Couple heading in right direction?

[kenpoed]

My wife and I are both 45 and looking to retire in 15 years. We currently contribute $20,000 annually to IRA/401k combos.

Our portfolio consists of index funds, Vanguard total market, International index, small cap value index and total bond index. Our AA is 80/20.

We have about 1.3M in our portfolio with no debt. We have about 2/3 of the portfolio in tax deferred, the rest in taxable.

We run firecalc and assume a withdrawal rate of $100k/year and inflation of 3.3% (to be safe). Firecalc states we should be ok, but I am wondering what the FIRE community thinks of our portfolio and goals. Is it realistic?

Any advice or critique is appreciated.

 

[Purron]

You look to be in fine shape to me. Significantly better than most 45 year olds. A few questions:

Why a withdrawal rate of $100K per year? This sounds very high to me.

How did you arrive at a target retirement date of 15 years from now? At the rate you're going, seems to me you might get there much quicker.

What planning have you done for health care and insurance? I know this is likely to change for many of us given recent events, but still this is a major factor for most retirees.

Welcome and look forward to hearing more from you.

 

[kenpoed]

we are not really sure how to factor in for health care, so about $15k-$20k of that annual withdrawal rate is for health care. Other than that, we want to do a lot of traveling.

Actually, based on national factors, $15k may be light when considering health insurance. Do you think I am too gloomy about health care costs?

 

[Purron]

It's hard not to be gloomy regarding health care costs. I can't predict what the future will be as we're in such a changing environment. My husband and I are both retired and are currently spending close to your estimate including long term care insurance.

I'm confident many others around here with much more knowledge than I will offer their suggestions. Again, welcome.