Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Need some input (Help)
Old 12-05-2016, 09:11 PM   #1
Dryer sheet wannabe
 
Join Date: Sep 2013
Location: Boise
Posts: 10
Need some input (Help)

A few years ago I signed up for the class of 2018. Now that it is getting closer I'm hoping to not get held back. The wife is concerned and trying to hold me back. I would like to get some input. Below is our situation.

Me
-I plan to retire February 2018 at age 46
-$1.8million invested
-Pension at age 62 $260/month (nonCOLA)
-Social Security at 62 $1600/month (assuming 70% payment)
-Need to generate $65,000/year

Wife
-Plans to retire in 10 years (2027) at age 50
-Pension at age 65 $750/month (COLA)
-Social Security at 62 $800/month
-We Will have combined $2.4 million invested when wife retires
-We Need to generate a combined $92,000/year when wife retires

Would like input on a couple of things.
1) Do you think the financials above work.
2) Wife is concerned about a major accident (biking, skiing, kayaking) or if one of us get cancer. Does anyone have similar concerns and if so are you planning any additional insurance for accident or cancer?

Thanks and has anyone been skiing yet?
__________________

Lovetoski is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-05-2016, 09:53 PM   #2
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
Did you account for taxes? $92K will means about $15- 20K in taxes.

Will you wife really want to work for anther 10 years after she sees you gallivanting around?

$1600 in SS for you seems high, double check that since you likely have many of the 35 years with 0s in them.
__________________

__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 12-05-2016, 09:55 PM   #3
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Location: Nashville
Posts: 1,865
My initial reaction is why not retire in 2022, or thereabouts, at same time as Wife? From my purely subjective position, I can't imagine retirement being worthwhile without DW and I embarking upon it together. (Although, for health insurance/COBRA reasons, I may cut out one month before she does....)

From Social Security numbers, looks like your income is considerably higher, so maybe even before 2022 if you both keep working.

Of course, YMMV.
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 12-05-2016, 10:10 PM   #4
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Location: Nashville
Posts: 1,865
Quote:
Originally Posted by Senator View Post
Did you account for taxes? $92K will means about $15- 20K in taxes.

....
My quick calculations (granted, after 375 ml of wine....): on 110,000 income for MFJ, with standard deductions and no PEP phaseout, $13,867.50 taxes for a net of $96,132.50. Of course, that assumes it is all coming out of Standard IRA/401k.
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 12-05-2016, 10:24 PM   #5
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
Quote:
Originally Posted by 2017ish View Post
My quick calculations (granted, after 375 ml of wine....): on 110,000 income for MFJ, with standard deductions and no PEP phaseout, $13,867.50 taxes for a net of $96,132.50. Of course, that assumes it is all coming out of Standard IRA/401k.
I am not sure what Idaho state taxes are, but in MN they are close to 7%.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 12-05-2016, 10:24 PM   #6
Dryer sheet wannabe
 
Join Date: Sep 2013
Location: Boise
Posts: 10
Thanks. Answers to questions below.

Yes I accounted for taxes

Yep meant to multiply by 70% and then didn't. Number should be $1120. I will have 31 years of income with social security withholding.

Reason for me retiring now is job is sucking life out of me. Job hasn't quite started sucking life out of wife yet.
Lovetoski is offline   Reply With Quote
Old 12-05-2016, 10:33 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 24,761
Quote:
Originally Posted by Lovetoski View Post
....Reason for me retiring now is job is sucking life out of me. ...
Change jobs? A dear friend changed jobs in his mid-50s... loved his new job so much he is still working 10 years later. You can always retire from the new job if that one sucks. Happy wife....

What does Firecalc say?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA
pb4uski is offline   Reply With Quote
Old 12-06-2016, 06:24 AM   #8
Full time employment: Posting here.
racy's Avatar
 
Join Date: May 2007
Posts: 617
Quote:
Originally Posted by Lovetoski View Post
...The wife is concerned and trying to hold me back.
Or, change wives?
__________________
The Big Lebowski: Are you employed, sir?
The Dude: Employed?
racy is offline   Reply With Quote
Old 12-06-2016, 07:24 AM   #9
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 4,625
What is your DW SS 800 at 62....this tells me she is the lower earner in the family and at 40 is feeling money pressure..what is the income split in your home?
ivinsfan is offline   Reply With Quote
Old 12-06-2016, 07:31 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 3,303
You have 31 years of SS at age 46? You had meaningful income at age 15?
Fermion is offline   Reply With Quote
Old 12-06-2016, 07:42 AM   #11
Dryer sheet wannabe
 
Join Date: Sep 2013
Location: Boise
Posts: 10
Yes I had income at 15. Meaningful? Obviously my income has increased with time and yes it is approximately double of my wife's at this time.

Yes I have ran fire calc. Seems to work in firecalc
Lovetoski is offline   Reply With Quote
Old 12-06-2016, 07:57 AM   #12
Full time employment: Posting here.
 
Join Date: Mar 2011
Location: Dallas
Posts: 532
If she has reservations in an up- market, she'll really stress in a down one. I personally think you are fine. House paid off? Monthly expenses? Keeping expenses low will minimize taxes.

