Ed B
Recycles dryer sheets
The current poll and discussion about percentage of retirement income compared to w*rking income has been helpful even with the debate of what to count as income in retirement.
As i plan for my ER i am a little intimidated at the large reduction on paper from my working gross income to my projected gross income in retirement. But I do not live on the BIG number so I don't know why it bothers me as much as it does.
Firecalc shows my wife and I to be ready financially for a Feb 1, 2019 retirement. That is with all expenses except clothing budgeted. I forgot clothing. The expense budget includes $1200/mo medical premiums, $300/mo pharmacy, and $350/mo out of pocket medical. My wife will have been on Medicare for almost a year by the Feb 1, 2019 date so I am budgetting for my insurance premium, her part B & D, deductibles, plus an extra $1000 out of pocket medical expense after deductibles. I also include a generous hobby allowance, current spending that could be trimmed such as satellite TV and mobile data plans. With all that and more my expenses are $5000/mo rounded up. My planned revenue will be $76000 gross or about $5800 per month after tax. My head says this is enough especially with a $20,000 emergency fund at the ready, there is an emotional hurdle as i look at the steep drop gross income before and after ER.
If I begin taking social secirity at 62 my income from pension and SS will be a little over $83k. Then my portfolio will be for cost of living increases and more play money. According to FIRECalc putting off SS until 65 or 67 doesn't hurt our chances for success even though I would have to draw about 6.5% to bridge between ER and the start of SS.
Am i missing something or am I ready to take that step on Feb 1, 2019? My wife is ready for me to retire today.
As i plan for my ER i am a little intimidated at the large reduction on paper from my working gross income to my projected gross income in retirement. But I do not live on the BIG number so I don't know why it bothers me as much as it does.
Firecalc shows my wife and I to be ready financially for a Feb 1, 2019 retirement. That is with all expenses except clothing budgeted. I forgot clothing. The expense budget includes $1200/mo medical premiums, $300/mo pharmacy, and $350/mo out of pocket medical. My wife will have been on Medicare for almost a year by the Feb 1, 2019 date so I am budgetting for my insurance premium, her part B & D, deductibles, plus an extra $1000 out of pocket medical expense after deductibles. I also include a generous hobby allowance, current spending that could be trimmed such as satellite TV and mobile data plans. With all that and more my expenses are $5000/mo rounded up. My planned revenue will be $76000 gross or about $5800 per month after tax. My head says this is enough especially with a $20,000 emergency fund at the ready, there is an emotional hurdle as i look at the steep drop gross income before and after ER.
If I begin taking social secirity at 62 my income from pension and SS will be a little over $83k. Then my portfolio will be for cost of living increases and more play money. According to FIRECalc putting off SS until 65 or 67 doesn't hurt our chances for success even though I would have to draw about 6.5% to bridge between ER and the start of SS.
Am i missing something or am I ready to take that step on Feb 1, 2019? My wife is ready for me to retire today.