Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My thought was that your basic expenses seem low. $50,000 a year doesn't go very far, especially when you have to pay property tax and the non-covered part of health care out of it.
But you are financially all set. You just need to find something to do for what could be a 30-year retirement. You are not "rubbing it in" from my POV, I am also well prepared.
Very true! That is the fact that causes me to run to the exits and retire. Longevity does not run in my family (very few have made it to mid-80's, most have passed in when in their late 60's or early 70's). It might be different if I still enjoyed my job, but it's become a grind, the days are 12-hours long with commute, and I do have some health issues. Thanks for your perspective.
Dear lord... this is a no-brainer...start living on your terms. You can afford it.
Sounds like your set to have a solid retirement. So you can pull that trigger without worries. I have one question though. You did not mention drawing any income from your $2 million in assets. Instead of collecting SS at 62 why not wait a few more years? Assuming things don’t change, you will receive a guaranteed increase in benefit by taking SS later. At the same time you can draw income from your invested assets.
The SWR is normally 4%. You can draw 2.5% a year just to be really safe. At $2 million that would give you an additional $50K/year + $38K/year for pension.
Thanks to all who have commented. I appreciate your taking the time to weigh in. It helps me make this "life changing" decision, really.
Griffon652: I'll have to make that decision as I get close to 62. I understand what you mean, of course, and another in this thread also pointed this out. It's a good point and bears repeating, to be sure. I guess what I'll have to figure out as the time approaches is whether it makes sense to keep my $2 million as much intact as possible and continue to gain those investment returns (if they are above 8 percent, probably unlikely according to current prognostications!). But, of course, I don't want to walk into a "tax torpedo," either, if I wait too close to 70.5 to begin my RMD's from the tax-deferred part of my nest egg.
There must be times when it makes sense to take social security at 62 (besides life expectancy issues), I'm thinking?
Many decisions forthcoming, but thanks to all here I can approach them with "eyes wide open."
There must be times when it makes sense to take social security at 62 (besides life expectancy issues), I'm thinking?
Only one - having no other choice. You have lots of options. It never makes mathematical sense except maybe to heirs if you die before the breakeven point.
Greetings: I'm 58 years old, single, with no dependents, and am leaning toward accepting an early retirement offer, but wanted a quick check-in with the good folks here.
Basic facts: $2 million in invested assets (split almost evenly between after-tax and pre-tax accounts, and then about a 60/40 stock-bond allocation) and an additional 200k or so in savings bonds and cash (as a buffer if the stock market tanks).
I own my home and have no consumer debt. In addition, and this is just the way things work out, I'll get a pension and special incentive (to retire) until 62 years old of $82,000 per year (no COLA).
I also get to keep my employee health insurance (employer continues to pay about 70 percent of premiums, I continue to pay the remaining 30 percent). At 65, I take Medicare, but can keep the employer insurance as the "gap," with the continued employer/employee cost share of premiums.
Once I turn 62, my pension and social security (if I choose to take social security then) combined will total $68,000 per year ($14,000 retirement incentive goes away at 62). If I don't take social security at 62, the pension portion alone will be $38,000, so I'm leaning toward taking social security at 62 since it adds $30,000 to my annual income then.
The $38,000 pension will be COLA'd beginning the year I turn 62. If I take social security at 62, that $30,000 will be COLA's, too, of course. Both the pension and social security would continue until my death.
My basic expenses, really, come to about $50k a year, but even if I splurge and project expenses of $75k or $100K a year, the "free" retirement calculators online say I'm good to go for at least 30 years (I don't expect to live until 88) and then some. I don't need to leave a legacy, but will keep an eye on my "balance" and adjust accordingly as time goes on. Some calculators end with a substantial balance at death, depending on various the various parameters used in the calculation.
I'm not particularly enamored of my job anymore, so am not emotionally tied to it and feel ready to go, but, of course, the decision to retire in this case is irreversible. Naturally, this makes the decision a little tougher.
Question: what would you do. Should I stay or should I go?
Thanks in advance for your opinions!
You did a very good job of asking the question and that shows you know what your are doing.
I do not see a problem. I generally use the 4% rule for planning but as you get closer I think I would change the 4% to 3%. That means you should be able to take 60,000 out of your investments each year for 30 years (2 million times 3%).
I would postpone SS until 70. Your risk is not dying to soon but living too long.
Remember the life expectancy tables leave 50% of the people alive. You should plan on 100. You do not want to fall short.
You did a very good job of asking the question and that shows you know what your are doing.
I do not see a problem. I generally use the 4% rule for planning but as you get closer I think I would change the 4% to 3%. That means you should be able to take 60,000 out of your investments each year for 30 years (2 million times 3%).
I would postpone SS until 70. Your risk is not dying to soon but living too long.
Remember the life expectancy tables leave 50% of the people alive. You should plan on 100. You do not want to fall short.
What type of employer are you working for?
Employer is private-sector but often does contract worth with various governmental or quasi-governmental entities.
You're a multimillionaire with a pension and relatively low fixed expenses. Financially, this is really a no brainer.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
