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sink or swim - FIRE 4 years early
Old 05-27-2019, 06:40 AM   #1
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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:


$x.xm pretax (edited at poster's request)
$x.xm post tax (edited at poster's request)

75% equities
No debt
No kids at home
$x.x/yr budget (edited)

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.
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Old 05-27-2019, 06:53 AM   #2
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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!
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Old 05-28-2019, 03:30 PM   #3
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Old 05-28-2019, 03:47 PM   #4
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It is literally hard to imagine "regular" people in a better position than you. Congratulations.
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Old 05-28-2019, 04:36 PM   #5
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Old 05-28-2019, 06:48 PM   #6
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I would also join Bogleheads.org 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.
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