glasswave
Dryer sheet aficionado
I am hoping people will help with suggestions and recommendations in developing a FIRE plan.
When I finally landed my first good job that had a savings plan, a TIAA-CREFF advisor said, "Stick your money in a growth fund and forget about it," so that's what I did. I have saved 15% of my gross year since 1994. I have only been looking at retirement for the last few years and seriously, only recently.
Hear goes:
Is this a sound strategy? I am interested in any advice forum members have to offer. What other strategies/consideration might you recommend?
Thanks.
When I finally landed my first good job that had a savings plan, a TIAA-CREFF advisor said, "Stick your money in a growth fund and forget about it," so that's what I did. I have saved 15% of my gross year since 1994. I have only been looking at retirement for the last few years and seriously, only recently.
Hear goes:
- 67 is my full retirement age. (spring 2030).
- I am hoping to take early retirement in June of 2025 at age 62 as my work is becoming over politicized, but I could work longer.
- I should have about $190k in liquid savings by July of 2025.
- I have about $1.2mil in a (TIAA) tax deferred retirement savings growth account.
- I will have $23-25k in a TIAA Roth IRA high growth fund that I stated 1 year ago.
- I can receive about $18k in salary for 5 years by taking early retirement at 62 or at any time before age 67.
- House is paid off, no other debt whatsoever.
- I can stay on the employer health plan until Medicare kicks in at 65 for about $300/yr.
- My SS,gov projections for social security are $2180 if @62 years old, $3080 if @67 and $4020 if @70.
- My health is "OK-ish," I am quite a bit overweight (something I am working on), but do not seem to have other major health problems.
- I’d like $5k/mo for expenses from 62 to 67. $3.5k for monthly living & $1.5k/mo to save towards trips and large purchases.
- I am ready to retire this June but am worried that I don't have enough money.
- I am irrationally disinclined to spend down my retirement savings account wanting to instead live off the interest. I don't have a gaggle of spawn waiting for me to die, but I have spent my life creating this big pile of savings and now find myself reluctant to spend it.
- I am also oddly reluctant to take retirement funds out of high growth funds and spread it across safer investment products.
- I am thinking about living off of liquid savings and my early retirement income for the 5 years of early retirement.
- I am also are considering converting a fair bit of my retirement account to a Roth IRA over those 5 years, by converting as much as I can per year while still staying in the 22% marginal bracket.
- I figure that at 67, I might start taking social security.
- I will also have the added expense of Medicare Premiums starting at age 65, plus the cost of a medicare supplement plan, I'd imagine.
Is this a sound strategy? I am interested in any advice forum members have to offer. What other strategies/consideration might you recommend?
Thanks.