47 and planning for retirement at 60

[mtpisgah]

I am 47 and my wife is 49. We make a combined $180k. We owe $118k on the house with 26 years to go, but plan on paying it off in seven, $280k in equity. We have about $500k in non taxable accounts and $50k in taxable savings.

My wife can retire at 60 and will have her university retirement plan and as of now, be able to stay on their insurance policy with no increase in payment. I will have to got to the open market for insurance. She is recovering from breast cancer which is going to be the biggest question mark moving forward. It should be done but you never know.

While working we take one European and one US trip per year. Once we retire, we hope to travel more, around the US and abroad.

We do not have kids and will keep it that way at our age, so we only have to take care of ourselves. We should inherit a bit from our parents but are not planning on it, it will just be icing on the cake if it happens.

We tried the investment professional, both fee per purchase and percentage of wealth, but have not been happy with them. We do ok with me half way managing the money but I admit I need to do better.

 

[joeea]

Do you have a question?

What kind of financial planning have you done as you anticipate retiring at 60? Have you compiled a current budget and a planned retirement budget so that you can estimate your income needs?

 

[mtpisgah]

Joeea,
No real questions right now, just introducing myself since I have been a member for two years but have not really posted anything until this week.

We worked with a financial planner to review our current savings and what our retirement plan is, and it looks like it will work out. We save about 20% of our gross salary since we are paying extra on the house, my wife’s match is really nice and is not included in the 20%. Once the house is paid for, life will be cheaper unless we have more medical issues. We are also considering downsizing again which would help out a little more.

 

[Oz investor]

mtpisgah ,

keep the contact number of that planner ( as a reserve option )

DIY is not easy for everybody ( but some enjoy the challenge )

good work so far

may the plan continue to work

cheers

 

[street]

I hope all works out for you folks to ER. You will make it happen I have no doubt about it because you have a PLAN.

I hope all goes well with your wife's recovery. Good luck and keep asking questions there are great people here that will give a honest answer.

 

[joeea]

Joeea,
No real questions right now, just introducing myself since I have been a member for two years but have not really posted anything until this week.

We worked with a financial planner to review our current savings and what our retirement plan is, and it looks like it will work out. We save about 20% of our gross salary since we are paying extra on the house, my wife’s match is really nice and is not included in the 20%. Once the house is paid for, life will be cheaper unless we have more medical issues. We are also considering downsizing again which would help out a little more.

Welcome!

Sounds like you are well on your way. Hopefully two years of reading here has given you some ideas and insights.

What part of your financial planner involvement didn't you like?

Good luck!

 

[MBAustin]

Welcome mtpisgah! Glad you decided to introduce yourself.

One thing you can do now is to keep detailed track of your expenses for a year or two. First, you might identify some ways to reduce expenses now and add to your savings, but most importantly, it will give you confidence in your plan. Don't forget to include an allowance for "lumpy" expenses such as home repairs, vehicle replacement, and major dental work.

There are many happy DIY investors here and I'm sure you'll get plenty of advice when you have a specific question. Enjoy!

 

[mtpisgah]

mtpisgah ,

keep the contact number of that planner ( as a reserve option )

DIY is not easy for everybody ( but some enjoy the challenge )

good work so far

may the plan continue to work

cheers

I actually go back to see him this coming week as a check up. We were going to invest with him but did not like the 1.25% fee. The DIY is a pain at times but has worked out well enough so far.

 

[mtpisgah]

I hope all works out for you folks to ER. You will make it happen I have no doubt about it because you have a PLAN.

I hope all goes well with your wife's recovery. Good luck and keep asking questions there are great people here that will give a honest answer.

The wife is doing well, thanks for the good thoughts.

 

[mtpisgah]

Welcome!

Sounds like you are well on your way. Hopefully two years of reading here has given you some ideas and insights.

What part of your financial planner involvement didn't you like?

Good luck!

I did not like them charging a percent of my wealth. I really want someone who just charges an hourly rate when I need them and a fee a few times a year when I need advice.

 

[pb4uski]

Have you tried using Quicken's Lifetime Planner? or FIRECalc?

QLP is easy to use and pretty intuitive. You input information on your situation and it does a year by year plot of your retirement assets and whether they will last.

That and a simple three-fund portfolio would be an effective but simple way forward.

 

[joeea]

I did not like them charging a percent of my wealth. I really want someone who just charges an hourly rate when I need them and a fee a few times a year when I need advice.

There are hourly fee-only fiduciary financial planners who could do exactly what you are wanting.

It's not necessary to always DIY.

 

[mtpisgah]

Have you tried using Quicken's Lifetime Planner? or FIRECalc?

QLP is easy to use and pretty intuitive. You input information on your situation and it does a year by year plot of your retirement assets and whether they will last.

That and a simple three-fund portfolio would be an effective but simple way forward.

I have used FIRECalc and it shows we will be ok, I need to update it for current salaries and savings though.

 

[mtpisgah]

There are hourly fee-only fiduciary financial planners who could do exactly what you are wanting.

It's not necessary to always DIY.

I have interviewed two thus far, just not happy with them.