I thought I'd introduce myself.
I retired in 2019 at 61, wife was 66. So, not really early retirees. But I still like reading and thinking about retiring. Basically a free hobby
And I might learn something new, or help somebody else. I like learning, and helping.
We agreed many years ago, before we got married, that our goal was to live a comfortable and happy life. So far, so good.
We have no interest in maximizing our spending, we just want to be comfortable, and make sure our kids will never have to support us financially.
Before I pulled the plug on my job I wanted to make sure we would "have enough" to be "comfortable enough" forever. Not an easy task! Especially, since for us, and probably many, it was more or less a once in a lifetime decision. Sort of like getting married.
I'm grateful we could make this decision and not be forced into it!
One thing I addressed is the concept that one can live cheaper than two. Unfortunately one of us will likely die before the other. Impossible to predict who that will be. By my estimates one of us will need about 3/4 of what we both needed to be comfortable. I planned so no matter the outcome, we'd be comfortable enough at least financially. I hope my plan works!
Then I/we estimated various numbers.
W: Just enough to live on. Includes things like cars, phones and internet.
X: Enough to be comfortable. Adds in some domestic travel, and hobbies.
Y: Wife's estimate of how much she thought we'd like to spend.
Z: My estimate of how much we'd like to spend.
Fortunately, W<X<Y<Z. Each one is about 10-15% bigger than the next smaller one. Getting my wife to come up with a number, independently from me, took a little persuasion, but it was important to me. Fortunately it was in between my numbers
In the years leading up to my retirement I started accumulating more stable value assets (in my case TIAA traditional in a GSRA account). In retrospect, financially this was a mistake, but it made me more comfortable, and remember comfort is the goal here. This was to essentially bridge us through till I claimed SS at 70.
I also opened up a Roth IRA, and designated Roth 403b, to get the 5 year clock ticking. I highly recommend doing this. It becomes your tax free emergency fund.
When we retired, wife claimed SS (at her FRA) and a small pension ($350/month - dual life). I also annuitized about 20% of our savings, again dual life. Everything will be taken dual life so when the smaller SS check goes away, the survivor will still have enough to be comfortable. I annuitized about 5% more of our savings this year. I might do another 5% if it is needed at 70.
The plan is I'll claim SS at 70. 5 more years. When I do my wife will get a spousal SS supplement. SS together with pension and annuities will provide enough to be comfortable. So that covers X. The annuities will slowly get eaten away by inflation, but we'll always be above W. And I read somewhere that spending goes down as you get older. When I'm required to take RMD, that will hopefully keep us at, or above, Y & Z. I ran various "can you retire" type of calculators, I'm 99% sure we'll have X forever, I'm 90% sure we'll have Y, I'm 80% we'll have Z. Good enough.
The big unknown is potential long term care costs. As long as we are both alive the plan is to take care of each other. Hiring help as needed. If we only take RMD, that will probably leave a balance in retirement accounts, so we could use that. And still have X. Then if needed we could take a reverse mortgage. I'm pretty sure we want to keep each other comfortable enough forever. I think we have enough. I do not think we'll need kids help. If we do not need expensive long term care, that will be the kids inheritance.
Sorry this was long winded. I'll post it anyway.
I retired in 2019 at 61, wife was 66. So, not really early retirees. But I still like reading and thinking about retiring. Basically a free hobby
And I might learn something new, or help somebody else. I like learning, and helping.We agreed many years ago, before we got married, that our goal was to live a comfortable and happy life. So far, so good.
We have no interest in maximizing our spending, we just want to be comfortable, and make sure our kids will never have to support us financially.
Before I pulled the plug on my job I wanted to make sure we would "have enough" to be "comfortable enough" forever. Not an easy task! Especially, since for us, and probably many, it was more or less a once in a lifetime decision. Sort of like getting married.
I'm grateful we could make this decision and not be forced into it!
One thing I addressed is the concept that one can live cheaper than two. Unfortunately one of us will likely die before the other. Impossible to predict who that will be. By my estimates one of us will need about 3/4 of what we both needed to be comfortable. I planned so no matter the outcome, we'd be comfortable enough at least financially. I hope my plan works!
Then I/we estimated various numbers.
W: Just enough to live on. Includes things like cars, phones and internet.
X: Enough to be comfortable. Adds in some domestic travel, and hobbies.
Y: Wife's estimate of how much she thought we'd like to spend.
Z: My estimate of how much we'd like to spend.
Fortunately, W<X<Y<Z. Each one is about 10-15% bigger than the next smaller one. Getting my wife to come up with a number, independently from me, took a little persuasion, but it was important to me. Fortunately it was in between my numbers
In the years leading up to my retirement I started accumulating more stable value assets (in my case TIAA traditional in a GSRA account). In retrospect, financially this was a mistake, but it made me more comfortable, and remember comfort is the goal here. This was to essentially bridge us through till I claimed SS at 70.
I also opened up a Roth IRA, and designated Roth 403b, to get the 5 year clock ticking. I highly recommend doing this. It becomes your tax free emergency fund.
When we retired, wife claimed SS (at her FRA) and a small pension ($350/month - dual life). I also annuitized about 20% of our savings, again dual life. Everything will be taken dual life so when the smaller SS check goes away, the survivor will still have enough to be comfortable. I annuitized about 5% more of our savings this year. I might do another 5% if it is needed at 70.
The plan is I'll claim SS at 70. 5 more years. When I do my wife will get a spousal SS supplement. SS together with pension and annuities will provide enough to be comfortable. So that covers X. The annuities will slowly get eaten away by inflation, but we'll always be above W. And I read somewhere that spending goes down as you get older. When I'm required to take RMD, that will hopefully keep us at, or above, Y & Z. I ran various "can you retire" type of calculators, I'm 99% sure we'll have X forever, I'm 90% sure we'll have Y, I'm 80% we'll have Z. Good enough.
The big unknown is potential long term care costs. As long as we are both alive the plan is to take care of each other. Hiring help as needed. If we only take RMD, that will probably leave a balance in retirement accounts, so we could use that. And still have X. Then if needed we could take a reverse mortgage. I'm pretty sure we want to keep each other comfortable enough forever. I think we have enough. I do not think we'll need kids help. If we do not need expensive long term care, that will be the kids inheritance.
Sorry this was long winded. I'll post it anyway.
