I am 59 and my wife is 62. She is retired and I still work. I am trying to figure out if I can retire. We have $4.6M - about 70% in retirement accounts. The asset allocation is about 70% (for both retirement and non-retirement accounts) in equities, 20% in bonds, and 10% in cash. Our house is paid for and we have no kids. We will put off SS till at least 66, perhaps longer, and I will draw the max or close to it. We spend about $70K/year and will have to pay for health insurance until age 65. Based on family histories, it is conceivable that we will both make it to our 90s. Thoughts on whether I can retire?
What do you think?
- Thread starter leyland
- Start date
Does the 70k include health insurance/out of pocket costs and does it include taxes?
Even if it doesn't and you round up to $100k/year gross spending you're still at a 2.1% withdrawal rate. And that doesn't consider SS.
I'd say you're good to go.
Even if it doesn't and you round up to $100k/year gross spending you're still at a 2.1% withdrawal rate. And that doesn't consider SS.
I'd say you're good to go.
robertf57
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as rodi said, looks like you are more than fine given what you have described.
Run FireCalc using your total spending needs factoring in SS and Medicare eligibility. My back of the envelope look at your numbers says you can probably safely take $150k to $200k from your account without running out of money over the next 30+ years.
I also think you are a little overweighted in equities. I'd suggest 40% to 60%.
You are only working because you want to.
I also think you are a little overweighted in equities. I'd suggest 40% to 60%.
You are only working because you want to.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
You are good to go. $70k is only 1.5% of $4.6 but the $70k doesn't include taxes but taxes shouldn't affect it enough to change the decision.
You can get a good idea of what your future taxes might be by sketching out your situation once you retire at Income Tax Calculator - Tax-Rates.org
You can get a good idea of health insurance costs at https://www.healthsherpa.com/
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Jack_Pine
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No offence to OP but curious as to why you would think you might not be good to go?
Seems to me you are off the charts ready....................just curious what your specific concerns are.
Seems to me you are off the charts ready....................just curious what your specific concerns are.
Go for it. You should have no problem drawing on your 401(k)s either since you are close to the 59 1/2 year point. Don't have to worry about after tax amounts.
You have not mentioned anything about your tax-free Roth accounts, but it is probably a good idea for you to do some Roth conversions at this point.
You have not mentioned anything about your tax-free Roth accounts, but it is probably a good idea for you to do some Roth conversions at this point.
Health care costs are a concern along with market volatility and inflation. Once I get out of the workplace there is no going back - my skills will erode too quickly and nobody will hire me. We are potentially looking at a long retirements and there is always just fear of the unknown.
You can get a pretty good idea of health care costs. Looking at ACA available policies in your state / region, just price one and include co-pays and deductibles. The spreadsheet in this post will help you estimate total potential yearly cost.
Depending on your taxable / tax-deferred split you can minimize taxes and may even be eligible for ACA premium assistance. Still, even w/o assistance your total spending looks to be around 2% of your portfolio, which would be a low risk retirement.
Depending on your taxable / tax-deferred split you can minimize taxes and may even be eligible for ACA premium assistance. Still, even w/o assistance your total spending looks to be around 2% of your portfolio, which would be a low risk retirement.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
You can get an idea on health insurance costs at https://www.healthsherpa.com/
Then add in a provision for deductibles and co-pays. IMO it doesn't have to be the deductible limit unless you typically max out your deductible.
Then add in a provision for deductibles and co-pays. IMO it doesn't have to be the deductible limit unless you typically max out your deductible.
JoeWras
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leyland: you've been around here a while according to your join date. You may want to read more frequently and get an idea of when people are jumping into FIRE. It comes up a lot, but you have to read a lot of posts.
But welcome to the club. I have nothing to talk about. I'm an OMYer right now.
Finally, as someone else said, since you have so much, you might want to get a bit more conservative on your allocations.
Willers
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Thanks for the link!
Great site for estimating costs in the various retirement locations we're considering.
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Jack_Pine
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I get the no going back thing. We are in the same boat. Our plan also has us retiring at 60 and 65 (me/DW). We, however, only have about 80% of your portfolio. I feel pretty good about our place and m ready to go.
Good luck.
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robnplunder
Thinks s/he gets paid by the post
$4.6M? What are you waiting for? A blessing from this forum members? You got my blessing 
. If you lose half of $4.6M in Las Vegas tomorrow, come back and post here. That would be more interesting discussion. As is, you got way more than what you need to retire unless you have other concerns we don't know about.
. If you lose half of $4.6M in Las Vegas tomorrow, come back and post here. That would be more interesting discussion. As is, you got way more than what you need to retire unless you have other concerns we don't know about.
robnplunder
Thinks s/he gets paid by the post
BTW, assuming you live to 90, $4.6M / 30 year = $153k per year. That's twice more than $70k/year you are spending now and that' not even counting you & your spouse's SS kicking in as 66. The question should not be whether you can retire or not. More appropriate question is, IMHO, how would you spend the money in retirement, and which charities should you consider leaving your legacy with?
Thanks for your thoughts. I haven't been to the forum in some time. I know I have to do something with my asset allocation.
EastWest Gal
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I have $3.2M and estimate $80-90K per year including taxes and health insurance. Some years will be more or less depending on travel plans. Firecalc gives me 100% success every way I do it. With $4M+ you should do great, and even be able to fly first class when you travel. I have licensing issues that will make it tough to go back, and anyway I can no longer stomach the stress.
Go out and enjoy.
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Go out and enjoy.
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Senator
Thinks s/he gets paid by the post
It seems like you are in my same situation, no kids, high SS. But you have about $4M more than me.
What are you waiting for?
I think there are a lot of millionaire out there
What are you waiting for?
I think there are a lot of millionaire out there
RetireAge50
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You are all set congratulations! You have more risk of running out of life than out of money so delay no further.
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Sent from my iPhone using Early Retirement Forum
You are way underspending. You would have a very high success rate even at $130k/yr withdrawl and that is not giving you any credit for SS and any pension.
38Chevy454
Thinks s/he gets paid by the post
X2, no worries. Quit working and start playing.
