Hi all!
Turning 50 in a few months. Semi-retired at 47 in 2020. Leaving job was planned in 2020, but covid actually helped as company termed wife and I so got some additional perks wouldn't have gotten otherwise. Planned to work another 3-5 years part time then fully retire (through 2023-2025). For some reason, I'm apprehensive, so maybe some advice from others that have done or are like minded may give me the umphf I need to call it quits after 2023.
Here's the setup:
$620k in qualified accounts
$450k in 401k/IRA
$150k in Roth
$20k in HSA
$1MM in non-qualified accounts
$80k cash/CDs
$70k I-bonds
$850k brokerage
No debt. Paid off mortgage in 2019. 1 child leaving by end of year (college completed and paid for), 1 child already out with 11 year old left at home. Wife turns 42 this year. Small house, so this is probably where we'll stay as family is here.
A family member is diligently paying back a loan at $675/mo through 2027, and child support from wife's previous covers youngest's 529 contributions.
Monthly budget of $4583 ($55k annually) which we've tracked for several years. Lots of fluff in it as 529 college contributions ($425/mo) disappear in 8 years and 2nd largest percentage is consumed by travel & entertainment ($733/mo). We've been on the ACA exchange since 2021, so we know how that works for us. Budget includes new car fund every 7-10 years and yearly house repairs. Only thing I haven't considered is LT health care, which I'm not sure how to navigate, so any thoughts on that much appreciated!
No debt. Paid off mortgage in 2019. 1 child leaving by end of year (college completed and paid for), 1 child already out (no college) with 11 year old left at home. Wife turns 42 this year. Small house, so this is probably where we'll stay as family is here.
Using FIREcalc looks good. With $1.6MM on a $55k budget and 60 years (getting wife to 102), we've got 1 fail/92 for a 98.9% success rate. That's without SS. $55k/$1.6MM = 3.34% withdrawal rate
The SS calculator says if I stop working today, I'll get $3020 monthly at FRA in today's dollars(?). Since that's 17 years away, I'm assuming it's going to be much more in future dollars. When I put 75% of this into FIREcalc (assuming that the fund runs out in 2035 as predicted and then benefits get slashed), along with 1/2 this value for my wife both starting at appropriate FRA, then it goes to 100% success, with an average ending value of over $18MM.
Using my own cracker jack spreadsheet, assuming 4% inflation long term and making 5.6% on combined portfolio, I come up with about $8MM excess when my wife turns 100.
Anyone see any big holes in our plan? And if not, then why am I so anxious lol?? Thanks!
Turning 50 in a few months. Semi-retired at 47 in 2020. Leaving job was planned in 2020, but covid actually helped as company termed wife and I so got some additional perks wouldn't have gotten otherwise. Planned to work another 3-5 years part time then fully retire (through 2023-2025). For some reason, I'm apprehensive, so maybe some advice from others that have done or are like minded may give me the umphf I need to call it quits after 2023.
Here's the setup:
$620k in qualified accounts
$450k in 401k/IRA
$150k in Roth
$20k in HSA
$1MM in non-qualified accounts
$80k cash/CDs
$70k I-bonds
$850k brokerage
No debt. Paid off mortgage in 2019. 1 child leaving by end of year (college completed and paid for), 1 child already out with 11 year old left at home. Wife turns 42 this year. Small house, so this is probably where we'll stay as family is here.
A family member is diligently paying back a loan at $675/mo through 2027, and child support from wife's previous covers youngest's 529 contributions.
Monthly budget of $4583 ($55k annually) which we've tracked for several years. Lots of fluff in it as 529 college contributions ($425/mo) disappear in 8 years and 2nd largest percentage is consumed by travel & entertainment ($733/mo). We've been on the ACA exchange since 2021, so we know how that works for us. Budget includes new car fund every 7-10 years and yearly house repairs. Only thing I haven't considered is LT health care, which I'm not sure how to navigate, so any thoughts on that much appreciated!
No debt. Paid off mortgage in 2019. 1 child leaving by end of year (college completed and paid for), 1 child already out (no college) with 11 year old left at home. Wife turns 42 this year. Small house, so this is probably where we'll stay as family is here.
Using FIREcalc looks good. With $1.6MM on a $55k budget and 60 years (getting wife to 102), we've got 1 fail/92 for a 98.9% success rate. That's without SS. $55k/$1.6MM = 3.34% withdrawal rate
The SS calculator says if I stop working today, I'll get $3020 monthly at FRA in today's dollars(?). Since that's 17 years away, I'm assuming it's going to be much more in future dollars. When I put 75% of this into FIREcalc (assuming that the fund runs out in 2035 as predicted and then benefits get slashed), along with 1/2 this value for my wife both starting at appropriate FRA, then it goes to 100% success, with an average ending value of over $18MM.
Using my own cracker jack spreadsheet, assuming 4% inflation long term and making 5.6% on combined portfolio, I come up with about $8MM excess when my wife turns 100.
Anyone see any big holes in our plan? And if not, then why am I so anxious lol?? Thanks!