Single F 53 No kids $700,000 investments with low expenses annually, can I retire?

[Sunset]

OP - how about changing jobs, there is an old saying a change is as good as a vacation.

Would your LTP also be retiring, or will you be alone in the day and then listen to that person relate their day at work, everyday

[brucethebroker]

I agree with the PT job thing. Maybe look for something you are really interested in. For example, our local libraries are hiring PT positions. Tax prep places will be hiring soon, and offer free training.
Recently had a friend tell me his company could not find PT people to drive a local delivery truck (no physical loading/unloading required), even though they paid $15 an hour with very flex hours. etc.

I have a "hobby job" which pays a few bills and is fun. That has keep me a little busy, and made a huge impact on the "nest egg" over the last few years. Good luck.

[Lynne3560]

I would definitely apply to part time jobs in order for my investments to grow untouched. The way my luck has been I have to consider what if I don't get an offer for that, am I still ok? The first part of the plan would be to have enough in my savings/checking account to be able to go a year to a year and a half without touching investments putting closer to 55 (without part time work) and with part time work, I continue past 55 without any withdrawals from investments.
I do not like being dependent on LTP to make this happen, if he dies, he has a bit of investments that I am the beneficiary so I'd be ok. If he leaves, well, if leaves soon, that would but a hurt on my plan. If he leaves a few years down the line, my investment should be at a point where his part of my plan is replaced by larger nest egg.
I live simply. I enjoy the small things. Local volunteer work, dollar beer nights and short excursions to places within my own state. Think Pee Wee Herman... Pee Wee, do you have dreams? Oh yes, I dream I'm rolling a big donut up a hill and....
I met with my financial advisor a couple months ago... we mapped out and plan and he said yeah, I guess you can go but I don't like it for you.
The time you all have taken to respond is much appreciated. I'll keep going as long as I can in my current situation.

[Dtail]

Seems a little lean as others have mentioned, but doable.
As for the marriage aspect, I also have a long term (11 years) partner. As for now, the ability to save myself and my brother who lives with us 22k yearly due to ACA subsidies keeps us single for now.
The tax and social security aspects at 65 y.o. and onward will probably change that equation. Very romantic. lol

[gauss]

Quote:

Originally Posted by skyking1 Those are relevant thoughts. Very few people take the time or are in a situation to examine it in detail. 1) tax break. As you say, really a wash there if you retire now. 2)survivor's SS That one is significant and take another look at it. Glad you are in a good position to make the shift to retired. These threads are always an inspiration.

Isn't this only really true (the survivor SS benefit) if the the significant other had higher lifetime earnings than the OP? If they had similar earnings, I thought that the majority of the advantage would go away.

My view of SS survivorship benefits is that they were designed for and in the time of when one spouse didn't work outside the home. This is totally not the case with myself and DW. As such, the survivor in our marriage will take a big hit in income when there is only one SS check remaining (albeit the larger of the two) as opposed to two checks.

-gauss

[Pellice]

One consideration that you might be able to remedy rather quickly is a reserve or"planned expense" fund. I simply renamed my old "emergency fund" and have not touched it yet in retirement, but can easily imagine needing it. For example, a new car in 5 or 6 years. Or, I was just looking at aa retirement community that requires a 10% deposit immediately upon signing the contract. If you are selling your own house to raise the money for the entry fee, that fund will be handy until you can get the house sold.

But you sound very disciplined, and in a position to lay down this money in a year or two. Good luck!

[Dtail]

Quote:

Originally Posted by gauss Isn't this only really true (the survivor SS benefit) if the the significant other had higher lifetime earnings than the OP? If they had similar earnings, I thought that the majority of the advantage would go away. My view of SS survivorship benefits is that they were designed for and in the time of when one spouse didn't work outside the home. This is totally not the case with myself and DW. As such, the survivor in our marriage will take a big hit in income when there is only one SS check remaining (albeit the larger of the two) as opposed to two checks. -gauss

Correct.

[OldShooter]

Quote:

Originally Posted by Lynne3560 I have mostly viewed marriage as a potential financial disaster. Too many divorces, so I know nothing about the financial pros. ...

IANAL; I am going pretty much on second-hand information and especially the equity arguments that led to gay marriage being legalized most places. There are lawyers and CPAs around who specialize in helping gay couples. Gay or not, someone like that should be able to help any unmarried couple understand the tradeoffs, including those beyond the financial arithmetic. It might be a very worthwhile way to spend a few hundred bucks.

[skyking1]

Quote:

Originally Posted by gauss Isn't this only really true (the survivor SS benefit) if the the significant other had higher lifetime earnings than the OP? If they had similar earnings, I thought that the majority of the advantage would go away. My view of SS survivorship benefits is that they were designed for and in the time of when one spouse didn't work outside the home. This is totally not the case with myself and DW. As such, the survivor in our marriage will take a big hit in income when there is only one SS check remaining (albeit the larger of the two) as opposed to two checks. -gauss

Not completely true, that idea. Different ages factor in.
One can choose to take it at 62~65 as DW is planning, and mine will continue to increase to the 70 maximum.
Our hours are very similar to date, but she would get a 35% bump if it works out as planned.

[KT1R]

I would not feel safe in this situation.

[gooddog]

Short answer to me is 'no'. Would wait until you can collect SS (or hit the lottery). Under the current inflationary and tax environment I would be extra cautious. Maybe splitting the difference between now and age 62 is an option?

[Lynne3560]

Under consideration now is work until the end of 2022. That would put me in a position that I would not have to draw from investments for two years living off savings, inching me closer to 57 and about 3 years to let my investments continue to grow.

