I'm 55 and recently made a decision to RE. But now I'm scared. Here's my story. Will I be alright?
Two years ago my employer offered a "severance package" to anyone who volunteered to quit. For me, the "package" is about 42 week's pay ($70K). I thought long and hard about taking it but I let it pass. A couple of weeks ago I received the offer again. This time I bit. I'll be retiring in April. But now I'm suffering feelings of panic. The downturn in the market isn't helping.
Here's my financial picture. Will I make it?
I have $1.8M in stock/bond funds (50/50%). (I had $1.9M until recently.) No debt. I'll have a pension of $1100/mo. Health insurance is part of the retirement plan but will still cost about $300/mo (I'm single). I own my modest home. I typically spend about $18,000 per year but I'd like to spend a little more. Looks pretty good, no? Then why am I scared? I think it's because I've never been without a constant paycheck. I only know how to put money into the bank, not take it out.
To prove I'm going nuts, I'm actively preparing a resume and searching job sites on the web. But I'm not sure why. Shouldn't I have enough to make an inflation adjusted $50,000 per year for the next 35 years? What am I missing?
I have a choice to make. What would you do? I can take my pension at $1100/mo forever. Or I can choose to start with $2200/mo until age 62. Then $500/mo after that. This would generate a monthly income starting now that's about equal to social security at age 62. That way I'd have a "level" monthly income for life. Which would you choose?
Thanks for "listening" to my story!
Two years ago my employer offered a "severance package" to anyone who volunteered to quit. For me, the "package" is about 42 week's pay ($70K). I thought long and hard about taking it but I let it pass. A couple of weeks ago I received the offer again. This time I bit. I'll be retiring in April. But now I'm suffering feelings of panic. The downturn in the market isn't helping.
Here's my financial picture. Will I make it?
I have $1.8M in stock/bond funds (50/50%). (I had $1.9M until recently.) No debt. I'll have a pension of $1100/mo. Health insurance is part of the retirement plan but will still cost about $300/mo (I'm single). I own my modest home. I typically spend about $18,000 per year but I'd like to spend a little more. Looks pretty good, no? Then why am I scared? I think it's because I've never been without a constant paycheck. I only know how to put money into the bank, not take it out.
To prove I'm going nuts, I'm actively preparing a resume and searching job sites on the web. But I'm not sure why. Shouldn't I have enough to make an inflation adjusted $50,000 per year for the next 35 years? What am I missing?
I have a choice to make. What would you do? I can take my pension at $1100/mo forever. Or I can choose to start with $2200/mo until age 62. Then $500/mo after that. This would generate a monthly income starting now that's about equal to social security at age 62. That way I'd have a "level" monthly income for life. Which would you choose?
Thanks for "listening" to my story!