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Old 04-13-2016, 08:55 AM
 
Location: Idaho
1,453 posts, read 1,153,939 times
Reputation: 5487

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Quote:
Originally Posted by Alcar View Post
59.5 this June. Married. We have 1.2M in 401K type accts. including a pension lump sum. Financial advisor has a plan for us to net close to $100K/yr after taxes, with 95% probability for 30+ yrs (this plan includes SS and my wife's salary for a couple more years).
How old is your wife? How 'safe' is her job and is she happy with her job and OK with you retiring earlier?

What about health insurance if your wife loses her job? As others had pointed out, COBRA health insurance for a couple runs over 1.5K/month.

What are your current and expected annual expenses when you retire? Will you be able to cut back your spending if your wife loses her job or unexpected health issue/expenses come up?

How are you investing your nest egg? I don't like all the doomsday warning upcoming market crashes but there is always a possibility of a big downturn between now and when you can collect SS (and this usually accompanied with layoffs). You stated only having 40K in cash but what about cash/bond portions in 401K?

I'd suggest to ask your FA to run the numbers again for different scenarios. You may try to dry run test the worst case scenario by living below your current standard for at least few months.

If you are quite stressed out about your job so that it affects your health (emotionally, mentally and even physically) you should quit now.

If you 'hate' your job but can tolerate working for another year, then work to build your cash saving before retiring. If you are say spending 100K/year and only have 40K in cash, you will start to deplete your saving very fast if your wife loses her job or can not work for whatever reasons.

I disagree with the statement by another poster that everybody slacks off at work before retirement. This did not happen to me and quite a few of my former colleagues. However, IMO, you can reduced the work stress by focusing on doing the work you find rewarding and meaningful and 'slack off' or put low priorities on 'busy work', things that one has to do only to please the boss, to get good ratings etc.

Last edited by BellaDL; 04-13-2016 at 09:04 AM..
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Old 04-13-2016, 09:10 AM
 
10,604 posts, read 14,196,742 times
Reputation: 17201
Quote:
Originally Posted by elnrgby View Post
If staying on the horrible job for one more year will contribute 10% or more to your assets, I would endure working for one more year while looking constantly at the light at the end of the tunnel. If it's less than 10%, then it's not worth it; I'd retire.

Re immediately preceding post, 40k cash is not ideal, but it's not particularly BAD either with 550k home equity on which one can get a loan in case of a possible but not likely emergency.
I was basing that off the OP's stated budget of $80K per year.

That's pretty spendy for me. Then again, I'm spending around 12K including deductable expenses for my service business LOL.
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Old 04-13-2016, 09:22 AM
 
10,604 posts, read 14,196,742 times
Reputation: 17201
Quote:
Originally Posted by Willistonite View Post
It really comes down to how much you are going to spend in retirement. You are in good financial shape. Most people
would so wish they had your finances. So now you need to sit down and figure out your monthly, yearly expenses and how much travel you are going to do. Also how much are your medical bills. Once you do your P & L that will tell you.
If it looks good, just retire and don't look back. Gong to work everyday to a job you have must suck..
He did. He said his budget was 80K per year.
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Old 04-13-2016, 01:31 PM
 
Location: PA
838 posts, read 1,017,813 times
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I say work the extra year, the bonus will be nice, and really no one "loves" to work...we feel fulfilled but no one loves it! Trust me, the Maury daytime shows will still be there when you do decide to retire! You may kick yourself in the butt later for not holding out for another year.
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Old 04-13-2016, 05:48 PM
 
Location: RVA
2,164 posts, read 1,265,616 times
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Debbie Downer here. I don't see how just on SS &1.2M you can have $100k after tax for life, COLA adjusted. Numbers dont work unless both are near max SS and delay, which he isn't indicating. 1.2M is $48k pretax, roughly $38k post tax, so they would need $62k post tax SS. MAX SS at 62 times 2 is $48k pre tax or about $41k post tax. Say $80k post tax, and thats just federal, both at max SS.

Frankly tough to maintain a high living expense of $80k on those numbers. Drop your expenses to $60k/yr, and you are all good.
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Old 04-13-2016, 06:02 PM
 
Location: Sierra Nevada Land, CA
8,394 posts, read 9,139,362 times
Reputation: 13031
I retired two years earlier than planned. Job became fecal matter. I am so glad I am done. Being happy and healthier is not something you can attach a $$$value to. But if money is your focus then go for the extra year. I am sure the physical and emotional toll is worth the extra couple of $100s per month. Esp when the medical bills start rolling in.
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Old 04-13-2016, 09:37 PM
 
401 posts, read 291,583 times
Reputation: 457
I think that asking if you should retire is similar to asking if you should marry or even divorce. When the time is right you will act regardless of anyone's opinion. It appears that you are able to retire if that is your choice. To me the real consideration is having a plan for health coverage. Many people return to work just to cover insurance if they retire early. The other consideration would be to start doing the things now that you want to do in retirement so that you don't suffer the shock of loss of identity. If you are only known by your work title, then you have some personal diversifying to do - not with funds, but with your interests and avocations. Lastly you and your wife need to agree on your roles once you retire. All the best, regardless of your decision. I LOVE Retirement.😀
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Old 04-13-2016, 09:55 PM
 
Location: NY
157 posts, read 214,363 times
Reputation: 104
[quote=Alcar;43693542]Quick Summary:

59.5 this June. Married. We have 1.2M in 401K type accts. including a pension lump sum. Financial advisor has a plan for us to net close to $100K/yr after taxes, with 95% probability for 30+ yrs (this plan includes SS and my wife's salary for a couple more years).



Financial advisor has a plan for you to net 100k after tax with 95% probability for 30 years?
How is that gonna happen? I would think seriously about running, not walking, away from this guru.
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Old 04-13-2016, 10:34 PM
 
Location: Texas
618 posts, read 516,665 times
Reputation: 1915
Quote:
Originally Posted by Perryinva View Post
Debbie Downer here. I don't see how just on SS &1.2M you can have $100k after tax for life, COLA adjusted. Numbers dont work unless both are near max SS and delay, which he isn't indicating. 1.2M is $48k pretax, roughly $38k post tax, so they would need $62k post tax SS. MAX SS at 62 times 2 is $48k pre tax or about $41k post tax. Say $80k post tax, and thats just federal, both at max SS.

Frankly tough to maintain a high living expense of $80k on those numbers. Drop your expenses to $60k/yr, and you are all good.
This. Unless I am missing something, I don't understand how you can net 100k after tax.
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Old 04-13-2016, 11:33 PM
 
6,794 posts, read 3,859,912 times
Reputation: 15509
Quote:
Originally Posted by Alcar View Post
yes - I have a part time job lined up....at min wage tho (doing something I like)
Sounds good. How about health insurance?
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