Feeling Groovey

[orodman]

First off I love this site and frequent often, but would like to participate more.
I would like to share my numbers to get the DW on board with us retiring this year. She is the rationale one and I am smart enough to listen to her.
We have tracked our expenses for 2 years and spend $60,000 per year.
We recently downsized to a condo and paid cash for it $200,000.
Our plan is to spend a few months in florida for winters.
DW is retiring in July at 55 and DH would follow in January at 57
We have two pensions , no COLA of $32,000 beginning in 20117,2018.
S.S. DH $18,000 at 62
S.S. DW $ 28,000 at 67

We have free retiree medical . I know it is hard to believe.
$401k/403B 1,000,000
Cash $125,000
AA 40% S&P index, 30% Intermediate bonds, 10% REITS, 20%TIAA guaranteed
I am budgeting a higher withdrawel for the first few years for travel so I will spend $75,000 a year, which is flexible.
S.S. and pensions will cover 100% of our needs at 67.
We have been planning this for many years but I would feel better hearing from those who are living in retirement with similar numbers.
FIRECalc gave me 100% at 75,000

 

[pb4uski]

...FIRECalc gave me 100% at 75,000

Given that the 100% success rate in Firecalc is predicated on 125% of your spending goal, there is not much to add other than congratulations.

I assume that you have been through the questions to ask before you retire post in FAQ and have included taxes and car replacements, etc in your $60k.

 

[orodman]

Yes,


And thank you for the vote of confidence.
My DW needs to hear see this.

 

[Sunset]

Why those ages to take SS ?
Are you affected by reduction in SS due to WEP or (other reason) ?

 

[orodman]

DW is the higher earner and younger , so I thought it would be best for her to wait until FRA .
I am planning to take mine at 62, depending on how the portfolio is holding up.
I know the longer I wait the higher the payout.
I am not sure until I get closer to SS age

 

[pb4uski]

Try running your situation through SSAnalyze - Bedrock Capital Management and see how what they recommend compares to what you plan to do (you and put your plan in after you run their recommendation).

 

[orodman]

Thanks, I will try it.
I bet its going say wait until 67 or70?

 

[orodman]

SSAnalyze recommends DH takes SS at 69 and DW at 70.


I am going to take a wait and see attitude until I get to 62 and see if I feel differently then.

 

[pb4uski]

And how dies that compare to taking at 62/67 as you were planning? Is the difference significant?

 

[orodman]

Yes,


It gives me food for thought.
If I live a long life it is significant money.
I am now leaning towards waiting to take SS and spending down the portfolio if needed.
I remember reading Bernstein and he said to wait as long as you can because you cannot beat an 8% increase that SS will give you for waiting each year

 

[braumeister]

I remember reading Bernstein and he said to wait as long as you can because you cannot beat an 8% increase that SS will give you for waiting each year

It really is the cheapest and safest annuity you could ever hope to buy.

 

[braumeister]

And just because I love the title of your thread (and I grew up in NYC), I think this is a mandatory entry here:

 

[orodman]

Thanks Braumeister
I love Simon and Garfunkel too, and beer !!!

 

[exnavynuke]

Try running your situation through SSAnalyze - Bedrock Capital Management and see how what they recommend compares to what you plan to do (you and put your plan in after you run their recommendation).

It seems to me that the only thing really being analyzed is how to maximize the social security benefit. Since that's only one part of the equation for retiring, it doesn't seem like a very meaningful calculator overall.

 

[ivinsfan]

I wouldn't count on 10 years of free medical...and who knows what you medical costs will be when you both hit 65....can you make adjustments to your spend if you a hunk for health insurance?

 

[pb4uski]

It seems to me that the only thing really being analyzed is how to maximize the social security benefit. Since that's only one part of the equation for retiring, it doesn't seem like a very meaningful calculator overall.

I never said it was a retirement calculator... the suggestion was in response to a post discussing what the best SS claiming strategy was for the OP... see below. Get it?

....
S.S. DH $18,000 at 62
S.S. DW $ 28,000 at 67....

Why those ages to take SS ?
Are you affected by reduction in SS due to WEP or (other reason) ?

DW is the higher earner and younger , so I thought it would be best for her to wait until FRA .
I am planning to take mine at 62, depending on how the portfolio is holding up.
I know the longer I wait the higher the payout.
I am not sure until I get closer to SS age

Try running your situation through SSAnalyze - Bedrock Capital Management and see how what they recommend compares to what you plan to do (you and put your plan in after you run their recommendation).