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May be time to go
Old 11-30-2020, 10:48 AM   #1
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May be time to go

I was originally going to go to age 60. Then it was 58. Now, I'm a few months shy of 56 and my bullsh*t bucket is full. Wife is same age but not at the same BS level as I am. She says she wants to work until age 60 to maximize pension or until they offer an early retirement incentive...which could be next year....50/50 chance.

I've been crunching the numbers....

Retirement Assets:
$1.6m in 401k's ($160k of this is Roth)
$558k from my DB lumpsum (payable 2-3 months after I retire)
$40k in Roth IRA's
Total: Approx. $2.2 mil

Retirement Income:
Wife pension...ranges from $43k in 2021 up to $66k if she retires at 60 in 2025. First $18k of pension is COLA beginning earlier of 5 years after retirement or age 65.
Social Sec....for now, planning for age 62 and approx $42k total ($24k for me and $18k for her). These are conservative estimates.

Expenses:
Wife's company has free retiree medical (based on service threshold) including spouse to age 65. Also covers dependents to age 26.
Have about $50k left on a mortgage and about $70k on a 0% interest car loan.
Total Annual burn (gross...including taxes): $132k. (Could easily trim $10-$20k off of this, as needed.) This includes car payment but not mortgage as I plan to pay this off as soon as I retire...out of savings.
Oldest child is out of college and working. Will be moving out in 2021. Youngest is sophomore in college. We have remaining 2.5 years in 529.

FireCalc: Using $2.1 mil, assuming $40k pension in 2021, SS of $42k starting in 2027 and a 40 year retirement....I get 100% on an annual burn up to $136.5k.

The plan:
I retire 1Q 2021. Wife takes it a year at a time.

I'd love to get some opinions. Is there anything I am missing? Am I cutting it too close?

Thanks in advance.
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Old 11-30-2020, 11:16 AM   #2
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Firecalc has you at 100% and free medical from your wife--looks good to me.
Does your wife need to work to a certain age or length of time to get the free retiree medical, and has she met that yet?

If you are sure of your budget, I say look forward to your soon-to-be retirement!
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Old 11-30-2020, 11:16 AM   #3
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Quote:
Originally Posted by Ready2Go View Post
I was originally going to go to age 60. Then it was 58. Now, I'm a few months shy of 56 and my bullsh*t bucket is full. Wife is same age but not at the same BS level as I am. She says she wants to work until age 60 to maximize pension or until they offer an early retirement incentive...which could be next year....50/50 chance.

I've been crunching the numbers....

Retirement Assets:
$1.6m in 401k's ($160k of this is Roth)
$558k from my DB lumpsum (payable 2-3 months after I retire)
$40k in Roth IRA's
Total: Approx. $2.2 mil

Retirement Income:
Wife pension...ranges from $43k in 2021 up to $66k if she retires at 60 in 2025. First $18k of pension is COLA beginning earlier of 5 years after retirement or age 65.
Social Sec....for now, planning for age 62 and approx $42k total ($24k for me and $18k for her). These are conservative estimates.

Expenses:
Wife's company has free retiree medical (based on service threshold) including spouse to age 65. Also covers dependents to age 26.
Have about $50k left on a mortgage and about $70k on a 0% interest car loan.
Total Annual burn (gross...including taxes): $132k. (Could easily trim $10-$20k off of this, as needed.) This includes car payment but not mortgage as I plan to pay this off as soon as I retire...out of savings.
Oldest child is out of college and working. Will be moving out in 2021. Youngest is sophomore in college. We have remaining 2.5 years in 529.

FireCalc: Using $2.1 mil, assuming $40k pension in 2021, SS of $42k starting in 2027 and a 40 year retirement....I get 100% on an annual burn up to $136.5k.

The plan:
I retire 1Q 2021. Wife takes it a year at a time.

I'd love to get some opinions. Is there anything I am missing? Am I cutting it too close?

