Life Situation: My wife and I will both be 56, married filing jointly, no kids.
Debt & Social Security: We have no debt and we’ll wait until age 70 to collect social security which will be $46K (today’s dollars).
Qualified Dividends & Long Term Capital Gains: 1.24m stash invested in following manner. $402K – taxable account, $809K tax deferred, and $29K in Roth IRA --- each of these funds is about 60% total stock market index / 40% individual stocks. If this generates 5% annual earnings that should yield $62K.
Adjusted Gross Income: I ran my numbers through the full program at the i-orp modeling site. The guidance there indicates to optimize distributions through retirement years to age 100(!) I should begin in the initial year by taking a distribution of (40K tax-def + 25K after-tax + 12K (PTC “aca health insurance” payment) = 77K – taxes = 73K (after-tax, after inflation). We won’t access it if not needed.
My Question: Is this truly feasible? On paper it looks like it could be but I’m a bit surprised by that and still a bit uncomfortable? I’m open to any criticism, deserved face punches (expenses below), or suggestions offered. Thanks for any input.
Monthly Expenses (categorized) = $4,803 Annual Expenses = $57,636
Rent, electric, rental insurance = 1,675, 40, 14…($1,729) $20,748
Cable TV/Internet, cell phone, subscriptions = 110, 100, 65…($275) $3,300
Groceries, dining out, entertainment = 825, 350, 200…($1,375) $16,500
Auto (gas), auto insurance, auto maintenance = 150, 68, 50…($268) $3,216
Health club membership, haircare, clothing = 390, 141, 120…($651) $7,812
Health Insurance, dental insurance = 385, 15…($400) $4,800
Charitable = 55…($55) $660
Miscellaneous = 50…($50) $600