Permission to retire?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Newbogel
Posts: 35
Joined: Sat Jan 20, 2018 10:21 am

Permission to retire?

Post by Newbogel »

All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
Breezy
Posts: 195
Joined: Mon Jul 11, 2011 11:38 am

Re: Permission to retire?

Post by Breezy »

Start tracking your expenses and trying to figure out your retirement spending. That's key.
WyomingFIRE
Posts: 25
Joined: Wed Sep 12, 2018 10:44 am

Re: Permission to retire?

Post by WyomingFIRE »

Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

...

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
Somewhere in there I stopped reading.
chassis
Posts: 376
Joined: Tue Mar 24, 2020 4:28 pm

Re: Permission to retire?

Post by chassis »

You're good. Congratulations.
User avatar
bampf
Posts: 766
Joined: Thu Aug 04, 2016 6:19 pm

Re: Permission to retire?

Post by bampf »

WyomingFIRE wrote: Sun Apr 18, 2021 8:49 pm
Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

...

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
Somewhere in there I stopped reading.
Yep. You are fine. Figure out health insurance before you need to. But, with SS, at 100K, totally fine.
BernardShakey
Posts: 240
Joined: Tue Jun 25, 2019 10:52 pm
Location: CA

Re: Permission to retire?

Post by BernardShakey »

Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
It's crucial that you have a solid handle on your expenses. Set a budget, track expenses, and account for some occasional larger expenses. Some folks like to do this for 6 months or year before living on such a budget for real. You may not need to do that.

Based on the budget, determine your tax liability and then you have your annual total spend. See how your next egg supports that level of spending / taxes. Good luck!
An important key to investing is having a well-calibrated sense of your future regret.
User avatar
22twain
Posts: 2782
Joined: Thu May 10, 2012 5:42 pm

Re: Permission to retire?

Post by 22twain »

Breezy wrote: Sun Apr 18, 2021 8:49 pm Start tracking your expenses and trying to figure out your retirement spending. That's key.
If all or most of your expenses flow through a checking account, you can quickly get a "top-down" view of your total current spending.

Pick a year, say last year (2020). Look at your checkbook or statements.

Initial balance at the beginning of the year
plus all deposits (payroll, tax refund, etc.)
minus debits that aren't expenses (transfers to investment accounts, savings, etc.)
minus income tax payments (I prefer to account for taxes separately)
minus the final balance at the end of the year.

This should give you most of your non-tax expenses. Figure your taxes separately based on your tax returns. You may want to also figure separately medical insurance premiums from an employer-sponsored plan, that are deducted from your pay.

Then you can start to take into account post-retirement changes. Subtract expenses that you know will fall away after you retire. Commuting? Three-piece suits? Three-martini lunches? Your taxes may change significantly, depending on where you draw your spending-money from. Also, your health insurance costs may change significantly. ACA? Medicare? Also discretionary expenses like travel and hobbies that you now have more time for.
It's "Roth", not "ROTH". Senator William Roth was a person, not an acronym.
User avatar
Metsfan91
Posts: 194
Joined: Sat Jan 11, 2020 12:33 pm

Re: Permission to retire?

Post by Metsfan91 »

Yes. Congratulations!!
“Time is your friend; impulse is your enemy.” — John C. Bogle
relativeratio
Posts: 82
Joined: Wed Dec 02, 2020 1:13 am

Re: Permission to retire?

Post by relativeratio »

Sorry, this is your employer. We need you to come in to work on your off day. The overtime is mandatory. Sorry, no daily or personal leave days available Oh, and your FMLA has been denied.

What!! you don't need our slave wage anymore!!?! Employer shouts!!

This can't be right! I'm the boss in charge. You follow my orders. I own you. What will you do without us. No more health insurance for you!!

Congratulations!! You don't need anyone's permission. You emancipated yourself!! 8-) :sharebeer :moneybag
User avatar
JoeRetire
Posts: 8003
Joined: Tue Jan 16, 2018 2:44 pm

Re: Permission to retire?

