ImaCheesehead
Recycles dryer sheets
- Joined
- Mar 6, 2013
- Messages
- 115
What would you feel comfortable spending annually if you were in the following situation and retiring in 6 months? We have no children so have no need leave any legacy. We also have no LTC coverage so plan on paying those expenses from assets if necessary.
DH 62
DW 57
Invested assets:
2,500,000 total at Vanguard or equivalent broken down as:
1,586,000 retirement
860,000 nonretirement
55,000 Roth
Current allocation across all accounts 65/27/8 stock/bond/cash. While writing this out, I realize I have more in stock than I am comfortable with. I plan on reducing stock allocation to approx 55%.
SS and Pension:
Planning on taking his SS at 70 = 40k per year
Current pension = 9k per year until 2nd death, not inflation adjusted
Buckets:
Of the investment total, I am thinking to carve out $300,000 for a SS “bucket” allow 40k spending from age 62.5 to age 70 when his SS actually kicks in. I am taking my SS at 62 but not including it in retirement calculations as it will be only 12k per year. To be honest, his health is not great and at 62 he has already outlived his parents and sister. Assuming I outlive him, whatever I get will be some “frosting” and I don’t want to count on it.
Additionally, I am holding out a $100,000k bucket for a new car in the next couple of years and 1 or 2 years of unusually high out of pocket health costs or random lumpy expenses.
I have run scenarios thru Firecalc and know what it says, but that isn’t what I am looking for. What would YOU spend if this was your situation?
Summary:
$2,100,000 invested assets
+40k SS (or equivalent)
+9k Pension
Every opinion welcome!
DH 62
DW 57
Invested assets:
2,500,000 total at Vanguard or equivalent broken down as:
1,586,000 retirement
860,000 nonretirement
55,000 Roth
Current allocation across all accounts 65/27/8 stock/bond/cash. While writing this out, I realize I have more in stock than I am comfortable with. I plan on reducing stock allocation to approx 55%.
SS and Pension:
Planning on taking his SS at 70 = 40k per year
Current pension = 9k per year until 2nd death, not inflation adjusted
Buckets:
Of the investment total, I am thinking to carve out $300,000 for a SS “bucket” allow 40k spending from age 62.5 to age 70 when his SS actually kicks in. I am taking my SS at 62 but not including it in retirement calculations as it will be only 12k per year. To be honest, his health is not great and at 62 he has already outlived his parents and sister. Assuming I outlive him, whatever I get will be some “frosting” and I don’t want to count on it.
Additionally, I am holding out a $100,000k bucket for a new car in the next couple of years and 1 or 2 years of unusually high out of pocket health costs or random lumpy expenses.
I have run scenarios thru Firecalc and know what it says, but that isn’t what I am looking for. What would YOU spend if this was your situation?
Summary:
$2,100,000 invested assets
+40k SS (or equivalent)
+9k Pension
Every opinion welcome!