I have been lurking on this site for some time now. Have finally decided to come out and ask for an assessment of our (wife & I) retirement, although it is two years POST retirement. This website, along with some others have been helpful in setting up our retirement. Many thanks to the webmaster and members of these sites.
Here is some basic info to start with:
-Wife and I are both 52
-We both retired at age 50
-I have a pension of $47,983.20 per year ($3999/month)
-Wife has a pension of $45022.08 per year ($3752/month)
-Both pensions are COLA adjusted, but will lag inflation by 50% IMO
-We have health care with our retirement plan, and pay $163/month
-We have dental with our retirement plan, and pay $31/month
-Vision coverage is $15/month
-We have $585,000 in very safe investments (utilties/reits mostly)
-About $70,000 cash
-Each of us work part time (16 hours/week) at our old employer, making $31,000/year each
-We each put $12,000 into a 401s, and each put $12,000 into 457s as retirees
-We each put the max into the ROTH of $6500/year
----so 48k/year into tax deferred, and 13k into ROTH (61k total/year)
-We get about $28,000/year in dividends
-We have real estate valued at about $1,100,000
---A commercial unit worth 500k that is paid for
---A single family home that is worth 125k that is paid for
---A single family home that is worth 450k with a 48k mortgage
---Vacant land worth about 25k - 35k
---A house that is not included in the $1.1M is being passed to us that is worth $310k
---All properties are rented, and generate positive cash flow.
-We plan on doing the part time work (16 hours/week) until we reach age 55
-After age 55, we plan on going to 8 hours/week – cutting our pay in ½
-At age 60, work comes to a complete stop
-We will get nearly zero SS, as it gets taken because we were police/fire
--My SS at age 66 is estimated to be $354/month
--Wife’s SS at age 66 is estimated to be $277/month
One of our rentals is a commercial triplex with our house on top, and all of our house bills are covered by the other tenants, so we have no actual electric/water/trash/cable/insurance/property tax, or other home related bills.
Auto insurance $150/month
Maintaining professional licenses for both of us $50/month
--(we were police/fire, but on the medical end of it)
Health/dental/vision - $210/month
Health co-pays and deductibles $100/month
Smart phone plan $71/month
Car maintenance, gas, tags $400/month
Going forward –
-Do we really need to keep doing the part time thing?
-Would like to sell the commercial building, but it has a lot of depreciation against it. How to do that with minimal tax impact?
-When the 310k property comes our way, would like to sell that as it is several hundred miles away, and reduce taxes as much as possible.
-Trying to figure out if it is best to let the 48k mortgage ride on the rental (the rate is about 4%), or pay it off.
-May need to buy some cars. The combined age of our three cars is 53 years, but they run well…and nobody would want to steal them for sure..LOL.
We have no kids, so no worries for funding college.
My parents are well off, so don’t need any help.
Wife’s mother still alive, and in a rest home which is covered by Medicare/SS.
Have used many financial calculators to verify the worth/stability of our plan, and all of them say we are very well funded, but always have this feeling that there is something more we need to do.
Any ideas/thought welcome!!!
Thanks in advance.