Travel4Fun
Dryer sheet wannabe
- Joined
- Jun 14, 2009
- Messages
- 16
Hello Everyone,
I’ve been working towards an ER date in the 2017-2019 range. I’m now rethinking the plan and contemplating becoming part of the class of ‘14. My wife is already retired.
This is not really a “can I ER” post, as I’m pretty confident that I can. This is more of a “should I ER in 2014” post? For which there are no right answers, but I’m interested in people’s perspective.
Basic information:
- I know our current/past expenses, and have done my best estimate of the changes we would see in retirement.
- We both will have moderate pensions. If we take SS at 70, it will combine to cover all of our normal expenses from that point on.
- We have partial health insurance coverage from my wife’s former employer (a school district). It is not full coverage, but the partial premium and group coverage are a key part of our ER plans.
- Our savings are in a mix of after-tax and tax-deferred accounts, and we will have access to enough funds pre-59½.
In order for me to retire in 2014 v. 2017+, we need to:
- Mostly abandon international travel and limit ourselves to the continental US and Canada. Disappointing, but not a show-stopper.
- Accept that I may have to go back to w*rk at a much lower salary if my wife’s partial medical coverage were to end. It is “guaranteed”, but clearly there are risks given that it is a relatively poor urban district and retiree medical is funded year-to-year.
- Shift to a 3% variable WR – we would now cut back when our assets decline (since this will be 3% of assets, not a constant inflation adjusted 3% of the original amount).
- Take SS early. We'd still be okay if our assets support an inflation-adjusted 3% of our starting amount, but we trade predictable SS for much less predictable stocks/bonds.
- Accept that our “LTC/savings” pool (which we’d be doing 3% withdrawals from) could shrink significantly depending on our sequence of returns. It won’t go to zero, but it could drop 50%+ if we repeat the 30’s, 70’s or 2000’s.
So basically I gain 3-5 years of retirement in return for accepting more risks and reducing my lifestyle a bit.
I’m leaning towards joining the class of ’14, but I’m interested in hearing other perspectives.
Thanks,
-Travel4Fun
I’ve been working towards an ER date in the 2017-2019 range. I’m now rethinking the plan and contemplating becoming part of the class of ‘14. My wife is already retired.
This is not really a “can I ER” post, as I’m pretty confident that I can. This is more of a “should I ER in 2014” post? For which there are no right answers, but I’m interested in people’s perspective.
Basic information:
- I know our current/past expenses, and have done my best estimate of the changes we would see in retirement.
- We both will have moderate pensions. If we take SS at 70, it will combine to cover all of our normal expenses from that point on.
- We have partial health insurance coverage from my wife’s former employer (a school district). It is not full coverage, but the partial premium and group coverage are a key part of our ER plans.
- Our savings are in a mix of after-tax and tax-deferred accounts, and we will have access to enough funds pre-59½.
In order for me to retire in 2014 v. 2017+, we need to:
- Mostly abandon international travel and limit ourselves to the continental US and Canada. Disappointing, but not a show-stopper.
- Accept that I may have to go back to w*rk at a much lower salary if my wife’s partial medical coverage were to end. It is “guaranteed”, but clearly there are risks given that it is a relatively poor urban district and retiree medical is funded year-to-year.
- Shift to a 3% variable WR – we would now cut back when our assets decline (since this will be 3% of assets, not a constant inflation adjusted 3% of the original amount).
- Take SS early. We'd still be okay if our assets support an inflation-adjusted 3% of our starting amount, but we trade predictable SS for much less predictable stocks/bonds.
- Accept that our “LTC/savings” pool (which we’d be doing 3% withdrawals from) could shrink significantly depending on our sequence of returns. It won’t go to zero, but it could drop 50%+ if we repeat the 30’s, 70’s or 2000’s.
So basically I gain 3-5 years of retirement in return for accepting more risks and reducing my lifestyle a bit.
I’m leaning towards joining the class of ’14, but I’m interested in hearing other perspectives.
Thanks,
-Travel4Fun