Post by JoeRetire »

Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.
Why? What happened to make you think this way suddenly? Sudden decisions are seldom optimal.
I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year.
Spend more time thinking before deciding.
I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
Re-think this. It almost never makes financial sense for the higher-earning spouse to start their benefits before 70. That particularly true when you are older and male.
Use https://opensocialsecurity.com/ before deciding.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
Katietsu
Posts: 4791
Joined: Sun Sep 22, 2013 1:48 am

Re: Permission to retire?

Post by Katietsu »

Newbogel wrote: Sun Apr 18, 2021 8:25 pmI am think of taking SS at 65.
Sure, you can take SS at 65. I have no idea whether or not this would be a good age for you. What struck me though is that 65 is not your full retirement age. Your full retirement age is 67. Did you have another perfectly acceptable reason for selecting 65 or were you unaware that your full retirement age was 67?

I think I noticed this because it went along with the uncertainty of your desired spending level. I run everything through my checking account which helps me determine my yearly expenses. However, I must add to that expense estimate those things that come out of the paycheck before it hits the checking account, namely, income taxes and health insurance premiums.

You have spent a lifetime saving for a good retirement. You can make it happen with a little more planning.
ponyboy
Posts: 1076
Joined: Fri Feb 06, 2015 10:39 am

Re: Permission to retire?

Post by ponyboy »

Without knowing your expenses, you cannot retire.
SuzBanyan
Posts: 519
Joined: Thu Jun 02, 2016 11:20 am

Re: Permission to retire?

Post by SuzBanyan »

It looks like you have a little more than $2,000,000 in liquid assets. Assuming no growth, if you spend $100,000 per year for the next 5 years (before social security), that leaves you with $1,500,000. If you need to pull an additional $50,000 from your portfolio for the following 30 years, again assuming no growth, you will have spent your portfolio down to zero. If you assume that your portfolio will have some real growth and that $100,000 per year accurately reflects all your expenses (including taxes and lumpy spending like hone maintenance and new cars), then you are good to retire now.
LateFire
Posts: 35
Joined: Sun Dec 27, 2020 8:38 am

Re: Permission to retire?

Post by LateFire »

Looks like you are in a good shape. If I were you, I would withdraw around 3% from my portfolio just to be safe.
Dunning-Kruger cognitive test: People think they are more capable than they really are. Sufferers don't know how much they don't know, and the most ignorant are the most confident.
khunron
Posts: 52
Joined: Tue Apr 18, 2017 6:29 pm

Re: Permission to retire?

Post by khunron »

Not until you come up with a retirement budget.
CtScrtDsse
Posts: 8
Joined: Wed Mar 31, 2021 2:14 pm

Re: Permission to retire?

Post by CtScrtDsse »

Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
NW is 2.4 million, but I'm seeing just short of 1M in investment accounts. Did I miss something?
User avatar
celia
Posts: 12553
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Permission to retire?

Post by celia »

Do you have "permission" from your wife? If you don't have planned activities/hobbies, she may think otherwise. :D

Newbogel wrote: Sun Apr 18, 2021 8:25 pm I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
You definitely need to have a Roth conversion plan, to help control future taxes. And you should delay SS until age 70 to allow the biggest SS benefit for your wife after you die (unless she has a bigger monthly benefit than you). That will also give you more room in your tax brackets for Roth conversions.

And besides having a budget, you need to know where the spending money will come from each year and if there is enough to last your joint lifetimes. Counting on your house value as part of your net worth doesn't count for spending money, unless you both have another place to stay.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
retiringwhen
Posts: 2160
Joined: Sat Jul 08, 2017 10:09 am
Location: New Jersey, USA

Re: Permission to retire?

