ownyourfuture
Thinks s/he gets paid by the post
- Joined
- Jun 18, 2013
- Messages
- 1,561
Can I Retire At 51 ? **Update**
This is my second post regarding retiring early. The 1st was in June of 2013
http://www.early-retirement.org/forums/f28/can-i-retire-at-51-a-67137.html
I was having a terrible time at my job. Not only were the hours horrible, but we were going through a major transition that was not going well at all.
At that time, I just wanted out. PERIOD!
Had I left at that time, not only would I have had to wait until age 55 (2017) to begin collecting my pension, but I would have been penalized 4.8% per year that I was away from age 62.
4.8 x 7 = 33.60% penalty. Because of this, I would have had no choice but to roll my 401k into an existing IRA & begin drawing funds early using the 72(t) SEPP method.
Luckily for me, shortly after posting the original thread, things began improving @ work. The hours were/are still miserable, but with the job itself going much better, I was able stick it out & now, come June 1st, I'll be able to collect my full pension. No penalties!
I'm now 53 years old, work in the private sector (manufacturing) & have no existing medical issues.
Will retire on or around June 1st of 2015 (Pension 104.00% funded as of last report)
I'll now list my income, future income, monthly living expenses, & current assets.
I don't think I'm overlooking anything.
Please reply if you think I am.
Monthly Income Starting July 1st 2015
Pension $3,000.00 Per Month
Dividends $1,100.00 ' ' *The dividends are all from my 'taxable' brokerage account at Fidelity*
Total $4,100.00 Per Month
$49,200.00 per year
Future Income 001: I'll turn 59.5 In June 2021
401-k - 240k as of today
IRA - 30k as of today
If I assume an annual return of 5.00% per year, these 2 would be worth around 361k by 2021
This would be another possible income stream. (If I Needed It At That Time)
Future Income 002: January 2022: When I turned 60, I could begin drawing a smaller pension from the original company (before we merged with my present company)
$284.00 Per Month
Future Income 003: S.S. 2024 Age 62 $1,300.00 Per Month
Total $5,684.00 Per Month
$68,208.00 per year *Without any 401k or IRA distributions*
*Also not counting any future dividend hikes*
Personal lifestyle/monthly living expenses & Misc info
Lifestyle: Very simple & inexpensive. Have plenty of things to keep me busy. Sometimes more than I care for. This will improve after retirement.
Home: Roof, Siding, Windows, Furnace & AC, all new in the last 8 years.
Healthcare: This of course, is the biggie nowadays & I am not covered after retirement: I've done a small amount of research on the 'affordable care act' AKA obamacare. Don't like what I've seen/heard …….so far
As it stands now, I've decided to purchase 'COBRA' insurance when I retire.
This is the exact same as my present coverage & includes medical, dental, & vision. There's substantial co-pays in many instances, but I can live with that.
This is available for 18 months after retirement @ a cost of approximately $650.00 per month.
So I wouldn't have to worry about dealing with obamacare until December 2016. Hopefully some of the bugs will have been worked out by then.
Monthly Cash Flow/Expense Summary:
4,100.00 - 25% Taxes ($1,025.00) *Hopefully my taxes will be less than 25% but I want to err on the high side*
3,075.00 - 650 Health Ins **On the bubble as far as being able to itemize** 15.00%
2,425.00 - 370 Car Pmt & Ins *No Car Payment At This Time* But plan on buying a used toyota sr-5 before winter
2,055.00 - 365 Groceries & eating out
1,690.00 - 300 Utilities *Electricity, City, Natural Gas, Cable TV, Internet, & Phone
1,390.00 - 200 Property Taxes & Homeowners Ins
1,190.00 - 200 Alcohol *I still frequent a favorite bar (more often after retirement ?) & have friends over, especially during football season.
