It is really reassuring to read your post from real experience! I am making note of all your suggestions. There are so many things I would love to do upon retirement but taking the plunge after decades of working will require a little more mental preparation. But it is really nice to know that it is 'heavenly' on the other side!With your substantial investment and income, and a LT planning horizon....
Do a very detailed future tax / income / cash flow planning scenario (via software). I had fidelity run mine in eMoney for 5 decades of retirement.
Results were very clear on need for Roth Conversions, when to draw SS, and how to fund my bridge (age 49-FRA).
I presume yours will look a lot like this:
A) Roth conversions in lower income years
B) systematic preliminary savings to bridge your spending during 'gap years' to SS (probably FRA or age 70) = low income years to do more Roth conversions.
C) use Cobra, Health Cost Sharing Networks, or ACA during gap to age 65 Medicare. (Low income years)
D) set aside accessible emergency and fun accounts to enjoy worry free 'gap years'
E) examine your spending / cash flows necessary to maintain desired QoL during gap years.
You are in a terrific situation to 'plan' via abundant earnings (at the moment). Probably move retirement date up considerably, (not a bad idea, since aging means potential health limitations).
Enjoy the family and freedom while able.
Don't sweat the finances, but plan well. Many of us did it successfully on 1/10 your assets and income. (FIRE). 19 yrs and 7 months since my last paycheck, just arrived at FRA, it's heavenly.
For other readers NOT in the $xxx,xxx income range. You need to be creative!
We needed to use investment real estate for our 20 yr bridge. HC was a wildcard especially when ACA deleted all our affordable options. And years before state exchanges were accessible. We survived, and have converted our RE assets into RE notes when mortgage interest flipped.
Others who FIRE (many by surprise rather than plan)..
A) PT employment with benefits (Costco, HD, sales / commission jobs)
B) Real estate tax exclusion $250k / $500k every 24 months for primary residence). Build and sell every 2 yrs)
C) international living - much cheaper rents and HC
D) FT nomad travel - or travel between gigs.
E) downsize and live off equity
F) become a caretaker on large estate, or Campworker (seasonal employment with housing / food provisions.
Many friends and coworkers were outsourced at age 50, and never found replacement jobs. They survived (well) on what they had.
Good luck.
You've planned, now execute.
Statistics: Posted by consinv — Wed Nov 13, 2024 5:20 am