Almost there (when can I retire?)

[Rob Base 2.0]

Sew...my wife got a jobby job. (It only took her a week! :-)

I make $54k (& I get a $12k increase in 6 months), she makes $42k and I have a $49k a year military pension that gets government COLAs.

So soon we will go back into mega saving mode ($40 k a year)

We currently have $560k in retirement accounts. And $115k in EF (just brought a $23k car cash---it wasn't worth fighting wife over this). Have military retiree health care.

So unless market really tanks we should have about $1.25 Mill in retirement accounts in 6.5 years. Withdrawing 4% that would be $50k a year.

I am seriously thinking of retiring for reals at that time. (Assuming everything goes according to plan....I know....always gots to think about Murphy..... also, Wife plans to still work for at least 5 more years after that.

I is 46 and she is 44.

What do you think?

[buystoys]

It's possible, but it all depends on your spending rather than how much you have.  If you can withdraw $50k per year but spend $100k per year your retirement won't last very long or be much fun.

Have you run your numbers through FIRECalc?  It's a great tool.  I also like i-Orp.

[Rob Base 2.0]

We donut spend a lot. And if I withdraw $50K a year and have a pension of $50K a year I would be OK spending $100K a year.....but we donut spend that much usually (we will have some unusual moving expenses this year though) .....I don't think spending will be an issue.....we just easily survived wife taking a 4 month break from work (she had to take care of sick parent)

[buystoys]

Well, 50+49=99, so if you're spending $100 and only getting $99, you run out of money before you run out of bills. 

That's why I'd say run your numbers through one of the calculators.  You can get a better handle on how your investments will do over the long term as well as how known large expenses such as kids college or weddings, can impact you.

[Rob Base 2.0]

No kids 

[Gardening Grandma]

Feb 24, 2017 20:58:56 GMT -5 Rob Base 2.0 said:

Sew...my wife got a jobby job. (It only took her a week! :-)

I make $54k (& I get a $12k increase in 6 months), she makes $42k and I have a $49k a year military pension that gets government COLAs.

So soon we will go back into mega saving mode ($40 k a year)

We currently have $560k in retirement accounts. And $115k in EF (just brought a $23k car cash---it wasn't worth fighting wife over this). Have military retiree health care.

So unless market really tanks we should have about $1.25 Mill in retirement accounts in 6.5 years. Withdrawing 4% that would be $50k a year.

I am seriously thinking of retiring for reals at that time. (Assuming everything goes according to plan....I know....always gots to think about Murphy..... also, Wife plans to still work for at least 5 more years after that.

I is 46 and she is 44.

What do you think?

You are looking at a very early retirement.  At age 52, you could (with luck) live another 45-50 years. Does your mil pension have a cola? Will it be enough to live on? Or will you need to take withdrawals? If you take withdrawals from retirement accounts before age 59.5, there are penalties.
At what age do you plan to take SS? Can you be sure your healthcare won't get changed by the current administration?
Finally, the market has been on a very long bull run with a lot of uncertanties ahead. I'd be very surprised if we don't see a major correction in the coming years... I certainly would not count on continuing to see the gains we've enjoyed the last 8 years.
The magical 4% rate is based on a 30 year retirement, not 45 or 50 years. 2.5% to 3% is a more realistic plan. (It's also based on an AA of 60:40, which many retirees consider too aggressive)
How will you spend your time? Most of your friends will still be working....

[Rob Base 2.0]

Pension has COLAs

There are ways around penalties under 59. U can withdraw under 59 if u take life expectancy withdrawals. Also as long as u contributed for at least 5 years u can withdraw ur principal / contributions from Roth IRA at ANY time without penalty (u just can't take out the interest / earnings it made before ur 59)

So regardless. if I retire at 53 my EF will get me about 2.5 years to 55.5. My Roths principal should carry me 4 more years to 59.5 and then I gots full access to retirements accounts. But like I said u can access ALL retirement accounts before 59 just u have take even distributions based on life expectancy.

I'deally I'll take SS at 69. And I expect some SS -not everything but I figure I'll get $1k a month and so will wife.

As far as being "bored" in retirement I don't understand that mindset. I recently had 60 days off and LOVED every minute of it. Didn't want it to stop. Don't understand these "bored" people --they have no imagination (only exception I can think of is if they are disabled. But then it would be hard to work anyways. ).

My suggested day- sleep in at least 90 minutes. 2.5 hours at gym (includes commute time back and forth too). Bath time - 45 minutes. Nap time 30 mins. Movie time. Etc. and damn chores - walking dog, vacuum etc.