990.00 - 136 Miscellaneous *B-days, Printer Ink, Stamps, Lawn Care, Co Pays, Tax Software, Snow Removal, Batteries, DVD's, Etc
854.00 - 85 Automotive = Gasoline, Antifreeze, Bulbs, Oil, Tires, Repairs, Etc
769.00 - 50 Charity
719.00 - 35 Personal Items = Haircuts, T-paste, TP, Deodorant, Shampoo, Detergent, Scotch Pads, Clothing, Dish Soap, Vitamins, Etc
684.00 - 24 Casino & Other Gambling
660.00 - 0 Big Ticket Items * Washer & Dryer, Stove, Etc*
Summary: A Surplus Of $660.00 Per Month, Or $7,920.00 Per Year
In my Fidelity brokerage account, I have a mix of dividend paying stocks, etf's, reit's, & mutual funds.
The portfolio is geared toward 'income' that I will use to supplement my pension.
The $ amount in individual holding varies from over 60k in JNJ, to only $1,732.75 in Colgate.
Stocks:
Apple Computer AAPL
American Water Works AWK
Bank Of America BAC
B&G Foods BGS
Cinemark Holdings CNK
Colgate Palmolive CL
Conoco Phillips COP
Consolidated Comm CNSL
Crown Holdings CCK *No Dividend*
Johnson & Johnson JNJ
Kinder Morgan Energy KMP
Kraft Foods KRFT
Eli Lilly LLY
MMM MMM
Student Transportation STB
Verizon VZ
Wisconsin Energy WEC
ETF's:
iShares International Select Dividend IDV
Vanguard Dividend Appreciation VIG
Mutual Funds:
Fidelity Select Medical Equip & Systems FSMEX
James Balanced Golden Rainbow Cl A GLRBX
REIT's:
National Health Investments NHI
Realty Income Corporation O
Other
UBS Bloomberg CMCI Silver USV
Assets: As Of April 12th 2015
Fidelity Brokerage Account $464,782.00 *Taxable*
Vanguard 401-k $239,129.00
Home Equity $100,000.00
ESPP $87,552.00 *Employee Stock Purchase Program*
Fidelity IRA $27,948.00
Checking $3,000.00
Debt ZERO
Total $922,411.00
My Summary:
I feel very fortunate to have this opportunity.
I'm going to miss my co-workers terribly, but it's something I have to do.
Steve
This is my second post regarding retiring early. The 1st was in June of 2013
http://www.early-retirement.org/forums/f28/can-i-retire-at-51-a-67137.html
I was having a terrible time at my job. Not only were the hours horrible, but we were going through a major transition that was not going well at all.
At that time, I just wanted out. PERIOD!
Had I left at that time, not only would I have had to wait until age 55 (2017) to begin collecting my pension, but I would have been penalized 4.8% per year that I was away from age 62.
4.8 x 7 = 33.60% penalty. Because of this, I would have had no choice but to roll my 401k into an existing IRA & begin drawing funds early using the 72(t) SEPP method.
Luckily for me, shortly after posting the original thread, things began improving @ work. The hours were/are still miserable, but with the job itself going much better, I was able stick it out & now, come June 1st, I'll be able to collect my full pension. No penalties!
I'm now 53 years old, work in the private sector (manufacturing) & have no existing medical issues.
Will retire on or around June 1st of 2015 (Pension 104.00% funded as of last report)
I'll now list my income, future income, monthly living expenses, & current assets.
I don't think I'm overlooking anything.
Please reply if you think I am.
Monthly Income Starting July 1st 2015
Pension $3,000.00 Per Month
Dividends $1,100.00 ' ' *The dividends are all from my 'taxable' brokerage account at Fidelity*
Total $4,100.00 Per Month
$49,200.00 per year
Future Income 001: I'll turn 59.5 In June 2021
401-k - 240k as of today
IRA - 30k as of today
If I assume an annual return of 5.00% per year, these 2 would be worth around 361k by 2021
This would be another possible income stream. (If I Needed It At That Time)
Future Income 002: January 2022: When I turned 60, I could begin drawing a smaller pension from the original company (before we merged with my present company)
$284.00 Per Month
Future Income 003: S.S. 2024 Age 62 $1,300.00 Per Month
Total $5,684.00 Per Month
$68,208.00 per year *Without any 401k or IRA distributions*
*Also not counting any future dividend hikes*
Personal lifestyle/monthly living expenses & Misc info
Lifestyle: Very simple & inexpensive. Have plenty of things to keep me busy. Sometimes more than I care for. This will improve after retirement.
