Turning 60- are we good to retire?

[Mountain skier]

Hello. I would appreciate your analysis of our financial situation. Are we financially in good shape for retirement? We stopped working last spring...want to officially retire. Basically we both have lol.

Both age 60.
DW: non-cola pension: $31,450/yr
Investment assets: $1,050,000
AA: 21/79 (equities/cash CD's)
House: $330K paid for
SS: DW at 62 $15k; DH at 67 $24K

Yearly expenses: $60K includes: ACA INS and taxes with plenty of discretionary $ for vacations, large expenses. ($40K if small vacation and no large purchases)

I feel confident we are fine but we would really like your opinions. Firecalc says we are 100%.

I realize we might be too conservative with our equities. May go back to 30%-40% equities.

Thank you for your help.

[pb4uski]

100,000' level I look at it this way. Once you are both collecting SS your gap is only about $5k a year... $60k spending - $39k SS - $16k pension (I halve the pension since it is non-colaed). However, you need to put aside $198k [$15k*(62-60) + $24k*(67-60)] to replace SS until it starts... leaving $852k from your $1,050k nestegg.

A $5k annual withdrawl on a $852k nestegg is less than 1%... so you're golden.

You could probably spend as much as $85k a year and still be pretty safe.

[WyomingLife]

I think your primary risks are:

1. Are your budget numbers well documented?;
2. Is the pension reliable?; and
3. Inflation risk, reflected both in your significant cash position and the non-COLA'd pension.

As to #3, you are barely invested. I tried to find historic returns for a 20/0/80 portfolio and could not on short notice. So you are currently set up to basically live off of the non-COLA'd pension, SS and cash. SWRs tend to assume a balanced portfolio with your money working for you, which you don't have.

Then again, it doesn't seem like you really need your investments to work for you that much -- again, however, if your budget is accurate.

I suspect you know all of the above anyway, plus you are already retired it seems. so best of luck to you.

[Dtail]

I reran your numbers in Firecalc. Enjoy retirement.

[Mountain skier]

Just noticed the title of the thread. It is supposed to read: Turning 60- are we good to retire? Lol....not sure how I missed the error. Sorry for any confusion.

Thank you to those who responded.

[street]

Looks very good to me also, you should enjoy. One thing I think about from time to time is if one of us pass away then you rely more from your investments for expenses etc..

There are ways to cover those lost funds, if that happens and if you need the extra money.

[Alan]

Quote:

Originally Posted by Mountain skier Just noticed the title of the thread. It is supposed to read: Turning 60- are we good to retire? Lol....not sure how I missed the error. Sorry for any confusion. Thank you to those who responded.

Fixed the title for you

As for retiring, you look to be in good shape.

[whatnot]

Three things to consider.
1. Do you receive DW pension if she dies!
2. SS income will decrease when 1 spouse dies.
3. Will ACA be available for next 5 years?
Just my initial reaction.

[euro]

Agree with others. If your expenses are anywhere near accurate, you are good to go!

[Rianne]

Quote:

Originally Posted by street Looks very good to me also, you should enjoy. One thing I think about from time to time is if one of us pass away then you rely more from your investments for expenses etc.. There are ways to cover those lost funds, if that happens and if you need the extra money.

This is important. Go to https://opensocialsecurity.com and examine survivorship benefits. The ways to get a clear picture is firecalc, open social security, and understanding the tax changes if you or DW widowed. Will you get DW pension and visa versa. I found the tax situation dire if my DH passed. And the SS and pension will be slightly less for me. He'll be in the same situation.

[Finance Dave]

You look good to me! Just be aware of increasing health care costs as you age...plan for that including things Medicare won't pay. Having so much of your budget being discretionary is good...if things go south for a year you can skip one vacation and get back on track.

Enjoy retirement!