FIRE away! Resigned/Retired today (3/21/2025) - Numbers listed

[RamStride]

I agree with the rest, your numbers look good to go. Having house paid off, cars paid off, no other debt, and a decent pension income gives you a low withdrawal rate. You do have a good amount of savings, and that will continue to grow. Your bigger problem may become the tax torpedo from RMDs.

Enjoy retirement and the rest of the year getting paid to stay away from work.

Thanks. I have been reading here and on the internet about how to deal with RMD's. I have a client version of Right Capital that provides a good idea on how to approach RMDs to minimize taxes.

 

[RamStride]

If I read correctly, your SS is the higher one, so I think you should wait until age 70 to collect your SS, because if you both live long, you win. If you die first, you still win as the much higher SS will compensate for the dramatic drop in pension for wife.
Remember, because you die, expenses only drop ~20% not 50%.

I will consider waiting longer to 65, 67 or 70 for me. As we get closer to those years we will take a look at the financial and health standing at that time.

The next few years are the ones that worry me having just FIRE'd and 'far' from getting SS. Also, when I turn 62, I lose the FERS supplement amount of $1750/mo.

As a result, I am considering having DW start SS in 2028, three years from now, when she turns 62. She is 2.5 years older than me.

 

[38Chevy454]

By delaying your SS several years, and withdrawing more from your savings, that will help reduce RMD in the future. Yes it is kind of twisted logic, but your bigger withdrawals earlier will spend down the savings, and then increased SS later can offset the need for larger withdrawals later; plus minimizing those RMDs, whether you want to take them or not.

You can also do some Roth conversions to help minimize RMDs, but that is really just a calculation and bet on tax rates now vs future.

 

[RamStride]

Congratulations! Your financial situation looks OK to me. [...] I also retired at 56, with invested funds similar to yours but without any pension. But I'm single.

This is good for me to see because I am worrying about the decision to retire early.

 

[FlyingCircus]

You have zero debt, your house is paid off, and you're making 50% more in pensions than I will be after 27 years at a F100 insurance company. Your expenses are 2/3 of mine (I have a reasonable $2200/mo mortgage+proptax+insurance). Congratulations: you're all set!

 

[street]

Numbers look good and I wish you well in ER. You will find your way and a new routine and journey in the future.

 

[aimee750]

Congratulations and I hope your retirement is going well!

 

[RamStride]

Thanks for the review. I am still trying to figure a good ER routine. But I still worry daily about the whole retirement stuff. Will take it one day at a time.

 

[Koolau]

Thanks for the review. I am still trying to figure a good ER routine. But I still worry daily about the whole retirement stuff. Will take it one day at a time.

Just plan on being flexible about all aspects of your life - from financial to daily routine. As you say "Take it one day at a time" is a great attitude. I think you will be just fine! Enjoy.