Home: Roof, Siding, Windows, Furnace & AC, all new in the last 8 years.
Healthcare: This of course, is the biggie nowadays & I am not covered after retirement: I've done a small amount of research on the 'affordable care act' AKA obamacare. Don't like what I've seen/heard …….so far
As it stands now, I've decided to purchase 'COBRA' insurance when I retire.
This is the exact same as my present coverage & includes medical, dental, & vision. There's substantial co-pays in many instances, but I can live with that.
This is available for 18 months after retirement @ a cost of approximately $650.00 per month.
So I wouldn't have to worry about dealing with obamacare until December 2016. Hopefully some of the bugs will have been worked out by then.
Monthly Cash Flow/Expense Summary:
4,100.00 - 25% Taxes ($1,025.00) *Hopefully my taxes will be less than 25% but I want to err on the high side*
3,075.00 - 650 Health Ins **On the bubble as far as being able to itemize** 15.00%
2,425.00 - 370 Car Pmt & Ins *No Car Payment At This Time* But plan on buying a used toyota sr-5 before winter
2,055.00 - 365 Groceries & eating out
1,690.00 - 300 Utilities *Electricity, City, Natural Gas, Cable TV, Internet, & Phone
1,390.00 - 200 Property Taxes & Homeowners Ins
1,190.00 - 200 Alcohol *I still frequent a favorite bar (more often after retirement ?) & have friends over, especially during football season.
990.00 - 136 Miscellaneous *B-days, Printer Ink, Stamps, Lawn Care, Co Pays, Tax Software, Snow Removal, Batteries, DVD's, Etc
854.00 - 85 Automotive = Gasoline, Antifreeze, Bulbs, Oil, Tires, Repairs, Etc
769.00 - 50 Charity
719.00 - 35 Personal Items = Haircuts, T-paste, TP, Deodorant, Shampoo, Detergent, Scotch Pads, Clothing, Dish Soap, Vitamins, Etc
684.00 - 24 Casino & Other Gambling
660.00 - 0 Big Ticket Items * Washer & Dryer, Stove, Etc*
Summary: A Surplus Of $660.00 Per Month, Or $7,920.00 Per Year
In my Fidelity brokerage account, I have a mix of dividend paying stocks, etf's, reit's, & mutual funds.
The portfolio is geared toward 'income' that I will use to supplement my pension.
The $ amount in individual holding varies from over 60k in JNJ, to only $1,732.75 in Colgate.
Stocks:
Apple Computer AAPL
American Water Works AWK
Bank Of America BAC
B&G Foods BGS
Cinemark Holdings CNK
Colgate Palmolive CL
Conoco Phillips COP
Consolidated Comm CNSL
Crown Holdings CCK *No Dividend*
Johnson & Johnson JNJ
Kinder Morgan Energy KMP
Kraft Foods KRFT
Eli Lilly LLY
MMM MMM
Student Transportation STB
Verizon VZ
Wisconsin Energy WEC
ETF's:
iShares International Select Dividend IDV
Vanguard Dividend Appreciation VIG
Mutual Funds:
Fidelity Select Medical Equip & Systems FSMEX
James Balanced Golden Rainbow Cl A GLRBX
REIT's:
National Health Investments NHI
Realty Income Corporation O
Other
UBS Bloomberg CMCI Silver USV
Assets: As Of April 12th 2015
Fidelity Brokerage Account $464,782.00 *Taxable*
Vanguard 401-k $239,129.00
Home Equity $100,000.00
ESPP $87,552.00 *Employee Stock Purchase Program*
Fidelity IRA $27,948.00
Checking $3,000.00
Debt ZERO
Total $922,411.00
My Summary:
I feel very fortunate to have this opportunity.
I'm going to miss my co-workers terribly, but it's something I have to do.
Steve
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