Retirement in 5...

[G-Money]

Years.

I'm 43 and my spouse is 47 and we're working on a plan to be work-optional inside of 5 years. I'm the pessimist, my spouse is the optimist, and together we still think this is potentially achievable.

Looking forward to reading, joining some of the discussions, and bouncing some of our ideas around.

 

[pb4uski]

Welcome to our great site.

Have you run your plan through Quicken Lifetime Planner and/or FIRECalc?

For FIRECalc, use the Not Retired tab for the 5 years that you expect to continue working. If you get highly successful results, then scale it down to 4, 3, 2, 1 and 0 years until you get a result that you like.

 

[38Chevy454]

Welcome to the forum. There is a lot of great information and knowledgeable people on here to help you meet your goal.

 

[disneysteve]

Welcome. Great forum for answering your questions and helping you think of all of the things you don't know you don't know.

 

[Dtail]

Welcome to our great forum.
Hope to see more posts from you.
If you have any retirement financial questions, let us know.

 

[engineernerd]

Welcome! I am a big fan of FIRECalc. If you haven't really used it much yet, I recommend getting to know it. It does require careful reading of the text in all the tabs, but it's worth it.

 

[Koolau]

We're happy to have you on the Forum. Feel free to share as much or as little as you are comfortable with here in these pages. We're happy to review your situation and offer (free) advice.

FIRECalc can be accessed here: FIRECalc: A different kind of retirement calculator

 

[Cassius King]

You arrived at the right place. No shortage of info and support here.

 

[G-Money]

I have not specifically used the FIREcalc tool, although looked at it yesterday and will plan to run some simulations to see how it compares to other data I have. Looks like a great tool.

We've been working with a CFP over the last year, and their firm uses one of the large/common software providers in that space that run Monte Carlo simulations for retirement planning, although I forget the name of the platform. We're tracking to our 5-year plan and it has a greater than 80% projected success rate.

 

[pacergal]

Welcome to the Forum.
Both firecalc and answering these questions in the FAQ section will help you in your retirement journey.
Some Important Questions to Answer Before Asking - Can I Retire?

 

[MarieIG]

Welcome to the ER Forum @G-Money .

Two links that many have found helpful (as noted above by Koolau and pacergal) with their retirement planning process are Frequently Asked Questions and FireCalc.

Take your time and explore the forum. We hope to hear more from you in the future.

 

[Dtail]

I have not specifically used the FIREcalc tool, although looked at it yesterday and will plan to run some simulations to see how it compares to other data I have. Looks like a great tool.

We've been working with a CFP over the last year, and their firm uses one of the large/common software providers in that space that run Monte Carlo simulations for retirement planning, although I forget the name of the platform. We're tracking to our 5-year plan and it has a greater than 80% projected success rate.

Many folks on this forum have used many different calculators. I am curious if you can find out the name of the platform.

 

[RxMan]

Welcome to the forum. There are a lot of smart people here at various stages of pre retirement and retirement. I’ve learned a lot from the experience of others.

FIREcalc is a good suggestion. You can play around with the numbers to test different scenarios. There are other tools as well. The big factor that you need to figure out is how much you spend each year. The rest is just math.

I wonder if your CFP is using Boldin? I’ve heard multiple financial planners praise that platform. My wife and I are looking to schedule a meeting with a financial planner in the immediate future to get a feel for our retirement timeline.

If I had to guess right now, I would say that I’m about three years away from retirement and my wife is probably 4-5 years away. She’s a lot young than me and probably would not want to quit working in three years when I turn 55.

Life happens and things change, but I’m hoping a meeting with a financial advisor will give us some clarity. Until then I continue to work and I’m a frequent visitor here because there are people who know about retirement planning and share their wealth of knowledge and experience.

Welcome again and good luck!

 

[mydogwantsmetoretire]

Welcome to the forum. There are a lot of smart people here at various stages of pre retirement and retirement. I’ve learned a lot from the experience of others.

FIREcalc is a good suggestion. You can play around with the numbers to test different scenarios. There are other tools as well. The big factor that you need to figure out is how much you spend each year. The rest is just math.

I wonder if your CFP is using Boldin? I’ve heard multiple financial planners praise that platform. My wife and I are looking to schedule a meeting with a financial planner in the immediate future to get a feel for our retirement timeline.

