not so far away
Confused about dryer sheets
- Joined
- Aug 3, 2013
- Messages
- 5
Hello, everyone!
I welcome all thoughts and feedback! ER.org was my first $ forum when I googled “early retirement” in 2013! We really became educated and moved from terrible AXA annuities/Edward Jones to Vanguard, massively ramped up tax-deferred, increased income, and still continue to live a rich life! Feel very fortunate that we can cash flow the college drain and still maintain solid investing. Our family includes: Me (50), Spouse (48), Off-spring (Junior in College), NY.
The Plan
Current Assets (May 31, 2019) - $585k
Anticipated Assets @ 5% Growth + Additions (July 2022) - $830k
Anticipated Assets @ 5% Growth minus 457b (January 2030) - $1,030k
Any suggestions on assets or allocations? I’m thinking it’s a bit bond heavy given the pension, but now also doesn’t seem the time to make big changes? The 457b is “safe” given the short time frame that it will be needed, but the tax break is needed, esp with SALT in NY.
Liabilities:
Expected ER expenses:
To Retirement - 3 years!
2022 - ½ Year FT Work, then Pension + Spouse PT Work
2023-2029 - Bucket #1 - Pension + 457b + Dividends (if wanted/needed)
2030 - Bucket #2 - I run FIRECalc as if I'm age 59.5- constant spending
How do expected expenses and income look? Anything I’m missing? I’m working off four years of data, so expenses are pretty accurate! Are the buckets clear? Suggestions? How do you feel about how I’m running FIRECalc (basically ten years in the future)? It seems the easiest way with the two buckets. Buckets are flexible, but not touching Bucket #2 until at least January 2029. We’ll be 7 years into early retirement by then, so spending may drop off a bit, but who knows where anything else is!
Thank you, all! Looking forward to participating rather than just lurking.
I welcome all thoughts and feedback! ER.org was my first $ forum when I googled “early retirement” in 2013! We really became educated and moved from terrible AXA annuities/Edward Jones to Vanguard, massively ramped up tax-deferred, increased income, and still continue to live a rich life! Feel very fortunate that we can cash flow the college drain and still maintain solid investing. Our family includes: Me (50), Spouse (48), Off-spring (Junior in College), NY.
The Plan
Me - work thru June 2022, retire, collect pension, pay for healthcare
Spouse - go PT when I retire which gives space for Off-Spring to launch; PT pays for mortgage (don’t want to use 457b for THAT, if can help it!)
When Spouse retires and Off-Spring settles, sell house in NY and move to FL; would love no mortgage, but flexible for a small one. Should clear $285k from house to buy the next one. May travel for a while and then rent until we find what we want (two car garage, pool, bikeable/walkable)
Neither of us are averse to small, fun PT work; not worried about how we’ll use our time!
Spouse - go PT when I retire which gives space for Off-Spring to launch; PT pays for mortgage (don’t want to use 457b for THAT, if can help it!)
When Spouse retires and Off-Spring settles, sell house in NY and move to FL; would love no mortgage, but flexible for a small one. Should clear $285k from house to buy the next one. May travel for a while and then rent until we find what we want (two car garage, pool, bikeable/walkable)
Neither of us are averse to small, fun PT work; not worried about how we’ll use our time!
Current Assets (May 31, 2019) - $585k
Anticipated Assets @ 5% Growth + Additions (July 2022) - $830k
Anticipated Assets @ 5% Growth minus 457b (January 2030) - $1,030k
Me 457b (Primarily Valic Fixed Assets) - $50k - adding $90k thru 2022
Me 403b (Primarily Vanguard TR 2035 80/20) - $335k - adding $55k thru 2022
Me Roth - $7.5k (Vanguard TR 2025 65/35) will try to add to!
Spouse IRA - $178k (Vanguard TR 2030 75/25/10% Wellington)- adding $34k thru 2023
Spouse Roth - $15k (Vanguard VTSAX) - will try to add to!
Other Assets $440kMe 403b (Primarily Vanguard TR 2035 80/20) - $335k - adding $55k thru 2022
Me Roth - $7.5k (Vanguard TR 2025 65/35) will try to add to!
