To retire or not to retire,,,,

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Christopher55
Posts: 2
Joined: Thu Oct 17, 2019 7:19 pm

To retire or not to retire,,,,

Post by Christopher55 » Thu Oct 17, 2019 8:10 pm

Okay here goes it,im 58 ,have a defined pension that i can withdraw of $200k,a 401k of $75k and stock of $40k and the wife is 51 and carries the insurance and we carry no debt and are vigilant in spending carefully while still enjoying ourselves and helping out our parents ,ive been beating around the idea of retiring because of some health issues and how fast 40 years flew past,wow! we have went to some planners who charge 1% to manage while returning 3-5% on investments,any fresh and invigorating ideas on this? Please submit,Thank You in advance,

runner3081
Posts: 2571
Joined: Mon Aug 22, 2016 3:22 pm

Re: To retire or not to retire,,,,

Post by runner3081 » Thu Oct 17, 2019 8:35 pm

What are your expenses?

Is that 200K per yer from a pension?

Small Savanna
Posts: 142
Joined: Sat Feb 09, 2019 2:27 am

Re: To retire or not to retire,,,,

Post by Small Savanna » Thu Oct 17, 2019 11:31 pm

If you retire, will your wife keep working? A few hundred $K is not a lot if it needs to last for another 40 years. We would need a lot more details to provide any good advice.

User avatar
2pedals
Posts: 929
Joined: Wed Dec 31, 2014 12:31 pm

Re: To retire or not to retire,,,,

Post by 2pedals » Thu Oct 17, 2019 11:42 pm

What are your annual expenses, including taxes?

turkey1234
Posts: 32
Joined: Tue Sep 25, 2018 8:45 am

Re: To retire or not to retire,,,,

Post by turkey1234 » Thu Oct 17, 2019 11:47 pm

My mom just died at 61 (with plenty of money left). I say retire.

DesertDiva
Posts: 624
Joined: Thu Mar 01, 2018 12:49 pm
Location: In the desert

Re: To retire or not to retire,,,,

Post by DesertDiva » Thu Oct 17, 2019 11:54 pm

turkey1234 wrote:
Thu Oct 17, 2019 11:47 pm
My mom just died at 61 (with plenty of money left). I say retire.
The risk OP faces isn’t dying... it’s living

Topic Author
Christopher55
Posts: 2
Joined: Thu Oct 17, 2019 7:19 pm

Re: To retire or not to retire,,,,

Post by Christopher55 » Fri Oct 18, 2019 3:52 am

Hello again and Thank You for some replies and here is some more information,my wife is 51 and will continue to work at least for 6-8 more years and our living expenses are $15 to $1800 a month tops,this area has a very low cost of living while providing many needed things,central Ohio location.Thanks again for any replies

chipperd
Posts: 481
Joined: Sat Sep 24, 2011 5:58 am

Re: To retire or not to retire,,,,

Post by chipperd » Fri Oct 18, 2019 4:19 am

Christopher55 wrote:
Fri Oct 18, 2019 3:52 am
Hello again and Thank You for some replies and here is some more information,my wife is 51 and will continue to work at least for 6-8 more years and our living expenses are $15 to $1800 a month tops,this area has a very low cost of living while providing many needed things,central Ohio location.Thanks again for any replies
[/quote

There is a lot of info missing, but if you are taking home $10,000/month after taxes and spending $1,800 per month, yes you can retire financially speaking. Is this really a financial question tho?

Carl53
Posts: 1857
Joined: Sun Mar 07, 2010 8:26 pm

Re: To retire or not to retire,,,,

Post by Carl53 » Fri Oct 18, 2019 5:51 am

Christopher55 wrote:
Thu Oct 17, 2019 8:10 pm
Okay here goes it,im 58 ,have a defined pension that i can withdraw of $200k,a 401k of $75k and stock of $40k and the wife is 51 and carries the insurance and we carry no debt and are vigilant in spending carefully while still enjoying ourselves and helping out our parents ,ive been beating around the idea of retiring because of some health issues and how fast 40 years flew past,wow! we have went to some planners who charge 1% to manage while returning 3-5% on investments,any fresh and invigorating ideas on this? Please submit,Thank You in advance,
Christopher,

Need a some more details. Is the 200k an annual amount or is it a lump sum that you will get? How much does your wife make? Does she have retirement funds? Is the 40k stock your only after tax savings/investment? Will either of you receive SS and if so how much? Does your $1800 per month expenses include taxes and help for parents?

