Can I retire or am I missing something?

[workmyfingerstothebone]

Can I retire or am I missing something?

I hope I'm providing enough information so I can get some accurate analysis on whether I can retire now. Thanks in advance for your input.

Currently 54. DW = 47
DW wife plans to retire at 60 (she likes her job).

Living off one income for 16 years currently = 75K (gross)
We've been banking the other salary.

Current Annual Expenses = 55K


Only debt is 86K on a rental that is rented out for the mortgage payment, only 12 yeas left on mortgage.
No other debt including home (value = 350K).

--------
Basically we will live off wife's income and then start collecting pensions and social security as they become available. Then as we reach 71 we'll start taking the mandatory 4% withdrawls from our retirement accounts.

Pension Income starting @60 = 27K
Social Security @62 = 18.5K
Rental Inc @65 = 12.6K
Wife's Pension (I'll be 67) = 30.0 K
Wife's SS (I'll be 74) = 9K

Pensions adjust according to COLA of approximately 2%.
Health Insurance - I'm on the hook for 40% of the company's premium (est. my initial cost = 6K/yr).


I don't plan to use my retirement savings until I have to withdrawl the minimum 4% at age 71.
As well, we won't use the wife's retirement to live off of till she has to take the minimum 4% withdrawl at 71.

Retirement savings = 110K [Expect 5% growth for 18 yrs = 240K]
DW Retirement savings = 240K [Expect 5% growth for 24 yrs = 770K]
Cash savings = 40K


Rough estimate of expenses = Annual | Monthly
prop tx (starts at 3K/yr) = 4200 | 350
elec 2k/yr = 2000 | 167
water/sewer/garbage 1700/yr = 1700 | 142
home gas 500/yr = 500 | 42
food 100/wk = 5200 | 433
cell phone 1k/yr = 1000 | 83
clothes 500/yr = 500 | 42
tv/internet 600/yr = 600 |50
home Ins 600 each/yr = 1200 | 100
car ins 1200/yr = 1200 | 100
medical 8K/yr = 8000 | 667
gas- vehicles 3K yr = 3000 | 250
misc 6K/yr 500/mon = 6000 | 500
vacations 10k/yr = 10000 | 833
home repair/imprv 5K/yr = 5000 | 417

 

[rodi]

If the wife is ok with this - and you can live on her salary... you're good to go.

As a wife, who's husband is retiring this coming year, I'm having issues with continuing work. But then again - I don't love my job... it's pretty miserable lately. So that's a big issue.

Do you have a backup plan if something happens to wife's job or if she stops being so happy at work?

 

[2B]

I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling. Your $350K in retirement savings isn't very high with pensions and SS still a long way off. If DW is happy to have you as a "kept man" so much the better but you have the risk of her job going away one way or another.

Can you do it? I think the answer is "yes.... but." You won't have much wiggle room and DW will be key to making it work.

 

[daylatedollarshort]

I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling. Your $350K in retirement savings isn't very high with pensions and SS still a long way off. If DW is happy to have you as a "kept man" so much the better but you have the risk of her job going away one way or another.

Can you do it? I think the answer is "yes.... but." You won't have much wiggle room and DW will be key to making it work.

+1. I am very cautious, so personally I would want more cushion. I would probably still work, but shift to something enjoyable.

Between age discrimination, economic cycles, and health issues, it is great if your wife can keep working until 60, but for many middle aged people that isn't always an option.

 

[workmyfingerstothebone]

If the wife is ok with this - and you can live on her salary... you're good to go.

As a wife, who's husband is retiring this coming year, I'm having issues with continuing work. But then again - I don't love my job... it's pretty miserable lately. So that's a big issue.

Do you have a backup plan if something happens to wife's job or if she stops being so happy at work?

Hmmm.... no back up plan if wife stops liking work...

 

[workmyfingerstothebone]

I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling. Your $350K in retirement savings isn't very high with pensions and SS still a long way off. If DW is happy to have you as a "kept man" so much the better but you have the risk of her job going away one way or another.

Can you do it? I think the answer is "yes.... but." You won't have much wiggle room and DW will be key to making it work.

Thanks for the advice, I needed others opinion as mine is biased on the matter.

 

[workmyfingerstothebone]

+1. I am very cautious, so personally I would want more cushion. I would probably still work, but shift to something enjoyable.

Between age discrimination, economic cycles, and health issues, it is great if your wife can keep working until 60, but for many middle aged people that isn't always an option.

Well, my job is very enjoyable so working longer shouldn't be an issue. I just have other interests that I'd enjoy equally as well, but they don't pay anything .

 

[nun]

You mention one salary of $75k (is that yours?) but not the amount of the second salary. If you can live on one salary until SS and pensions start you can make it, but you are not financially independent and if that salary goes away you'd be in trouble.

 

[workmyfingerstothebone]

You mention one salary of $75k (is that yours?) but not the amount of the second salary. If you can live on one salary until SS and pensions start you can make it, but you are not financially independent and if that salary goes away you'd be in trouble.

Agreed, I am not FI with out the wife's income. Darn !

DW = 75K
Me = 100K +

 

[workmyfingerstothebone]

I suggest you run your numbers through FireCalc. Just "eyeballing" it doesn't give me a good feeling.

Attempted to use FIRECALC but didn't understand where to put in all the factors.

 

[butterfly]

Hi

you stated that you have been living off one income for 16 years that is 75k (you wife's?) and saving the rest (yours?) which is 100k+.

