Am I ready ?

retired1

retired1

Recycles dryer sheets
Joined
Jun 10, 2011
Messages
297
I'm 50 & DW is 48 and both working. I can't figure if I've saved enough to FIRE. Ran FIRECALC but didn't really understand how it works (honestly). Job situation has been depressing with outsourcing changes happening and have to drag to work daily... so can't wait to FIRE.

401k: 160k
Roth401k: 20k
Trad ira: 255k
Roth ira: 81k
cash: 80k
Invest (including CDs): 250k (60%/40%)

My ER thought is: I FIRE at 51 and withdraw $40k/yr x 15 yrs = 600k until I reach 65 and then SS take over. DW wants to keep working as she says she *loves* her work. Her assets are 50% of mine since she entered workforce late.
 
retired1 said:
I'm 50 & DW is 48 and both working. I can't figure if I've saved enough to FIRE. Ran FIRECALC but didn't really understand how it works (honestly). Job situation has been depressing with outsourcing changes happening and have to drag to work daily... so can't wait to FIRE.

401k: 160k
Roth401k: 20k
Trad ira: 255k
Roth ira: 81k
cash: 80k
Invest (including CDs): 250k (60%/40%)

My ER thought is: I FIRE at 51 and withdraw $40k/yr x 15 yrs = 600k until I reach 65 and then SS take over. DW wants to keep working as she says she *loves* her work. Her assets are 50% of mine since she entered workforce late.
Click to expand...

Awesome, your good to go. If you want a real answer, give me the totals of what you have, and what she is currently making, or dont you 2 share the funds? Ill help you with the numbers input.
 
Thank you for the replies. My home value is 400k and mortgage left is 90k ($800/mo). No car loans or tuition bills.
Monthly Expenses breakdown is which comes to roughly ~$3300/mo


House Mortgage 1,000
House Taxes 1,000
House Association Fee 100
House Insurance 100
House Maintenance 100
House Electricity 75
House Water & Garbage 30
House Gas 100
Groceries 150
House Internet 50
Cell Phones 125
Car Insurance 200
Car Gas 100
Car Loan 0
Shopping (non-essential) 200
Misc Misc 500
 
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Thanks Guy ! Here are totals below.

cash: 100k
invest(incl CD): 275k
401k: 200k
roth401k: 40k
trad ira : 300k
roth ira: 90k

DW makes ~90k/yr
 
retired1 said:
Thanks Guy ! Here are totals below.

cash: 100k
invest(incl CD): 275k
401k: 200k
roth401k: 40k
trad ira : 300k
roth ira: 90k

DW makes ~90k/yr
Click to expand...

If your expenses are 3.3k per month then yes, you are good to go. Especially because DW brings in more than twice that amount each month and wants to keep working. What am I missing?
 
DW income makes this workable.

My DH got downsized with an annual gross income of $200,000 in 2011. Thankfully, we were frugal enough to semi-retire at that time. Now he consults at home with gross income guarantee $42,000/year. But we have the freedom to live as we like and take vacations, walks, go to YMCA, get involved in the community etc. He puts about 20 or less hours in consulting but makes his own hours.

Downsizing from the corporate world is a blessing as well as a curse. The blessing of a solid career in the corporate world is
A. Any relocation is completely expensed and they paid 6 months of living in an apartment until we bought a house, in 2 of the cities we moved to.
B. Awesome health insurance very inexpensive including dental and vision.
C. Stay at 5 star hotels for corporate events, meetings including me, DW.
D. Nice social events outside of work.
E. Many other small expenses, cell phone, car, travel expense account.
F. overall, a month vacation time and unlimited sick time although he never used the sick time.
The safety net felt great for @ 27 years.

The curse...
A. Stress
B. Boss
C. 8-14 hour work days and weekends sometimes.
D. Constantly meeting expectations of corporate culture, policies, deadlines, kissing a** to those you don't really like or respect.

Honestly, the freedom to live on your own terms trumps all the rest. It was scary at first. I had cancer. But it all worked out and we are happy, relaxed and enjoy our lives so much more. So, if DW loves her job, that is wonderful, but you should consider what you'll do if she loses it.
 
Thanks for your inputs. Wife's job mainly supports health insurance, HSA, and 1 kid in college (~25k/yr). So yes if DW loses job then we'll need to re-consider health & college expenses. I sometimes feel paying off 90K mortgage (@ 3.3% rate) but then I figure when I sell the house it'll be taken care of.

Only thing I've not included is "Travel" and that's a "variable" for me since I really don't travel that much... maybe 1 or 2 trips per year of 1000 miles radius. No international travels for me with all the craziness going around the world.
 
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If you stop work at 51, will you really get $40k per year from social security? If you haven't already, you should go to the site to get a good estimate of your benefits. I know I was shocked when I saw how little I would get when put in $0 income from 50-65.
 
