Hi, I have been gleaning lots of great information from the forum and hoping for some perspective on my plan to FIRE in late 2018.
I’m single, 49, and have two kids, ages 16 and 20. As a result of an upcoming restructure I will benefit from a severance package likely during Q4 2018.
At the time of my FIRE here is my portfolio forecast (including my continuing contributions, but not compounded interest over the next 12 months):
401K: $600,000
IRAs: $32,000
Mutual Funds: $235,000
Credit Union: $26,000
Severance pkg (after taxes): $115,000
Total: $1,008,000
Kids 529 plans: should be more than adequate for both my son to finish his Master’s degree in the Fall of 2019 and for my daughter to attend a public in-state university for her BA.
Pension will be available when I’m 55 in 2023: $41,160 annually
Social Security – could start it when I’m 62 (but will likely hold off). $21,408 annually
I’m now fine-tuning my annual budget (not something I’ve tracked diligently in the past), but I think it’s going to come in at about $55,000 – 60,000 (including my health insurance once I FIRE) while I’m still supporting my kids. Should drop thereafter as I offload their major expenses such as car insurance, stupid smart phone plans, college expenses not covered by the 529, etc. No debt – houses and cars all paid for. The XH should be able to add the kids to his health plan (he’s checking on that for me now).
Other income:
I’ll likely work part-time at least for a few more years at something I enjoy: ~$20,000 annually.
Sometime in the next 10 – 20 years I will receive an inheritance of about $250,000+.
As I look at this portfolio, it seems I can live off of the Mutual Funds and severance (plus part time work income) from 2019 until mid-year 2023 and still have some left over. Worst case scenario (such as if the market tanks) I can likely be rehired by the company I currently work for – just at a lower salary.
In the interim I understand I can utilize a Roth pipeline to move $ from my 401k to my Roth IRA in order to supplement my pension from 2023 until I’m 59.5 (2028) when I can start to draw from my 401k as needed.
So, what am I overlooking? Does this seem realistic? Any suggestions?