Visit the Pumpkin Show, should be great weather today and tomorrow.

User avatar
Tamarind
Posts: 1782
Joined: Mon Nov 02, 2015 2:38 pm

Re: To retire or not to retire,,,,

Post by Tamarind » Fri Oct 18, 2019 5:58 am

OP, I think you are saying your total pension is $200k as a lump sum, while others are reading it as $200k per year. Could you clear that up as it makes an enormous difference. If it's $200k total, see below. If per year, please retire immediately!

Do you know what you will receive for social security? Can you live on just that amount and nothing else? Did your monthly expense estimate include healthcare and property taxes?

If you can draw enough social security in around 15 years, and your wife can keep working, then you can retire. If your social security would not be enough, then it's tricky. You need about $500k of savings to support your current spending rate for 30+ years. But if social security will cover your needs once you are 67, then you only need about half as much to bridge the time to social security, and you appear to have that.

I do not think you should use an advisor charging so much. If they really return 3%, why would you want to give them 1/3 of what your money earned for you each year? You can get your money to return 3-5% without an advisor.

If you want an advisor to take care of it, please call Vanguard. They have a Personal Advisory Service that is more honest than the planners you are talking to right now, and they will only charge you 0.3%. Also, once they have set up your investments and you learn what they are doing, you can stop working with them and keep the portfolio they built without paying more.

User avatar
galawdawg
Posts: 272
Joined: Thu Dec 14, 2017 12:59 pm
Location: Georgia

Re: To retire or not to retire,,,,

Post by galawdawg » Fri Oct 18, 2019 6:18 am

Welcome to Bogleheads!

Unfortunately your posts don't provide enough information for anyone to provide informed guidance or suggestions. If you'd like some feedback on whether you are financially prepared for the early retirement you are considering, I'd recommend you read through the Wiki page on how to format portfolio questions: https://www.bogleheads.org/wiki/Asking_ ... _questions

That will help us provide something more than just "yes, go for it" or "no, don't do it"!

User avatar
jakehefty17
Posts: 167
Joined: Fri May 11, 2018 6:48 pm
Location: New York

Re: To retire or not to retire,,,,

Post by jakehefty17 » Fri Oct 18, 2019 8:36 am

galawdawg wrote:
Fri Oct 18, 2019 6:18 am
Welcome to Bogleheads!

Unfortunately your posts don't provide enough information for anyone to provide informed guidance or suggestions. If you'd like some feedback on whether you are financially prepared for the early retirement you are considering, I'd recommend you read through the Wiki page on how to format portfolio questions: https://www.bogleheads.org/wiki/Asking_ ... _questions

That will help us provide something more than just "yes, go for it" or "no, don't do it"!
+1

We need more information, and some clarification on what your post refers to. With more info we can give you some poignant advice regarding your pending retirement. General guideline is 25X your annual expenses, but there are countless variables.
Christopher55 wrote:
Thu Oct 17, 2019 8:10 pm
We have went to some planners who charge 1% to manage while returning 3-5% on investments,any fresh and invigorating ideas on this?
If you're willing to read the wiki and educate yourself on some basics, you could manage your own money. By either adopting a 3-fund portfolio or target date fund. Either option is fine.

However, if this doesn't interest you, you could use Vanguard PAS (Personal Advisor Service) to manage your money for 0.3%

Good luck. Please post more information so we can guide you towards a successful path.
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." -Charles Bukowski

Jack FFR1846
Posts: 10465
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: To retire or not to retire,,,,

Post by Jack FFR1846 » Fri Oct 18, 2019 8:52 am

If you mean $200k lump sum, it sounds like you only have $315k saved. At 4% withdrawal, this gives you $12,600 per year. Will you have social security available? How much does your wife earn and will she have social security available?

