I have been a long time lurker and value the opinions on here - This not really ER (compared to some of you), but earlier life choices would have prevented a comfortable early retirement. Lots going on below, so I appreciate any feedback positive or negative>
1. The basics:
Me - 61; DW - 52; 2 Stepsons - 1 in college - finances set. 1 Special needs (high functioning autism) 16
DD - 34 married with 2 DGD, 5 and 7.
DW and I are both FEDS; I can retire in October (62) as FERS with 26.5 yrs; DW will be at 57 with MRA +16
Pensions: Me - FERS (after 50% survivor election) $51K; State Govt - $5K; DW (delayed till 62) - ~$17K
Investments:
Me: TIRA (TSP and VG IRA) - $825K; DW: TIRA (TSP and Fido) - $750K (EST ~$1.2 MIL by 59.5) - Conservative 50-50 in TIRA; 70-30 in Roth (currently maxing TSP Roth contributions)
Me: ROTH (TSP) - $140K; DW (TSP and FIDO) - $150K 60-40 in TIRA; 80-20 in Roth (currently maxing TSP Roth)
Me Nontaxable (VG) $125K; DW - $15K
Emergency fund (Rental Property ($12K)
Real Estate - Primary Home (2012) Value -$775K; $350K equity - not figured in retirement strategy - new roof and new HVAC this year.
Rental - TH (2015) - Value - $550K; $250K equity - this is in our retirement strategy.
2 paid for vehicles - will likely need to replace 1.
General Strategy Going forward:
Me: Retire between Oct 2025 (62) and Jan 2027 (63) - Intending to go phased (50%) after I turn 62; DW will work till she is 57. Our combined income till 57 is ~ $200K
Special needs son turns 18 in 2026; Will begin SSI (he already has Medicaid benefits, DD waiver etc.) ~$960; also gets about ~$950/month child support - likely will be lifetime
I am also doing some of my bucket list trips (DW not interested in locations/activities) in the next 2 years.
Distribution (income Strategy) - we are in 24% FED Bracket:
1. I will draw from TIRA up to income threshold to stay in 24% bracket (1/3 spend, 1/3 add to taxable, 1/3 Roth conversion - retirement through 2030 (DW Retirement)
2. 2030 DW Retires March 2030; delay her MRA retirement - sell rental and keep income to minimum (should be in 12% bracket that year) to maximize profit from rental; Special needs son ages out of school at 22.
3. 2031 I claim SS (@ 68); DW claims @ 58 (exception based on being son's caretaker; Son moves from SSI to SSDI (22-23) - We will max out family max of ~$6000/month based on my benefit and wife getting half at 57 (not sure if this is the case so any SS experts please chime in here).
Healthcare:
FEHB - will continue into retirement; - I am on DW policy as she is legally required to maintain insurance for DS; We will be able to switch to me when she retires at MRA and postpones collection of pension.
Will need to work on Medicare strategy- probably Part B+ ?? - experts - please chime in here!
IRMAA may be an issue but plan to reduce my TIRA withdrawals between 65-67 due to look back period to minimize IRMAA.
I will also have a ~$45K FEGLI (life insurance - free after 65) policy for my final expenses, assuming I go first.
Goals in retirement
- travel, help out grandkids, provide for wife when I am gone. Small legacy for DD (we were never close and she is doing well financially).
- DW most of her investments will go to her son and funding SNT for special needs son.
Budget estimates
- GOGO (63-73) - ~$150-$175K
-SLOGO (73-80) - ~$80-$100K RMDS will like increase our income.
-NOGO (80-??) - ~$120-$150K LTC - if needed - hopefully can maximize in-home to keep costs low, may need to spend down my retirement leftovers if more is needed.
1. I think I am ready, based on other's plans comments received, and FIRECALC
2. Hoping that someone might ID a blindspot I didn't consider.
3. Would appreciate feedback from caretakers of special needs individuals, particularly any negative issues
Thank you in advance!!!
1. The basics:
Me - 61; DW - 52; 2 Stepsons - 1 in college - finances set. 1 Special needs (high functioning autism) 16
DD - 34 married with 2 DGD, 5 and 7.
DW and I are both FEDS; I can retire in October (62) as FERS with 26.5 yrs; DW will be at 57 with MRA +16
Pensions: Me - FERS (after 50% survivor election) $51K; State Govt - $5K; DW (delayed till 62) - ~$17K
Investments:
Me: TIRA (TSP and VG IRA) - $825K; DW: TIRA (TSP and Fido) - $750K (EST ~$1.2 MIL by 59.5) - Conservative 50-50 in TIRA; 70-30 in Roth (currently maxing TSP Roth contributions)
Me: ROTH (TSP) - $140K; DW (TSP and FIDO) - $150K 60-40 in TIRA; 80-20 in Roth (currently maxing TSP Roth)
Me Nontaxable (VG) $125K; DW - $15K
Emergency fund (Rental Property ($12K)
Real Estate - Primary Home (2012) Value -$775K; $350K equity - not figured in retirement strategy - new roof and new HVAC this year.
Rental - TH (2015) - Value - $550K; $250K equity - this is in our retirement strategy.
2 paid for vehicles - will likely need to replace 1.
General Strategy Going forward:
Me: Retire between Oct 2025 (62) and Jan 2027 (63) - Intending to go phased (50%) after I turn 62; DW will work till she is 57. Our combined income till 57 is ~ $200K
Special needs son turns 18 in 2026; Will begin SSI (he already has Medicaid benefits, DD waiver etc.) ~$960; also gets about ~$950/month child support - likely will be lifetime
I am also doing some of my bucket list trips (DW not interested in locations/activities) in the next 2 years.
Distribution (income Strategy) - we are in 24% FED Bracket:
1. I will draw from TIRA up to income threshold to stay in 24% bracket (1/3 spend, 1/3 add to taxable, 1/3 Roth conversion - retirement through 2030 (DW Retirement)
2. 2030 DW Retires March 2030; delay her MRA retirement - sell rental and keep income to minimum (should be in 12% bracket that year) to maximize profit from rental; Special needs son ages out of school at 22.
3. 2031 I claim SS (@ 68); DW claims @ 58 (exception based on being son's caretaker; Son moves from SSI to SSDI (22-23) - We will max out family max of ~$6000/month based on my benefit and wife getting half at 57 (not sure if this is the case so any SS experts please chime in here).
Healthcare:
FEHB - will continue into retirement; - I am on DW policy as she is legally required to maintain insurance for DS; We will be able to switch to me when she retires at MRA and postpones collection of pension.
Will need to work on Medicare strategy- probably Part B+ ?? - experts - please chime in here!
IRMAA may be an issue but plan to reduce my TIRA withdrawals between 65-67 due to look back period to minimize IRMAA.
I will also have a ~$45K FEGLI (life insurance - free after 65) policy for my final expenses, assuming I go first.
Goals in retirement
- travel, help out grandkids, provide for wife when I am gone. Small legacy for DD (we were never close and she is doing well financially).
- DW most of her investments will go to her son and funding SNT for special needs son.
Budget estimates
- GOGO (63-73) - ~$150-$175K
-SLOGO (73-80) - ~$80-$100K RMDS will like increase our income.
-NOGO (80-??) - ~$120-$150K LTC - if needed - hopefully can maximize in-home to keep costs low, may need to spend down my retirement leftovers if more is needed.
1. I think I am ready, based on other's plans comments received, and FIRECALC
2. Hoping that someone might ID a blindspot I didn't consider.
3. Would appreciate feedback from caretakers of special needs individuals, particularly any negative issues
Thank you in advance!!!