Old Crow
Dryer sheet wannabe
Hello, long time listener first time caller.
I just turned 57 last week, married, wife is 64. Kids are grown and gone.
I'm a Mechanical Engineer, DW is/was Medical Technologist that's retiring next week.
We have no debt, house has been paid for for about a decade, no car loans. I maintain the house and vehicles myself (lifelong DIY'er). I keep a detailed spreadsheet of our spending and our largest expenses are the weekly trip to the grocery store followed by property taxes, $400 and $190 per month respectively.
We have about $1,400,000 saved (for retirement?) split 75/25 between qualified accounts and after tax savings with the qualified accounts generally invested in targeted retirement year funds (2020 for example). The after tax money is in CD's, MM's and a low interest checking account. Returns on our qualified accounts haven't been stellar this year and we're actually only up a couple of percent YTD.
Like many others here my wife and I have lived well below our means and enjoy the security provided by our savings. We don't seek more things hoping they will make us happy.
We're planning on waiting until DW is 66 (FRA) to begin drawing her SS ($1,500 per month). I have 10 years until my FRA and am planning to delay SS for me until then ($2,800 per month). I'll begin collecting a $480 per month pension in 3 years.
I've checked out the plans available on the ACA website in our area and it looks like healthcare will cost us about $600 per month for the top of the line plan if we stay below the income requirements for a married couple in order to qualify for credits.
Overall, if I were to retire January 1, 2019 we would require $3,000 per month drawn from our qualified accounts over the next 24 or so months in order to continue living as we have been. This amount includes paying for healthcare through the exchange. DW's first SS check will arrive October 2020, then my modest pension the following November. Combined, these will reduce the withdrawals from our qualified accounts by almost $23k per year.
So, after a lifetime of living below our means and saving for the future we're struggling with the idea of walking away from the financial security that steady employment has given us for so long. As stated earlier, DW is retiring but she's been working part time for about a decade, so the struggle is whether or not I should follow her shortly after and begin living off of passive income. BTW, I don't hate my job but am tired of dealing with corporate weasels and am looking forward to spending my remaining time as I see fit (hobbies, remodeling, & grand kids). I also have a couple of P/T job opportunities in my field but I'd rather do something other than engineering (maybe work for a micro brewery).
I'm looking for advice from those who've gone before me in similar circumstances.
Does it make financial sense to RE?
Thanks
I just turned 57 last week, married, wife is 64. Kids are grown and gone.
I'm a Mechanical Engineer, DW is/was Medical Technologist that's retiring next week.
We have no debt, house has been paid for for about a decade, no car loans. I maintain the house and vehicles myself (lifelong DIY'er). I keep a detailed spreadsheet of our spending and our largest expenses are the weekly trip to the grocery store followed by property taxes, $400 and $190 per month respectively.
We have about $1,400,000 saved (for retirement?) split 75/25 between qualified accounts and after tax savings with the qualified accounts generally invested in targeted retirement year funds (2020 for example). The after tax money is in CD's, MM's and a low interest checking account. Returns on our qualified accounts haven't been stellar this year and we're actually only up a couple of percent YTD.
Like many others here my wife and I have lived well below our means and enjoy the security provided by our savings. We don't seek more things hoping they will make us happy.
We're planning on waiting until DW is 66 (FRA) to begin drawing her SS ($1,500 per month). I have 10 years until my FRA and am planning to delay SS for me until then ($2,800 per month). I'll begin collecting a $480 per month pension in 3 years.
I've checked out the plans available on the ACA website in our area and it looks like healthcare will cost us about $600 per month for the top of the line plan if we stay below the income requirements for a married couple in order to qualify for credits.
Overall, if I were to retire January 1, 2019 we would require $3,000 per month drawn from our qualified accounts over the next 24 or so months in order to continue living as we have been. This amount includes paying for healthcare through the exchange. DW's first SS check will arrive October 2020, then my modest pension the following November. Combined, these will reduce the withdrawals from our qualified accounts by almost $23k per year.
So, after a lifetime of living below our means and saving for the future we're struggling with the idea of walking away from the financial security that steady employment has given us for so long. As stated earlier, DW is retiring but she's been working part time for about a decade, so the struggle is whether or not I should follow her shortly after and begin living off of passive income. BTW, I don't hate my job but am tired of dealing with corporate weasels and am looking forward to spending my remaining time as I see fit (hobbies, remodeling, & grand kids). I also have a couple of P/T job opportunities in my field but I'd rather do something other than engineering (maybe work for a micro brewery).
I'm looking for advice from those who've gone before me in similar circumstances.
Does it make financial sense to RE?
Thanks