Can we retire?

[PUGINC]

Long time lurker.. coming forward to ask the question.. can we retire?

Ages: 53 and 56

Investments:
2.8m in taxable retirement accounts
1.4m in HYSA accounts (non retirement)
1.9m paid for home
No debt
No children

Monthly budget including (unaffordable care act insurance) $8000/mo. If we retired we could qualify for subsidies and our insurance cost would be less, lowering our monthly spending.

We are currently self employed running our business of 20 years and are starting to get burned out. Selling the business is a big question mark since it is fairly niche and requires one of us to operate. So, we do not include business sale as part of our equation.

 

[militaryman]

Conservative 3.5% withdraw rate is >145,000/yr. on your 4.2mil
Good to go

 

[jollystomper]

Run your numbers through FireCalc to get a good idea of where you stand:

FIRECalc: A different kind of retirement calculator

firecalc.com

 

[NeilDH]

You’re looking very good to me. You two are a lot like DW and me, except you have at least double the net worth with the same expenses, and we’re a couple years younger, and we have just started RE. We are not absolutely guaranteed per FireCalc and other calculators but very close to guaranteed; you gotta be.

 

[Cassius King]

The interest alone from your HYSA will cover more than half of your budget.
Sell that business and enjoy life!

 

[street]

Yes, you can and in very good shape to sustain your portfolio.

 

[momoney]

You’re looking very good to me. You two are a lot like DW and me, except you have at least double the net worth with the same expenses, and we’re a couple years younger, and we have just started RE. We are not absolutely guaranteed per FireCalc and other calculators but very close to guaranteed; you gotta be.

You have to be very close with Social Security? What is your asset allocation?

 

[ERD50]

Conservative 3.5% withdraw rate is >145,000/yr. on your 4.2mil
Good to go

The $8,000/month might not be including all those recurring expenses like new roof, new HVAC, new cars, etc. But I agree that with a conservative 3.5%, there's a good buffer in there.

Plus, Social Security down the road?

 

[PUGINC]

Run your numbers through FireCalc to get a good idea of where you stand:

FIRECalc: A different kind of retirement calculator

firecalc.com

Thank you.. I did do this.. one scenario 100% and the second was 96.5% which gave me pause and inspired this post.

 

[karen1972]

Thank you.. I did do this.. one scenario 100% and the second was 96.5% which gave me pause and inspired this post.

I guess what was the scenario that caused it to be only 96.5% as that doesn't seem right, maybe an mistype in something you entered?

 

[ERD50]

I guess what was the scenario that caused it to be only 96.5% as that doesn't seem right, maybe an mistype in something you entered?

Agreed, that doesn't seem right given the numbers above.

 

[pacergal]

Your numbers look good.
Have you answered the questions in the ER FAQ thread "Some Important Questions to answer before asking Can I retire yet?" They will get you thinking of things you may not have considered.

Congratulations on your savings!

 

[jollystomper]

Thank you.. I did do this.. one scenario 100% and the second was 96.5% which gave me pause and inspired this post.

Okay, I see. I am with the others - what changed with the second scenario - e.g. greater length of time, much more spending? Because by the numbers in your first post you are good to go with a lot of flexible room.

 

[Koolau]

Did you factor into FIRECalc the fact that you will receive SS at 62 or later? Makes a big difference for most of us but YMMV.

 

[viking111]

To add to the good, you also have a 1.9 million dollar home that is paid off.
Do you plan on living in the house or at some point downsizing and adding the equity to your investments?

 

[MarieIG]

Welcome to the ER Forum Puging.

Your numbers are impressive. In addition to running FireCalc, you may wish to review the Frequently Asked Questions . (The latter of which may help you work plan the specifics.)