If I had to guess right now, I would say that I’m about three years away from retirement and my wife is probably 4-5 years away. She’s a lot young than me and probably would not want to quit working in three years when I turn 55.

Life happens and things change, but I’m hoping a meeting with a financial advisor will give us some clarity. Until then I continue to work and I’m a frequent visitor here because there are people who know about retirement planning and share their wealth of knowledge and experience.

Welcome again and good luck!

I have been using the paid version of Boldin and it is great. I have like six different scenarios built in so I get several different looks and can update whenever I want.

I did use a FA to look at my numbers like three years ago to test my Boldin work. Overall, it was pretty close on key items I needed reassurance on.

I like the flexibility of having Boldin at my fingertips for planning, but will probably pay a FA a flat fee every three years or so to run the numbers for comparison.

 

[Theophrastus Bombastus]

There is no information you have provided one way or another.

Besides the financial aspect of the equation, I ask a more personal one.

What if you decide to put it off and put it off until either of you is no longer physically capable of travel, etc? What if you retire and one of you is soon visited with a painful and progressive terminal illness?
What would you have done differently given those potential scenarios?

 

[crashdox]

Given the just released budget plan of the current administration, I'd suggest that anyone looking at FIRE throw in the impact of NO social security in 10 years - i.e., it's just plain GONE for everyone. Call me nuts, I don't care. I know it's the 3rd rail, but I personally think it's possible. I remember talking to one financial advisor a few years ago, and after he worked the numbers, said "why are you still working?" Me NOW: VERY glad I did.

 

[Koolau]

Given the just released budget plan of the current administration, I'd suggest that anyone looking at FIRE throw in the impact of NO social security in 10 years - i.e., it's just plain GONE for everyone. Call me nuts, I don't care. I know it's the 3rd rail, but I personally think it's possible. I remember talking to one financial advisor a few years ago, and after he worked the numbers, said "why are you still working?" Me NOW: VERY glad I did.

With the concept of "Anything is possible" I suppose SS going away is possible. I wouldn't weigh that heavily into current retirement planning. I WOULD factor in the "haircut" that looks more and more inevitable. Having said that, I'm still guessing "we" will somehow "fix" SS (again).

Big difference between a haircut and no SS.

My fear (less so the older I get - you know, not that many years left to worry about) is more about inflation. SS can be "fixed" by inflating the currency. Hopefully that won't be the fix, but no one on either side seems to mind spending money we don't have and printing the rest.

If you really want to worry, I'd worry about Medicare. I don't think it's going away, but I think "we" will pay more and more of the cost in A, B and D fees as well as co-pays and deductibles.

 

[G-Money]

There is no information you have provided one way or another.

Besides the financial aspect of the equation, I ask a more personal one.

What if you decide to put it off and put it off until either of you is no longer physically capable of travel, etc? What if you retire and one of you is soon visited with a painful and progressive terminal illness?
What would you have done differently given those potential scenarios?

Not sure I understand. Why would we wait until our mobility is gone?

Given the just released budget plan of the current administration, I'd suggest that anyone looking at FIRE throw in the impact of NO social security in 10 years - i.e., it's just plain GONE for everyone. Call me nuts, I don't care. I know it's the 3rd rail, but I personally think it's possible. I remember talking to one financial advisor a few years ago, and after he worked the numbers, said "why are you still working?" Me NOW: VERY glad I did.

Our plan includes social security not being available at its projected amount.

With the concept of "Anything is possible" I suppose SS going away is possible. I wouldn't weigh that heavily into current retirement planning. I WOULD factor in the "haircut" that looks more and more inevitable. Having said that, I'm still guessing "we" will somehow "fix" SS (again).

Big difference between a haircut and no SS.

My fear (less so the older I get - you know, not that many years left to worry about) is more about inflation. SS can be "fixed" by inflating the currency. Hopefully that won't be the fix, but no one on either side seems to mind spending money we don't have and printing the rest.

If you really want to worry, I'd worry about Medicare. I don't think it's going away, but I think "we" will pay more and more of the cost in A, B and D fees as well as co-pays and deductibles.

IMO, this is a reasonable projection. Not only SS not paying its projected levels, but the reality that healthcare cost will increase. As we know, when that happens, insurance plans of all types generally cover less and shift more burden onto patients, and that includes the government payers.

 

[CO-guy]

Welcome! For whatever it's worth, our financial plans do not include SS. Whatever it is in 10 years, it'll be a bonus.

