I'M GINGER

[Ginger]

Hi, Brand new to the board. I am 57 and my husband will be retiring in October at age 60. He will be receiving a government Cola pension (no social security down the line for him, but I will take early Social Security). I will go on his medical plan once he retires (and pay the monthly premium). Right now, my company pays total medical for me. I work full time as a paralegal and hoping to retire in October too. My husband's hobby in his younger years was the stock market. So we will have assets over $1 million. Our home is fully paid for and worth approximately $550,000. I really want to retire and tired of the law office grind, rigid personalities, office mentality, etc. I don't want to tap into my IRA's until I am 59 1/2 so I have cash accumulated to meet monthly expenses for two years until I can tap into my IRA account. I have enjoyed John G.'s postings and have learned so much by reading all the posts, suggestions, books mentioned. Is my dream going to be a reality?

 

[Ginger]

My husband has always worked for the Government so he will be just getting a pension based on 2.7% at 55, which works out to something like 70% of his salary. I don't believe he would be able to get half of my social security at age 62 (unless I died). Someone correct me if I am wrong.

 

[Ginger]

I am sitting at my desk crunching numbers to see if I can retire in October when my husband retires. We have always lived a simple life -- no cell phones, no cable tv (no want for it at this point), etc., etc. Kind of like the million next door syndrome. Most of our funds are in stocks. That worries me a bit, but not my husband. We will start transferring over funds in our retirement accounts (IRAs) to establish a safety-hedge. Our house is paid for as stated above. Is $1 million enough for thirty 30 years. My husband will be getting a COLA pension after 32 years of government work, his medical will be partially paid for and I will transfer over to his medical account. Am I being too conserative here by worrying about all of this? Help...

 

[Mountain_Mike]

Hi Ginger,

I cannot speak to your specific question, but I have asked myself the same thing....basically "when" is the right time to bug out.  It sounds to me as if you are both very close.

I have a pension simlar to your husbands (but his sounds a bit better).  I can get about 65% pay at age 55.  This amount has an automatic COLA of only 2% per year, which may not cover inflation.  There is, however, a supplemental pension that kicks in if my purchasing power goes below 75% of my original pension.  If this happens, the supplement kicks in.  The bottom line is that I am guaranteed no less than 75% of my original purchasing power.

Therefore, my key time to leave will be when I can live comfortably on 75% of  the amount my pension would be.  When this is the case, a "worst case" scenario would still have my essentials covered.

I have IRAs, 403Bs, etc., but I consider them as "gravy," and I consider Social Securious a dubious possibility; I'll take it if it's there, but I'm not counting on it.

It is a personal matter, and I think with a bit more number crunching, you'll arrive at a decision.  Good luck!