Thanks in advance.
You look good to go unless you are in a HCOL area, or plan a bigger spend rate. We retired on considerably less in Houston, and spend on whatever we want, for the most part. The thing is, we don't want much at all aside from travel! I retired at 56 and it is hands down the best decision I've ever made.

Things I did to move the $ out of ex-employers hands were:

Take the pension right away moving into another company that buys the book of business (and I got a $300./mo bonus on top due t early retirement) and services an annuity with 100% survivor bene. I saw what happened to my DD's pension when his former company filed bk- payments went down by a third. Nothing went to his widow.

Be aware that my retiree medical- serviced directly by ex- employer as they pay 1/2- sends a letter every years stating they have "chosen to continue offering medical insurance" to retirees. I pray that from now until July 2015 that the insurance will continue. If not, I've budgeted for ACA. Perhaps yours is better.

I privatized my LTC with COL increases and was able to keep the same benes at a the fairly small employee cost.

Good luck with your plans!
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Old 11-30-2020, 11:18 AM   #4
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Looks to me like you're ready, Ready. You can double check this list of questions if you haven't already:

Some Important Questions to Answer

The one scenario I might model is what if DW's free healthcare premiums for both of you goes away (for either or both of you). Many megacorps are eliminating these benefits, especially for those who haven't retired yet. For example, mine was supposed to continue paying the same % of premium as when I retired, then they changed it to the same $$ amount so my premiums have more than tripled in the past 9 years.

Other than that, you look pretty solid, congratulations!!
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Old 11-30-2020, 12:27 PM   #5
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Thanks for the quick responses!

@pacergal...DW has met the service requirement for retiree medical.

@SpinDoctorTX...I live in HCOL now. Will likely downsize and move south whenever DW decides to hang it up. Also, wife works for a state government where pension is financially healthy. Also, they would be unlikely to reduce benefit for people that are retired or near retirement. Likely path would be to reduce benefit going forward. This would apply to retiree medical as well as pension benefit payments.
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Old 12-01-2020, 08:50 AM   #6
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It sounds like you are Ready2Go, just as your name implies! Having state funded pension and medical coverage that is solid is great- so have fun & keep us posted!
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Old 12-01-2020, 09:50 AM   #7
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I went at 56 and have never looked back. Your finances seem solid and as long as your health insurance is good through your wife then it's time to pull the plug. It would be a good idea to make sure the wife is in agreement since that tends to throw a monkey wrench into the calculations. Good Luck.
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Old 12-01-2020, 01:08 PM   #8
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sounds very solid to me.
My only question is what the heck kind of car you have that requires a $70k loan?
But then again I am cheap
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Old 12-01-2020, 01:21 PM   #9
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I'm far from an expert but I can't see a problem letting go. I like your option that you could trim expenses and that alone, says you would be fine.
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Old 12-01-2020, 04:06 PM   #10
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sounds very solid to me.
My only question is what the heck kind of car you have that requires a $70k loan?
But then again I am cheap
LOL! I'm cheap too! This was 2x as expensive as the priciest car I ever bought previously. It's a loaded 2020 Ford Expedition. Financed the entire thing at 0%. We plan to do some cross-country travelling early in retirement and wanted the extra space. We also own a boat that requires hauling large items back/forth in Winter & Spring. No judgements please.
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Old 12-01-2020, 04:15 PM   #11
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LOL! I'm cheap too! This was 2x as expensive as the priciest car I ever bought previously. It's a loaded 2020 Ford Expedition. Financed the entire thing at 0%. We plan to do some cross-country travelling early in retirement and wanted the extra space. We also own a boat that requires hauling large items back/forth in Winter & Spring. No judgements please.

No judgement. Hard to spend that much for me but I realize top of the line(platinum?) editions are very pricey in trucks and SUV's.
I have a camper I pull but get away with my Toyota Tacoma.More than 2x my priciest car ever myself. Think the most we ever spent(new) was the Tacoma at only $27,500 but that was 11 years ago.
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Old 01-01-2021, 11:08 PM   #12
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I'm on the cusp of calling it "time" as well. Turn 61 in March.