Post by retiringwhen »

JoeRetire wrote: Mon Apr 19, 2021 6:09 am Why? What happened to make you think this way suddenly? Sudden decisions are seldom optimal.
Well it happens. In my case, I have been thinking about retiring for years, but finally about 4 weeks ago, my wife threw in the towel and said, Let's retire! I am busying making my plans real now :-)

To the OP, look at https://opensocialsecurity.com/

You may wish to revisit that plan and your post does not give enough info to advise. You have enough funds to easily cover the costs of deferring SS even further than 65 for at least one spouse.


Here is a rough plan for SS planning:

Identify a Social Security Plan using this process:

1. Determine PIA
Primary Insurance Amount (PIA) is the benefit you would receive based upon current employment at full retirement age in current $. First, download your earnings history (both spouses) from SSA.gov, you'll need this data for any analysis tools. Look at ssa.tools below before getting data from the Government site, they make it easy to copy and enter the data.
The Tab SS History can be used to copy and store your earnings history for later use.
www.ssa.gov

1a. Use SSA Tools to estimate your PIA
https://ssa.tools/

1b. Alternatively, you just use your recent SS statement from SSA.gov
This works best if you plan to work until full retirement age.

2. Calculate Optimal Claiming Strategy
Best tool available for free is the Open Social Security (OSS) tool by Mike Piper. There are strategies on how and when to begin SS that optimize the long-term value, especially for married couples. This tool will help you look at the variables and strategies. Choose one as appropriate.
https://opensocialsecurity.com/

3. Calculate Monthly Benefit from OSS Table and age
Enter Benefit amount in today's $ (as provided in the benefit table)
loghound
Posts: 47
Joined: Thu May 09, 2019 7:01 pm

Re: Permission to retire?

Post by loghound »

Firecalc is your friend here -- you can easily play with your investment strategy, when you take SS, and expenses and see how much historical risk you are taking.

I spent about 60 seconds to type in your basics and it looks like it's OK, but honestly you need to review the data...
Doctor Rhythm
Posts: 814
Joined: Mon Jan 22, 2018 3:55 am

Re: Permission to retire?

Post by Doctor Rhythm »

Your watch is ended. Congrats.
Masterblaster
Posts: 56
Joined: Tue Jan 31, 2017 6:36 pm

Re: Permission to retire?

Post by Masterblaster »

NewBogel:

You have my permission...

To retire at your discretion.
supalong52
Posts: 407
Joined: Tue Feb 09, 2010 1:51 pm

Re: Permission to retire?

Post by supalong52 »

CtScrtDsse wrote: Mon Apr 19, 2021 3:06 pm
Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
NW is 2.4 million, but I'm seeing just short of 1M in investment accounts. Did I miss something?
I was confused too. He has 1.55 million in his 401K, not 401,000.
User avatar
JoeRetire
Posts: 8003
Joined: Tue Jan 16, 2018 2:44 pm

Re: Permission to retire?

Post by JoeRetire »

retiringwhen wrote: Mon Apr 19, 2021 3:33 pm
JoeRetire wrote: Mon Apr 19, 2021 6:09 am Why? What happened to make you think this way suddenly? Sudden decisions are seldom optimal.
Well it happens. In my case, I have been thinking about retiring for years, but finally about 4 weeks ago, my wife threw in the towel and said, Let's retire! I am busying making my plans real now :-)
Certainly it happens, which I why I asked. The reason is important. Sometimes it's a good reason to find a different job, rather than retire.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
Topic Author
Newbogel
Posts: 35
Joined: Sat Jan 20, 2018 10:21 am

Re: Permission to retire?

Post by Newbogel »

I would like to thanks everyone for their excellent informative answers. Obviously a lot to think about. I needed to check my SS calculation and it was wrong. At 65 we would get 44K not 50. That wasn’t good. The reason i feel in want to take it earlier is that I am a bird in the hand type of person if you know what I mean. I checked my expenditures and if I put health insurance at 18K (which I think is a bit high) it’s about 50K a year not including vacations or treats.
Topic Author
Newbogel
Posts: 35
Joined: Sat Jan 20, 2018 10:21 am

Re: Permission to retire?

