Greetings - been a long time reader and have enjoyed the threads - have learned a lot as I hone in on my plan.
As stated in title - aiming for 2022 exit at 56 yrs old. Have been planning for longer than I care to say (DW calls it an unhealthy obsession!).
Will have 33 yrs in with pension as an Engineer. Looking forward to the usual rec activities in retirement (fishing, boating, golf, biking, etc) - as well as domestic travel via 2-3 week trips (in yet to be purchased small travel trailer). We plan on relocating to an area with more fishing lakes that is still LCOL and within 3 hr drive of kids/grand-kids.
As typical of many here, I have mega-spreadsheets that I have created throughout the years - and have tracked expenses for the last 20 years.
Some facts:
Him: 54; DW: 53
Kids are all out the house and off my payroll. All done w/college - (state universities no debt for any of them)
Funds:
I know I've been too heavy on pre-tax but is what it is at this point. Will be converting more to ROTH.
401(k)/IRA : ~$865k
ROTH IRA: ~ $230k
Taxable: ~ $40k
House ~ $380k (about $90k left on mortgage)
Total NW: ~$1.4 M
Have a small amount of VL interest auto debt but will have that paid off by next summer and will not carry into retirement. Once we move - will downsize so will not have mortgage (or if we do - will be less than $50k which I'd pay off early but will keep an eye on tax brackets, i.e., pay off in roughly 5 yrs to minimize larger lump sum W/D).
Will likely convert IRA to ROTHs up to top of tax bracket from time of retirement to SS.
Overall Asset Allocation is ~ 70/30. I'd been 100% stock up till about 3 yrs ago, then started backing down some. I do have pension so my AA might be higher equity than if not. Still need to do some thinking on how I want to address that in retirement. Like the concept of Kitces bond tent - so may do a modified version of that - perhaps pre-fund age 56-62 withdrawals in safer investments and with an overall 60/40.
Expenses - very well tracked history and I've done the projections and sensitivity analysis for spending in retirement. Basically - my base expenses will be ~$60k per yr and my realistic expenses will be $93k per year. FIRECALC and other calculators put me at 100% for the realistic $. These numbers are all inclusive of taxes, medical, etc. Fully loaded. My retirement has healthcare as part of package (I continue to pay employee share throughout retirement).
Other income:
Pension: $ 55k for years 56-62, then ~$36k inflation adjusted from 62 on.
SS: Have used the Open Social Security tool and I plan on taking at age 70. Lower earning wife at 62 (I may not have her take then - but that is what the tool says) - More of my decision is based on maximizing her spousal should I die first - so may have her go to FRA (TBD). My numbers reflect me not having earned income from 56 to 62 (I used the detailed SS calculator)
SS: Me @ 70 ~$ 41k
SS: DW @ 62 ~$7k which increases to $14k for spousal when I file (per the tool)
I'm not a believer in using a set W/D rate as a single rate really doesn't tell the tale. I have calculated it per year and it ranges from mid 3%'s in first 6 yrs, then mid 5%'s from 62 to 70, then is essentially 0% as my projected income from pension and SS will cover expenses.
A few things I still need to think about - for example, my term life insurance expires next year - debating whether or not to get a 5 or 10 yr policy. My spreadsheet does have a tab where I evaluate what my wife will be left with for each age over 56, should I die. She will be OK. But I will probably price out some smaller policies to refine that decision.
That's about it for now! Thanks for the add and looking forward to being a short-timer and soon to be a "Less than 1 year" person!
As stated in title - aiming for 2022 exit at 56 yrs old. Have been planning for longer than I care to say (DW calls it an unhealthy obsession!).
Will have 33 yrs in with pension as an Engineer. Looking forward to the usual rec activities in retirement (fishing, boating, golf, biking, etc) - as well as domestic travel via 2-3 week trips (in yet to be purchased small travel trailer). We plan on relocating to an area with more fishing lakes that is still LCOL and within 3 hr drive of kids/grand-kids.
As typical of many here, I have mega-spreadsheets that I have created throughout the years - and have tracked expenses for the last 20 years.
Some facts:
Him: 54; DW: 53
Kids are all out the house and off my payroll. All done w/college - (state universities no debt for any of them)
Funds:
I know I've been too heavy on pre-tax but is what it is at this point. Will be converting more to ROTH.
401(k)/IRA : ~$865k
ROTH IRA: ~ $230k
Taxable: ~ $40k
House ~ $380k (about $90k left on mortgage)
Total NW: ~$1.4 M
Have a small amount of VL interest auto debt but will have that paid off by next summer and will not carry into retirement. Once we move - will downsize so will not have mortgage (or if we do - will be less than $50k which I'd pay off early but will keep an eye on tax brackets, i.e., pay off in roughly 5 yrs to minimize larger lump sum W/D).
Will likely convert IRA to ROTHs up to top of tax bracket from time of retirement to SS.
Overall Asset Allocation is ~ 70/30. I'd been 100% stock up till about 3 yrs ago, then started backing down some. I do have pension so my AA might be higher equity than if not. Still need to do some thinking on how I want to address that in retirement. Like the concept of Kitces bond tent - so may do a modified version of that - perhaps pre-fund age 56-62 withdrawals in safer investments and with an overall 60/40.
Expenses - very well tracked history and I've done the projections and sensitivity analysis for spending in retirement. Basically - my base expenses will be ~$60k per yr and my realistic expenses will be $93k per year. FIRECALC and other calculators put me at 100% for the realistic $. These numbers are all inclusive of taxes, medical, etc. Fully loaded. My retirement has healthcare as part of package (I continue to pay employee share throughout retirement).
Other income:
Pension: $ 55k for years 56-62, then ~$36k inflation adjusted from 62 on.
SS: Have used the Open Social Security tool and I plan on taking at age 70. Lower earning wife at 62 (I may not have her take then - but that is what the tool says) - More of my decision is based on maximizing her spousal should I die first - so may have her go to FRA (TBD). My numbers reflect me not having earned income from 56 to 62 (I used the detailed SS calculator)
SS: Me @ 70 ~$ 41k
SS: DW @ 62 ~$7k which increases to $14k for spousal when I file (per the tool)
I'm not a believer in using a set W/D rate as a single rate really doesn't tell the tale. I have calculated it per year and it ranges from mid 3%'s in first 6 yrs, then mid 5%'s from 62 to 70, then is essentially 0% as my projected income from pension and SS will cover expenses.
A few things I still need to think about - for example, my term life insurance expires next year - debating whether or not to get a 5 or 10 yr policy. My spreadsheet does have a tab where I evaluate what my wife will be left with for each age over 56, should I die. She will be OK. But I will probably price out some smaller policies to refine that decision.
That's about it for now! Thanks for the add and looking forward to being a short-timer and soon to be a "Less than 1 year" person!
