52 and ready to jump, give me a push!

[Shafer239]

Hi from Tampa.
I am 52, DW is 44. Our numbers look good to me but I haven't convinced the DW that the timing is right or that we can maintain for the many years needed. I am ready to jump within 2 years max, possibly sooner. Any ammunition would be appreciated.
We need around 100k/yr to maintain current lifestyle. Total invested assest = 2.8m. Invested as follows.. 990k in 2-IRA's (all blue chip stock), 1.8m in taxable accounts (800k short term bonds, 200k misc stocks, 800k cd's and cash). Also, have about 700k in a business account (used for cash flow) that would be available when the business is closed. 300k mortgage, all other toys are paid off and no other obligations expected.
Just found this forum by chance and I hope to gain some useful infomation and help the DW see the light. Thanks in advance.

 

[jclarksnakes]

Welcome to the forum. Sounds like you are there. Try running your numbers through the FireCalc just to see what it says. What are you going to do about healthcare insurance? Have you considered what a decade of 5% annual inflation and higher tax rates could do to you? What are you going to do all day?

 

[Rambler]

Standard rule of thumb is that you could withdraw 4% per year. However, your DW is on the young side, so I would suggest a smaller SWR. 100/2800 is over 3.5%...a little high in my opinion for a 44 y.o. On the other hand, IF you can maintain or grow the business and maintain the 700k thru closure and liquidation, you would have a 2.85% SWR. The other question is whether or not the 100k is pre or post tax. If ypu need 100k post tax, then you need to figure out your tax situation and gross up the 100k for taxes. Not trying to rain on your parade, but there seem to be a few things you have yet to consider and figure out. I am personally a tad older than your DW, but have the same income needs (assuming your 100k is post tax). For me, comfort comes at 4m, and a little over 3% SWR...assuming I have the taxes figured out properly. FWIW...
R

 

[kumquat]

PUSH

 

[Midpack]

For me, comfort comes at 4m, and a little over 3% SWR...assuming I have the taxes figured out properly. FWIW...
R

Not that I disagree, but that would change my target from FIRE to FIRL...

 

[Moemg]

Welcome , from Sarasota and go for it !

 

[Caroline]

Just a thought, but when I worry about FIRE and whether I have "enough" I'm using doing "what if" thinking.

"What if one of us gets sick?"
"What if the Stock market tanks?"
"What if the car blows up?"

This might be your DW's train of thought. If so, I find that it helps me to have contingency plans thought out for each of these.

"If I get really sick and insurance doesn't cover it, I'll take my British passport to England and get treated there."

"If the stock market tanks I'll rent rooms to a couple of local med students."

"If the car blows up I'll be retired, so I'll start riding my bike like I've been saying I would, but never do."


Knowing not JUST how much I need to live on, but how much wiggle room I have and what adjustments I'd be willing to make, really helps my state of mind.

The counter-argument is that if something really catastrophic happens, you can NEVER have enough. So why keep working toward a goal you'll never reach?

Another thought -- has DW run the numbers herself? If not, it might be useful to have her answer the question: "if what we have now is not enough, what number would be?" Get her engaged in the process and have her make up her own mind on a number and date, vs you trying to cajole her into it. This has the double benefit that if things don't work out exactly as planned and adjustments are needed later, you're not the bad guy whose idea this all was in the first place.

Finally, what about a compromise? Would it be possible for you to quit while she keeps working for as long as she is comfortable or until she sees how much fun you're having and joins the party?

 

[harley]

Caroline has some good points. I was in a similar situation before I retired 2 years ago (at 50). My DW was unsure we could make it even on our $4.5M. I did the things like run the numbers and show her, but she's not a numbers person so it didn't help. So I did as Caroline has suggested and worked through scenarios for her most worrisome issues. It really helped.

I also agree you need to make sure health care is taken care of.

Also, since your wife is so young, she can work if she is worried about it. I told my DW I would be sure to send her postcards every day from wherever I happened to be. That didn't work so well and you might want to leave it out.

Other than that, your numbers look pretty solid. Good. luck.

Harley

 

[CaseInPoint]

We need around 100k/yr to maintain current lifestyle. Total invested assest = 2.8m.

If we assume that the $100k is after-tax money, it would be highly doubtful that you could retire comfortably on $2.8M at your age. If you were 20-30 years older, maybe...

In the meantime, you might want to see if you could become semi-retired, working part-time, doing something you enjoy.

 

[Shafer239]

Thanks for the pushes.....I definitly need to do more planning and will run the numbers thru FIRE calculator and keep my membership here and get more educated.
Getting the additional 700k out of the business when i close the doors in pretty much a given so i will calculate based on 3.5m of investments. The 100k/year is what we need after taxes.
I have already hit the DW up, and she is game, about working a few more (5) years while I relax. Not so much for the money but for Health Insuranace benefits. (right now she is a partner is the business). The post card approach probably would not be too smart, unless i want to retire on 1.75m and relocate to a single wide. I will try Caroline's sugggestions to reach a happy medium.
Again thanks for the welcome and will be lurking.

 

[shotgunner]

A friend of mine buried his DW this week, she was 57. Life is finite, good health is not a given. If you are healthy and run out of money you can go back to work. To me, if you have the assets that allow a good shot at ER then you are gambling with your time and your health which IMO is a bigger and more uncontollable risk. If you need a further push, read your local obituaries for the next 6 months.

 

[jclarksnakes]

Shotgunner,
....That was the best first post I have seen on these forums.
Jeff

 

[Shafer239]

That was the push i needed................cc DW

 

[sidney]

A bit of a digression but the way your assets are arranged isn't very tax effective. Normally the tax deferred accounts should hold the bonds and equities should be in your taxable account. Particularly in your situation you want to minimize how much of the $100K goes to taxes. It could change the dynamics of your plan.

 

[shotgunner]

Thanks

Thank you for the compliment Jeff. I turned 51 this past April, 8 days after that I "retired". I had hemmed and hawwed about doing it and the risks involved. One day I realized I was looking for a guarantee where none existed. I was worried I could be making a mistake,that my plan might not work. If that happened I thought I would regret leaving a good job close to where I live, and I might have to return to work. Then I realized that a bigger mistake would be to not take the time I could for myself because if I came down with something terminal my regret would be wishing I had taken time, it would be especially painful if that wish was made looking out a hospital window. This is how I put and keep things in perspective for myself. I hope it helps. If anyone is interested I will post the details of my life position as a new ER.

 

[Shafer239]

Sidney, You are right about that and i am working to get flip flopped. Selling the equities in the IRA would be painful right now but eventually i need to change way everything is positioned. Thanks

 

[Shafer239]

Shotgunner, I am interested!

 

[CuppaJoe]

A friend of mine buried his DW this week, she was 57. Life is finite, good health is not a given. If you are healthy and run out of money you can go back to work. To me, if you have the assets that allow a good shot at ER then you are gambling with your time and your health which IMO is a bigger and more uncontollable risk. If you need a further push, read your local obituaries for the next 6 months.

I second Jclarksnakes comment that this is one of the best first posts I've seen. I got halfway through reading it and put your screen name on a yellow sticker to remind myself to re-read this and your intro post when I waiver (or just feel queasy) on July 8 when I give notice. I found your intro post yesterday when I was looking for a thread to PUSH me, it was great!

Sometimes I read this forum and would think that money is everything, but that's not what Vince Lombardi said. I had to look it up, he claimed he meant, "Winning isn't everything. The will to win is the only thing."