I've been lazily pursuing FIRE for a couple decades now, but, as I think I'm about a decade out, I want to start crunching the numbers a bit more seriously. Interested in your thoughts on our situation.
Life Situation:
40M ($120k gross) & 40F ($115k gross) - about $160k net last year
Canadian Public sector; MCOL area
$600,000 (conservative) house with $165k mortgage outstanding, 9 year amortization
3 kids under 10
Comfortable lifestyle, full slate of activities for kids, 2 nice vacations a year
Current expenses:
$118k (including mortgage and daycare, excluding savings)
$40k (savings, $30k to RRSP/TFSA)
$77k (excluding mortgage/daycare/savings)
Assets:
$245k TFSA (combined) (tax free)
$150k RRSP (me) (tax deferred)
$60k RRSP (her) (tax deferred)
$25k stocks (non-tax advantaged)
$16k savings
$100k family RESP
Liabilities:
Just the mortgage
Pensions:
If I were to retire at 50, and defer to 65 I would receive $37k/yr; if I took an immediate benefit: $22k/yr dropping to $15k at 65 (bridge benefit).
If she were to retire at 55 (no penalty), would immediately receive $75k/yr. If she retired at 50, $60k/yr deferred, or $33k immediate.
Plan:
I'm thinking of the mortgage payoff in 10ish years as my trigger date. I would retire at 50 with just over $1 million, deferring my pension to 65. She would keep working until 55 for that unreduced pension. To my mind, that gives us plenty to live off for those 10 years before my pension kicks in at 65. Assuming a spend of $80k/yr. This seems like a comfortable, low risk early'ish retirement plan.
Questions:
Interested in your thoughts, and a few questions:
1) Given her early pension, does it make sense to use what little RRSP room she has or should we stick that money somewhere else (e.g. mortgage)?
2) Am I being too conservative? Should she pull chute at 50 too?
3) Anyone know of a FIRE calc that handles couples with pensions particularly well?