HI I'm new from West Tennessee and would like feedback on retiring soon!

[bigriver]

I'm divorced and will be 54 this summer and in good health. House and older vehicles are paid off.

I think I can retire. I am burned out at work and none of my friends or family will give me advice and I don't blame them.

I have been investing since I was in my 20's and last fall came to the realization that I might be able to retire. Got an initial review from Ameriprize last fall and they gave me an 80 something percent chance of making it until I'm 100 yr old. I think 88 yr old is realistic.

House currently worth 170k, I have 110k in the bank, 685k in stocks and mutuals, 520k in rollover IRA and 445k in my company 401k. Small pension of 4,200yr when I hit 65. I keep everything invested in stocks no bonds.



Don't know when to take SS, 62, 65? I am worried about healthcare but will probably take major medical on marketplace since I'm in pretty good health and what you save in premiums will pay the deductible. Any thought on SS and healthcare?

Last 2 years of unbudgeted spending has been about 50k. I think it will be more like 35k and I will likely get a part time job or do consulting.

I'm just scared of the First Big Step. I would appreciate any feedback and thoughts since I don't talk to too many people about this.

 

[MBAustin]

Welcome big river! If you haven't found them already, we have a helpful list of things to consider that may be helpful:

Some Important Questions to Answer

Also check out FIREcalc (link at the bottom of each page). Most of us here wouldn't advise using Ameriprise due to their fees. There are lots of helpful people here when you have specific questions.

You are absolutely in good company here - it's very natural to be scared of the giant leap and many of us have been there and will say we're glad we did it.

 

[WyomingLife]

Welcome; we feel your pain.

Your burn rate seems imprecise. Once you nail that down, it will be easier to provide advice.

 

[davebarnes]

Got an initial review from Ameriprize last fall

If you paying any money to Ameriprise, read this https://humbledollar.com/2020/02/counting-the-costs/

 

[travelover]

Welcome. I'd start by ditching Ameriprise. They will gouge you on the way out, but you'll be happy anyway when you realize what they are charging you.

You seem to have a good amount of your stash in after tax accounts. That allows you to manage your taxable income and qualify for subsidized heath care insurance. You can get a good idea of heath care insurance costs at HealthSherpa.com.

Go though your past few years of spending with a fine tooth comb and figure out what you really spend plus any known future expenses like kids tuition, new roof, etc.

Run the Firecalc program to get some confidence in your chances. Fidelity also has a free one that is good.

 

[pacergal]

Welcome!
I have found members here to be very helpful. If you are comfortable with the questions from MBAustins link, that will give you a good head start to your search if you are ready to retire.
Based on what you have posted with your savings and approx. spend, it looks like a very conservative 3% withdrawal would cover you.
There are experts here on taxes, withdrawal strategies, insurance, etc. Ask away!

 

[bigriver]

Thanks! will review the articles and run firecalc.
I got out of Ameriprise as fast as I got in there.

 

[Blue531]