With assumptions, I'd say that so long as your wife works to make up the difference, you're fine. If she wants to retire along with you, you're going to have to rely on social security to make up some differences. $1800 a month is $21,600 a year. At some point, you're going to have to pay for health insurance. That's a big thing you need to know about.
Bogle: Smart Beta is stupid

mtmingus
Posts: 241
Joined: Sun Jan 07, 2018 4:15 pm

Re: To retire or not to retire,,,,

Post by mtmingus » Fri Oct 18, 2019 9:09 am

DesertDiva wrote:
Thu Oct 17, 2019 11:54 pm
turkey1234 wrote:
Thu Oct 17, 2019 11:47 pm
My mom just died at 61 (with plenty of money left). I say retire.
The risk OP faces isn’t dying... it’s living
++

User avatar
Kenkat
Posts: 5351
Joined: Thu Mar 01, 2007 11:18 am
Location: Cincinnati, OH

Re: To retire or not to retire,,,,

Post by Kenkat » Fri Oct 18, 2019 9:28 am

I am going to assume you have a total of $315k saved. As mentioned above you could probably draw around $1000 a month from that. I probably wouldn’t do that however.

You are going to have to do some homework and answer some questions.

Does your spouse make enough to cover your current expenses? If yes, that tips things in the yes direction. If no, then you have to draw against your savings which reduces your nest egg and increases risk that it could run out. You both are pretty young to start pulling money out.

How much longer does your spouse intend (or can) work? She has to work long enough to 1) cover your health care until you are 65 and can get Medicare and 2) you have to cover health care costs if spouse wants to retire before 65.

What will each of your social security benefits be at 62? 65? 70? If you both retire, will that cover your monthly expenses?

If you lay out some income / expense numbers, you will have better information to decide your options. Maybe you can retire now, maybe you need to work until 62 but can claim social security and that will allow you to retire, etc. You are going to have to run some numbers.

Tal-
Posts: 454
Joined: Fri Apr 22, 2016 10:41 pm

Re: To retire or not to retire,,,,

Post by Tal- » Fri Oct 18, 2019 9:33 am

I'm sorry, but no - you are not finacially stable enough to retire today.
Debt is to personal finance as a knife is to cooking.

User avatar
Stinky
Posts: 2450
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: To retire or not to retire,,,,

Post by Stinky » Fri Oct 18, 2019 9:42 am

Tal- wrote:
Fri Oct 18, 2019 9:33 am
I'm sorry, but no - you are not finacially stable enough to retire today.
+1

OP, as noted by others, you need to provide more information.

But with what we know now - it is certain that you would be more financially secure if you could work for a few more years. That would allow you to increase your savings and reduce the number of years that you will withdrawing from savings.
It's a GREAT day to be alive - Travis Tritt

Bfwolf
Posts: 1962
Joined: Thu Oct 14, 2010 11:19 am

Re: To retire or not to retire,,,,

Post by Bfwolf » Fri Oct 18, 2019 12:45 pm

OP, when updating your information, it's really important to get a clear picture of what your Social Security benefits will look like. If you create an account at https://www.ssa.gov/site/signin/en/ you can get some information about what your benefits will be. The problem is they will show you what it will look like if you keep working, which is not what you're planning on doing, so consider using the retirement estimator to estimate what your benefits would look like if you retire now. https://www.ssa.gov/benefits/retirement/estimator.html

Since your expenses are so low, I think there's an excellent chance that once you guys hit ~65, Social Security will cover all your expenses. If that is true, then all your nestegg has to do is get you to ~65. Now granted there's a 6 year age gap between the two of you so maybe that means 71 for you and 65 for her or something like that. But in any case, if your money only has to last another 13 years, that sure makes things a lot easier.

delamer
Posts: 9314
Joined: Tue Feb 08, 2011 6:13 pm

Re: To retire or not to retire,,,,

Post by delamer » Fri Oct 18, 2019 1:08 pm

How are you and your wife getting your health insurance currently?

How will you get it if you both retire before you are Medicare-eligible?

User avatar
tennisplyr
Posts: 2348
Joined: Tue Jan 28, 2014 1:53 pm
Location: Sarasota, FL

Re: To retire or not to retire,,,,

Post by tennisplyr » Fri Oct 18, 2019 3:31 pm

Don't forget about one of retirement's biggest challenges: What to do with all that free time
Those who move forward with a happy spirit will find that things always work out.

Post Reply