OrcasIslandBound
Recycles dryer sheets
Hello,
My DW is 53 and I'll be 53 in January. I'm hoping to be able to retire on my 56th birthday in January of 2014. We have about $1.3 million invested, approximately 40% stocks and 60% bonds, about 2/3 in pre-tax (IRA, etc) and 1/3 in post tax accounts. We anticipate SS (2.7K/month @62 years old), but nothing else. No pension. We live in a $375K house and owe $140K on it. We also have a piece of raw land (5 acres, $150K) that we have been trying to sell for years. If we sell it, we'll pay off the mortgage (hopefully). We own this land free and clear.
I'm hoping to live off of 50K but will try to hit $1.5 million + 100k before the planned retirement date. We wish to be able to use the 4% rule to allow us a max withdrawal rate of 60K if we have to. The $100K is for our son's (14) future college education.
I've run "Firecalc" and Fidelity's planning websites, and it appears that we're on track to pull this off, provided we can sell that piece of raw land. I'm employed and earn about 120K/year and contribute 15% to the company's 401K. They are generous and contribute (in both their pension and 401K) another 10%, so $30K gets added to the total every year.
I'll follow "DRiP Guy"s lead and post here periodically to let you all know, as it happens, if this math works. I believe the single biggest wild card is the medical insurance. For this we plan an expense of $1,200 per month as we'll have to simply buy it on the open market when we retire. We hope this will still be possible to do in 2014. Our health is reasonable, but not perfect, so I don't know how much they'll charge us for the health insurance.
I like this forum and appreciate all the help everyone gives each other. In a different thread, I'll post a mathematical model that I used to create our investment strategy (following a sort of modified Bogle method). I'll also post a listing of our investments in both stocks, funds, and bonds, if that helps anyone.
Thanks all in advance for any advice...
My DW is 53 and I'll be 53 in January. I'm hoping to be able to retire on my 56th birthday in January of 2014. We have about $1.3 million invested, approximately 40% stocks and 60% bonds, about 2/3 in pre-tax (IRA, etc) and 1/3 in post tax accounts. We anticipate SS (2.7K/month @62 years old), but nothing else. No pension. We live in a $375K house and owe $140K on it. We also have a piece of raw land (5 acres, $150K) that we have been trying to sell for years. If we sell it, we'll pay off the mortgage (hopefully). We own this land free and clear.
I'm hoping to live off of 50K but will try to hit $1.5 million + 100k before the planned retirement date. We wish to be able to use the 4% rule to allow us a max withdrawal rate of 60K if we have to. The $100K is for our son's (14) future college education.
I've run "Firecalc" and Fidelity's planning websites, and it appears that we're on track to pull this off, provided we can sell that piece of raw land. I'm employed and earn about 120K/year and contribute 15% to the company's 401K. They are generous and contribute (in both their pension and 401K) another 10%, so $30K gets added to the total every year.
I'll follow "DRiP Guy"s lead and post here periodically to let you all know, as it happens, if this math works. I believe the single biggest wild card is the medical insurance. For this we plan an expense of $1,200 per month as we'll have to simply buy it on the open market when we retire. We hope this will still be possible to do in 2014. Our health is reasonable, but not perfect, so I don't know how much they'll charge us for the health insurance.
I like this forum and appreciate all the help everyone gives each other. In a different thread, I'll post a mathematical model that I used to create our investment strategy (following a sort of modified Bogle method). I'll also post a listing of our investments in both stocks, funds, and bonds, if that helps anyone.
Thanks all in advance for any advice...