[USER]

Hi, I’m reaching out for support and advice. I’m a 38F whose husband, 44M, passed away last year. After trying to heal, I think I’m ready to continue the FIRE journey solo.

This now requires me to work until 57 to reach my teacher pension. My husband was the higher earner in the marriage.

We have two young kids, 8 and 4. Any insights on recalculating our FIRE number and adjusting our journey in light of such a significant life change?

I’m not sure where to begin. Has anyone else experienced the FIRE journey after the loss of a spouse?

TIA
Annual Income Overview
Salary: $140,000
Social Security (temporary): $60,000/year for 10 out of the next 14 years (until children turn 18)
Total Annual Income (current): $200,000

Debt
Expenses: Still calculating. No debt except the mortgage 4K(property tax and insurance) monthly.
Mortgage: $400,000 at 2.5% (2021 refinanced- 20 year term) on a house currently valued 1.1 mil.

Assets
Savings: 100,000
Retirement Accounts: $400,000
Roth IRA: 30,000
Life Insurance: $300,000
2 kids 529: $100,000 with a goal of $300,000. (Contribute: $15k per year).

Wild Card: My Pension: If I stay in my job until age 57, my pension would be worth about $100,000 per year (in today’s dollars) for the rest of my life.

If I live until age 85, that totals approximately $2.8 million in lifetime benefits.

A significant portion of our assets was held in a trust from my late husband’s family.

Theses assets will go to my son when he’s older, not to me.

So I’m not counting on them in my financial planning.

[Kathryn]

I’m sorry to hear about your loss. You have a pretty good start with savings plus home equity. You will probably have to work till 55-57 so you can benefit from insurance and pension.

However, you are still young and have no idea what your future holds.

Can your children access the trust for their education expenses?

If so, you can redirect the 529 money to your retirement.

Best of luck to you and your children.

[Kelsey]

First I’m so sorry for your loss.
1. Why not push the kids to get merit scholarships and jobs to contribute to college?

While I graduated in 2014 so things were cheaper and easier compared to today and the future, I had to get scholarships and my parents matched (less than 100%) where they paid my basic living expenses once I was off campus (about a 50% match).

2. Please make sure your savings are in a HYSA otherwise you’re wasting money.

3. Can the trust assets be used for college?

4. I fail to see how it would not be beneficial to stick it out until 57 unless you hate it. You’re still retiring early.

[Katie]

I’m sorry for your loss. The most important aspect of calculating your FIRE number is being able to estimate what your monthly expenses will be in retirement.

If you want to see if you need to stay til 57, you’ll want to run two calculations-one at an earlier retirement age, without the pension, and the other as if you stay til 57 and have the additional $100k/year.

Whatever your expenses are X25 will be your FIRE number of you retire without the pension and if you wait til 57 then it’s annual expenses – $100k, then remainder X25.

I think it’s pretty obvious you’re best bet is to wait til 57, but if you want to retire early I’d take a look at where you could relocated to and sell your house to use that equity in a cheaper location. That will greatly speed up your ability to retire.

[Nicole]

You probably going to need to have the job until 57. Another option as at least one of your kids will be having assets down the road is revert what you are investing into the 529 into a brokerage account so you could use it for other things.

The 529 should have about $200k by the time the 1st kid is 18. Right now, if you worked until 57, you could spend ~ $120k/year with a pretty much paid off house (58 years old) without any more investments.

You really need to figure out your expenses are and make a budget to live comfortably and have extra to keep building wealth.

[Becky]

I am sorry for your loss. I am a young widow who FIRE’d after. It is possible and it sounds like you are in a good position overall.

Take time to let yourself heal first and foremost and take care of your kids. One thought is that if your son (or both of your children) will receive money from the trust it may not be necessary to continue the 529 plans since the trust would be a source of income.

Another thought is that life will change in so many unexpected ways over the next 10 years keep working toward your goal and you will get there.

[Jennifer]

I’m so sorry about your loss. My girls were 15 when my husband died at 59.

I used a financial advisor to help me learn to budget.

[Author]

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