New, 55 years old and trying to sort out possible ER

[Buckleyrw]

Hello folks, hope to learn a lot here. I am 55 1/2 and would love to retire at 63. Currently have no debt and $600k in retirement savings plus $150k in employer pension account. Between my contributions to 401k, and Roth along with employer contributions, I put around 25% of my income into retirement. I generally invest in a moderate portfolio. Are there any other wise moves I can make to make ER at 63 a reality?

 

[ER Eddie]

Hi, welcome.

The other guys will help with more detailed financial advice, I'm sure, but I would draw your attention to the spending side of the equation. It's one most people don't mention, yet it is the one you have the most control over. Spending makes or breaks a lot of people's plans, imo.

Make sure you get a clear sense of 1) your current spending levels and 2) your projected spending levels in retirement. That will set your bar. If you are open to ideas about ways to reduce spending (thereby making ER more feasible), there are plenty of cheapskates here to help.

 

[heeyy_joe]

Avoid losses in your investments, you are close to winning the game so becoming conservative in your asset allocation is necessary. Only you can determine what that mix is to be. Scrutinize your possessions to possibly pare down, and any new purchases should be thoughtful ones.

 

[Htown Harry]

Hello folks, hope to learn a lot here. I am 55 1/2 and would love to retire at 63.

Welcome Buckleyrw.

This chart may help you visualize the retirement planning challenge. FIRECalc (link at bottom of page) is one of the better tools for modeling the numbers.

1. At 63, what will be your cash flows for the various arrows? (With a change in insurance payments at 65 for Medicare)

2. At 63, if the arrow pointing away from saved wealth back to you is active, you are "decumulating" your nest eggs. Is the rate of withdrawal sustainable over your projected life span?