Author Topic: How does one calculate fire with expected SS & pensions?  (Read 1872 times)

firedup

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How does one calculate fire with expected SS & pensions?
« on: May 18, 2014, 04:51:40 PM »
 I found this site at such a good time. The posts here have been so inspiring. DH says we have enough. He has been retired for 4 years with a very reduced, modest pension. I so badly need to get done too, the stress is ruining my health. I found this site by reading something that was talking about the 25 rule of spending. So then I realized we were close. Then I realized in 4 years he will be able to collect SS and then we will have enough income to pay ALL the bills. So now that means the 25 rule is not the same. Right? Or do you still need that much? My pension & SS are still 10-13 years away which will more than cover us then with just SS & pensions alone, living frugally. So we really need to spend down to cover us for 4 years then we are covered unless something needs to be fixed or covered outside of the budget. Does this sound right or does everyone figure savings & investments outside of SS & pensions. It feels so finite and with both of us in our 50's it's the scariest thing I have ever contemplated. We are not rich compared to most and everyone's situation is different I know, but it seems like the numbers work. DH built a spread sheet and we will go backwards some, then a little, and in 10-13 years we are back totally recovered and coming ahead again. He is trying to convince me we should care less when we are 80, if we make it, and enjoy life now, as in stop working & spend savings. I know he is right but it's so scary. My mom & grandfather died mid fifty and I am so close to that and I feel I am running out of time. His dad lived to 90 and his mom is still going strong so he has good genes. We are totally debt free, own our home, & no kids. So why can't I see it? Thank you in advance for anyone who can give any perspective on this.

zolotiyeruki

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Re: How does one calculate fire with expected SS & pensions?
« Reply #1 on: May 18, 2014, 06:37:41 PM »
Welcome firedup!

It sounds like this is your timeline:
2014 - now.  Some amount is saved up, DH is getting a pension, you are working
2018 - DH starts collecting SS.
2024-7 - you start collecting pension and SS

Is that right?  If you would like the MMM community to offer useful advice, we'll need some more specifics on your financial situation.  Specifically:
1)  What are your current living expenses?
2)  What are your current retirement savings?
3)  What is your current income?
4)  How much is DH's pension?
5)  What is your and DH's expected SS income when you start receiving it?
6)  How much income do you expect from your pension once you are eligible?

Ozstache

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Re: How does one calculate fire with expected SS & pensions?
« Reply #2 on: May 18, 2014, 07:19:28 PM »
Firecalc @ http://www.firecalc.com/ allows you to model this. Enter your portfolio details in the start here tab. Enter your SS and pensions in the other spending/income tab. Then go to the investigate tab and run and select the starting portfolio option, then submit.

geekette

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Re: How does one calculate fire with expected SS & pensions?
« Reply #3 on: May 18, 2014, 07:44:43 PM »
As mentioned above, firecalc is the way to go.

My DH got laid off a year ago, right about the time I found this site.  He really thought he'd have to go back to work, but with some figuring in firecalc, he's now (probably) retired.  Sometimes it's a bit scary, but the numbers work, and we have a good cushion.

With pointers from here and some thought, you can probably reduce your spending even more.  Post a case study and see what people say.




firedup

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Re: How does one calculate fire with expected SS & pensions?
« Reply #4 on: May 18, 2014, 08:56:51 PM »
Thank you all so much for your repies and insight. I went to firecalc and played with the options and it says I can go any time. I guess after 35 years it's just so scary to think of no paycheck and taking money out. I plugged in investing info that was ultra conservative and it still said we will never run out at our modest spending habits and future income stream.