MercyMe
Recycles dryer sheets
- Joined
- May 7, 2022
- Messages
- 228
A big hello to everyone on this incredible forum!
My spouse and I have lived well below our means since we got married nearly three decades ago. In recent years we've saved more than 70% of our income and now we're starting to feel a bit too frugal. We're in our early 50's and in good health. So much of life has passed us by while we've been working long hours running a small business that we both hate and love. We've been largely self-guided in our investments for the last decade, and I developed a strong interest in retirement planning several years ago. Like many, I've used FireCalc, Flexible Retirement Planner, Fidelity, i-ORP, and a host of spreadsheets to work on our goals, risks, and progress.
We want to retire at the end of 2023. Our current nest egg looks like this...
Taxable $3,119,000
VTIAX $360,000
VTSAX $335,000
VTMSX $147,000
Cash $1,160,000
CD's $573,000 (at roughly 3%)
MYGA's $504,000 (at roughly 3%)
i-Bonds $40,000
Tax Free $71,000
VTSAX $31,000 (HSA) - we were a little late to this party
VTSAX $40,000 (Roth) - a bit late on this as well
401k $1,710,000
VBTLX $590,000
VWIAX $1,120,000
Current Total Assets: $4,900,000 - not including our business
Remaining 2022 and 2023 Paychecks/Business Withdrawals: $800,000
After-Tax Net Amount from Sale of Our Business: $1,100,000 (will be sold before retirement)
Total EOY 2023 Assets: $6,800,000 (+/- any market gains/losses)
Age at EOY 2023: 52 (both of us)
Debt: None
Children: None
Other Sources of Income: None
Combined Social Security at 70: $62,000 (though we use $40k in our planning)
Plan to Die with: $ZERO (otherwise, assets will go to a local charity)
Life Expectancy: 85 him/87 her (but planning for 92 for us both)
Current Status
New 401k contributions are currently going into a money market fund, and remaining salary money is currently going into bank accounts and MYGA's. Our IPS calls for dollar cost averaging into VTSAX (in the taxable account) and VWIAX (in the 401k) but we're a bit too uncomfortable with that at this time. You might be wondering what is the point of having an IPS if we're not going to follow it. I don't know what to say. We're just too close to retirement to risk much in a very strange market. Like many others, we've taken a bit of a beating this year.
Current Average Annual Spending (based on 9 years of keeping track)
Essential: $55k per year including ACA health insurance
Discretionary: $15k
Donations: $10k
Planned Retirement Spending
(first 28 years, age 53 to 80)
Essential: $55k per year including ACA health insurance/Medicare
Discretionary: $45k
Donations: $10k
Taxes: $25k
Fudge Factor: $10k
Total: $145k
Once we reach 80 years of age, we estimate that our discretionary spending will drop by $30k.
Miscellaneous Info
We have not counted the value of our home in the total assets listed above. The value of the house is $700k and we plan to use this toward self insuring LTC. As you can tell by our 27% stocks - 50% bonds - 23% cash allocation, we tend to be extremely conservative. We do plan to do a good bit of Roth conversions right after we retire.
Questions
1. I'm sure some would have plenty of concern about our low risk AA, but we're not overly worried about it. However, we are a bit unsure of our mutual fund mix. We would like to add a REIT fund to the 401k (we can do that since we are the plan admins), but are unsure if now is a bad time to invest in a REIT. If not, which one and what percent of our assets should go in there?
2. We don't have any TIPS funds. What funds should we be looking at, what percentage of assets should be in TIPS, and in what account?
3. What are we doing wrong?
Here is our Firecalc entry. I'm pretty sure I got it entered correctly, but if anyone finds a mistake, I'd welcome and appreciate suggestions.
My spouse and I have lived well below our means since we got married nearly three decades ago. In recent years we've saved more than 70% of our income and now we're starting to feel a bit too frugal. We're in our early 50's and in good health. So much of life has passed us by while we've been working long hours running a small business that we both hate and love. We've been largely self-guided in our investments for the last decade, and I developed a strong interest in retirement planning several years ago. Like many, I've used FireCalc, Flexible Retirement Planner, Fidelity, i-ORP, and a host of spreadsheets to work on our goals, risks, and progress.
We want to retire at the end of 2023. Our current nest egg looks like this...
Taxable $3,119,000
VTIAX $360,000
VTSAX $335,000
VTMSX $147,000
Cash $1,160,000
CD's $573,000 (at roughly 3%)
MYGA's $504,000 (at roughly 3%)
i-Bonds $40,000
Tax Free $71,000
VTSAX $31,000 (HSA) - we were a little late to this party
VTSAX $40,000 (Roth) - a bit late on this as well
401k $1,710,000
VBTLX $590,000
VWIAX $1,120,000
Current Total Assets: $4,900,000 - not including our business
Remaining 2022 and 2023 Paychecks/Business Withdrawals: $800,000
After-Tax Net Amount from Sale of Our Business: $1,100,000 (will be sold before retirement)
Total EOY 2023 Assets: $6,800,000 (+/- any market gains/losses)
Age at EOY 2023: 52 (both of us)
Debt: None
Children: None
Other Sources of Income: None
Combined Social Security at 70: $62,000 (though we use $40k in our planning)
Plan to Die with: $ZERO (otherwise, assets will go to a local charity)
Life Expectancy: 85 him/87 her (but planning for 92 for us both)
Current Status
New 401k contributions are currently going into a money market fund, and remaining salary money is currently going into bank accounts and MYGA's. Our IPS calls for dollar cost averaging into VTSAX (in the taxable account) and VWIAX (in the 401k) but we're a bit too uncomfortable with that at this time. You might be wondering what is the point of having an IPS if we're not going to follow it. I don't know what to say. We're just too close to retirement to risk much in a very strange market. Like many others, we've taken a bit of a beating this year.
Current Average Annual Spending (based on 9 years of keeping track)
Essential: $55k per year including ACA health insurance
Discretionary: $15k
Donations: $10k
Planned Retirement Spending
(first 28 years, age 53 to 80)
Essential: $55k per year including ACA health insurance/Medicare
Discretionary: $45k
Donations: $10k
Taxes: $25k
Fudge Factor: $10k
Total: $145k
Once we reach 80 years of age, we estimate that our discretionary spending will drop by $30k.
Miscellaneous Info
We have not counted the value of our home in the total assets listed above. The value of the house is $700k and we plan to use this toward self insuring LTC. As you can tell by our 27% stocks - 50% bonds - 23% cash allocation, we tend to be extremely conservative. We do plan to do a good bit of Roth conversions right after we retire.
Questions
1. I'm sure some would have plenty of concern about our low risk AA, but we're not overly worried about it. However, we are a bit unsure of our mutual fund mix. We would like to add a REIT fund to the 401k (we can do that since we are the plan admins), but are unsure if now is a bad time to invest in a REIT. If not, which one and what percent of our assets should go in there?
2. We don't have any TIPS funds. What funds should we be looking at, what percentage of assets should be in TIPS, and in what account?
3. What are we doing wrong?
Here is our Firecalc entry. I'm pretty sure I got it entered correctly, but if anyone finds a mistake, I'd welcome and appreciate suggestions.
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