Here is my “situation”:
I’d like to officially RE on October 31, 2015 (30 years with the “company” and 54 years old), but I am unsure of the “numbers” that I have put together and would like the FI part to be true. I’d like to know if these FIRE numbers sound reasonable to those of you that have done this before, or at least are very familiar with these scenarios.
My goal is to cover what I consider our normal expenses, plus have $24,000 remaining/year. What I consider our normal expenses are as follows:
$30,500 - for my home (includes mortgage, insurance, taxes, power, water, and maintenance) – only debt
$3,950 - for our rental (insurance, taxes, and maintenance) – it is paid off
$2,280 - for “communication” (internet and phones – no TV!)
$9,400 - two vehicles, one motorcycle, and one boat (fuel, insurance, maintenance)
$19,000 - for groceries and eating out (family of 5, multiple facepunchable, but I’ll address when I RE)
$4,000 - post-retirement health insurance for the two adults
$69,000 – total “normal” expenses
My mostly after-tax income for 2016 (first FIRE year) will be:
$0 - for current employer (FIRE !!!)
$28,500 – savings to carry-over from 2015
$27,500 – pension (pre-tax)
$12,000 – 401K of $300,000 at 4% SWR (pre-tax)
$2,400 $4,320– other $118,000 $120,000 cash investments at 4% SWR (pre-tax)
$16,600 – life insurance annuity (lifetime payout, no principal or SWR applied) – not taxable
$10,700 – DW’s child support (stops in a few years) – not taxable
$6,000 – DW’s income (pre-tax)
$14,400 – one SF rental income (pre-tax)
$118,100 $120,000– total income (includes carry-over from 2015)
$64,300 taxable and $55,800 non-taxable
I know this is simple math and rounding ($120,000-$69,000=$51,000, that is $51,000 and not my goal of $24,000) and I am over my goal for 2016, but expect to carry all excess over to 2017 and so on. Doing this I should not have to supplement my income until 2021 (with $9,700) mainly due to a drop in child support over the years.
Am I missing anything? Any questions that you have that might help me solidify my scenario?
EDIT-to correct one math error.