Hello everyone! I've been browsing the Forum for a couple of years and dreaming of ER. Well, the time has finally come. I am looking at ER on 9/30/09. Even though I am very confident with the plan, I wonder if there is a rock I've failed to overturn.
I am 53yoa and DW is 44. We have 3 kids (14,11,10), and practice living BOM. I have over 35 years of combined state and local government service (including 3 yrs. military purchase). Because each retirement system honors the service in the other, I am eligible for 2 separate lifetime pensions, one of which is COLA. Combined, I will gross $5,435 per month or net $700 more per month than I currently do. This arrangement includes 100% joint survivor for one pension and a guaranteed payment term of 15 years for the other. In other words, I'll receive the combined $5,435 for life, but if I die before 68 yoa, my wife gets $2,475 per month for life, and $2,960 per month until I would have turned 68. At 62, Social Security will add about $1,500 per month, and I also have a 401K with about $25K. I plan to beef-up the 401K with part of the extra $700 monthly pension. Also, I will receive fully paid health insurance until Medicare kicks in at which time the coverage will be secondary. I also have a $400K life insurance policy.
DW is a tenured professor (17yrs), and makes $80K per yr. She has a self-managed retirement plan (index stock/bond funds) that has about $150K, and is funded one-half by her and one-half by the university. She plans to work full-time for about 12 more yrs. At 62, she'll get about $1,700 from SS. She has $500K life insurance. She'll also get fully paid health insurance until Medicare. We owe 95K (9yrs) on our mortgage and have $8K in home improvement debt; no car payments. All 3 kids have a prepaid college fund, which covers tuition and fees. As each one enters college, we'll continue using the the payments to the fund as well as current private school tuition payments to cover room, board and books. Any additional expenses will be paid either by each kid working or a loan for which they'll be responsible.
I plan to spend my days being a chauffer to the kids, accompanying them to their dental/doctor appts, and heavily involved in their school and extracurricular activities. Of course, I'll also free-up DW from most of the errands, shopping, etc. If time permits, and if I get restless, I'll get involved in local government/political issues as well as increase my volunteer time at church. And, oh no, if that doesn't fill my time, I may be driven to take on a part-time job. Of course, any part-time job will be on my schedule and will not interfere with my duties to kids/DW.
Thanks in advance for your feedback. Looking forward to being a regular poster.
Budatx
I am 53yoa and DW is 44. We have 3 kids (14,11,10), and practice living BOM. I have over 35 years of combined state and local government service (including 3 yrs. military purchase). Because each retirement system honors the service in the other, I am eligible for 2 separate lifetime pensions, one of which is COLA. Combined, I will gross $5,435 per month or net $700 more per month than I currently do. This arrangement includes 100% joint survivor for one pension and a guaranteed payment term of 15 years for the other. In other words, I'll receive the combined $5,435 for life, but if I die before 68 yoa, my wife gets $2,475 per month for life, and $2,960 per month until I would have turned 68. At 62, Social Security will add about $1,500 per month, and I also have a 401K with about $25K. I plan to beef-up the 401K with part of the extra $700 monthly pension. Also, I will receive fully paid health insurance until Medicare kicks in at which time the coverage will be secondary. I also have a $400K life insurance policy.
DW is a tenured professor (17yrs), and makes $80K per yr. She has a self-managed retirement plan (index stock/bond funds) that has about $150K, and is funded one-half by her and one-half by the university. She plans to work full-time for about 12 more yrs. At 62, she'll get about $1,700 from SS. She has $500K life insurance. She'll also get fully paid health insurance until Medicare. We owe 95K (9yrs) on our mortgage and have $8K in home improvement debt; no car payments. All 3 kids have a prepaid college fund, which covers tuition and fees. As each one enters college, we'll continue using the the payments to the fund as well as current private school tuition payments to cover room, board and books. Any additional expenses will be paid either by each kid working or a loan for which they'll be responsible.
I plan to spend my days being a chauffer to the kids, accompanying them to their dental/doctor appts, and heavily involved in their school and extracurricular activities. Of course, I'll also free-up DW from most of the errands, shopping, etc. If time permits, and if I get restless, I'll get involved in local government/political issues as well as increase my volunteer time at church. And, oh no, if that doesn't fill my time, I may be driven to take on a part-time job. Of course, any part-time job will be on my schedule and will not interfere with my duties to kids/DW.
Thanks in advance for your feedback. Looking forward to being a regular poster.
Budatx
