Early Retirement just a year away?

[icono5]

Hello, all!

I've been lurking on this site for a couple of years now, after spending lots of time on TMF. As its discussion forums focused less and less on *actual ER topics, I shifted my focus over to here. Now I'm outing myself.

I just turned 55--and am happy for the magic of the "Rule of 55" with my 403(b). I've been taking work one year at a time--and plan to do that for one more. I teach at a regional public university in the American Midwest. Widower, one college-aged daughter.

I have a mix of idealism/iconoclasm (which inspired my ER dream beginning more than 20 years ago) and decent math/saving/investing skills. Though I've always had modest earnings, I'm up to about $1.1 million in liquid assets. The figure includes about $700K between my 403b (defined contribution) and my IRAs (mostly traditional). The other approx. $400K, all outside retirement accounts, is divided between index mutual funds in a brokerage, I-bonds, a few "fun" stock holdings, and some cash for regular expenses. I've been debating at what age to take SS. Will *not have employer-funded health insurance, so that's a wild card.

Thanks for all of the smarts and strategies on this board, as well as the accountability mechanism. That is: I'm saying "one more year"--so please hold me to it.

icono5

 

[street]

Good for you and a date is set for one more year. Looks like you did very well preparing yourself for ER. I also agree with all the knowledge here it will make your exit very easy. When I look back, I was so fortunate to find this site for questions and answers.

Please keep us informed on your journey.

 

[disneysteve]

Welcome. I'm pretty new here myself but the wealth of knowledge here is fantastic.


Regarding health insurance, someone here turned me on to healthsherpa.com. Head over there to figure out what insurance is going to cost you.

 

[Dash man]

Be sure to check into those healthcare costs so you know what you’re getting into. A lot of people here manage their income to get subsidies, so if you have questions, post them.
Welcome to the forum!

 

[pacergal]

Welcome to the forum!
This last year of work is a great time to review everything: budget, healthcare, income plan, etc.
Many folks here have much wisdom on all subjects, ask away!

 

[ImThinkin2019]

Welcome!

As a professor perhaps you can give me a less than satisfactory grade because my username suggests that I should be retired but I'm still at it, for probably one more year. Am at part time and consulting right now.

I found this forum looking for retirement planning. Tried firecalc, liked it, and started reading. Wealth of information and plenty of dry humor.

Let us know how you are making out.

Cheers!

 

[RxMan]

Welcome and good luck getting through the final year of work. It sounds like you are well prepared for the next stage of your life.

 

[Vacation4us]

What is your budget? If your expenses match your SWR your golden. Healthcare seems to be the biggest obstacle for most early retirees so definitely have a good idea of the costs.

As a teacher do you get a pension?

 

[icono5]

Brief reply

Thanks, folks, for the greetings and well-wishes! Financing health care post-retirement has been my biggest concern for a while now. I monitor legal developments with the ACA pretty closely. I'll have to look more into healthcare.gov.

Vacation4us: Good questions. I'll have a pension through work, but it's defined contribution, rather than defined benefit. So I'm thinking of it (for the most part) as an analogue to my traditional IRAs. The value of that pension, which has been vested all along, just gets added on to my liquid net worth.

My current expenses are roughly 35-40K/year. I'm within the 4% rule of thumb, but I'll want to benefit from an ACA subsidy.

icono5