Things Are Starting to Get Real

[Vincenzo Corleone]

I retired at the end of 2017. Since then, my wife has continued to work. Today she decided that she's had enough and will retire in the next few months.

Not that it would change our retirement decisions, if you have any reaction to the details below I'd really appreciate hearing them.

• Late 50s. Live in a HCOL area. No kids. No other heirs.
• 50%/50% AA
• House is paid off; no debts.
• Able to collect pension upon retirement.
• Retiree health insurance provided by employer - very low premiums.
• Liquid, investable assets are 66X 2023 expenses (including taxes) less pension, for a WR of 1.5%.
• Liquid, investable assets are 38X target spending (including taxes) less pension, for a WR of 2.6%.
• Pension has a stingy (~1.4%/yr) COLA.
• Medicare Part B and IRMAA will be reimbursed by employer.
• Social Security - Me: Starting at 62; annual benefit is 25.5% of 2023 expenses, or 14.62% of current target spending; assumes a 25% cut in social security benefits
• Social Security - Her: Starting at 70; annual benefit is 46.7% of 2023 expenses, or 27% of current target spending; assumes a 25% cut in social security benefits

NW is broken down thusly:
Taxable: 55%
Tax Deferred: 44.3%
Tax Free: 0.7%

Am I wrong in thinking it's a slam dunk?

 

[teej1985]

Uhhh..sounds like she could have retired when you did.

 

[Slim11]

Have fun!

 

[Midpack]

That’s as close to a slam dunk as I have seen in a long while. Congrats.

 

[DrRoy]

Sounds good to me.

 

[Aerides]

Your only answer should have been "Of course darling, can't wait!"

(please don't tell us you said you'd have to ask here first lol!)

 

[Vincenzo Corleone]

Your only answer should have been "Of course darling, can't wait!"

(please don't tell us you said you'd have to ask here first lol!)

Oh, no - she received my full-throated support. We're nervous, of course, but happy.

 

[FLSUnFIRE]

"Am I wrong in thinking it's a slam dunk?" NO! Looks like a BTD situation! 66x baseline and still 38x increasing expenses in retirement along with a pension and healthcare.



Congrats!

 

[Vincenzo Corleone]

"Am I wrong in thinking it's a slam dunk?" NO! Looks like a BTD situation! 66x baseline and still 38x increasing expenses in retirement along with a pension and healthcare.



Congrats!

Thanks. To be clear, the 66x and 38x is taking the pension into consideration. In other words:

NW/(EXPENSES - PENSION)

It's not as if the pension is on top of the 66x and 38x.

 

[38Chevy454]

You are like a reverse slam dunk, in other words you have some extra to make it fancy. Go have fun, enjoy the fruits of your saving and work over the years.

 

[iloveyoga]

Your retiree health insurance sounds awesome and is a big plus in the scheme of things.

 

[pacergal]

Looks great.
Your insurance benefits are fantastic with low premiums now, reimbursement of medicare later.
Congratulations to your wife joining you, enjoy!