We have a decent post tax accounts to manage this...
Surewhitey is offline   Reply With Quote
Old 12-06-2016, 08:41 AM   #13
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 275
I plugged your numbers into FireCalc and got 100% success rate if you use CPI for inflation rate and 85% if you use a 3% inflation rate. Assumes wife live till 95 and used 75% in stocks. IMHO if your plan to retire at 46 has some high risk elements and no buffer if future healthcare cost and inflation are higher then expected, which is a real possibility. If it were me I would either work longer to save more $ or figure how to reduce my expenses to get a +95% success rate using 3% inflation.
Just my 2 cents.. I tend to be very conservative and plan for the worst and hope for the best.
bradaz2488 is offline   Reply With Quote
Old 12-06-2016, 09:07 AM   #14
Recycles dryer sheets
 
Join Date: Oct 2012
Location: Salt Lake City, UT
Posts: 275
Answering the important questions first...

I have 2 days of skiing in so far. Skied 17000 vertical feet yesterday as I warm up and condition my knee. Not much snow, but it is cold and the groomed runs are nice enough. I also purchased new skis

At your age, you have many financial moving parts. I recommend you do what I do... move the entirety of you financial life into Quicken and use the lifetime planner (QLP) to model your retirement.

Once your model works to your satisfaction, you can walk DW through the numbers to give her the confidence she needs. The reports and graphs are helpful for this effort.

I model the portfolio with all kinds of anticipated spending and income events. This gives me an annual withdraw to work with.

I also use the budgeting tool to model what my needs for money are and make sure I can live within the annual withdraw provided by the portfolio.
UtahSkier is offline   Reply With Quote
Old 12-06-2016, 10:01 AM   #15
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 206
Your assumptions are that DW will work 10 more years because j*b is not sucking the life out of her -- Yet! That can change very quickly with: new boss, change in j*b responsibilities, illness or seeing you enjoy your freedom.
So your $2.4 mil is a soft number. I would plug away a couple more years at current or new job to firm this projected goal will be achieved.
whatnot is offline   Reply With Quote
Old 12-06-2016, 10:11 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,640
My DW would have been upset if, as she walked out the door each morning for work, I was retired, in PJ's, drinking coffee and reading the paper/computer. Or even worse, I was still in bed.

I agree with earlier post to look into changing jobs or finding pt. time work you might enjoy. Then bide your time. One day, your DW will come home after one of THOSE days, venting about her job. THEN is the time to sit down with her and explain the happy options.

IMHO........
brucethebroker is offline   Reply With Quote
Old 12-06-2016, 10:56 AM   #17
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 3,631
Quote:
Originally Posted by racy View Post
Or, change wives?
Then he may need to work another 15 or 20 years. That can be really expensive.

Cheaper to keep her.
Car-Guy is online now   Reply With Quote
Old 12-06-2016, 10:57 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 8,330
Quote:
Originally Posted by brucethebroker View Post
My DW would have been upset if, as she walked out the door each morning for work, I was retired, in PJ's, drinking coffee and reading the paper/computer. Or even worse, I was still in bed.

I agree with earlier post to look into changing jobs or finding pt. time work you might enjoy. Then bide your time. One day, your DW will come home after one of THOSE days, venting about her job. THEN is the time to sit down with her and explain the happy options.

IMHO........
I hear ya. I only have a GF of many years who does not live with me and I still catch snide comments almost weekly and I retired 6 years ago. If we had been married there would have been no way I could have got away with this.
Mulligan is offline   Reply With Quote
Old 12-06-2016, 12:35 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 24,761
Do you have enough in taxable accounts or Roths that you can withdraw penalty free to support you from when you retire until you are 59 1/2 and can access any tax-deferred funds penalty-free? Or do you plan to withdraw from tax-deferred using SEPPs/72t? Or some combination thereof unless you plan to just pay the 10% penalty.

IOW, not only do you need to "have enough" it also needs to be accessible to you, especially from when you retire until you are 59 1/2.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA
pb4uski is offline   Reply With Quote
Old 12-06-2016, 01:56 PM   #20
Dryer sheet wannabe
 
Join Date: Sep 2013
Location: Boise
Posts: 10
Thanks for all the good input. I really appreciate it.

Yes have a significant amount in a taxable account. Would do a 72t if I had to.

Yes $2.4 is a soft number but was being pretty conservative with estimate. Have a fair amount of "fluff" built in. I know in the end I have to crunch the numbers and decide if I'm comfortable with all the assumptions, but I do like hearing everyone's take.

Thanks and woohoo it is snowing. Keep those snow dancing going. Utah I plan to head to SV this weekend.
__________________

Lovetoski is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
SWR and Taxes - need some basic input coltsfan53 FIRE and Money 29 10-20-2013 12:53 PM
Need some input frayne Other topics 15 03-12-2013 11:07 PM
Friend has a ( Capital gains ? ) windfall. Could use some input if you have any.. mh FIRE and Money 8 03-09-2012 07:53 AM
considering ereader wanted some input frank Other topics 19 01-23-2011 09:44 PM
New & looking for some input deafcat Hi, I am... 39 11-07-2005 03:33 PM

» Quick Links

 
All times are GMT -6. The time now is 07:06 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×