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Opinions on when to retire
09-15-2010, 09:45 AM
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#1
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Dryer sheet aficionado
Join Date: Oct 2006
Posts: 43
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Opinions on when to retire
I am 54 and my wife is 57. We own our home outright. We have $1.6M in IRAs/401(k)s and $1M in non-retirement funds. About $2M of the total is in the stock market via mutual funds, individual stocks, and ETFs. The rest in in cash and bonds. We have no kids and no debt. We will not have any pensions and will need to buy our own health insurance until age 65 when I stop working. We will both have access to Social Security. We are both in very good health and may very well live to age 90. So, can I retire now? My wife would continue to work parttime but she will only bring in about $20K/yr gross - she is self-employed. Any thoughts would be appreciated.
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09-15-2010, 09:51 AM
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#2
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Recycles dryer sheets
Join Date: Sep 2010
Location: Lebanon, TN
Posts: 112
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If that were my situation I'd definitely do it. Much depends on what you plan to do during retirement, I plan to travel quite a bit which can be very expensive, but if I were in your shoes I believe I could do that. The other issue stopping me from pulling the switch is health insurance.
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09-15-2010, 09:56 AM
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#3
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gone traveling
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
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 Quote:
Originally Posted by leyland
Any thoughts would be appreciated.
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My two rules for retirement:
1. When my financial statement says I can (e.g. compared to expected retirement expenses).
2. When my heart says I should.
If both are true, then it's time (and I did). If either/both were not true, I would still be wor*ing today  ...
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09-15-2010, 09:56 AM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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What will your annual expenses be in retirement?
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09-15-2010, 10:00 AM
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#5
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Dryer sheet aficionado
Join Date: Oct 2006
Posts: 43
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I would guess we are looking at needing $50/yr gross. Health insurance costs are the wildcard.
Quote:
Originally Posted by travelover
What will your annual expenses be in retirement?
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09-15-2010, 10:01 AM
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#6
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Dryer sheet aficionado
Join Date: Oct 2006
Posts: 43
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$50K/year
Quote:
Originally Posted by leyland
I would guess we are looking at needing $50/yr gross. Health insurance costs are the wildcard.
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09-15-2010, 10:37 AM
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#7
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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You should carefully track all your expenses for at least six months to be sure of the exact number before you pull the plug .
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09-15-2010, 10:58 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
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If you only need $50k a year to live on I think you are well and truly there.
If you heart is telling you it is time, check your numbers carefully and go for it.
__________________
I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
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09-15-2010, 11:02 AM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 16,752
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Quote:
Originally Posted by Moemg
You should carefully track all your expenses for at least six months to be sure of the exact number before you pull the plug .
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Plus something set aside for the big ticket items that you need... new car, washer/dryer, roof, AC....
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09-15-2010, 01:13 PM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Ballpark safe withdrawal rate is 4% per year, then adjusted for inflation from that point on. As you are a little younger, 3% would be a more conservative withdrawal rate. - which would still be over $78K. If you really only need $50K, you are overdue!
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09-15-2010, 01:15 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,680
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Leyland, you're done, go relax!
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09-15-2010, 06:36 PM
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#12
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Recycles dryer sheets
Join Date: Jan 2010
Posts: 476
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If I had that amount, that age, no kids, with those expenses - I would not even ask. Have fun!
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09-16-2010, 02:23 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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Just do it. You seem to be in a much better financial position than the vast majority of people.
Also check here FIRECalc: A different kind of retirement calculator
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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09-16-2010, 06:27 AM
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#14
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2007
Posts: 5,596
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Quote:
Originally Posted by rescueme
My two rules for retirement:
1. When my financial statement says I can (e.g. compared to expected retirement expenses).
2. When my heart says I should.
If both are true, then it's time (and I did). If either/both were not true, I would still be wor*ing today ... |
Well said.
__________________
I purr therefore I am.
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09-16-2010, 07:06 AM
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#15
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 182
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I agree with the other comments that if you are certain about your expenses and you are mentally ready, then get going! I do think you need to carefully look at expenses and don't leave anything out. Although DW and I live what I view as a modest lifestyle, we still spend a fair amount of money. Make sure you allow a chunk of money for travel if that is in your plans. Based on another current thread on that topic, people spend a lot on that. We do!
Good Luck!
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09-16-2010, 07:17 AM
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#16
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Recycles dryer sheets
Join Date: Aug 2009
Posts: 348
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if I were you I would have retired a year or more ago... 
__________________
I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
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