Double/triple check my FIRE plan

[gregory r.]

Hi all, been some time since I posted anything. Looking for the collective wisdom on here to provide insightful commentary, suggestions, advice. Scenario:

> Expenses - Will require $85,000 pre-tax post RE (assuming 15% tax or less) This is everything from taxes to wife's hair appts.

> DW & I will be 57 Feb 2017, plan to FIRE at mid 58 yo (so 1.5 yrs)

> Will contribute about another $70k to investments/savings till then

> Plan to work part time/part year (3 mths ?)until 62 or so only to pay the healthcare nut without being strained

>Current $ = $1,204,000 in pre-tax 401k/Vangaurd...stock-bond indexes & retirement savings trust funds....45 equities/30 broad bonds/25 low risk funds, trusts.......I know, light on stocks but I sleep well..also want to avoid sequence of risk returns

> $16k in current 401k Roth/ Fidelity 2015 retirement fund

> $17k in TRowe emerging market bond fund (after tax IRA)

> $135k standard savings acct / emergency.. maybe to much, but again I sleep well

> Pension kicks in at 62 of $18,000 yr (non cola) another at 65 of $5100 yr (non cola)

> Plan to take one SS at 62 ( $21k est) the other at 65/67 of ($24,000)

> FIRECALC has us 100% good on varying scenarios.

> Also, primary house will be paid for in 1.2 years / Gulf condo already paid for and will sell primary in about 4 yrs & move, when last kid exists college (fully paid college, pre-paid college trust) The primary is about $400k assessed value this year but have not included that anywhere here.

> Big concern is healthcare estimate but, part time work should help mitigate that expense.....both very healthy runners/gym rats...

Your collective comments and viewpoints are welcome to see if we have missed anything, suggested investment comments, etc. Thanks in advance

 

[Bigdawg]

> FIRECALC has us 100% good on varying scenarios.

FIRECalc? Ha. What do they know?

On a serious note: 85K expenses. Seems a bit high for a soon to be paid off mortgage. You have some interesting sequences there with retiring, then working part time then paying off mortgage, etc... Hopefully you have some flex in there. I guess since you are a self proclaimed gym rat you could always get a part time job there.

 

[Hermit]

Hope all works out according to your plan. From comments on this board, it does for quite a few folks in similar situations. It didn't for me. My son is still plugging away at college. He will not be done before his seventh year. My additional costs will be over $100k including direct costs and now guarantees for loans to help him complete his degree. I have more than enough in cash accounts to cover those unforeseen expenses so it is not a burden. From your available funds, I would guess the same would be true for you.

 

[gregory r.]

Bigdawg, thanks for the reply. The mortgage as noted above will be paid off prior to retiring so good there. The $85k initially takes into account the two residences (for safety sake) once we sell the primary in about 4 years those expenses will come down a good deal.

 

[pb4uski]

You look all set to me... why wait?

Health care costs have been good for us... health insurance premiums have been lower than what I planned for when I retired (in fact, much lower) and claims have been close to nil as luckily we have both been healthy. I concede that could change on short notice (have had two BIL's one from each side in the hospital recently for heart ailments) but so far, so good. Obviously, YMMV.

 

[FreeBear]

> Also, primary house will be paid for in 1.2 years / Gulf condo already paid for and will sell primary in about 4 yrs & move, when last kid exists college (fully paid college, pre-paid college trust) The primary is about $400k assessed value this year but have not included that anywhere here.

Looks reasonable given that you are close to paying off the primary house. If or when you sell, you'll obviously look even better. I like the idea of selling the house in 4 years. If you announce that to the kids, maybe they'll get the hint that it won't be fun to move back in if "things don't work out" after graduation.

Regarding asset allocation, I've been FIRE'd about 2 years and hold 50% equities, similar to you. I also hold about 1.5 to 2 years in a 1% online savings account. I'm planning to creep upwards to about 60% equities over the next decade, but I'm starting at 50% to defend against the risk of a poor sequence of returns early on.

Nice w*rk and welcome aboard. So what are you going to do with all your spare time??

FB

 

[gregory r.]

Thanks pb4uski & FreeBear - Luckily the other kids are grown and gone with homes of their own, just the one left. Luckily the pre-tax 401k allows the 55 Rule and we will watch the equity stake but plan to up that exposure like yourself after a couple years of seeing how it goes.


No other consumer debt so only operational costs. As for the spare time, the "next phase of life" condo is right in St Pete Beach and we're both beach people, paddleboards, etc. and I love to fish. Lot's of Florida Keys road trips I think

 

[euro]

As pb4uskinsaid: looks like you are ready NOW - best wishes!

 

[gregory r.]

Thanks to all for the commentary

 

[Aiming_4_55]

Congrats - You look to be in good shape. You have good cash flow (pension and SS) at age 62 ($39k) and 65 ($124k). You don't need to work part time if you don't want too.

 

[street]

You are a lucky man and worked hard to get where you are at.