Post by Newbogel »

CtScrtDsse wrote: Mon Apr 19, 2021 3:06 pm
Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
NW is 2.4 million, but I'm seeing just short of 1M in investment accounts. Did I miss something?
1.55 MUSD in 401k
390 K in Vanguard taxable and
75 in a Lincoln Financial Annuity.
That’s a little over 2 million.
BernardShakey
Posts: 240
Joined: Tue Jun 25, 2019 10:52 pm
Location: CA

Re: Permission to retire?

Post by BernardShakey »

Newbogel wrote: Mon Apr 19, 2021 8:09 pm
CtScrtDsse wrote: Mon Apr 19, 2021 3:06 pm
Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
NW is 2.4 million, but I'm seeing just short of 1M in investment accounts. Did I miss something?
1.55 MUSD in 401k
390 K in Vanguard taxable and
75 in a Lincoln Financial Annuity.
That’s a little over 2 million.
He's counting the home equity to get to $2.4M.
An important key to investing is having a well-calibrated sense of your future regret.
Escapevelocity
Posts: 536
Joined: Mon Feb 18, 2019 8:32 am

Re: Permission to retire?

Post by Escapevelocity »

I have a similar net worth including a similar home value. In my case, my retirement plan includes selling the house and paying rent in perpetuity. If my plan was to stay in my house instead, I would use a lower spending figure (minus the rent and plus the property tax/ maintenance) but not include the home equity as part of my assets.

In either case, permission granted :D
Topic Author
Newbogel
Posts: 35
Joined: Sat Jan 20, 2018 10:21 am

Re: Permission to retire?

Post by Newbogel »

Escapevelocity wrote: Mon Apr 19, 2021 10:15 pm I have a similar net worth including a similar home value. In my case, my retirement plan includes selling the house and paying rent in perpetuity. If my plan was to stay in my house instead, I would use a lower spending figure (minus the rent and plus the property tax/ maintenance) but not include the home equity as part of my assets.

In either case, permission granted :D
Thanks. I agree and later in life if everything tanks I think it’s a realistic thing to sell my house and rent an apartment or something. What I am considering is to downsize. Out house is 3500 sq.ft. and we would like to move down to 2000 sq ft or so. That will hopefully add more cash to the equation and reduce our retirement expenses. However, I do think the current housing situation is quite volatile so I want to wait for things to calm down a bit before doing that.
nguy44
Posts: 353
Joined: Sun Jul 09, 2017 1:52 pm

Re: Permission to retire?

Post by nguy44 »

Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
Your expenses are similar to ours when I retired 3 years ago at age 60. Our net worth was slightly higher, but my pension annuity is a little lower than your annuity. I had a little less in my 401K, which a few months before retirement I rebalanced to 40/60. We did carry a mortgage, but it was low with a low payment, and we paid it off last year.

Our plan was to start with a spending level at $125K, adjust for inflation yearly, and take it from there. So far we are well ahead. Out spending (helped by covid, and including paying off the house) has been a lot less than we planned.

So I would recommend what others have said - get a very firm grip on your expenses. Both your past spending pattern and your future spending requirements (especially health insurance) and desires to come up with your target, and match that against your assets. You do not need my permission, you need to do that analysis and the results will be your permission :happy .

P.S. Also remember that retirement is not just financial, it is also mental. Ensure that you are retiring TO something, and not just retiring FROM something, to truly enjoy your retirement.
User avatar
celia
Posts: 12553
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Permission to retire?

