Hoping to semi-retire at 56.

[CO-guy]

I’ll tell you though there is tremendous freedom in knowing you can walk from a job anytime you want.

Bingo! I've done it twice to my former employer in the past two years --full-time to half-time and now no-time-- and both times it felt incredible knowing that I'm FI.

Awesome that you're interested in coaching and volunteering. I often volunteer with road bike, mountain bike, and trail running races in our area. Sweep and SAG can be fun, but we tend to prefer aid stations. With practice, it takes no time to set up an aid station, so it's easy enough to get a workout in before racers arrive. Then you get to spend a few hours in the shade (often with great views), handing out food, drinks or otherwise helping folks along with their day. Such a great way to spend the day.

Best of luck to you!

 

[Koolau]

What is your cash position, or taxable position? IE, until 59.5, besides your wife's income, where will you draw from?

I see far too many folks here who are financially ready in the big picture, but fall down on this detail.

Also, with 10 years till SS, have you modelled it with a substantial haircut (say, -30%) to be safe in case of potential changes?

I agree completely. We thought we'd covered ourselves cash-wise when we sold a house. The price of the house was not enough to last more than 2 years! We really thought we had planned well. We hadn't. Whatever you think you might need, cash-wise, probably should double it. We only had 1 1/2 years to cover to 59 1/2 - and still ran out of cash. Full disclosure, houses weren't nearly as valuable back then and YMMV.

 

[kirkhaven]

What is your cash position, or taxable position? IE, until 59.5, besides your wife's income, where will you draw from?

I see far too many folks here who are financially ready in the big picture, but fall down on this detail.

Also, with 10 years till SS, have you modelled it with a substantial haircut (say, -30%) to be safe in case of potential changes?

- Cash in HYSA, $120K
- Taxable Brokerage account (in equites and ETFs, would need to sell, 350K)
- Approx $1.1 M in 401k and tIRA. (this would not be touched)
- could access $220K from (1 of my) 401K using rule of 55 (highly unlikely I would need to)

Me and wife are both still working, wife will continue to work with steady income and full benefits (which I can be added). She has no plans to stop working soon. With wife still working, I would likely draw 4-5K month. I can stay in my "3/4 time" current role if I want, and might just to let assets grow a little more.
I have already "retired" from corporate life.

 

[kirkhaven]

Bingo! I've done it twice to my former employer in the past two years --full-time to half-time and now no-time-- and both times it felt incredible knowing that I'm FI.

Awesome that you're interested in coaching and volunteering. I often volunteer with road bike, mountain bike, and trail running races in our area. Sweep and SAG can be fun, but we tend to prefer aid stations. With practice, it takes no time to set up an aid station, so it's easy enough to get a workout in before racers arrive. Then you get to spend a few hours in the shade (often with great views), handing out food, drinks or otherwise helping folks along with their day. Such a great way to spend the day.

Best of luck to you!

Thanks would love to be able to do more of this. The best thing about leaving my corporate role and doing my new (but far less lucrative and sexy part time role) is I can run anytime I want. No more getting up at 5am to get my exercise in so I can get back, get dressed, commute, etc. I just returned from a trip to Durango and ran every day. Running at 7000' elevation is no joke.

 

[NeilDH]

Thank you. This is helpful. This gives me some confidence in our situation

I prefer to use FIRECalc's Investigate tab to solve for safe spending.

I got $119k a year of safe spending at 95.6% success using the following parameters:

• Portfolio of $1,475,000
• Period of 40 years (56 to 96)
• $45,600 per year/$3,800 per month of his SS starting in 2035
• $22,800 per year of her SS starting in 2039 (assumed that hers would be at least half of his)
• Her earnings... $70,000 inflation adjusted pension starting in 2024 offset by $70,000 inflation adjusted off-chart spending starting in 2034 (she retires)
• $3,420 per year/$285 per month fixed pension starting in 2024
• All other asumptions default

I agree this is a good analysis. You had your FIREcalc set to the Bernicke Spending, which I find to be rather conservative spending that probably clinched your 100%, but the above seems more realistic on spending while accounting for income and savings still to come.

 

[kirkhaven]

It's weird, the more I realize we are in a comfortable position, the more I am ok working a little longer. Ideally I really want to stop at $2mil liquid (Not including non liquid assets). I think the fact that I KNOW I can walk away if I want gives me peace each day not to care or let things bother me too much

 

[kirkhaven]

I agree this is a good analysis. You had your FIREcalc set to the Bernicke Spending, which I find to be rather conservative spending that probably clinched your 100%, but the above seems more realistic on spending while accounting for income and savings still to come.

True, and this does not account for her additions to savings (which I did not even include here) and my current income and additions, so if I keep working, numbers should improve each quarter.

 

[Koolau]

It's weird, the more I realize we are in a comfortable position, the more I am ok working a little longer. Ideally I really want to stop at $2mil liquid (Not including non liquid assets). I think the fact that I KNOW I can walk away if I want gives me peace each day not to care or let things bother me too much

Yes. When I reached financial independence (locked in pension and subsidized health care plus my decent sized stash) I realized I could walk out the door any time. I relaxed and enjoyed the ride - until I didn't, and that's when I walked.