 

[SnowballCamper]

Here is a favorite calculator, especially in the years before retiring because it shows all three outcomes, one of which is a certainty, and so I find it more motivating. Rich, Broke or Dead? Post-Retirement FIRE Calculator: Visualizing Early Retirement Success and Longevity Risk - Engaging Data

 

[Diogenes]

What if you decide to put it off and put it off until either of you is no longer physically capable of travel, etc? What if you retire and one of you is soon visited with a painful and progressive terminal illness?
What would you have done differently given those potential scenarios?

These are important questions for us all.

Smith dreams of world-travel. He missed that college-trip to see the Louvre and the British Museum, that his buddies took. Then life happened. Now Smith is 55, and having a health scare. He recovers, fortunately, but that gets him thinking. Why not take that trip? If not now, when? Wouldn't it be a shame if Smith becomes incapacitated before he ever gets to see the Mona Lisa (from behind a large and bustling crowd)?

Jones already saw the Louvre and British Museum as side-trips to scientific conferences decades ago. Now he's annoyed by crowds and by flying... not to mention, his passport expired 8 years ago, and he's fine with that. His biggest outings these days are when Denny's sends him 20%-off coupons.

Smith needs to get busy, prioritizing life outside of work. Jones does not. Are we Smith, or are we Jones?

 

[HI Bill]

FWIW, I'd suggest trying to ER by age 50. By 55, health problems and stamina reductions may have kicked in, limiting travel and abilities, especially if you have an interest in travel or active sports such as scuba diving. From the point that I became serious about saving for ER, it took me ~22 years. I sure wish I had started out the year after college, and I'd have been able to ER at 46 rather than 55.

 

[JustOneMoreYear]

Here is a favorite calculator, especially in the years before retiring because it shows all three outcomes, one of which is a certainty

Oh how I wish there were a calculator like that

 

[G-Money]

These are important questions for us all.

Smith dreams of world-travel. He missed that college-trip to see the Louvre and the British Museum, that his buddies took. Then life happened. Now Smith is 55, and having a health scare. He recovers, fortunately, but that gets him thinking. Why not take that trip? If not now, when? Wouldn't it be a shame if Smith becomes incapacitated before he ever gets to see the Mona Lisa (from behind a large and bustling crowd)?

Jones already saw the Louvre and British Museum as side-trips to scientific conferences decades ago. Now he's annoyed by crowds and by flying... not to mention, his passport expired 8 years ago, and he's fine with that. His biggest outings these days are when Denny's sends him 20%-off coupons.

Smith needs to get busy, prioritizing life outside of work. Jones does not. Are we Smith, or are we Jones?

Great clarification. I'm more of a Smith, although more than 10 years junior and it didn't take a health scare. My spouse and I prioritize enjoying and experiencing things at a younger age rather than a more senior age because we know. We've seen people slowed down or stopped before they had accomplished things on their bucket lists. We're not waiting to buy the fast car, or go on that trip until our Golden Years. We do have to balance those desires with saving for retirement and working within our current income and savings. But we're also not planning to do nothing in our golden years.

FWIW, I'd suggest trying to ER by age 50. By 55, health problems and stamina reductions may have kicked in, limiting travel and abilities, especially if you have an interest in travel or active sports such as scuba diving. From the point that I became serious about saving for ER, it took me ~22 years. I sure wish I had started out the year after college, and I'd have been able to ER at 46 rather than 55.

In our situation, I'm basically work-optional at this point, but would be dependent on my spouse finishing our savings, continuing to work, and that is also risky - and potentially unfair? I also struggle with where I'd find a sense of purpose in my mid-late 40's when all my peers are beginning to peak in their careers. I'd hate to take the next 10 years off work and find myself needing an income again because something unexpected changed, and my qualifications/experience are antiquated by a 10 year gap in employment.

There were potential changes announced at work this week regarding "return to office" (I was hired as a fully remote employee, however, apparently now that's changing on a whim because of some stupid extrovert leader who believes presence in an office = productivity). I will not go back. IMO that is such a waste of life, commuting and being miserable in an office...

 

[G-Money]

We had a check-in with our CFP.

The name of the planning/projection software that does the Monte Carlo simulations is called eMoney Advisor.

Despite the rocky political and economic terrain traversed in the last few months, our portfolios maintain a positive position year to date. We'll continue to invest (dollar cost averaging) to model.