Need Some Help

[Golfer]

Hi been reading alot of the posts and now am ready to explain my situation. Wife and I have approximately $1 million set aside not including house that is paid off. Wife is teacher and I am an engineer. I am 49 and wife is 52 our money is tied up in 401's. Broken down into mostly 60% bonds and 40 % stocks* in mutual funds.

My wife will get two pensions total about 1600 a month at age 62 and I will get one about 200 a month.

SS should be about 1100 for wife at 62 and same with me.

We would like to retire around 55 both us.

What do you think

[mickj]

I think someone will say "run FireCalc" and compare to your actual budget :-)

[Rich_by_the_Bay]

Quote:

Originally Posted by Golfer What do you think

Golfer,

The firecalc link is at the bottom of the page. That online program is pretty much designed to help you with estimations such as yours. You did not give any expense information in your post and that is, of course, half the equation.

Play around with FIRECALC over the weekend. As a rough estimate, if your expenses are anywhere close to reasonable and your investments appropriate, sounds like you are well on your way.

[Martha]

Welcome to the Forum Golfer.

If part of your concerns is taking money from the 401k before you are 59 and a half, if you retire from the job where you have the 401k in the year you are 55, you can withdraw starting at age 55 with no penalty.

If that exception doesn't fit your situation, you can rollover the 401k into an IRA and do what are called 72t distributions. If that interests you, there is more info at http://www.retireearlyhomepage.com/

[Donzo]

It sounds like you have done a good job at saving/staying out of debt. You need to figure out how much $ you need anually to comfortably live on and what you will do about health insurance.
If your job is stressful - you may be able to bail before 55.
Firecal can be very enlightening...

Overall you guys are in a good situation!

[Golfer]

Thanks for the replies ran FireCalc and said we had between 90 to 100% chance of success.
Our monthly debt is about $2,500 only thing we did not look at is health care yet. We still have two kids that will be going to college but figure the best route is commnunity college which is about $4,000 per year.
Then loans for them with our help at the last two years