I don't understand bored people. If ur so darn bored volunteer

[Cookies Galore]

What do you think?

What do I think? That every time you post I'm always surprised you are an adult and have a wife, and aren't a 12-year-old playing with us. Jokes! I got 'em!

Push the retirement goal to 55? I think so long as you really crunch the numbers and try to account for all sorts of crazy scenarios, then go for it. My dad retired almost 9 years ago at age 56 and he's doing great. He had a good pension as well, which helped his reach his goal (among various other smart financial moves he made over the years).

[hsclassic]

Kayfresh - From our actual experience 5 years ago when we did retire early, and with all due respect, 60 days off vs. 365 days off every year is very different.  Yes, there are things to do to keep from getting bored, and that is the most important (IMO) part of planning for retirement - what are you and your spouse going to do with that extra time.


One thing you'll need to also think about is the different between your retirement and your DW still working. Human nature typically is wanting to do things with your spouse. With you at home and her working, there will likely be some tension when you feel a bit "trapped" because she is unavailable to do things with. (*d$%^ job*)

Yes, you sound like someone who can occupy your time without your companion. But we are all human and relish doing things with our loved ones, so plan for that time difference. Retirement planning is more than just planning for the money part.

[Deleted]

Your wife wants to work 5 years longer than you? Under no circumstances would I be able to retire before DW, if I got laid off a year before our retirement date and couldn't find suitable work she would have me at McDonalds for no financial reason whatsoever.

[vonna]

Well, here is a vote for . . . go for it!!

I retired at 41, husband at 46 -- both from the military. I'm almost ten years into retirement, he is 7 years in, and absolutely no regrets.  

The area I spent the most analysis on was survivorship -- make sure before you retire your DW would be okay with the loss of all or half of your pension, depending on what you selected for SBP.

[vonna]

Also -- if you have not already discovered the wealth of information about early retirement with a military pension, you may want to check out this website --

the-military-guide.com/

Also, Doug Nordman wrote the book on military retirement -- info is on the website.   A lot of "been there, done that" info from other military early retirees.

[buystoys]

Nords is awesome!  I've recommended his site to my brother, BIL, and BIL's brother as they all have military pensions.  Forgot about his site earlier in this thread.  Thanks vonna for pointing it out!

[Rob Base 2.0]

Thanks all. Here is just one of my "hobbies" that I can spend more time on in retirement 😀

www.youtube.com/playlist?list=PLGNX1nMjy8K3R5dsHR_hHNxsCHhRYvrkV

[Bob Ross]

Feb 25, 2017 12:39:34 GMT -5 Rob Base 2.0 said:

Thanks all. Here is just one of my "hobbies" that I can spend more time on in retirement 😀

www.youtube.com/playlist?list=PLGNX1nMjy8K3R5dsHR_hHNxsCHhRYvrkV

[Rukh O'Rorke]

Mar 1, 2017 10:38:17 GMT -5 Bob Ross said:

Feb 25, 2017 12:39:34 GMT -5 Rob Base 2.0 said:

Thanks all. Here is just one of my "hobbies" that I can spend more time on in retirement 😀

www.youtube.com/playlist?list=PLGNX1nMjy8K3R5dsHR_hHNxsCHhRYvrkV

stop talking to yourself....

Everyone knows you're the same person....

[Bob Ross]

Mar 1, 2017 13:53:49 GMT -5 Rukh O'Rorke said:

stop talking to yourself....

Everyone knows you're the same person....

I'm also the same person as you.
Don't believe me? Go watch Fight Club, then quit talking to yourself.

[Deleted]

Mar 1, 2017 17:18:44 GMT -5 Bob Ross said:

Mar 1, 2017 13:53:49 GMT -5 Rukh O'Rorke said:

stop talking to yourself....

Everyone knows you're the same person....

I'm also the same person as you.
Don't believe me? Go watch Fight Club, then quit talking to yourself.

I also watched an episode of Bob Ross, Beauty is Everywhere on Netflix today..... damn flu.

[Bob Ross]

Mar 1, 2017 17:24:27 GMT -5 @aj said:

Mar 1, 2017 17:18:44 GMT -5 Bob Ross said:

I'm also the same person as you.
Don't believe me? Go watch Fight Club, then quit talking to yourself.

I also watched an episode of Bob Ross, Beauty is Everywhere on Netflix today..... damn flu.

When Bob is around, beauty is everywhere!