From the information you provided, you currently have a Net Worth of $1.93 million dollars. Your yearly budget is $50k. Going by the 4 percent rule, you need a minimum of 25x your yearly expenses which would be 25 x $50,000 which comes to $1.25 million. Even if you are really conservative and use 33 as your multiplier, your need would be $1.65 million. Clearly, $1.93 million is greater than $1.65 and $1.25 million which means you have enough.
There are many resources online that can help you to come to this understanding on your own. Moneychimp has a great 401k and compound interest calculator. Mr. Money Mustache has a great article about the Trinity study and it sizes up how they came to the conclusions about the 4 percent rule and how long your money is likely to last.
On another note, I, myself had to go through this process of deciding if I had enough about two years ago. I was 53 at the time. I was burned out at work, too and my health was affecting my ability to do my job. I had already planned to retire in a few years but could see that I would not last. I have to say that the hardest part was not figuring out if I had enough. The hardest part was letting go of the idea that I needed to keep working full time to pay for everything. I made a compromise to work part time and I make a third of what I used to make, which is just enough to pay my low expenses. I only work 19 hours a week. I did this because I'm still so young and am trying to adjust to the change. It is such a drastic change on one's mindset to go from working and saving and getting a paycheck to all of a sudden living off of all the savings you've worked so hard for. But, in the end, that is what it is there for. I am glad I did it this way because it gave me so much peace of mind because the whole thing was quite stressful. Now, a year and a half into it, I have adjusted. My work is not physical and I've got my expenses down to a "T". I have lots of free time and my job is so much less stressful. I think I will be ready (mentally) to step out of the working world altogether possibly by the end of this year at the age of 56. This is when I will begin to live soley off of my own reserves. Slowly transitioning into part time work may help you as well while you try to adjust.
I hope this helps you in some way. The burn out is real. Life is short. In all the reading I have done, I came across so many people realizing later on that they could have retired so much sooner than they did. I took my situation as a sign that the universe was trying to tell me something. Good luck with your decision. I had to dwell on mine for at least six months and ran the numbers and scenarios over and over. The bottom line for me was that, the worst case scenario was that I would have to go back to full-time work. That isn't going to be necessary. I'm sure now that I'll be just fine. Another thing that helped and I think, by the impressive saving you've done that you fall into this category, too is...I came to understand that it was my discipline and resourcefulness that got me to this wonderful situation financially and that I don't need to fear the future because that resourcefulness is always going to be there. Yours will, too! Best to you!

 

[Dtail]

Use Firecalc, but fro the info you already provided, you should be good to go.
You might be the first pf your friends to retire, but don't let that stop you.
It will be the best part of your life.
I retired 2.5 years ago at 57 y.o. and am never bored.

 

[Yoheadden]

Congrats Bigriver on getting to this point.
It sounds like you are good to go, but as others have already said, run the numbers on FIRECalc and Fido. Try to lock down your expenses to see what you are actually spending and on what. How do you picture yourself in semiretirement? (You said you would still work part time or consult) With all the free time, some people spend more once they are retired. This would be the only way to confirm what you are already thinking and give you the piece of mind to make the jump.

As mentioned in other threads, it can be difficult to discuss early retirement with family, friends and coworkers. Some can be jealous and some just won’t understand how it is possible to retire before 65.

Everyone here has either been in your shoes, are in your shoes or are planning to, one day, be in your shoes. This is a great community to ask questions and share information .

 

[GR111]

Congratulations and welcome! Great advice from wise and experienced people in this forum. I retired less than a year ago at age 56. I anguished for months, then gave a 6 month notice per company policy and anguished more. But on my last day as I drove out of the parking lot something wonderful happened- freedom! This has been the best phase of my life.

 

[bigriver]

Thanks again and I've run FIREcalc over and over with no SS based on how long I think I will live. I think I will be ultra conservative the first year. I do think I need to have a part time gig to stay busy and out in the world.
I appreciate what Blue 531 has to say, I can really relate, but I can't get this through my head. "The bottom line for me was that, the worst case scenario was that I would have to go back to full-time work."

 

[VanWinkle]

Welcome here bigriver, you look good to go financially, but you might still have a few emotional considerations. I think reducing to part time work might be a good transition for you to settle some of the emotional distress you are feeling. I am interested in your western Tennessee area for relocation at some time. What are you close to in western Tennessee if you don't mind sharing?

VW

 

[bigriver]

Happy to share VanWinkle, I'm a flatlander about 20 minutes east of Memphis. Have the other half of the Fam outside of Knoxville, beautiful part of the state, but really expensive now. A lot of people are retiring there.

 

[cnocmmz]

Good day and congrats on your retirement. I would just say the key word these days is "cautious." The market is down over 4000 points off it high (in just 4 days) and still dropping as of today. If you are just living off of your investments just bare caution.
All the best