REattempt
Recycles dryer sheets
- Joined
- Feb 27, 2010
- Messages
- 293
Ok, about to pull the FIRE...July 15! Think I have all my ducks in a row, but thought I would get a final gut check from the group.
Current Age = 46, single, 1 child, college paid for & funds not included in this analysis
Expenses 2011-2014 = $130K/year (exceeds last 3 years of expenses)
Expenses 2015 to AGE 88 = $80K/year (based on continued actual expenses.)
Assets:
Investments: $3.1MM ($2.6MM non-Qual, $500K Qual IRA/401K non-Roth)
Home: $190K
Second Home: $750K (home with value only in land...read:OLD HOUSE)
Debts:
Home: $150K
Second Home: $150K
SS/Pension:
SS: 29K/yr today's dollars starting at 67
Pension 1: $5500/yr at 65
Pension 2: $6700/yr at 65
Approach:
Bob Clyatt or OTAR type portfolio. Won't get into the details...lets assume 40/60 to 60/40 split. Expenses at .31%
Plan
2011 Pay off mortgages (-300K) & rebuild 2nd home (-250K) =
I think I'm good to go, but I'm still nervous.
Time for the gut check...Feedback?
Current Age = 46, single, 1 child, college paid for & funds not included in this analysis
Expenses 2011-2014 = $130K/year (exceeds last 3 years of expenses)
Expenses 2015 to AGE 88 = $80K/year (based on continued actual expenses.)
- Expenses reduced because certain required expenses go away in 4 years .
- Chose 88 because it was close to 15% survivability and nobody in my lineage has made it past 83. No male made it past 70.
- Health care costs included from day 1 at $3000/yr. Though I can get it cheaper through my former employer.
Assets:
Investments: $3.1MM ($2.6MM non-Qual, $500K Qual IRA/401K non-Roth)
Home: $190K
Second Home: $750K (home with value only in land...read:OLD HOUSE)
Debts:
Home: $150K
Second Home: $150K
SS/Pension:
SS: 29K/yr today's dollars starting at 67
Pension 1: $5500/yr at 65
Pension 2: $6700/yr at 65
Approach:
Bob Clyatt or OTAR type portfolio. Won't get into the details...lets assume 40/60 to 60/40 split. Expenses at .31%
Plan
2011 Pay off mortgages (-300K) & rebuild 2nd home (-250K) =
Investments = $2,550,000
Property = $1.2MM (increased value of property due to new house) + $190K = 1.39MM
Expenses Reduced to $110,000 (4.3% WR) for next 4 years (mortgages gone)
2015 Sell Primary home (+190K) move to 2nd home =Property = $1.2MM (increased value of property due to new house) + $190K = 1.39MM
Expenses Reduced to $110,000 (4.3% WR) for next 4 years (mortgages gone)
Investments = $2,387,000 (assuming I earn 4%/year for first 4 years)
Investments = $2,300,000 (assuming I make 0% and only spend in first 4 years)
Property = $1,200,000 (sold home)
Expenses Reduced to $60,000 (2.6% WR on $2.3MM) (mortgages gone)
If I DO NOT INCLUDE SS, Pensions nor the value of the second home in my assets/income, FIRECalc and ORC both say I have 100% chance to survive 42 years with 0 failures.Investments = $2,300,000 (assuming I make 0% and only spend in first 4 years)
Property = $1,200,000 (sold home)
Expenses Reduced to $60,000 (2.6% WR on $2.3MM) (mortgages gone)
I think I'm good to go, but I'm still nervous.
Time for the gut check...Feedback?