With almost 40 years at the same place, my "BS bucket" overfloweth.

Can't find anyone who regrets retiring early in our circle of friends, even the 3 who retired in 2020.....#retirementenvy :-)

I have no logical reason to worry about the finances, but that is a hang-up for me. We've done our homework.

I get wrapped around the axle on medical insurance, but have always planned for worst case there as well.

2 weeks with our first grandchild gave me a good taste of retirement, and my resentments about work are festering after returning.

"Changing the things I can" is becoming increasingly clear: change what I do in the morning and step up my volunteer work while I discern what comes next. Plenty of volunteer work to do, and I've been calling long time friends on the phone & catching up while we can't travel.

I'm starting to feel optimistic about taking several months of "sabbatical" for myself.

Happy New Year!
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Old 01-01-2021, 11:57 PM   #13
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I see quite a few people recently who are posting retirement expenses somewhere from $130k to $150k, which makes me nervous.

What is a new definition of fatFIRE?
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Old 01-02-2021, 03:50 AM   #14
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... What is a new definition of fatFIRE?
I have not seen a single, universally accepted definition for fatFIRE, or any of the other flavors of FIRE for that matter.

What difference does it make? The important thing is that you have enough assets for the lifestyle you choose. Why care what name some people give to that lifestyle?
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Old 01-02-2021, 04:39 AM   #15
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Indeed. Retirement is definitely not one of those areas where one size fits all. Decide what type of life you want to live and work toward that. What other people do is largely irrelevant. So, for example, if your idea of heaven on earth is to work in your garden and never leave home, you'll need less money than the person who wants to jet around the world first class and stay at luxury hotels. And vice versa. Only you can decide that.
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Old 01-02-2021, 05:29 AM   #16
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Agreed. farFIRE vs skinny fire vs healthyFIRE is a Goldilocks question. That said, it's a good thing to RE with more than you need to support your desired expenses just in case you want to do more than you originally planned. FIRE should not be an emotional decision ("I quit!"), but rather one that is planned carefully and with forethought over a period of years (or even a decade).
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Indeed. Retirement is definitely not one of those areas where one size fits all. Decide what type of life you want to live and work toward that. What other people do is largely irrelevant. So, for example, if your idea of heaven on earth is to work in your garden and never leave home, you'll need less money than the person who wants to jet around the world first class and stay at luxury hotels. And vice versa. Only you can decide that.
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Old 01-02-2021, 08:04 AM   #17
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No judgement. Hard to spend that much for me but I realize top of the line(platinum?) editions are very pricey in trucks and SUV's.
I have a camper I pull but get away with my Toyota Tacoma.More than 2x my priciest car ever myself. Think the most we ever spent(new) was the Tacoma at only $27,500 but that was 11 years ago.
Not trying to hijack thread.

7 years ago I paid 5k for my 2000 Chevy Silverado. Last month I paid 10k for my 1983 CJ8 Scrambler. Well aware of the 2X for cars. Suppose my next one will have to be something for 20k to keep up the trend.
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Old 01-02-2021, 08:14 AM   #18
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I see quite a few people recently who are posting retirement expenses somewhere from $130k to $150k, which makes me nervous.

What is a new definition of fatFIRE?
Look at the 2020 spending thread. There are also some folks spending less than 40k yearly for a single.
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Old 01-02-2021, 08:16 AM   #19
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Not trying to hijack thread.

7 years ago I paid 5k for my 2000 Chevy Silverado. Last month I paid 10k for my 1983 CJ8 Scrambler. Well aware of the 2X for cars. Suppose my next one will have to be something for 20k to keep up the trend.

Yeah you have to spend at least 20k
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Old 01-02-2021, 09:30 AM   #20
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Not trying to hijack thread.

7 years ago I paid 5k for my 2000 Chevy Silverado. Last month I paid 10k for my 1983 CJ8 Scrambler. Well aware of the 2X for cars. Suppose my next one will have to be something for 20k to keep up the trend.
And, to stay on trend, it will have to be something from the 1960's, too!
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