Hey Eugene - sounds like there is a whole cohort of folks about to do what we have been waiting and working a long time for. We could have a support group!I am in the same position as you, a little older, 58, still working and wife 59 not working. A little more in investment, but I am living in high-cost area. I am planning to retire at the end of February instead of January for couple of reasons: I don't want to retire into winter and did not made any plans for travel, second, I want to front-load my 401K with my two months of salary. I will not max out, but better than nothing. Then I will travel to warm places in March.
Saying that I did use MaxiFi and NewRetirements. But the most influence and knowledge I received from the book: "Retirement Planning Guidebook: Navigating the Important Decisions for Retirement Success" by Wade Pfau. He also running a podcast for retirement topics. Quite a technical book, but gives you clarity on how to approach the "can I retire yet" question and how to spend your money going over different topics including health insurance, ACA, SS, withdrawal strategy, taxes, etc. You will feel much more confident.
As per your situation, you may be ok, but do you have room to decrease your 85K spending in needed? What portion of that is essential?
I am in the trial period right now for the paid version of NewRetirement. As of now I am leaning more toward figuring it out with my own Excel models, plus those generous Bogleheads who have already developed great Excel tools (and are providing to people free of charge), but I have some more time with the free trial, so we'll see. While some things are impressive with NR, other things I either don't know how to do yet (very possible), or it doesn't do it yet. For example, seems like we should be able to input investments by ticker, so it could give some idea of what the heck has happened in the past, instead of us doing research on the side and plugging in a blended return number.
Also, I looked up Pfau's book - looks fantastic albeit a little pricey. Seems like something I personally could only get through once we are retired, lol. Very detailed and technical. I will start with his podcast.
As for flex in the 85k, I think there is close to 30% flex down on that in a bad year. That's not beans and rice for dinner every night, just being more mindful and temporarily cutting back (eating out, groceries, vacation, house projects, etc).
Thanks for sharing your thoughts!
Statistics: Posted by retirement_cowboy — Thu Dec 07, 2023 10:00 pm — Replies 98 — Views 9447