Spouse IRA - $178k (Vanguard TR 2030 75/25/10% Wellington)- adding $34k thru 2023
Spouse Roth - $15k (Vanguard VTSAX) - will try to add to!
House $380k
Antique Car to Sell $50k
Cash $10k (our jobs are very secure)
Antique Car to Sell $50k
Cash $10k (our jobs are very secure)
Any suggestions on assets or allocations? I’m thinking it’s a bit bond heavy given the pension, but now also doesn’t seem the time to make big changes? The 457b is “safe” given the short time frame that it will be needed, but the tax break is needed, esp with SALT in NY.
Liabilities:
House - Owe $125k @ 3.375% to 5/2027 - Monthly $2370 (Principal - $1160, ITI - $1270) Yay, NY Property Tax
Cash Flowing College (estimated costs remaining $75k)
Me - Will buy a car prior to retirement (current everyday vehicles: Me - 2010 Acura (139k miles), Spouse - 2003 Honda (210k miles)
Build Additional Cash after College (minimum $50k)
Any suggestions on liabilities? I know college is a ton of money & that’s WITH merit! May get some assistance from a grandparent 529, but no counting chickens over here. Cash Flowing College (estimated costs remaining $75k)
Me - Will buy a car prior to retirement (current everyday vehicles: Me - 2010 Acura (139k miles), Spouse - 2003 Honda (210k miles)
Build Additional Cash after College (minimum $50k)
Expected ER expenses:
$92k
Healthcare - $15k (family)
Taxes - $12k, (anticipating federal, property) - will likely roll over IRA to Roth to tax limit
Spending $65k (four year average (minus mortgage & college) has been ~$60k which included quite a lot of family travel, some off-spring costs, and house/car projects; anticipating a drop in current expenses once off-spring launches *fingers crossed*)
Expected ER annual income:Healthcare - $15k (family)
Taxes - $12k, (anticipating federal, property) - will likely roll over IRA to Roth to tax limit
Spending $65k (four year average (minus mortgage & college) has been ~$60k which included quite a lot of family travel, some off-spring costs, and house/car projects; anticipating a drop in current expenses once off-spring launches *fingers crossed*)
Non-COLA Pension (75% Spousal) - $68.6k
Bucket #1 457b (thru 2029) - $23.4k
Bucket #2 403b/IRA (begin 2030) - $30k (inflation gap of non-COLA pension) - 3% of $1,000,000 which is estimate of current accounts after ten years of growth at 5%.
Could take dividends to fund extra travel/housing/wedding - $15k (current)
Me Estimated SS at 70 (70%) $29k (helps with non-COLA pension/healthcare)
Spouse Estimated SS at 67 (70%) $20k
Bucket #1 457b (thru 2029) - $23.4k
Bucket #2 403b/IRA (begin 2030) - $30k (inflation gap of non-COLA pension) - 3% of $1,000,000 which is estimate of current accounts after ten years of growth at 5%.
Could take dividends to fund extra travel/housing/wedding - $15k (current)
Me Estimated SS at 70 (70%) $29k (helps with non-COLA pension/healthcare)
Spouse Estimated SS at 67 (70%) $20k
To Retirement - 3 years!
2022 - ½ Year FT Work, then Pension + Spouse PT Work
2023-2029 - Bucket #1 - Pension + 457b + Dividends (if wanted/needed)
2030 - Bucket #2 - I run FIRECalc as if I'm age 59.5- constant spending
$1,030k
$68.6k non-COLA pension
$29k Me SS at 70
$20k Spouse SS at 67
Left everything else as is!
It says max 100% Spending = $99k
$68.6k non-COLA pension
$29k Me SS at 70
$20k Spouse SS at 67
Left everything else as is!
It says max 100% Spending = $99k
How do expected expenses and income look? Anything I’m missing? I’m working off four years of data, so expenses are pretty accurate! Are the buckets clear? Suggestions? How do you feel about how I’m running FIRECalc (basically ten years in the future)? It seems the easiest way with the two buckets. Buckets are flexible, but not touching Bucket #2 until at least January 2029. We’ll be 7 years into early retirement by then, so spending may drop off a bit, but who knows where anything else is!
Thank you, all! Looking forward to participating rather than just lurking.