I really want to start working less and I have an independent business set up with clients at a nice hourly billable rate, a solo 401k, health insurance on the exchange for $400/month etc.
Age: 48, Single, no kids
Current investment accounts: $386,000
Home equity: conservatively $100,000
Yearly expenses: $44,000 (including about $4,000 that goes to home equity)
I want to reduce my working hours and therefore my savings to $10,000/year until I'm 65 and then fully retire.
By my calculations, in 17 years, at age 65, assuming 5% growth on the investments (taking 7% growth minus 2% inflation), I will have $1.14 million in investments, which is enough for $45,000 in yearly expenses in today's dollars.
I will also have $179K in home equity.
I came late to the Roth IRA game (my first Roth investment was for tax year 2017), so I figure I'm going to have to pay taxes on what I withdraw, like $9K a year, which I am thinking I can cover by working just a tiny bit or using Social Security income (or a possible small pension I might get - $500/month) to cover that.
Am I thinking about this right? Am I missing any big category or assumption?
Thank you.