[2177V]

Quote:

Originally Posted by Lynne3560 Hi, lurking for sometime now. I would appreciate any feedback! $95,000 in simple ira $185,000 in Roth $315,000 in individual stocks $105,000 in mutual funds My annual expenses total $30,000 (includes aca subsidy upon retiring at first of year 2022) I have $100,000 in equity in my home and a mortgage that is not paid off until year 2041, 20 year loan refinance recently. Live with long term partner that covers some of my expenses - $8000 yearly - bringing my annual expenses down to $22,000. Would begin receiving Social Security at 62 - $19,200 annually. According to several different fire calculators (and my dad, bless his heart) the end result says I can go. This wasn't in my original plans for retirement (to go now), my plan was to get to 57 or 58 (closer to 1mil) but the job market has changed drastically for me and I'm now considering income and misery or retiring. Thank you for any input.

I am assuming your $30,000 annual expenses includes vacations, a car replacement and allowances for unseen medical expenses. I usually add $4000 for annual vacations, another $4000 for car and insurance payments, and add $5,000 to $10,000 in a separate savings account for unseen medical expenses. In 10 or 20 years you should have enough for most unseen medical and medication expenses as you reach 70 when those expenses escalate.

[aaronc879]

How do you get enough income from your savings to qualify for ACA? You need around $13K or $18K or so depending on which state you live in. You may have to work part time for several years because I don't think you can retire if you can't get significant ACA subsidies.

[Katiek]

Kudos for being in such a good position, but I'd personally feel better with a part time job that has a better environment/less stress but could help with any unexpected expenses such as a medical issue with LTP or unexpected house repairs. But I also recognize people have different comfort levels and there may be work related issues that aren't clear from the original post.


In either case, welcome and good luck.

[2177V]

Quote:

Originally Posted by Katiek Kudos for being in such a good position, but I'd personally feel better with a part time job that has a better environment/less stress but could help with any unexpected expenses such as a medical issue with LTP or unexpected house repairs. But I also recognize people have different comfort levels and there may be work related issues that aren't clear from the original post. In either case, welcome and good luck.

I retired comfortably at 65 and I did some unpaid volenteer work at a public recreational center to meet other people and work out on the basketball court or their treadmills. The recreational center decided to offer me a part time job to keep the recreational center open for longer hours. Even though I did not need the money at age 70, I accepted the job to help them out and increase my social circle with the visitors to the recreational center.

Very low stress job but my hours are only 8 to 10 hours a week which fits my idea of an active retirement. People are shocked that I am age 70 and can still shoot a good jump shot. I just can’t blow by people on a penetration dribble for a layup like I used to do. I recommend 100% retirement at first but look for a part time retirement job that would keep you active and make you happy.

[SecondAttempt]

Quote:

Originally Posted by Lynne3560 I have mostly viewed marriage as a potential financial disaster. Too many divorces, so I know nothing about the financial pros. In this year's panic that I may have to call it quits for good, my long term partner did all the legwork and has his half of all the necessary paperwork filled out, said you fill out the rest and in 30 days and maybe $50 bucks we are legally married. This was all over my concern for healthcare. I would be on his work insurance at an affordable rate. But when I reviewed current aca subsidies and my low income rate in retirement the cost of health care was a wash. I really don't know of any pro's except for what you have mentioned and will have to do more homework on it. I always thought marriage was more of a financial hurt than help... ie, he has long term illness, dies and now I'm paying those bills. Nursing home care... with no long term care insurance, if one of ends up there until death, the other is responsible. Seems like staying single is the better option, I end up in the nursing home until death... as my long term partner, he isn't financially responsible. Just my own thoughts...

Very valid concerns. But you may want to speak to an attorney with your concerns. I am divorced and living with a partner so I get it. But there are some issues you may not have considered. What if he is injured? As a partner you may not even be able to see him much less direct his care as he would wish if he can't and vice versa. These things are easily solved with teh right arrangements.

Your retirement situations seems ok as long as all goes well which is what others have said. I think you should plan to work a couple more years but be relaxed with the knowledge that if something happened and you got laid off you could make it work.

[GTFan]

OP one thing I haven't seen mentioned, what is your asset allocation across all accounts? Roughly 60/40? Because if you're close to 100% stocks it's a much bigger risk. I'm also wondering with the large allocation to individual stocks whether you have spread the risk there.

Another thing to consider is doing gig work on your own schedule, like driving DoorDash or something. A lot of folks downshift to PT this way before pulling the plug completely.

Agree that in your situation cheap ACA insurance is a plus.

[GravitySucks]

Congrats on getting here.
We're a very pessimistic bunch. If that's truly your expenses you make it in Firecalc 95+% of the time. Not counting LTP sharing expenses, SS in 15 years or the mortgage being paid off in 20 years.

How lean is that budget compared to your recent? Average earnings last 3 years minus FICA minus savings plus company covered health insurance?

[Koolau]

Quote:

Originally Posted by GravitySucks Congrats on getting here. We're a very pessimistic bunch. If that's truly your expenses you make it in Firecalc 95+% of the time. Not counting LTP sharing expenses, SS in 15 years or the mortgage being paid off in 20 years. How lean is that budget compared to your recent? Average earnings last 3 years minus FICA minus savings plus company covered health insurance?

I think our pessimism is because many of us have significantly higher spend rates (and therefore higher incomes/assets.) Perhaps we just don't relate to a leaner FIRE. The theory is still the same, however. Calculate your spend. Confirm that your various income sources (SS or Pension or Gig w*rk, etc.) plus appropriate WDR from assets covers expenses for at least 30 years. YMMV