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We are now officially retired! Those with a good memory will say "but isn't your wife still working part-time?" Yes she is, 10 hours a week, but we both consider ourselves in retirement mode. We just got back from spending two months in Florida, where we appreciated the weather and disliked not being in liberal Cambridge.

It was tough seeing our money go down in the last months of the year, but the total at the end of December was still enough to have a 2-3 % withdrawal plan and have that be enough money for living. We are leaving Jan's SS alone (she just turned 62) for now. And because Jan will have earned income, we will keep funding our Roth IRAs, though I'm not sure where that money will come from at the moment. Some probably from the RMD of my Beneficiary IRA. I usually have to take about 4k from that (which I haven't done yet this year), so I'll take a bit more. Jan also has a regular IRA with 9k in it, so maybe we'll take some or all of that. We'll have to look at our tax situation.

Updates will come. Maybe at the end of the year I will be able to say we withdrew less than we made! My crystal ball is cloudy, so we'll just have to wait and see!!

Lisa
in MA
it's colder here, but I like it
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No. of Recommendations: 1
Congratulations -

And a special encouragement/congratulations on leaving Jan's SS. You get 8% return compounded annually. In additional there is a COLA on those benefits. I have not run the math, but I would not be surprised if you would find the Net Present Worth was favorable even if you withdraw rate is forced up to 4%. And I mean waiting until age 70 - not just the FRA.

Lots of people say take the money and run - and in fact well over half of out population does that. The break even point is roughly age 82. So unless you are either less healthy than 50% of the population you should bet on coming out ahead by waiting.
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Congratulations, Lisa.

You can be more confident of your retirement plan after its been tested by a market downturn.

Sounds like 2019 will be a low income year for you. That and down market makes it a good time to do Roth Conversions on any IRAs. Down market means you can convert more shares at lowest possible tax rate. And low income makes it more attractive.
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and, about SS, I think Jan will earn enough money this year as to not qualify for all of her (reduced) benefit anyway

in terms of break even point, I actually don't think she will live that long. her parents have (now 86 and 90) but Jan is very inactive and is overweight, so if she even makes it to 82, she probably won't make it much passed that point. SS is actually quite small, since she is WEP'd. her pension from when she was a school teacher has been coming to us for years already.

Lisa
in MA
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