Author Topic: Ready or Not?  (Read 624 times)

MurWads111

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Ready or Not?
« on: January 30, 2019, 03:11:34 PM »
Looking for some feedback on whether or not to go.  We have a ton of interests and goals outside of my current job in the technology space.  Hoping to stop working at end of the year.  Here are my #'s:

$450K in 401K
$260K in Cash / Short-Term Investments
Current Age 53, Wife is 52
$300K Home with no mortgage
SocSec Estimates:  $22K for me and $16K for wife
Pension:  $6K per year for wife starting age 62
3 Kids all thru college (Hallelujah!)
Living in low cost area
Hoping the ACA will provide a low cost healthcare option
« Last Edit: January 30, 2019, 03:14:20 PM by MurWads111 »

Goldy

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Re: Ready or Not?
« Reply #1 on: January 30, 2019, 03:50:10 PM »
What are your expected annual expenditures?

MurWads111

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Re: Ready or Not?
« Reply #2 on: January 30, 2019, 06:23:23 PM »
Right now, annual expenses are ~$50k but think we can get it down to $40k.

Goldy

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Re: Ready or Not?
« Reply #3 on: January 30, 2019, 09:17:02 PM »
Is annual expenses are currently 50k in about 10 years when you start collecting SS your expenses will increase to about 60k from inflation.  At that time you will be collecting 44k from SS and the pension so you will need to supplement 62-90 with 16k.  The years before retirement at 50k will cost 550k roughly with inflation.

Thatís really tight and doesnít leave much room for emergencies or late life care.  Have you run this through firecalc?

Omy

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Re: Ready or Not?
« Reply #4 on: January 31, 2019, 07:14:22 AM »
A 4% withdrawal rate would provide around $28k, so if you can significantly reduce your expenses or get side gigs to make up the difference you might be okay. Those figures would scare me, but I'm overly conservative (with 3.5x that net worth I still haven't "pulled the trigger").