Can I retire

[mstrlucky74]

So it's. It really early but I'd like to retire at 58. I'm currently 50.

Overall really picture.
I'm in union so when I retire I will have a monthly pension of $4,000.
I have a 4 yo daughter but she gets coveral under my full medical(even when retirwd we get it).
My wife is 45 and not working but has $250k in 401k. She does not contribute Anything any longer
I have $1,100,000.00 in my 401k and max it out.
At 58 I should have about $1,900,000 maybe a little more.
We own two homes. Both worth about $600k with each having a mortgage of about $240k left . We would sell one when retire.

Our other debt currently amounts to about $22k.

I make about $175k now and could do part time consulting when I retire and easily bring in $40-50k.

Think we would need about $90k yearly out of my retirement savings starting at 58.

Think retiring at 58 is feasible? Thank you very much

 

[The Cosmic Avenger]

You need to run a calculator, but it sounds like you're ready now! You need $90K/yr, you will get $48K/yr from your pension, so you need to make up $42K/yr. With $1.1M, you could probably safely withdraw....$44K/yr! Many people try to be a bit more conservative than a 4% withdrawal rate, but then you have a pension and medical coverage.

In other words, based on the information you gave, it sounds like you'd be more than ready in 8 years!

 

[Koolau]

This is the calculator that we here on FIRE Forum recommend (it's at the top of every page.)

FIRECalc: A different kind of retirement calculator

www.firecalc.com

My gut tells me you're in pretty good shape, but I haven't run the numbers. You should run a baseline in FIRECalc and see what it says.

 

[Midpack]

This is the calculator that we here on FIRE Forum recommend (it's at the top of every page.)

FIRECalc: A different kind of retirement calculator

www.firecalc.com

My gut tells me you're in pretty good shape, but I haven't run the numbers. You should run a baseline in FIRECalc and see what it says.

+1. But even after you see the FIRECALC results, only YOU can decide what YOU are comfortable with. Some people want a MUCH greater safety factor than others (as much as 2X for some), even more so the earlier you retire. And those with pensions may be more comfortable than those without - that varies considerably here.

The (random) answers you get from others here, are based on their risk tolerance - not yours. And they have no vested interest in your outcome.

 

[RetiredHappy]

You said you need $90K out of your retirement accounts, on top of the $48K in pension. At 58, you will have about $2.2M between the two of you. Using the back of the napkin method, 4% withdrawal will get you $88K. So you should be fine. That is not counting Social Security benefits which you will collect later. You also have a 2nd home that you can sell to raise more cash later if you ever run out of money.

 

[MBAustin]

Tracking your expenses and planning for occasional big expenses (new vehicles, roof replacement, etc.) is important. Here is a list of things to think about as you plan: Some questions to ask before you retire

 

[mstrlucky74]

Thank you very much everybody I would retire early but unfortunately have to wait until 58 to get the lifetime medical and pension. Actually not unfortunately... I'm very fortunate.

 

[pacergal]

Run Firecalc and answer the questions posed per MBAustin.
It seems like you will be OK. Is the pension dependent upon years of service or specific age?
You have the golden three legged stool--savings, pension, social security plus the second home to sell. You have done well, congratulations!

Do you have your daughter's college funded (if planning too?)
Any thoughts on other help for your child, ie wedding, help with house down payment. Not everyone has the ability or plans to do that, but some do.

You plan to retire at 50 right when DD becomes a teen. High school can be spendy--school dances, sports, theater, Prom, etc. !

 

[mstrlucky74]

Tracking your expenses and planning for occasional big expenses (new vehicles, roof replacement, etc.) is important. Here is a list of things to think about as you plan: Some questions to ask before you retire

Thank you very much

 

[Koolau]

+1. But even after you see the FIRECALC results, only YOU can decide what YOU are comfortable with. Some people want a MUCH greater safety factor than others (as much as 2X for some), even more so the earlier you retire. And those with pensions may be more comfortable than those without - that varies considerably here.

The (random) answers you get from others here, are based on their risk tolerance - not yours. And they have no vested interest in your outcome.

I totally agree, but at least FIRECalc is a place to start. Instead of going totally on feelings, you have a baseline to build on. So, for instance, some folks here are satisfied with 95% results from FIRECalc. I'm in the 100% camp, myself. Others may take the FIRECalc SWR and cut it in half just to be "super-safe." BUT if you don't at least get some baseline (doesn't have to be FIRECalc, but I think FIRECalc is a good calculator) you don't know what to apply your own fudge-factor to.

By the way, we here are happy to give our opinions on all kinds of stuff and we DO use our own risk tolerance. For the most part, that is either understood - or in most cases, explicitly pointed out. I use YMMV a lot and I really mean it. Your Mileage May Vary. I'm just another guy on the internet and if you base your AA or retirement date or which car to buy on what I say, you probably have deeper problems than not knowing about FIRECalc. Oh, and YMMV.

 

[MarieIG]

You didn't mention your monthly expenses - but most likely yes. You also didn't mention making provision for your DW to receive pension benefits should you shuffle off this mortal coil the day after you retire. Also, there was a recent post on the forum from a widow about loosing medical insurance after her DH passed. You mentioned your DD with regard to medical coverage - but not your DW.

DH was / is union. I believe the requirement has recently changed, but previously if the worker / spouse in my DH's union did not take a survivor pension, the surviving spouse would also lose medical coverage.

DH did take the 100% joint and survivor option, to afford me peace of mind. When his term insurance premium jumped tenfold, I was comfortable with it being cancelled. BTW, if I shuffle off this mortal coil first, DH's pension benefit increases to the higher, individual rate.

Good luck to you and your DW.