Post by celia »

retiringwhen wrote: Mon Apr 19, 2021 3:33 pm
JoeRetire wrote: Mon Apr 19, 2021 6:09 am Why? What happened to make you think this way suddenly? Sudden decisions are seldom optimal.
Well it happens. In my case, I have been thinking about retiring for years, but finally about 4 weeks ago, my wife threw in the towel and said, Let's retire! I am busying making my plans real now :-)

To the OP, look at . . .
As far as I know, none of the tools you mention will take Roth conversions into account. This is important for someone with $1.5M in tax-deferred to consider. They will easily have over $2M by age 72, and the RMDs will be at least $80K. That is enough to push them into a higher tax bracket, depending on what other income they have. Once they get to age 72, there's not much they change about SS or RMDs. The likely thing someone in that situation would do, is to convert a good chunk of it before starting SS.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
User avatar
tennisplyr
Posts: 2872
Joined: Tue Jan 28, 2014 1:53 pm
Location: Sarasota, FL

Re: Permission to retire?

Post by tennisplyr »

Retirement isn’t all about money...what do you plan to do in retirement, relaxing gets old fast. You could always go back to work, downsize, cuts expenses, etc. Life is too short to spend it behind a desk doing a job you’re not enjoying! I retired 10 years ago from a job I wasn’t enjoying :happy
Those who move forward with a happy spirit will find that things always work out.
am
Posts: 3769
Joined: Sun Sep 30, 2007 9:55 am

Re: Permission to retire?

Post by am »

tennisplyr wrote: Tue Apr 20, 2021 7:22 am Retirement isn’t all about money...what do you plan to do in retirement, relaxing gets old fast. You could always go back to work, downsize, cuts expenses, etc. Life is too short to spend it behind a desk doing a job you’re not enjoying! I retired 10 years ago from a job I wasn’t enjoying :happy
I always hear retire to something. But how about if you want to get away from the high stress and lifetime of hyper achievement leading to and in medicine?

What could you possibly retire to? How about just having no defined schedule, stress and doing whatever? Like traveling off peak, taking some interesting community college classes on art, history, language?
Dave55
Posts: 1083
Joined: Tue Sep 03, 2013 2:51 pm

Re: Permission to retire?

Post by Dave55 »

Newbogel wrote: Mon Apr 19, 2021 8:05 pm I would like to thanks everyone for their excellent informative answers. Obviously a lot to think about. I needed to check my SS calculation and it was wrong. At 65 we would get 44K not 50. That wasn’t good. The reason i feel in want to take it earlier is that I am a bird in the hand type of person if you know what I mean. I checked my expenditures and if I put health insurance at 18K (which I think is a bit high) it’s about 50K a year not including vacations or treats.
Permission Granted.

Dave
"Reality always wins, your only job is to get in touch with it." Wilford Bion
CtScrtDsse
Posts: 8
Joined: Wed Mar 31, 2021 2:14 pm

Re: Permission to retire?

Post by CtScrtDsse »

Newbogel wrote: Mon Apr 19, 2021 8:09 pm
CtScrtDsse wrote: Mon Apr 19, 2021 3:06 pm
Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
NW is 2.4 million, but I'm seeing just short of 1M in investment accounts. Did I miss something?
1.55 MUSD in 401k
390 K in Vanguard taxable and
75 in a Lincoln Financial Annuity.
That’s a little over 2 million.
I see now. Sorry, I didn't understand the "MUSD".

It seems like you are in good shape, but as said earlier, I would calculate your needed living expenses.
Topic Author
Newbogel
Posts: 35
Joined: Sat Jan 20, 2018 10:21 am

Re: Permission to retire?

