I retired in June at 50. DW (48) transitioned at the same time to half-time. Her current income ($3500/month) matches our current expenses (minus college—early retired with three kids in college—defies most people’s expectations). College is being paid for with some college loans, kids paying a bit, and us covering the rest. We expect 403(b) and ROTH contributions to reduce/end due to decreased salary. Her continued employment is a yearly decision; she is fortunate in that she enjoys her job for the most part.
What we’ve got:
$900K retirement accounts
$200K non-retirement
$725K house, paid off
We can expect a bit of pension each at 55 ($2500/month or so, total), and currently plan to take SS at 62 ($2000/month or so, and could possibly postpone this if expenses are being covered elsewise). Firecalc says things look good (90-100% depending on the parameters), and a Fidelity RIP shows smooth sailing ahead, with a bit of a dip in principal over the next five years but then settling and likely growing.
It is a bit of a crap shoot. There are things that could go wrong and we’d have to decide how to deal with them, but we feel we have many options. Downsizing the house as the kids are leaving, minimizing expenses, working more. If DW stops working, health care would be some sort of catastrophic care plan. Our health is excellent. We’ve been planners for our 27 years together and continue to do so, but would like to have more time now to enjoy life rather than putting it off too long . . . “one more year” . . . that sort of thing. It seems like a better adventure to jump in, tread carefully, and see what happens then to be overly cautious.
Anyway, nice to have this sounding board. I look forward to some viewpoints I have not previously considered.
What we’ve got:
$900K retirement accounts
$200K non-retirement
$725K house, paid off
We can expect a bit of pension each at 55 ($2500/month or so, total), and currently plan to take SS at 62 ($2000/month or so, and could possibly postpone this if expenses are being covered elsewise). Firecalc says things look good (90-100% depending on the parameters), and a Fidelity RIP shows smooth sailing ahead, with a bit of a dip in principal over the next five years but then settling and likely growing.
It is a bit of a crap shoot. There are things that could go wrong and we’d have to decide how to deal with them, but we feel we have many options. Downsizing the house as the kids are leaving, minimizing expenses, working more. If DW stops working, health care would be some sort of catastrophic care plan. Our health is excellent. We’ve been planners for our 27 years together and continue to do so, but would like to have more time now to enjoy life rather than putting it off too long . . . “one more year” . . . that sort of thing. It seems like a better adventure to jump in, tread carefully, and see what happens then to be overly cautious.
Anyway, nice to have this sounding board. I look forward to some viewpoints I have not previously considered.