Put into my retirement notice.

[bobbydean]

Corporate America finally ran me off and I have given my retirement notice.

Last days have been spent with 401 K's, Social Security, Deferred executive stock plan and unused PTO and banked vacation. Have added up expenses and looks good. Have 2 401 K's and decided to withdraw from the smaller one first. Easily will last 4 years until I must touch the larger one at 70½. My thinking is that gives me a trial run on the smaller one to better plan on utilizing the 2nd one. At 70½, I will roll the remainder of the smaller 401 K into the larger one and recalculate everything again.

The one question I cannot decide on is to budget more or less for alcohol after retirement? I asked my wife and immediately was told with me, the budget should be higher.

Following financial advice, I will withdraw at 7-8% rate. As the stock market averages 7-8% except for a crash. Should I expect the 401K to remain fairly stable with little decrease year to year? Final day will be in 10 days, but probably will not touch 401K until January. Using vacation and deferred income until then. Will be having discussions with both mutual fund advisors between now and January.

Letting my mind ramble. Any comments welcome.

 

[TwistedSage]

Congratulations! I hope to be retired someday. As far as the alcohol goes, spend the money upfront to invest in brewing/distilling your own and save in the long run!

 

[noharleyyet]

The one question I cannot decide on is to budget more or less for alcohol after retirement?

...less

Congrats & best of luck with your new opportunity bobbyd.

 

[BuzzH]

Uptown problems...congrats on the retirement.

With any luck, I'll be in your shoes in about 8 years.

 

[NEWHunter]

Congrats on the retirement. My wife would definitely be drinking more if I was home full time.

I’d be careful assuming a 7-8% return in the market over the next couple of years. In the long run, yes, certainly 7-8%, but we’re in one of the best market runs in history. It’s going to pull back and it’s not going to be a couple of percent.

I’ve got a 20% drop within the next two years baked into my projections. Not sayin that’s the right percentage or timeframe but this run won’t last forever.

I would think you could do without the advisors. Consider rolling those 401Ks in to an IRA, or two, depending on your tax strategy. Setup an Ameritrade IRA account, roll your accounts, and buy some ETFs (SPY, IWM, etc) and forget about it. The ETFs will have lower fees than the mutual funds. With Ameritrade you’ll probably have better investment options and management will be easier over your current 401k set up.

Good luck this fall with all that extra hunting time.

 

[homers]

Congrats! IMHO, I'd find a financial adviser (fee based) and spend a hundred bucks or two and get a few hours of time with them to review your plan. Assuming your 401k is with a low cost provider (like Vanguard), I would like the peace of mind an expert to advise on diversification and withdrawal strategy

 

[Twolftg]

No opinion on the budgeting but Congrats.

 

[Addicting]

Congrats on your retirement!

 

[WyoDoug]

I will be joining you in retirement land soon. I retire May 2021. However, I am set up with 4 sources of retirement:

• Military Retirement
• Federal Civil Service (15 years)
• State Retirement
• Social Security

I had each calculated and I will be making about 3-400 more a month take home than I get now. State is indexed to inflation (kinda) and I get cost of living increases for federal civil service. I can't wait.

 

[bobbydean]

NEWhunter,

I agree with the 20 % drop, but would expect a rebound after a couple of years.

But your comments is exactly why I posted this thread. I have thought it out, rethought it out and discuss everything with wife to keep her in the loop. There is something I will not or have not thought of. Thanks for the input.

WyoDoug, I worked a year for the VA as a pharmacist to be in your shoes. I was not meant to work within that bureaucy, even though money was decent and benefits excellent!

 

[gouch]

Welcome to the club.

 

[MJE2083]

I will be joining you in retirement land soon. I retire May 2021. However, I am set up with 4 sources of retirement:

• Military Retirement
• Federal Civil Service (15 years)
• State Retirement
• Social Security

I had each calculated and I will be making about 3-400 more a month take up than I get now. State is indexed to inflation (kinda) and I get cost of living increases for federal civil service. I can't wait.

Well Done!

 

[Lostinthewoods]

Congrats on retirement!

 

[Ben Sellers]

Congratulations!

 

[Old man bob]

Most people that had a Gov. job whether it be state local or fed. get to retire younger and make out good. A lot of My family members have. Only worry is that they can run out of $ too. One last thing most folks I know can get 10% return. Good Luck. I worked for self for 25 years and lost in housing here in Phoenix 12 years ago ,thats why I am still working 70% of the time at 63...........BOB!

 

[Duck-Slayer]

In my opinion which is not worth to much: I am semi retired and manage a couple rental properties of my own, to me that is the way to go, property values will always go up and down, rental prices generally stay the same. Just have to be extra careful with your renters. Middle aged with young kids and steady jobs are the key. I have a family that’s been in one house for 5 years. We keep the rent low enough to not strap them and both have management jobs at Walmart. Also you want to sell those places when the market is high like right now. Wait for a down period and buy again.

Congrats on the retirement!
Matt

 

[Southern Elk]

Congrats!

 

[wyoelkfan15]

Congrats on retirement!

The only input I would give you is to lower the withdrawal rate if you can. Assuming the market averages 7-8%, if you withdraw 3-4% every year instead of the full 7-8%, theoretically your funds will actually grow over time. The only cases that have been shown that this isn't true is if you are to start drawing on your funds and the market crashes shortly thereafter, like in 2008. Just my two cents!

 

[kansasdad]

Congratulations bobbydean on a huge life's goal being accomplished.

I hope you are planning to not retire and dry up and blow away, but as a former pastor of mine said....."Re-fire!!" I hope you will find a way to use newly found time in fulfilling ways, (without aggravating your wife with your changing lifestyle!)

 

[elkduds]

Bobbydean, best of luck in the next chapter. I'm a year into my retirement, spending 20ish flexible hours/week on my private practice in the field I retired from doing agency work. I am thrilled to practice my career strictly on my and clients' terms. I look forward to my work. I now work strictly online, so I can travel as long as there is wifi. I'm amazed how much I enjoy my work and life now. I admit it all seemed uncertain for some of those months.

I hope your retirement dreams come true!