Thank you brokrken. I've not visited SS website for estimates. I'll check it out.
 
I don't see medical expenses. I'm impressed that your food bill is only $150 a month.
 
Yeah, I'm surprised by the food costs, too. That's like $1.66 per meal (assuming you eat 3 per day.) Or, maybe OP is one of those Breatharians that claim food and water aren't necessary for survival. :)
 
Hahaha... yeah.. I hear you. $150 is on skimpy side as we hardly eat out and are mostly vegetarian :-0 I think to be conservative, I could double that :cool:
 
brokrken said:
Yeah, I'm surprised by the food costs, too. That's like $1.66 per meal (assuming you eat 3 per day.) Or, maybe OP is one of those Breatharians that claim food and water aren't necessary for survival. :)
Click to expand...

LOL... I think I need to monitor my food expenses more closely... Now I also feel $150 is too small :blush: we are mainly two people and take our own breakfast & lunch. Dinner at home. Hardly eat out at restaurant unless it's a special day or something... yeah... I know it's pretty boring ;):(
 
IF you truly spend 3300/mo your wifes salary should pay all expenses or close to it, no? That is 44% of her salary. So why would you need the 40k/year? I think some of your expenses are higher than you think. My rough estimate of what i need to retire is basically: Take Home pay + bonuses - amount I save (actual non retirement $). I would also use several years averaged.... If that 400k house needs a new furnace, roof or A/C it will cost 10 years worth of what you have budgeted for house upkeep!
 
Since you have more than 10 years prior to collecting your SS, just remember that with you retiring so young that is based on you working up and until at least 62 yrs old.
-You don't mention if there are any other assets, e.g. pension etc.
-Possible Medical expenses?
-Need more fluff in your expenses. For instance food cost is really not realistic in the long haul.
Just my two cents......
 
brainsagolfer said:
IF you truly spend 3300/mo your wifes salary should pay all expenses or close to it, no? That is 44% of her salary. So why would you need the 40k/year? I think some of your expenses are higher than you think. My rough estimate of what i need to retire is basically: Take Home pay + bonuses - amount I save (actual non retirement $). I would also use several years averaged.... If that 400k house needs a new furnace, roof or A/C it will cost 10 years worth of what you have budgeted for house upkeep!
Click to expand...

Maybe that is his part of the spending, independent of his wife's spending.
 
Do you do a monthly budget? You might be surprised to find what you spend. Can you expand on the $500 misc?

You might not always have dental insurance. Have you factored in the high cost of dental care as we age? Even with insurance your cost could be significant. Do you wear glasses? Mine cost $600 last year and that was going to 4 different places to do some competitive shopping. You might have coverage now, but what about in the future? Is car maintenance in that misc? I recently needed 4 new tires. Wear and tear on your home, your appliances, etc. Clothing for you and wife. The women I know still want to look and dress nice when socializing. Not to mention haircuts for both of you. Will you be giving any gifts? Do you celebrate family birthdays and/or holidays? Weddings in future of your children? Or close family and friend's children? Or babies? Yikes, my grandchildren alone cost a bit when it comes to gifts. Just some thoughts. We had a handle on what we spent but I still did a budget to give a clearer picture.
 
brokrken said:
Yeah, I'm surprised by the food costs, too. That's like $1.66 per meal (assuming you eat 3 per day.) Or, maybe OP is one of those Breatharians that claim food and water aren't necessary for survival. :)
Click to expand...

They are a couple, so it is $0.83 per meal. Something is off.
 
Carol1862 said:
Do you do a monthly budget? You might be surprised to find what you spend. Can you expand on the $500 misc?

You might not always have dental insurance. Have you factored in the high cost of dental care as we age? Even with insurance your cost could be significant. Do you wear glasses? Mine cost $600 last year and that was going to 4 different places to do some competitive shopping. You might have coverage now, but what about in the future? Is car maintenance in that misc? I recently needed 4 new tires. Wear and tear on your home, your appliances, etc. Clothing for you and wife. The women I know still want to look and dress nice when socializing. Not to mention haircuts for both of you. Will you be giving any gifts? Do you celebrate family birthdays and/or holidays? Weddings in future of your children? Or close family and friend's children? Or babies? Yikes, my grandchildren alone cost a bit when it comes to gifts. Just some thoughts. We had a handle on what we spent but I still did a budget to give a clearer picture.
Click to expand...

Wow... It seems I need to spend more time on "detailed budget". My healthcare & dental is tied with wife's job so that'll be ok at least until she is working. $500 Misc was for un-seen expenses such as car tires, breaks etc. I agree it's too small since my Rogue tires alone cost me $600 last year
:facepalm: Not a lot of social activities or lavish family events here so those expenses are pretty limited :flowers:
 
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