oliverdickens
Recycles dryer sheets
- Joined
- Sep 23, 2006
- Messages
- 69
Well it has been three months since I was "forced" into early retirement at age 54 as my boss was planning on increasing my workload 2 fold and on top of that, reducing my salary. Made sense to talk to the owner of the company whereby I negotiated a 19 month severence package, so technically, will not be offically retired, dollar wise, until April 08. Here are the specifics of my plan for comment or feedback:
Will have company paid health insurance until April 08, can go to COBRA from there for 18 months or opt to take a previous employers insurance for retirees. Both expensive, but you got to have it.
I currently have about 1.7MM with $320K in taxable accounts and $1.38MM in IRA/401K.
I plan on saving $5000 per month until 4/08 with thought to pay down mortgage to about $50K on a $400K property by Aug 07. (I have an interest only loan that will go to traditional adjustable that will adjust every 6 months at that time, so want it down as much as possible)
With the savings plan and projected growth of portfolio, looking to have about $1.9MM starting at 4/08 when my severance package is complete. Plan is to have about $1MM in fixed for steady and assured income, and $900K in stocks.
Now for the expense side of the equation:
Starting 11/07 will have a pension of $22,800 that unfortunately has no COL adjust so in time that will essentially not be worth much.
I would like about $65,000 after taxes, another reason why I choose to paydown the mortgage, so have less expenses to deal with. Seems very doable going thru the FIRE calc.
With all that said, after three months, I am not totally bored yet but do have those times of guilt but thanks to all on the forum, realize these are normal, and there is nothing better than not having a schedule and doing what you want, when you want.
I guess the only questions I have are, does this plan seem reasonable to all those that have been in ER for a long time, and am I being too conservative on the fixed side? Also could pay off the mortage obviously but chose to get it low first and depending on how investments go, pay it off perhaps when I can draw from my IRA without penalty
Any other advice always appreciated
Thanks
Will have company paid health insurance until April 08, can go to COBRA from there for 18 months or opt to take a previous employers insurance for retirees. Both expensive, but you got to have it.
I currently have about 1.7MM with $320K in taxable accounts and $1.38MM in IRA/401K.
I plan on saving $5000 per month until 4/08 with thought to pay down mortgage to about $50K on a $400K property by Aug 07. (I have an interest only loan that will go to traditional adjustable that will adjust every 6 months at that time, so want it down as much as possible)
With the savings plan and projected growth of portfolio, looking to have about $1.9MM starting at 4/08 when my severance package is complete. Plan is to have about $1MM in fixed for steady and assured income, and $900K in stocks.
Now for the expense side of the equation:
Starting 11/07 will have a pension of $22,800 that unfortunately has no COL adjust so in time that will essentially not be worth much.
I would like about $65,000 after taxes, another reason why I choose to paydown the mortgage, so have less expenses to deal with. Seems very doable going thru the FIRE calc.
With all that said, after three months, I am not totally bored yet but do have those times of guilt but thanks to all on the forum, realize these are normal, and there is nothing better than not having a schedule and doing what you want, when you want.
I guess the only questions I have are, does this plan seem reasonable to all those that have been in ER for a long time, and am I being too conservative on the fixed side? Also could pay off the mortage obviously but chose to get it low first and depending on how investments go, pay it off perhaps when I can draw from my IRA without penalty
Any other advice always appreciated
Thanks