Revise retirement number/age?

[Anonymous]

Anonymous wrote:We have $3 million in cash and a $1.2 million paid off house. One of us working a PT hobby job, one fully retired, health insurance covered by retirees previous job and pension of $3k per month.

Don't be scared by the crazy numbers people lie about here. We are doing great, travel, visit the kids (recent college grads, by no means settled) and are living our best lives.

but you do have crazy numbers compared to majority of population. This forum is a bubble, and a delusional one often times. Yes, with a paid off house, covered health insurance, a pension and later SS and Medicare in addition to it and kids already done with college you ARE doing great. And you are doing even better than those retired since you managed to land that "hobby" job PT as opposed to be forced to full time indentured servitude to just afford health insurance in late middle age.

[Anonymous]

I just saw a recommendation that it might be prudent now to adjust to a 5% withdrawal rate from 4%.

[Anonymous]

Anonymous wrote:I just saw a recommendation that it might be prudent now to adjust to a 5% withdrawal rate from 4%.

Yeah, that might work out. Or you end up broke.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm 53 with about 3.5M net worth. Of that, 900K is in house equity. Wife is a SAHM. One kid is freshman in college and one is a junior in HS. I'm about to lose my job as a govt contractor as the work flow is being cut. So, yes, my retirement number and age has drastically changed. It looks like it's going to be whatever I have when job gets axed. I will certainly look for another job but I'm not optimistic. Not sure if I will stay here until HSer graduates or if we need to move to lower cost of living immediately. We will probably wait until the end of the school year at least. No idea where to move to though. Sucks.

That does suck.

When I was in high school my family faced a similar predicament and I stayed with family in the area to finish high school while my parents moved to new job location. It worked out fine for me. I guess that's just an anecdote, but figured it may help. Maybe you can come up with some other idea. Finishing high school in the town I grew up in was important to me, but maybe it isn't for your kid and he or she will be excited about a new opportunity/adventure. Good luck!

So I put my numbers into ChatGPT and it says that I have a 75% chance of my money lasting me until I'm 95 years old. That's not bad! Hopefully, my job hangs on for another year or two. That increases my odds quite a bit.

That's great! I bet that really takes the pressure off for finding a new job. But will it feels weird not having a job at such a young age?

Also, just curious . . . what number did you input for your current savings?

[Anonymous]

The last year or so has us looking to pull the ripcord early. Currently 51. Looking to get out by 60. At present $6m ($3m taxable, $3m retirement). One kid, 9th grade. House ($1.2-1.5m) will be paid off by time kid is 1/2 way through college. Our projection has us at $10-12m by the time we want out.

One of my biggest concerns (champagne problem to be sure) is that RMDs could be $1m/yr if we don't take some action to mitigate.
No employer healthcare after retirement but happy to cash flow that to be able to get out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would not want to retire early as that is sad in a way. If you love your job and it makes you happy there is no rush.

It’s sad to have nothing better to do than your job

+1

Who wouldn't want to retire early and control what they do daily in their life? We are early 50s and will travel over 130 days this year (much out of country). You never know when you wont be able to do so

[Anonymous]

Anonymous wrote:The last year or so has us looking to pull the ripcord early. Currently 51. Looking to get out by 60. At present $6m ($3m taxable, $3m retirement). One kid, 9th grade. House ($1.2-1.5m) will be paid off by time kid is 1/2 way through college. Our projection has us at $10-12m by the time we want out.

One of my biggest concerns (champagne problem to be sure) is that RMDs could be $1m/yr if we don't take some action to mitigate.
No employer healthcare after retirement but happy to cash flow that to be able to get out.

We have similar stats and plan to stop working in 5-6 years to start Roth conversions before 62 (about 5 years). Why not stop working earlier and start conversions? $1 million RMDs
would be ridiculous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The last year or so has us looking to pull the ripcord early. Currently 51. Looking to get out by 60. At present $6m ($3m taxable, $3m retirement). One kid, 9th grade. House ($1.2-1.5m) will be paid off by time kid is 1/2 way through college. Our projection has us at $10-12m by the time we want out.

One of my biggest concerns (champagne problem to be sure) is that RMDs could be $1m/yr if we don't take some action to mitigate.
No employer healthcare after retirement but happy to cash flow that to be able to get out.

We have similar stats and plan to stop working in 5-6 years to start Roth conversions before 62 (about 5 years). Why not stop working earlier and start conversions? $1 million RMDs
would be ridiculous.

This is why we moved up our retirement. It’s counterproductive for us to continue working when we need to start conversions. We’re converting up to entire 22% bracket as our RMDs would be taxed way higher.