Join Early Retirement Today
Thread Tools Search this Thread Display Modes
sink or swim - FIRE 4 years early
Old 05-27-2019, 06:40 AM   #1
Confused about dryer sheets
Join Date: Jan 2019
Location: Fort Worth
Posts: 8
sink or swim - FIRE 4 years early

Hello all. I am 58 and DW is 53. I wasn't planning on retiring for another 4 years, but I accepted an early retirement package in March. I have always monitored our finances (accumulation phase) and was pretty confident we would have a comfortable retirement, but since I didn't expect to retire for 4 years, there are many things I had not prepared for yet (withdrawal phase). I have many questions and am spending a lot of time on this forum looking for answers. Since it is all new to me, I am concerned about what I don't know on this topic.

My numbers are:

$2.5m pretax accounts (IRA/401k)
$3.0m post tax accounts
75% equities
No debt
No kids at home
$140k/yr budget

I've ran the FIRE calc and seem to be fine.

My current plan is:

Live off of post tax accounts while converting pretax accounts to Roth (to minimize RMD taxes) while staying in 24% tax bracket. Also currently plan to take SS at 70 unless drastic things happen and I need the money earlier. Will probably slowly reduce my equity position to be less market sensitive.

I am learning more every day from reading this forum (like the need to pay quarterly taxes) and realize I will continue to change my plan the more I read and understand things.

I appreciate everyone sharing their thoughts and experiences.

Cotton1929 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-27-2019, 06:53 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 26,203
You're golden as far as finances but you knew that.

I would focus on draining pre-tax accounts. Roth conversions until 59 1/2.... withdrawals after that. The benefit of post-tax equities is that you get a stepped up basis in whole or in part when one of you passes depending on how the accounts are titled and whether or not you live in a community property state... effectively making some unrealized gains tax-free.

Once you are eligible for penalty free withdrawals, you can pay your estimated taxes by doing a tIRA withdrawal and having 99% of it withheld... the benefit is that the IRS considers withholding as made evenly throughout the year even if it is done in December.

Congratulations and enjoy your newfound freedom!

If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 65/35/0 AA TBD
pb4uski is offline   Reply With Quote
Old 05-28-2019, 03:30 PM   #3
Thinks s/he gets paid by the post
HNL Bill's Avatar
Join Date: Dec 2017
Posts: 1,925
Swimming easily (or just floating) down the river!
Balance in everything.
HNL Bill is offline   Reply With Quote
Old 05-28-2019, 03:47 PM   #4
Recycles dryer sheets
Join Date: Jul 2014
Posts: 153
It is literally hard to imagine "regular" people in a better position than you. Congratulations.
timemoveson is offline   Reply With Quote
Old 05-28-2019, 04:36 PM   #5
Thinks s/he gets paid by the post
Cut-Throat's Avatar
Join Date: Jan 2007
Location: Minneapolis
Posts: 1,172
Originally Posted by Cotton1929 View Post
I have many questions

Ask one.
Cut-Throat is offline   Reply With Quote
Old 05-28-2019, 06:48 PM   #6
Full time employment: Posting here.
Join Date: Jan 2008
Location: Flyover America
Posts: 617
I would also join and post for portfolio review to get another opinion, not that you need one.

But at 2.5% withdrawal you should be good.

I would be at 50/50 allocation but that's me as a moderate conservative investor.

capjak is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Forcing prudence vs letting the kid sink or swim? Pellice Other topics 8 03-01-2019 12:30 PM
Investools/Think or Swim ~ anybody in it? VaCollector Stock Picking and Market Strategy 3 10-15-2008 09:54 AM

» Quick Links

All times are GMT -6. The time now is 09:11 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.