Can I retire?

$4k per month in expenses seems really high if everything is paid for. Lots of property tax or something?

Not so fast bro wrote:

$4k per month in expenses seems really high if everything is paid for. Lots of property tax or something?

Nope, just planning to live well.

You’re close. But I think you are a few years away. You’re probably going to receive max social security, so that will help. You just need to worry about things outside your control including inflation or emergenior market downturns.

I forgot to mention something very important - I'll also be receiving $3300 per month (pre-tax) pension.

Based on the 4% rule, you have enough.

You've easily got this. DO IT.

Unless you are lucky and your job is your passion, retiring and living life is THE BEST.

Did mine sooner than later and don't regret it in the least. Get here as soon as you can.

Retiring Runner wrote:

You've easily got this. DO IT.

Unless you are lucky and your job is your passion, retiring and living life is THE BEST.

Did mine sooner than later and don't regret it in the least. Get here as soon as you can.

Thanks! My job isn't too bad, but I've been at it for 35 years - I hope to join you soon and thanks again!

Assuming one of you starts SS at say 62 and the other at 65 or 70 (the longer lived one) it sounds like you'll be fine. Might need to reduce that monthly nut a bit more than you're thinking tho

Outbound wrote:

I forgot to mention something very important - I'll also be receiving $3300 per month (pre-tax) pension.

If this is the case, you can most certainly retire now. Also, don't take social security immediately. You can delay it a few years and, in return, get more in the long run.

Not until flagpole says it's ok.

Outbound wrote:

I forgot to mention something very important - I'll also be receiving $3300 per month (pre-tax) pension.

how did you leave this out? this effectively doubles your net worth (3300*12/.04) and with it, you can retire immediately and comfortably.

come to think about it you didn't even include your home equity in your OP wtf dude. you come for financial advise yet you give no info. I'm angry!!

either way regardless of you home eq you're still good to go, but it definitely would factor into the decision if you were more on the bubble.

3 mil in the bank wrote:

come to think about it you didn't even include your home equity in your OP wtf dude. you come for financial advise yet you give no info. I'm angry!!

either way regardless of you home eq you're still good to go, but it definitely would factor into the decision if you were more on the bubble.

Sorry ‘bout that. House is worth approximately $350K but I plan never to tap it.

Outbound wrote:

Everything is paid off - house, kids' college, vehicles, etc

Status:

$860K in our companies' 401K's that wife and I can access penalty-free if we both retire from our respective companies as we are both over 55...will be subject to federal tax of course.

$330K in other investments

We live in a state that does not tax pension payments - so no state taxes, only federal

Monthly expenses upon retirement will be $4K per month (including company provided health insurance - which is bound to increase every year starting at $350 per month)

I've read some very savvy financial info from contributors on this site over the years (and of course, some not so savvy)

Any thoughts are appreciated.

You are not in a bad spot, but 4% of your total is just $47,600 per year. That is $3,966 a month BEFORE taxes, so based on your expenses, I say you are not ready.

You would be ready IF:

1) You were closer to getting Social Security on top of that money.

2) You both know you only have 20 years to live and that at the end it won't cost much.

3) You could pare your expenses down more, or sell the house and buy a cheaper one that gives you a few more hundred thousand.

I'm all for people retiring when they want to, but you need to be realistic. Make it happen if you want, but you can't spend $4,000 a month just now.

Damn bro, sorry to hear you can't retire yet.

Why don't you take your money and move somewhere cheap, so you can enjoy an early retirement? Go somewhere exotic like Mauritania. I don't get why people with so much more money than the rest of us, are staying in a country where their money is not worth as much.

Hey Flagpole - thanks, but as I stated above: "I forgot to mention something very important - I'll also be receiving $3300 per month (pre-tax) pension".

I meant to include it my original post, don't know how I forgot such key piece of information.

Of course you can retire. You could on half the amount of savings. I would be more concerned with my asset allocation entering retirement with assets at record high valuations.

Igy

Once retired, move to a state without income tax.

Your taxable accounts will be spitting off dividends of another $550 a month or so that won't be taxed. Assuming you are just having the pension income.

Most of your pension ($2000 a month) will come in tax free. The rest will be taxed at 10%.

So you will have effectively $2970 a month from the pension plus $550 = $3520 a month

At this point you can either withdraw the balance from the taxable accounts (which will be tax free at your income level). Or start taking it out from the 401K. Probably the better decision is to just pay the tax on the 401K and draw that down since you will be forced to once you are 70.