Now 52.....Think this is my year to ER.....
I've been thinking of ER from my primary job for the last couple of years. I stumbled across this site and have been lurking here for about 6 months. Tons of great info and experience on this site, and I hope to become more of a participant here as time progresses. Time to introduce myself and describe my situation.
I've worked for Mega Corp since getting out of college and am now 52. Married, and DW (same age) has already retired. I have a hobby that has turned into a supplemental income producer over the years, but recent changes leave some of the future uncertain. Once I leave my full-time job, I plan to continue this personal work, but for now I'm making calculations ignoring any extra income from that.
We've been tracking our budget in Quicken for a well over a year and have a good handle on our expenses and such. We've been saving heavily for years and living below our means, so now I think I'm in my final year of full work.
House (paid for) $250k
Equities $870k (62%)
Bond Funds $170k (12%)
Cash $360k (26%)
That's about $1.4M in our portfolio with about 50% in retirement accounts.
I think our plan is to start a small pension I have in 3 years at age 55 and then start our SS withdrawals at 62 (but that could change). My plan is to produce some income (maybe $20k/yr.) for at least the next few years to help pay our annual expenses from our cash reserves.
Our current annual spend is about $50k, not including health insurance we will need to buy (both of us reasonably healthy) and ~$5k/yr. allowance for large home expenses/vehicle upgrades.
Our general goal has also been to have pockets of money in both retirement and non-retirement accounts to optimize taxes going forward and give us multiple sources from which to pull monies. Also, in coming years where I make income, I may contribute further to retirement accounts from that income and use cash reserves for annual expenses, keeping taxable income in the lowest bracket possible.
Ignoring any additional income, I've run FIRECalc using:
Retire 2014 (age 52)
40 year plan
100% success rate
Pension starting 2017 - $14016 (frozen, no COLA)
SS starting 2024 (assuming zero future income) - $20136
Spouse SS 2024 (assuming zero future income) - $7092
I get a 100% success spending rate up to about $70k.....IF I'm doing it right.
Thanks for reading this far!
Comments and suggestions appreciated!!