Post by Newbogel »

tennisplyr wrote: Tue Apr 20, 2021 7:22 am Retirement isn’t all about money...what do you plan to do in retirement, relaxing gets old fast. You could always go back to work, downsize, cuts expenses, etc. Life is too short to spend it behind a desk doing a job you’re not enjoying! I retired 10 years ago from a job I wasn’t enjoying :happy
I do enjoy my work quite a lot but I also want to have more time to enjoy other things. Instead of waking up at 7.00am everyday I want to wake up at 8. Have a nice breakfast then head to the gym and take a class with my wife. Play tennis or golf with friends. I look forward to snowbirding in Brazil from January to March. Down there I intend to have a similar agenda to my daily life here. Basically I guess I want to my day with 4-5 hours of activities that I enjoy instead of 8 in the office. I do think about some volunteering too but I’ll see how bored I get first.
Topic Author
Newbogel
Posts: 35
Joined: Sat Jan 20, 2018 10:21 am

Re: Permission to retire?

Post by Newbogel »

CtScrtDsse wrote: Tue Apr 20, 2021 10:14 am
Newbogel wrote: Mon Apr 19, 2021 8:09 pm
CtScrtDsse wrote: Mon Apr 19, 2021 3:06 pm
Newbogel wrote: Sun Apr 18, 2021 8:25 pm All of a sudden I am REALLY thinking of retiring.

Here is my situation.
I am 61 in May and my my wife is 59.

Our net worth is approx. 2.4 Million.

390K in taxable investments. Vanguard A/A approx 70/30
401K 1.55 Musd. A/A is approx 50/50.
75K in Lincoln Financial Annuity.
House fully paid off and worth about 390K.

I haven’t really thought about how much I need to spend in retirement perhaps 80-100k a year. I am think of taking SS at 65. With spousal benefits that’s almost 50K a year.
NW is 2.4 million, but I'm seeing just short of 1M in investment accounts. Did I miss something?
1.55 MUSD in 401k
390 K in Vanguard taxable and
75 in a Lincoln Financial Annuity.
That’s a little over 2 million.
I see now. Sorry, I didn't understand the "MUSD".

It seems like you are in good shape, but as said earlier, I would calculate your needed living expenses.
Sorry. I am originally from the UK and work for a European Company here and that’s how we shorten for Millions.
UsualLine
Posts: 27
Joined: Mon Dec 17, 2018 1:51 pm

Re: Permission to retire?

Post by UsualLine »

Newbogel wrote: Mon Apr 19, 2021 10:28 pm ...
However, I do think the current housing situation is quite volatile so I want to wait for things to calm down a bit before doing that.
If you are moving from a more expensive to a less expensive house it could be to your benefit to do it during a "hot" housing market. Going from say $500k house to $300k house and both sell for 10% over market, you come out with 550-330=220 instead of 500-300=200.
nguy44
Posts: 353
Joined: Sun Jul 09, 2017 1:52 pm

Re: Permission to retire?

Post by nguy44 »

am wrote: Tue Apr 20, 2021 8:25 am
tennisplyr wrote: Tue Apr 20, 2021 7:22 am Retirement isn’t all about money...what do you plan to do in retirement, relaxing gets old fast. You could always go back to work, downsize, cuts expenses, etc. Life is too short to spend it behind a desk doing a job you’re not enjoying! I retired 10 years ago from a job I wasn’t enjoying :happy
I always hear retire to something. But how about if you want to get away from the high stress and lifetime of hyper achievement leading to and in medicine?

What could you possibly retire to? How about just having no defined schedule, stress and doing whatever? Like traveling off peak, taking some interesting community college classes on art, history, language?
This is anecdote for one example. A friend of mine who was a doctor for 40 years just retired. What is he doing now that brings him pleasure? Farming. For the last five years he farms some of his property, and rents some of it out to others for farming. He enjoys the challenge, but he can choose what crops and what pace. He finds it low stress. If one season doesn't go well, no big deal, there is always the next season. If it does go well, he has more than enough for his family and donates the abundance to local food banks. For him, putting that achievement drive from medicine into farming as a hobby suits him well. One just has to investigate and decide how they want to harness that drive if one chooses retirement.
User avatar
LadyGeek
Site Admin
Posts: 71864
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Permission to retire?

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (retirement planning).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Post Reply