Hello,
Want to introduce myself and share my situation/concerns with a community that gets it and hopefully get some good advice and cheerleading. I used to hang out on the Fool boards quite a few years ago and miss the FIRE community.
Anyway, I’m a government employee that has been planning on FIRE since I started 21 years ago. Made a few mistakes along the way that delayed me a bit (marriage/divorce/big house) but am still in pretty good shape. The last couple months I’ve had the epiphany that now is the time to cash in my chips and quit. I expect to pull the trigger in 2020. Hopefully not a victim of One More Year Syndrome but I want time to figure out a few things and I think the administration of my quitting will flow better at work if I wait one more year (I’ll try to max out my TSP contributions early in 2020 prior to leaving).
Situation:
TSP (401k equivalent): $700K
Roth IRA: $220K
Taxable Equities: $290K (about half of that unrealized LT gains)
Cash: $160K (home equity recovered)
Deferred pension will pay about $25K annually starting on my 60th birthday and be adjusted for COLA after that. SS calculator (not that I trust it to be there at all) seems to point to about $1400/mo starting at age 62 if I don’t earn anymore.
I am 45 years old and currently renting a house. I intend to move this year and am debating purchasing a home (reducing my investable assets but also reducing my monthly cash flow slightly while protecting myself from rent increases) or renting an apartment for a while and possibly buying in the future if my assets grow in my ER.
Since my situation has changed so much recently with the house sale, I have to project my spending going forward without having a track record at this level. I estimate I’ll need about $42K/year to cover basic expenses (including healthcare obtained from the marketplace). Fortunately, I’ve been tracking my spending since 1998 so even though circumstances have changed a bit over the years, I have a pretty good idea how I spend.
Withdrawal strategies: Current thought is to live off of cash for a year or two which will allow me to figure out my true costs in retirement as well as find out how much I will earn doing whatever I want. –I imagine I’ll earn $5-10K a year doing something but don’t want to count on any earned income in my planning. After that I’m all over the map, should I start a SEPP from my TSP (transferred to an IRA) which should cover most of my expenses (made up for as I burn down some of my cash) and let my Roth and taxable ride for a while (I do want to maintain my taxable assets for liquidity/emergencies and if I decide to buy a house), tap my Roth contributions next, and then my taxable investments. That should get me past 62 so I can end my SEPP withdrawals and have flexibility with my TSP. By then, the additional income from my pension and whatever SS may pay would be my cushion and I should have more than enough funds.
Knowing I'm almost there is a bit terrifying and exhilarating but I think I am in pretty good shape, I just need to figure out the details and get the courage up to make the leap (I am miserable at work).
[FONT="]Thanks for listening and for your thoughts suggestions!
[/FONT]
Want to introduce myself and share my situation/concerns with a community that gets it and hopefully get some good advice and cheerleading. I used to hang out on the Fool boards quite a few years ago and miss the FIRE community.
Anyway, I’m a government employee that has been planning on FIRE since I started 21 years ago. Made a few mistakes along the way that delayed me a bit (marriage/divorce/big house) but am still in pretty good shape. The last couple months I’ve had the epiphany that now is the time to cash in my chips and quit. I expect to pull the trigger in 2020. Hopefully not a victim of One More Year Syndrome but I want time to figure out a few things and I think the administration of my quitting will flow better at work if I wait one more year (I’ll try to max out my TSP contributions early in 2020 prior to leaving).
Situation:
TSP (401k equivalent): $700K
Roth IRA: $220K
Taxable Equities: $290K (about half of that unrealized LT gains)
Cash: $160K (home equity recovered)
Deferred pension will pay about $25K annually starting on my 60th birthday and be adjusted for COLA after that. SS calculator (not that I trust it to be there at all) seems to point to about $1400/mo starting at age 62 if I don’t earn anymore.
I am 45 years old and currently renting a house. I intend to move this year and am debating purchasing a home (reducing my investable assets but also reducing my monthly cash flow slightly while protecting myself from rent increases) or renting an apartment for a while and possibly buying in the future if my assets grow in my ER.
Since my situation has changed so much recently with the house sale, I have to project my spending going forward without having a track record at this level. I estimate I’ll need about $42K/year to cover basic expenses (including healthcare obtained from the marketplace). Fortunately, I’ve been tracking my spending since 1998 so even though circumstances have changed a bit over the years, I have a pretty good idea how I spend.
Withdrawal strategies: Current thought is to live off of cash for a year or two which will allow me to figure out my true costs in retirement as well as find out how much I will earn doing whatever I want. –I imagine I’ll earn $5-10K a year doing something but don’t want to count on any earned income in my planning. After that I’m all over the map, should I start a SEPP from my TSP (transferred to an IRA) which should cover most of my expenses (made up for as I burn down some of my cash) and let my Roth and taxable ride for a while (I do want to maintain my taxable assets for liquidity/emergencies and if I decide to buy a house), tap my Roth contributions next, and then my taxable investments. That should get me past 62 so I can end my SEPP withdrawals and have flexibility with my TSP. By then, the additional income from my pension and whatever SS may pay would be my cushion and I should have more than enough funds.
Knowing I'm almost there is a bit terrifying and exhilarating but I think I am in pretty good shape, I just need to figure out the details and get the courage up to make the leap (I am miserable at work).
[FONT="]Thanks for listening and for your thoughts suggestions!
[/FONT]