howdy

[mrfeh]

Hi folks!

Just announcing myself as a new user. Found out about this site via bogleheads.org. My wife and I (we have a 13 year old son) are on track for early retirement. At least I think we are!

Eventually, I'll be interested in lifestyle issues as we get closer to actually retiring, but for now I'm most concerned about the financial aspects of reaching our "number" and determining if that number will be enough.

I've used firecalc to run simulations. Is there a standard way to post assets and other data to get opinions on what our number should be?

Thanks.

 

[omni550]

Welcome aboard, mrfeh.

"get opinions on what our number should be" - if you are asking about what your percentage drawdown should be, that is dependent on your anticipated expenses in retirement ...and you would be the best guess-timator of that.

omni

 

[mrfeh]

Welcome aboard, mrfeh.

"get opinions on what our number should be" - if you are asking about what your percentage drawdown should be, that is dependent on your anticipated expenses in retirement ...and you would be the best guess-timator of that.

omni

I was actually referring to what our total portfolio value should be before ER, but the drawdown percentage is obviously relevant.

Should I post our finances in this thread, or start a new one?

 

[rodi]

Welcome.

I assume you mean number in the ING marketing campaign: "what's your number" sense... (How much do you need to retire.)

As far as posting assets... There are no hard rules. (I know bogleheads has a preferred format - and some folks use that here.

And for calculating your "number"... you need to post annual expenses (estimated, anticipated, or actual). Plus the age you intend to retire, whether you are single, married, have minor kids, etc... No way to determine the size of the nest egg without that kind of info.

 

[mrfeh]

And for calculating your "number"... you need to post annual expenses (estimated, anticipated, or actual). Plus the age you intend to retire, whether you are single, married, have minor kids, etc... No way to determine the size of the nest egg without that kind of info.

Ok, here we go:

personal info

• 47 years old
• married (wife same age)
• one son, 13 years old

income

• his salary: $110K
• her salary: $0 (at this time)
• LLC income (varies, but was $20K last year)

expenses

• annual living expenses: roughly $40K

annual savings

• $20K to 401K (that includes employer match)
• $10K to IRAs
• $0-20K to taxable account per year, depending on cash flow

assets

• home: $320K
• vehicles: $30K
• 529: $65K (we consider this fully funded)
• company stock: $100K
• taxable investment account: $600K
• 401K: $120K
• IRAs: $500K
• IBonds: $10K
• total investments for retirement: $1.22M
• asset allocation: 44/22/25/9 US equities/int'l equities/US bonds/REIT

debts

• none, house paid off

potential increases to income

• Wife is planning on re-entering work force this fall. No way to estimate possible salary right now.
• Own 1% of company I work for (which is an LLC). Company growth is good, annual income likely to increase. Possible sale of company down the road? Could potentially be a 6 figure payday.
• Social Security. I can look up our estimated payments if anybody is interested.

potential increases to expenses

• Mother is 69 and still working; does not have enough savings for retirement and cannot live on SS alone. She owns her home, however. I have a sister that would likely be able to contribute also, but I'm expecting my mother will need some financial aid.

other notes

• Once son is off to college, planning on moving to a different state with better weather. Chances are good we'll downsize.

 

[mrfeh]

Anybody want to make an estimate as to what number I need to shoot for, or at what age I could possibly retire? Am I missing any major considerations?

Thanks.

 

[REWahoo]

Anybody want to make an estimate as to what number I need to shoot for, or at what age I could possibly retire?

This forum is pretty good at providing feedback given your financial situation and targets, then being asked "Will this work?". We don't have much of a track record working the other side of the equation. I think you are the only one who can and should answer those two questions, especially the second one.

 

[pb4uski]

Anybody want to make an estimate as to what number I need to shoot for, or at what age I could possibly retire? Am I missing any major considerations?

Thanks.

Run your numbers through Quicken Lifetime Planner (included in Quicken Deluxe and higher). It is a very intuitive easy-to-use planner and covers a lot of bases.

 

[rodi]

Just a quick run with firecalc - plugging in 40k spending and 1.22 nest egg - 45 year retirement... gets 99%.
That does not include other sources of income (like SS).

Of course that doesn't do the math on pre-59.5 and post 59.5 spending money. You should probably check out i-orp.com for that.

At this point - you're pretty close - if your spending stays at $40k

(Does that 40k include taxes - if not - you need to up it to reflect taxes.)

 

[obgyn65]

Welcome to the forum, OP.