 

[TickTock]

It's weird, the more I realize we are in a comfortable position, the more I am ok working a little longer. Ideally I really want to stop at $2mil liquid (Not including non liquid assets). I think the fact that I KNOW I can walk away if I want gives me peace each day not to care or let things bother me too much

Not so weird, really. You are FI, so RE is now up to you - so keep going if you want, pull the parachute and RE when you want.

 

[2029FIREaway]

Enough Cash in taxable is my ‘problem’ too. I have a few short years to fix this

 

[MarieIG]

I see failures in firecalc after 8 or 9 years in. I'm inputting 1,475,000 for your portfolio, 100k spend, plus added yearly SS for you of 45,600 starting 2035, and I'm guessing 1/2 that, or 22,800 (since you didn't mention an amount for her) for your wife starting in 2039.

I'm guessing you're seeing 100% success since you may be adding in your 500k of home equity? You can't spend it, unless you do a reverse mortgage, or sell and rent. Is that the plan?

Another item to think about, what if your wife gets laid off? Will she be able to find a job making the same amount? Or maybe she will want to quit soon seeing that you aren't working and wants to early retire herself.

Just a few things to think about.

I was also thinking the OP's wife's work situation and/or ability or desire to work may change for unanticipated reasons.

 

[kirkhaven]

I was also thinking the OP's wife's work situation and/or ability or desire to work may change for unanticipated reasons.

It’s possible. But again, she works in a high demand profession and completed her masters degree in 2022 in order to do this work. It’s a “new” career for her.

 

[PlayinwithFIRE]

So eerily similar to our situation.

1.5M investments but no mortgage

1 kid in college, 1 about to start next year (have set aside $ for this but have been paying as much as possible without touching). If we manage to not touch this..it would mean our starting investments would be ~ 1.7M but i don't count on it !

I'm 55, wife 54..she works part time for enjoyment but will likely be 1/2 my SS

I'm currently working a job to keep money flowing and to keep us health insured (burn is ~7k/month). I know the next year or so, burn is going up with 2nd kid heading to college..so i'm just doing what i can to limit this anticipated spike in spending in the next year or two to minimize a draw down on investments.

Firecalc says this is sufficient for ~90K spend for (i forget now 40years i think) . However, i usually assume starting SS at 62, and I don't use Bernicke model-just the defaults. For whatever reason. Starting SS early is slightly better than waiting till FRA. Have you examined these 2 scenarios?

 

[Flieger]

You look (to me) to be in really good shape! Key for you to me is our wife is continuing to work and from that you have health care. I assume she is good with continuing?

Healthcare is what is "forcing" me to continue to go in to the salt mine every day. Both wife and I had major health issues over the past couple of years that reaffirmed that requirement.

Flieger

 

[kirkhaven]

So eerily similar to our situation.

1.5M investments but no mortgage

1 kid in college, 1 about to start next year (have set aside $ for this but have been paying as much as possible without touching). If we manage to not touch this..it would mean our starting investments would be ~ 1.7M but i don't count on it !

I'm 55, wife 54..she works part time for enjoyment but will likely be 1/2 my SS

I'm currently working a job to keep money flowing and to keep us health insured (burn is ~7k/month). I know the next year or so, burn is going up with 2nd kid heading to college..so i'm just doing what i can to limit this anticipated spike in spending in the next year or two to minimize a draw down on investments.

Firecalc says this is sufficient for ~90K spend for (i forget now 40years i think) . However, i usually assume starting SS at 62, and I don't use Bernicke model-just the defaults. For whatever reason. Starting SS early is slightly better than waiting till FRA. Have you examined these 2 scenarios?

I’m waiting to FRA as of now because I was the higher earner. I will continue to work-at least for a little while- in my downsized role just because it’s easy and prevents any withdrawal of investments. Fortunately I’ll be able to go on her insurance when I decide to stop working completely.

 

[kirkhaven]

You look (to me) to be in really good shape! Key for you to me is our wife is continuing to work and from that you have health care. I assume she is good with continuing?

Healthcare is what is "forcing" me to continue to go in to the salt mine every day. Both wife and I had major health issues over the past couple of years that reaffirmed that requirement.

Flieger

Thanks. Yes she definitely wants to work. She is new to the workforce as she was a stay at home mom when our kids were younger. She went back to earn a masters degree for her therapist job, and definitely wants to work as she just started 2 years ago. Fortunately I’ll have insurance option through her when I need. She works for a hospital so benefits are good in that respect.

 

[PlayinwithFIRE]

I'll ask again.

For me, starting SS early is slightly better than waiting till FRA. Have you examined these 2 scenarios?

 

[kirkhaven]

I'll ask again.

For me, starting SS early is slightly better than waiting till FRA. Have you examined these 2 scenarios?

The two scenarios are similar in success rate (depending on inputs within 2-3%)

 

[PlayinwithFIRE]

Thank you-is the 2-3% the reason to wait till FRA then?

PWF

 

[kirkhaven]

I was waiting to take advantage of spousal benefits, should I die before my wife. I was the higher earner during our working lifetime.