I've been enjoying the forums since 2013. I'm probably within 5yrs and finally posting!
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Basics:
Age: 49
Retirement age: 55?
Death age for planning : 95
Location: Oregon, west of Portland
No kids, no spouse, no dependents
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Assets: 2.6M
Allocation: 62% equities, 17% bonds, 21% cash
401k: $114k (S&P 500 index)
Cash: $334k (Savings/Checking/Currencies)
Vanguard: (stock/bond index funds)
House: ~$450k (paid off)
Income
- Pre-retirement: $200-250k/yr engineer @Megacorp
- Early retirement: Live off after-tax savings
- Once SS starts: Rough estimate shows I'll have an additional $2100@62, $3100@67, $3800@70 per month.
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Liabilities/Expenses:
No debt.
Typical annual expenses measured one year a couple years ago: $45k/year (did not include healthcare)
=================
Firecalc: 45 years
- 100% with 80k spending
- 99% with 85k spending
- 96% with 90k spending
=================
Questions
Q: Can I retire at 55 (or now)?
Well, I suppose the answer is yes. Just a matter of spending/expenses I guess. I'm still enjoying working currently. I took a couple years off earlier (2014-2016). Traveled some, but generally felt I wasn't doing much. But am really enjoying working again (teamwork, big goals, ...).
Q: Long-term-care insurance? When do people buy LTC? How do you get info about LTC?
Q: Asset usage order?
Early retirement: obviously I'll be living off after-tax assets. But which first? Cash/Roth/Index-funds?
Once I can access retirement accounts, what order?
Q: What to do with cash?
I feel I'm pretty cash heavy. Kinda waiting for the "big dip" (yes - marking timing == bad) to invest some of it. But... when I retire early, I'll need some cash. That said, I could definitely be doing more with it. Maybe a CD ladder (ugh such a pain), or a Betterment savings account (over 2% interest currently), or maybe some safe-ish bonds?
Q: Tax optimization?
Need to understand "tax torpedo" better. Will I be affected? Is there anything I can do about it?
Q: When to start SS? Early? Late?
Q: Roth conversions?
Did one while I was off work (2014-2016).
Currently avoiding them since my income is high.
Maybe should do more once I stop working?
=================
Basics:
Age: 49
Retirement age: 55?
Death age for planning : 95
Location: Oregon, west of Portland
No kids, no spouse, no dependents
=================
Assets: 2.6M
Allocation: 62% equities, 17% bonds, 21% cash
401k: $114k (S&P 500 index)
Cash: $334k (Savings/Checking/Currencies)
Vanguard: (stock/bond index funds)
- Total: $1,637k, 72% equity, 22% bond, 6% cash(TIPS)
- IRA: $981k, 76% equity, 24% bond,
- Roth: $106k, 90% equity, 10% bond,
- After-tax: $551k, 61% equity, 39% bond, 18% cash(TIPS)
House: ~$450k (paid off)
Income
- Pre-retirement: $200-250k/yr engineer @Megacorp
- Early retirement: Live off after-tax savings
- Once SS starts: Rough estimate shows I'll have an additional $2100@62, $3100@67, $3800@70 per month.
=================
Liabilities/Expenses:
No debt.
Typical annual expenses measured one year a couple years ago: $45k/year (did not include healthcare)
=================
Firecalc: 45 years
- 100% with 80k spending
- 99% with 85k spending
- 96% with 90k spending
=================
Questions
Q: Can I retire at 55 (or now)?
Well, I suppose the answer is yes. Just a matter of spending/expenses I guess. I'm still enjoying working currently. I took a couple years off earlier (2014-2016). Traveled some, but generally felt I wasn't doing much. But am really enjoying working again (teamwork, big goals, ...).
Q: Long-term-care insurance? When do people buy LTC? How do you get info about LTC?
Q: Asset usage order?
Early retirement: obviously I'll be living off after-tax assets. But which first? Cash/Roth/Index-funds?
Once I can access retirement accounts, what order?
Q: What to do with cash?
I feel I'm pretty cash heavy. Kinda waiting for the "big dip" (yes - marking timing == bad) to invest some of it. But... when I retire early, I'll need some cash. That said, I could definitely be doing more with it. Maybe a CD ladder (ugh such a pain), or a Betterment savings account (over 2% interest currently), or maybe some safe-ish bonds?
Q: Tax optimization?
Need to understand "tax torpedo" better. Will I be affected? Is there anything I can do about it?
Q: When to start SS? Early? Late?
Q: Roth conversions?
Did one while I was off work (2014-2016).
Currently avoiding them since my income is high.
Maybe should do more once I stop working?