2 homes.

Since then I have been moving money into CD's and Bonds and have been virtually (jk) unharmed by the covid crash. To me this crash was a buyers market and I have been doing some shopping.

This might sound like bragging, but it is exactly how I believe things are going.

I offer this because I might be delusional and need a wake up call.

If I could get some feedback from the smart folks that read this you would pretty much make my year and maybe the rest of my life.

With this covid thing, I am feeling more and more ready to stop working for the man and start relaxing and doing exactly whatever I feel.

Sincerely,

Besa
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Old 03-18-2020, 08:14 AM   #2
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Welcome to the board! If you are asking whether you have enough to retire, then you need to provide more info on your expenses. Also, is the $800 from your rental free cashflow (net of ALL expenses)?
Regarding your plan for moving into equities now: proceed with caution! Obviously, the market is hyper volatile at the moment and while it is true that this may be a buying opportunity, it is also true that we might not even be close to bottom. You can dump all your cash into the market today, and tomorrow it could drop another 20%-30%. At this point it seems highly likely that we haven’t reached bottom. People still seem to vastly underestimate the seriousness of the Corona situation. I see the healthcare issues that lie ahead pale in comparison to the short/medium term economic impact.
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Old 03-18-2020, 02:23 PM   #3
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I was hoping for more than 1 reply after 132 views.

Did I word my question incorrectly or something?

Euro,

I make around $800 after I pay the property manager. The bills are probably around $3k per year, so the home gives me about $6k net. Some years more or less.

Nothing big yet, e.g. a new roof. This could run about $5k or so.

Regarding the stock market, I am betting it is going to begin to recover soon.

30% is a big loss. I didn't spend all my liquid cash for sure. I am DCA'g as it moves down. I try not to watch it too much as it causes stress.
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Old 03-18-2020, 02:29 PM   #4
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besa, have you seen this? Some Important Questions to Answer Before Asking - Can I Retire?
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Old 03-18-2020, 02:59 PM   #5
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Quote:
Originally Posted by euro View Post
Welcome to the board! If you are asking whether you have enough to retire, then you need to provide more info on your expenses. Also, is the $800 from your rental free cashflow (net of ALL expenses)?
Regarding your plan for moving into equities now: proceed with caution! Obviously, the market is hyper volatile at the moment and while it is true that this may be a buying opportunity, it is also true that we might not even be close to bottom. You can dump all your cash into the market today, and tomorrow it could drop another 20%-30%. At this point it seems highly likely that we havenít reached bottom. People still seem to vastly underestimate the seriousness of the Corona situation. I see the healthcare issues that lie ahead pale in comparison to the short/medium term economic impact.
Prime example here: had $$ sitting in Vanguard for months waiting for a buying opportunity. When the market dropped 5% below its 52 week high I bought. When it dropped 10% I bought twice as much. When it dropped 20% I bought 2.5 times the 10% number. Now it's 30% below the 52 week high. My gal is not real excited about us throwing more money at the market right this moment. I'm glad we bought , but can see buying for less is more attractive. How much less? Aye, therrrs the rub.
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Old 03-18-2020, 02:59 PM   #6
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Besa

I’m not certain I understand what feedback you seek, exactly. I can confirm that I’m approaching the market slide same as you. I began DCA once the correction passed 20% and twice since as it continued to fall. I’ve never been out of the market, but I always maintain a decent cash position for precisely these situations. I’m not certain I agree with you that a 30% correction is about as low as it will go. My hunch is we haven’t reached the bottom, way too much uncertainty still exists. That doesn’t concern me though, as I didn’t bail on stocks during the slide. With your passive income and pension you aren’t relying on your savings exclusively so that’s a bonus. As Euro said, if you require more precise feedback you may want to provide more details around anticipated annual expenses, S.S. etc. Welcome
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Old 03-18-2020, 04:06 PM   #7
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Appreciate the feedback.

If retirement with gobs of cash was easy, everyone would do it.

Never intended to come here and ask such a question, but the...read first...post said to do it.

