55, 2 young kids, how to figure when I can retire?

[2Moutal]

Okay, here goes. I'm 55, wife is 49, have 2 kids at home ages 4 and 2. Have 700,000 in 401K and IRA's, 400K equity in house that is too large to retire in. Will get 900/month from a pension. Soc Sec, due to get 16000/year for each of us, wife and I, but plan on getting about 2/3 of that.

Dilemma: I need family insurance until age 65 and Medicare kicks in and hope that it covers family. Need to down size on the house and move to lower taxing community. Currently live in Loudoun County, VA. Thinking about coastal NC, where son, daughter in law and grandson live. I know there are others out there that have done this or in the planning stages and I'm looking for ideas.

Many Thanks!

Al

 

[Katsmeow]

First, medicare doesn't cover family. It covers the person who is 65. That said, it may be fairly easy to get health insurance for your kids if they don't have health problems. You might look into cost/availability of private insurance.

One thing to mention that I find that very few people know about. Whether it will still exist 7 years from now when you are eligible for SS I don't know. But it might. If you take SS children under the age of 18 are entitled to half of your full retirement SS (so is your spouse if she has care of a child under 16 and is not working then and above income limit.). There is a family maximum but it is quite a bit. My husband retired this year and we have adolescent children who are receiving SS until they are 18.

 

[2Moutal]

Thanks for the info. So did your husband retire at 62 and get help from SS for the under 18 child or do you have to wait until you are 65 for the child to get something from SS?

 

[Katsmeow]

Thanks for the info. So did your husband retire at 62 and get help from SS for the under 18 child or do you have to wait until you are 65 for the child to get something from SS?

He retired at 62 and kids are getting SS now. Note that money is paid for the child and is in the child's name with DH as representative payee. So that money is fine to use for child's food, shelter, school tuition, activities, college savings, etc. It is not money that comes directly to my husband (however it reduces our expenses for the kids so is helpful).