Can you look at my numbers ?

[silvor]

I am looking to possibly retire very soon. My concern is if I have enough non qualified money to qualify for ACA and to get to 65 and Medicare.
The FIRE calc, Monte Carlos and other calculators seem to say I'm ok? I run the numbers for 30 years as both my parents died fairly young. And there's no way my knees and back will hold up past then

I'm almost 54
earn $110k year
divorced
no debt
house is paid off and I'd net around $425k if I'd sell. Renting with the added house money seems to be a wash.
Expenses are around $4000 a month. Yes I added taxes and ACA payment. I really don't do or buy anything

I have a $250k position in VOO I inherited I'd like to pass on to my kids someday. Not sure if that's feasible to retire now if I can't use the VOO.

If I can't retire now, any suggestions? I've been maxing out my 401k and putting the max into my Roth or Trad IRA depending on the yearly situation. Perhaps I should just put the money into my Roth 401K? We don't have a rule of 55 in my 401k.

Numbers are below and thanks in advance!

account	balance	notes
401k	854,191​
401k Roth	207,606​	not sure how much are contributions
Roth IRA	136,724​
non qualified Individual	452,097​
Inh IRA	139,811​	have to empty by 2031
inh Roth IRA	26,966​
IRA	11,056​
	1,828,546​

 

[imjustawarrior]

Looks like you are good to go.

Just a few questions to get a better picture of your situation:
How much in SS?
Do you have a pension?
How is your money invested?

I would probably run the calculators to at least 90. A lot can change over the next 30 to 40 years.

If you can really live off of $50k/yr all in (one time purchases like car, taxes, insurance), then your withdrawal rate is less than 3%. You are golden assuming you have reasonable investments.

 

[MichaelB]

This post by Gumby asks some important questions. Some Important Questions to Answer Before Asking - Can I Retire?

 

[silvor]

Looks like you are good to go.

Just a few questions to get a better picture of your situation:
How much in SS?
Do you have a pension?
How is your money invested?

I would probably run the calculators to at least 90. A lot can change over the next 30 to 40 years.

If you can really live off of $50k/yr all in (one time purchases like car, taxes, insurance), then your withdrawal rate is less than 3%. You are golden assuming you have reasonable investments.

SS 19200 yr if I retire today

My pension is valued at $149k
Running the numbers it’s about the same if I cashout and add it to my stash versus take the payout

I’ve run the numbers at
40% large cap
40 large cap value
20% cash

I figure my bond fund is SS.

 

[disneysteve]

What is NQ?

When does the pension kick in?

 

[silvor]

What is NQ?

When does the pension kick in?

Non qualified. Fixed it above for clarity.

 

[Dtail]

Does the 4k monthly expenses include lumpy type expenses such as a new car, new roof, etc?

 

[Al18]

Number look fine.

I’m more concerned about “ I really don't do or buy anything ”

It’s important to have something to retire to!

Start working on that retirement/bucket list.

 

[marinauser]

Not clear to me how much money is in accounts that are easily accessible and not in tax deferred accounts. What do you plan to live on for the next 5 years if you retire now? If you plan on using tax deferred funds like 401k, have you checked to see if you can access those funds and, if so, how?

 

[disneysteve]

Non qualified. Fixed it above for clarity.

Does that mean taxable accounts as opposed to retirement accounts?

 

[Sunset]

I'm amazed and jealous that OP earns $110K per year , but will get a pension of $149K per year !!!!

 

[silvor]

I'm amazed and jealous that OP earns $110K per year , but will get a pension of $149K per year !!!!

No. The total pension value is 149k.

I edited the numbers above.

 

[silvor]

Not clear to me how much money is in accounts that are easily accessible and not in tax deferred accounts. What do you plan to live on for the next 5 years if you retire now? If you plan on using tax deferred funds like 401k, have you checked to see if you can access those funds and, if so, how?

Once I leave the job, I take the 401k accounts with me and I’ll put them at Schwab.

The rest of the money is already at Schwab.

 

[pb4uski]

Looks to me like you have 9 years of spending in taxable accounts and only 5-1/2 years until you have penalty free access to tax-deferred money so you are all set.

What does FIRECalc say your maximum safe spending is?

 

[disneysteve]

Once I leave the job, I take the 401k accounts with me and I’ll put them at Schwab.

That didn't really address marinauser's question. Moving it from a 401k to a rollover IRA doesn't change it's availability. You still can't tap it without penalty until 59.5. The question is how much you have that isn't tied up in retirement accounts. If the 452K in "non qualified" means taxable accounts, than I agree that you're in great shape if you only spend 50K/year.

 

[imjustawarrior]

Silvor,

if your non-qualified individual account is a taxable account, just call it a taxable account. There are different types of non-qualified individual accounts. For example, a non-qualified differed compensation plan is another type. It is pre-tax money whereas taxable account is a non-qualified post-tax account. There is a big difference.

 

[Al18]

If you don’t want to sell your stocks in a down market, most financial planners recommend keeping 3 years of expenses in cash.

 

[ut2sua]

OP,
1- You are good to FIRE now if your expense is truly $50K all in.
2- If you like to travel or have other hobbies, you can even spend an additional 10K->13K per year on those. 63K is a WDR of 3.5% for you. Your $ should last more than 30 years.
3- The 250K you intend to leave to your family should be available then, but nothing is 100% guaranteed since the future could be different than the past. With that said, we human know how to adapt, and you can adjust your spending accordingly to make your $ last.
4- You will want to learn about tax consequences regarding which accounts the $ comes from. Your relatively low spending level is your best friend, and it should not be too difficult to optimize.
Cheers

 

[mrfeh]

Does the 4k monthly expenses include lumpy type expenses such as a new car, new roof, etc?

+1

The first step is having a firm grasp on your expenses.

 

[silvor]

Looks to me like you have 9 years of spending in taxable accounts and only 5-1/2 years until you have penalty free access to tax-deferred money so you are all set.

What does FIRECalc say your maximum safe spending is?

$79k for 100%

 

[Target2026]

There is always the option of using the rule of 55 in an years time for a penalty free access.

 

[Morgan22]

Op could do a 72t from the rollover IRA for penalty free withdrawals if they want to start drawing on IRA's vs taxable. (Just suggesting since it sounds like they want to hold onto the taxable account to pass onto heirs.)

 

[Koolau]

In general terms, it certainly seems like you are good to go. Figuring out the income sources - especially from qualified money could be tricky, but you likely have enough total. SS will be sort of a bonus when you take it.

I agree that accurate expense estimates are key. Having something to "do" in retirement is important as well.

Thanks for sharing here.

 

[simple girl]

What level of MAGI are you targeting for your ACA coverage? I separated our budget out into how much MAGI and non-MAGI $ we needed, and then examined the sources we had for funding those amounts, for ages pre-59.5 and then post 59.5 when we could access our IRA's.

Also, be sure to assess what your cost basis is on your taxable account holdings. About 70% of our funds are capital gains (when selling), which still counts towards MAGI. You also need to factor in dividends, which count towards MAGI.

I track MAGI closely every year and carefully examine where we can sell from.