So I thought cool....

We here have a better chance to make it to the end with the right numbers.

Yay for that.
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Old 03-18-2020, 04:14 PM   #8
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Thanks!
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Old 03-19-2020, 06:47 AM   #9
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Originally Posted by besa View Post
Appreciate the feedback.

If retirement with gobs of cash was easy, everyone would do it.

Never intended to come here and ask such a question, but the...read first...post said to do it.

So I thought cool....

We here have a better chance to make it to the end with the right numbers.

Yay for that.
First and foremost, thank you for your service...Navy E7?

Chief you have asked for input; however, you have left out a lot of details for folks to give you any real detailed recommendations.
For instance:
-Married..Does spouse work? If so, if one of you passed could the other maintain living conditions?
-Total guaranteed income coming in the house?
-What are your output, i.e. Bills etc?
-How much do you intend to spend annually for living expenses and then of course the Fluff (emergency fund for roof, AC etc).
-Lastly, have you run your number through FireCalc?
I commend you on your prudent savings of 1.8M, impressive indeed.
I retired in 04 from the Navy as a CMC, and I hope to retire this year sometime at age 60.
All the best
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Old 03-20-2020, 06:00 PM   #10
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Air Force E7.

I love all services. They all are amazing in there own way.

I have answers to all of your questions, but Id rather keep details to myself.

I was fishing for those type of questions, not to answer them here, but to answer them in my life.

Love this site and thanks for the help.
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Old 03-25-2020, 10:07 AM   #11
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Quote:
Originally Posted by besa View Post
I get around $1700 after taxes. I have a rental property, paid off, that rents for about $800 after fees.

Since then I have been moving money into CD's and Bonds and have been virtually (jk) unharmed by the covid crash. To me this crash was a buyers market and I have been doing some shopping.

I'm no financial genius, actually, most of my recent knowledge I got here.
-I understand you have $1.7m in cash and CD's and bonds now.
-Income is ~$2500K per month
-You're looking for investment ideas


Hold your horses. Two forums come to mind. 2020 Investment Performance and Bonds. The first is helpful b/c we went from riches to rags in 3 months. This forum will take you through a blend of what to do with too much $$ to what to do when the sky is falling.


Also, go to firecalc.com. Most of us use this calculator. I've been putting worse case scenario in there. For instance, if we're left with our CD's, I bond and cash ~$300K. Like the index funds are completely gone. Then, I put a negative in the Crystal Ball scenario. I do "off the wall" scenarios...$500K losses (ha, not so off the wall). You have to read and educate yourself and this forum is a great place.

-Observe how many years some of our posters have been here.
-Observe the many ups and downs they've been through and how they handled it. Some posters here since 1999 and the mods.

-There is no limit to the research and discussion in this forum.
-If you want answers, take the time and research here. Many articles, opinions, experience...it's all here.
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Old 03-25-2020, 11:21 AM   #12
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Originally Posted by Rianne View Post
I'm no financial genius, actually, most of my recent knowledge I got here.
-I understand you have $1.7m in cash and CD's and bonds now.
-Income is ~$2500K per month
-You're looking for investment ideas


Hold your horses. Two forums come to mind. 2020 Investment Performance and Bonds. The first is helpful b/c we went from riches to rags in 3 months. This forum will take you through a blend of what to do with too much $$ to what to do when the sky is falling.


Also, go to firecalc.com. Most of us use this calculator. I've been putting worse case scenario in there. For instance, if we're left with our CD's, I bond and cash ~$300K. Like the index funds are completely gone. Then, I put a negative in the Crystal Ball scenario. I do "off the wall" scenarios...$500K losses (ha, not so off the wall). You have to read and educate yourself and this forum is a great place.

-Observe how many years some of our posters have been here.
-Observe the many ups and downs they've been through and how they handled it. Some posters here since 1999 and the mods.

-There is no limit to the research and discussion in this forum.
-If you want answers, take the time and research here. Many articles, opinions, experience...it's all here.
Thanks. Thanks. Thanks.

