No. of Recommendations: 2
Thanks all for your replies. Yes, I left out some details because I was basically looking for thoughts on option A vs. B, which pauleckler responded to. I'm not worried about the later years beyond age 90 because my house is paid for, and I will also be getting some inheritance money in the next ten years or so which I don't plan on spending.
Yes, I can get CORBA ins. for 18 months at 6K per year, or company retirement health ins. for 9K per year until I am eligible for medicare. I have budgeted all my expenses, including the 9K per year health ins. and will actually need to withdraw 6% from my IRAs until I start collecting SS at age 66 and 4 months. Once I start collecting soc sec, my IRA withdrawal rate will drop to 4%. That's why the math didn't add up for some of you. Even so, for option A, the equities portion would probably avg. 60% depending on mkt conditions.
There are many places I can cut costs and shrink the budget further if needed, and my wife has about 100K saved up as well. Yes, I plan to roll my 401K over into a separate IRA, so I will have two IRAs. And, yes, I am getting 1 years salary for severance pay.
Hopefully, that answers all the response questions. Thank you all!
Definitely going to take a year off and see how the market treats us in 2018. I understand that a recession in the early years of retirement would not be good for the longevity of my retirement funds, so in that event, I would probably go back to work. Worse than that would be a return to high inflation, which I hope never happens. If I had to plan for the worst, then I'd never be able to retire.
Maybe option 3 could be to buy some investment properties and become a landlord living off of rental income. That would be a great hedge against the inflation possibility.
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