Greetings All
Hoping for some insight/suggestions from any who can comment.
Some sudden and unforeseen circumstances have altered DW and my plan for ER. Simply put, my employer has abruptly gone out of business. The owner decided he'd had enough and liquidated (privately held company). This happened extremely fast and there was no time to prepare/no advance warning. Unfortunately, no severance for me either. So I have been furiously hammering away at FIRECALC and various other retirement calculators trying to determine whether we are in position to phase out of work altogether (I've had absolutely no luck with a job search). We have painstakingly examined our annual spending.
In a way we feel blessed, even in light of my current job situation. We've always been planners and savers. Yet, the money we've saved doesn't seem like much when we consider we might be lucky enough to live for another 45+ years. And that this money needs to last a LOOOONG time...hopefully. The prospect of this scares us as we are worriers to begin with.
If you could look at our situation and offer comments we'd very much appreciate it!
-DW is 45 and I am 48
-One child who is 12
-DW still working and earns $102,000/yr and is planning to work until June of 2017. It's worth adding that she is growing quite weary of her job as she's been there 22 years. We have very good health insurance through her employer at present
-Once she retires in 2017 we will have to self insure
Assets
-$812,000 After Tax (48% stock, 30% bonds, 22% cash)
-$1,295,000 Tax Deferred (also 48% stock, 30% bonds, 22% cash)
-One small pension of $6,600 with no COLA, starting in the year 2032
-Money for child's college, wedding, etc has already been saved
-We built a smaller house recently that is worth $350,000/no mortgage (so a future downsize to free up add'l money is really not in the cards)
-I hate to plug anything in for S.S., but you could figure a small annual amt if need be
-2014 and 2016 vehicles/low miles/own outright (these are the first 2 new cars we've purchased in the last 20 years...a moment of weakness I suppose)
Expenses
-we have been spending almost exactly $4,800 per month/$57,600 per year after tax the last year 4 years in a row. This includes all bills and 'fun' money. If we had to, there is maybe a small bit of room to tighten our spending up but not much, frankly
-moving forward we will need to consider health and nursing home insurance
When I run FIRECALC I do cut back the default stock allocation to our more conservative mix, but I'm not certain I'm doing it right overall. I'd be so appreciative in anyone could give us some insight/suggestions on how to make this work. Is this too risky? What could we do differently to make this work? Thank you in advance!!!
Hoping for some insight/suggestions from any who can comment.
Some sudden and unforeseen circumstances have altered DW and my plan for ER. Simply put, my employer has abruptly gone out of business. The owner decided he'd had enough and liquidated (privately held company). This happened extremely fast and there was no time to prepare/no advance warning. Unfortunately, no severance for me either. So I have been furiously hammering away at FIRECALC and various other retirement calculators trying to determine whether we are in position to phase out of work altogether (I've had absolutely no luck with a job search). We have painstakingly examined our annual spending.
In a way we feel blessed, even in light of my current job situation. We've always been planners and savers. Yet, the money we've saved doesn't seem like much when we consider we might be lucky enough to live for another 45+ years. And that this money needs to last a LOOOONG time...hopefully. The prospect of this scares us as we are worriers to begin with.
If you could look at our situation and offer comments we'd very much appreciate it!
-DW is 45 and I am 48
-One child who is 12
-DW still working and earns $102,000/yr and is planning to work until June of 2017. It's worth adding that she is growing quite weary of her job as she's been there 22 years. We have very good health insurance through her employer at present
-Once she retires in 2017 we will have to self insure
Assets
-$812,000 After Tax (48% stock, 30% bonds, 22% cash)
-$1,295,000 Tax Deferred (also 48% stock, 30% bonds, 22% cash)
-One small pension of $6,600 with no COLA, starting in the year 2032
-Money for child's college, wedding, etc has already been saved
-We built a smaller house recently that is worth $350,000/no mortgage (so a future downsize to free up add'l money is really not in the cards)
-I hate to plug anything in for S.S., but you could figure a small annual amt if need be
-2014 and 2016 vehicles/low miles/own outright (these are the first 2 new cars we've purchased in the last 20 years...a moment of weakness I suppose)
Expenses
-we have been spending almost exactly $4,800 per month/$57,600 per year after tax the last year 4 years in a row. This includes all bills and 'fun' money. If we had to, there is maybe a small bit of room to tighten our spending up but not much, frankly
-moving forward we will need to consider health and nursing home insurance
When I run FIRECALC I do cut back the default stock allocation to our more conservative mix, but I'm not certain I'm doing it right overall. I'd be so appreciative in anyone could give us some insight/suggestions on how to make this work. Is this too risky? What could we do differently to make this work? Thank you in advance!!!