income HIM 200k, HER 70k
current assets: 2 million
200k cash
no taxable account
Roths: 200k
IRA/401k/403bs: 1.1 million
529: 90k (one child, going college next year)
home: 450k - no mortgage
two cars, no debt
all investments are at 30/70 bond/stock and in three fund portfolio with lowest ER
we are currently maxing out all contributions (Roth s, 401k, 403b) and 529
both age 50
average expenses over the last five years from take home pay: 95k/year. This includes new to us cars, major house renovations, vacations. It does not include health care if we had to get from marketplace (other then typical co-pays and smaller items)
HE has reached second bent point in SS payments, HER will probably always be less and hence half HIS payout.
Classic questions, do you think an early retirement is possible given the numbers, how could that look like and how would you do it or what else should I consider that I may have missed (I already have questions regarding the draw strategy, but one thing at a time)?
HIS current work has become a challenge and a strong desire to step back and have at least a sabbatical if not being done with it entirely. Any new job in the current area would not pay as well. HER job is great and she loves it, the next 5 year contract is likely (but no guarantee) and would be in '26 till '31. We were/are on track for the originally intended early retirement at age 55ish, but we need a change in plans due to HIS work becoming unsustainable for the next 5 years.
Question 1: Can both retire immediately ? If I follow the 4% rule and add taxes and healthcare, given the 5year average expense level, that looks not promising to me and we would have to relay on SS later on - thoughts ?
Question 2: Can HE retire immediately ? DW is happy to work, OKish healthcare would be available and at similar cost then currently in the budget. This would significantly reduce the pull from net worth. Would probably create a SEP-IRA to draw the gap from, adjust with cash or Roth principle.
Question 3: Is a sabbatical the answer for now, going back to some work afterwards to just coast until late 50s (some form of Barista fire) ? No further retirement contributions, but also no draw from it, this may get us to the original numbers at age 55ish by itself.
Question 4: Are there options I have not considered ?
Thanks for your time and thoughts!
current assets: 2 million
200k cash
no taxable account
Roths: 200k
IRA/401k/403bs: 1.1 million
529: 90k (one child, going college next year)
home: 450k - no mortgage
two cars, no debt
all investments are at 30/70 bond/stock and in three fund portfolio with lowest ER
we are currently maxing out all contributions (Roth s, 401k, 403b) and 529
both age 50
average expenses over the last five years from take home pay: 95k/year. This includes new to us cars, major house renovations, vacations. It does not include health care if we had to get from marketplace (other then typical co-pays and smaller items)
HE has reached second bent point in SS payments, HER will probably always be less and hence half HIS payout.
Classic questions, do you think an early retirement is possible given the numbers, how could that look like and how would you do it or what else should I consider that I may have missed (I already have questions regarding the draw strategy, but one thing at a time)?
HIS current work has become a challenge and a strong desire to step back and have at least a sabbatical if not being done with it entirely. Any new job in the current area would not pay as well. HER job is great and she loves it, the next 5 year contract is likely (but no guarantee) and would be in '26 till '31. We were/are on track for the originally intended early retirement at age 55ish, but we need a change in plans due to HIS work becoming unsustainable for the next 5 years.
Question 1: Can both retire immediately ? If I follow the 4% rule and add taxes and healthcare, given the 5year average expense level, that looks not promising to me and we would have to relay on SS later on - thoughts ?
Question 2: Can HE retire immediately ? DW is happy to work, OKish healthcare would be available and at similar cost then currently in the budget. This would significantly reduce the pull from net worth. Would probably create a SEP-IRA to draw the gap from, adjust with cash or Roth principle.
Question 3: Is a sabbatical the answer for now, going back to some work afterwards to just coast until late 50s (some form of Barista fire) ? No further retirement contributions, but also no draw from it, this may get us to the original numbers at age 55ish by itself.
Question 4: Are there options I have not considered ?
Thanks for your time and thoughts!
Statistics: Posted by deikel — Sat Aug 24, 2024 5:41 pm