I have made some major mistakes with our nest egg over the years, the biggest one was blindly relying on a financial advisor. He was fired about 10 years ago. Long sad story.

Now I handle everything myself. Moving stuff when I need to. Greedy when others are fearful etc.

That being said, I am looking forward to learning all i can from folks like you to the point where I can offer insight based on smart/routine money moves.

Love love love.
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Old 03-25-2020, 11:25 AM   #13
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All depends on your expenses. Since you are retired military then you have your health insurance through them. No mortgages and 2500/month income with 1.7 mil saved. It is time to pull the plug and enjoy life while you can.
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Old 03-26-2020, 07:16 PM   #14
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All depends on your expenses. Since you are retired military then you have your health insurance through them. No mortgages and 2500/month income with 1.7 mil saved. It is time to pull the plug and enjoy life while you can.
I haven't studied this thread.

That said, it doesn't look like OP has posted his/her expenses, aside from the rental.
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Old 03-27-2020, 11:20 AM   #15
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I haven't studied this thread.

That said, it doesn't look like OP has posted his/her expenses, aside from the rental.
Normal annual expenses are <$20.

I lost around $15k in the covid crash.

I have since moved about $100k into stock market/stock market indexes.

The remaining $1.6 M is in cds, annuities, and money market.

Thanks for any help.
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Old 03-27-2020, 12:20 PM   #16
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So your normal annual expenses are ~$20k/yr. That sounds really low... especially for 2.

And your income from your military pension and your investment property is ~$30k/yr. And you have $1.7m, mostly in cash, CDs, annuities and MM.

What is your intentions for the $1.7m? Any heirs? Charities that are near and dear to your heart?

You're probably not spending enough.
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Old 03-27-2020, 12:44 PM   #17
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So your normal annual expenses are ~$20k/yr. That sounds really low... especially for 2.

And your income from your military pension and your investment property is ~$30k/yr. And you have $1.7m, mostly in cash, CDs, annuities and MM.

What is your intentions for the $1.7m? Any heirs? Charities that are near and dear to your heart?

You're probably not spending enough.
My estimated~$20k/year is might be low. Got it.

I haven't properly assessed my expenses. That is valid.

My question is: What could my expenses be and still retire?

I can start SS at 62. I can get to my 401k IRA, up to $100k now penalty free early due to covid.

I can take 10% per year from my annuities about that are~$300k.

What is my "max expenses" number per year.

My Wells Fargo guy ran my numbers about 5 years ago (more conservatively at about $1.4 M) and said I could get to 92 years old spending ~$4k/month.

Every calculator I have ever ran says I am good.

Just want to make sure I am not crazy thinking I can retire with what we have.

I think many here can relate to this. When I got to this level of perceived financial independence, getting up and going to work for the "man" is more and more difficult.

I am sure I am not a favorite worker either, because I tend to be a bit more opinionated because of my perception/reality.
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Old 03-27-2020, 12:53 PM   #18
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Originally Posted by besa View Post

What is my "max expenses" number per year.
If you input your numbers into FIRECalc you can see what history says you could have spent per year without running out of money for X years. That's what I would use to try to answer your question.
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Old 03-27-2020, 01:15 PM   #19
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+1 Plug your situation into FIRECalc... then use the Investigate tab to solve for annual spending at a 95% level of confidence.... I'm guessing that it is ~$90k without SS.

Little doubt that you have enough from what you have written unless you are totally offbase on your spending.

Next question is whether you have enough where you can get penalty-free access until you are 59 1/2.
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Old 03-27-2020, 03:16 PM   #20
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+1 Plug your situation into FIRECalc... then use the Investigate tab to solve for annual spending at a 95% level of confidence.... I'm guessing that it is ~$90k without SS.

Little doubt that you have enough from what you have written unless you are totally offbase on your spending.

Next question is whether you have enough where you can get penalty-free access until you are 59 1/2.
Thanks. This is such a better topic than addiction or covid.
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