Where is that income been saved to? What passive income, if any, can you glean from that?

I would be hestitant on the figures that you have given. Can you work another 5 years, save 500k and then consider it?

 

[dtbach]

As long as the DW works you are OK. If she gets laid off (i.e. outsourced) you may be a bit short, but looks like you could handle even that.

 

[workmyfingerstothebone]

Hi

you stated that you have been living off one income for 16 years that is 75k (you wife's?) and saving the rest (yours?) which is 100k+.

Where is that income been saved to? What passive income, if any, can you glean from that?

I would be hestitant on the figures that you have given. Can you work another 5 years, save 500k and then consider it?

Apologize for the statement (as it can be misleading), "We've been banking the other salary". Basically we payed off the house and increased emergency savings. I expect to pay off the rental late next year (so I guess I won't be taking ER ).

Also not making the full 100K for 16 yrs, again sorry for the confusion. It's challenging determining how much information to initially post.
We lived off one salary while the other finished college, then the other went to college (we were late starters). Once both completed college we still lived on one salary. The 100K is current salary, took a few years to get there, same for the wife's salary.
Hope that clears up some things...

Definitely can work another few years.... just getting anxious about ER.

 

[Sea Kayaker]

Very interesting - a lot of similarities to my own upcoming (hopefully) ER, especially the "kept man" aspect. My DW insists that she still enjoys going to work every day, but once I stop working, I wonder if her views will change.

 

[ducky911]

looks pretty good...if you want a detailed answer you might check out esplaner program ...it is not free but very detailed...I bought it and enjoyed playing with it. It will show you if it is better to wait to 70 to take SS.

Bob

 

[workmyfingerstothebone]

ESPlaner.... I'll check out the app and see if it meets my needs. I've been using Excel and it has sufficed.

 

[workmyfingerstothebone]

Very interesting - a lot of similarities to my own upcoming (hopefully) ER, especially the "kept man" aspect. My DW insists that she still enjoys going to work every day, but once I stop working, I wonder if her views will change.

I have no qualms about being a "kept man" after 26 years of marriage. The brunt of managing a secure financial future fell mainly on my shoulders. If I managed finances badly then I would not even be here. So the wife gets a fairly secure financial situation (ie... no bills, house paid off, savings, retirement income, rental income...ect.).
She works a little longer in a job she likes and eventually I get ER (I draw the line at 60).

After my passing (far in the future hopefully) she should have more than enough financial income to live well and eventually leave an inheritance if she so pleases.

Hmm...., of course that is if my calculations are right .

 

[haha]

She works a little longer in a job she likes and eventually I get ER (I draw the line at 60).

.

Wow, only 13 more years of heading off for work for DW while you turn over for bit more ZZZs. What could possibly go wrong?

Ha

 

[workmyfingerstothebone]

Not yet ER material

After reading the posts I've resolved myself to the fact that I'm not yet ER material. Looks like I need to discover and after tax income of 55K, otherwise the plan is to dependent on the wife. I'm resetting my ER date to be when I turn 58 .

Thanks for all your comments as it helped convince be that I was only dreaming of ER at 52. The good news is if I ER at 58 we will have enough pretax income (without the wife's income) to meet the 55K in yearly expenses. .

Just needed to be hit over the head with reality to get it .

 

[butterfly]

Good luck OP. Keep tweaking that budget and you will there very soon.

 

[workmyfingerstothebone]

FIREd in Feb 2017

Well I pulled the trigger on retirement in February of 2017 at 57.

Gladly I was in a position to retire because a medical issue facilitated my decision as well as the horrible commute. The wife even encouraged my departure earlier than I wanted.
The first year of retirement is almost over and I have no regrets. Income is above projections and expenses are in line with projections. The DW has about 8 years to go but it will take her that long to get use to me hanging around, lol.
We finally went to Maui, Hawaii. Was there for the "incoming missile" emergency text mishap. When I got that text the first thing I thought was how glad I was that I had retired and was able to spend more time with the family. Of course, the emergency text was a BIG mistake but for about 20 minutes we thought the end was near.

Just wanted to update my status so others can see that if you plan accordingly and work that plan you can get the desired results......

 

[Ready]

Thanks for the update and glad it all worked out for you! How are you spending your free time now?

 

[workmyfingerstothebone]

Spending my time between hobbies, home projects, working out and now I do the cooking. Hobbies include RC helicopters and airplanes (mostly fixing them as I don't fly them well), tennis, tried golf .. not yet for me, getting into Role Playing board games. I like painting the miniature figures in the RPG games like Zombicide, Sword & Sorcery, Gloomhaven. Introduced the grandkids to some board games this Christmas and they actually got off their cell phones and played. Games like Teraforming Mars,
Carcassonne, Zombicide: Black Plague have been a hit with them.
Went on vacation to Texas and Maui..... and I relax whenever I need to, like today
https://www.google.com/search?clien...d=0ahUKEwjTp7yYgvbYAhUU92MKHbLQAQwQkeECCCQoAA

 

[kjpliny]

If you don't already have some, you may want to consider term life insurance in case one of you doesn't make it to retirement. This is something I'm currently considering, but we have a shorter time frame since wife only needs another 6 years until she pulls the plug. Lump sum payout if she dies before retirement is not even remotely close to the value of her lifetime 100% survivor pension.

 

[Finance Dave]

Sounds like you've found plenty of fun things to do...very admirable. Glad all is going well. Too many people retire and "waste away" or get depressed.