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Old 04-24-2017, 08:01 PM   #1
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Hello all. My wife and I are 54 and are looking to retire next year. I will receive a cola’d pension of $76K . We currently pay $2k/mo in mortgage but will be selling our house and moving into a lake house that we own outright. At that point we will be debt free. We are planning to put the house on the market next spring so we expect to have 6-8 months of mortgage payments after retirement. My wife will get a pension of about $10K per year at age 60 and then $10K in SS at 62. We own a small post office that generates $5k in rental income. We own $1.3M in land that generates about $20K on average in timber sales but this is very sporadic. We have $200k in retirement accounts and $1.8M in other savings (65% stocks, 20% bonds, 15% cash). Older son is married and on his own and youngest son will graduate from college (expenses are covered) next spring. My pension includes subsidized family health insurance currently costing $500/mo.

Our estimated expenses in retirement are $5.5K/mo after tax plus a desired travel budget of about $24K a year for at least a few years early on (or until we get sick of it). This budget leaves us room for belt tightening if the market turns south. It is our goal to leave an inheritance to our sons (say $4M + the land) so I am not aiming to spend it all but we both have things we want to do while we still have good health. All I need is a good crystal ball right?
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Old 04-24-2017, 08:07 PM   #2
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Welcome! It looks like you have been planning carefully for your retirement and have done quite well. And if you feel like spending a bit more and leaving your son a bit less, don't worry about it. He'll be just fine.
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Old 04-24-2017, 10:19 PM   #3
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Thanks, Ready. I would love to be able to say that my situation was completely due to careful planning, however, I have been helped greatly by inheriting the land and about half of the investments. I guess I feel a responsibility to keep the ball rolling.

One of my concerns is that my youngest son was diagnosed last summer with colon cancer (at 21 years old). Although after surgery/chemo he is now NED, I still worry about his future and want to be in a position to help him out if need be. The budget I've described should have enough fluff in it so that I can make adjustments if things go south. Otherwise, I will just enjoy watching him get on with his life and, hopefully, leave him and his brother enough to make their retirement a little easier.
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Old 04-25-2017, 12:35 AM   #4
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Your post about inheritance reminds me of the Biblical verse to the effect that from those who are given much, much will be expected. I think parents will always worry about their children...I hope your son remains cancer free for years to come. Have you thought about what type of legacy you want to leave for your family?
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Old 04-25-2017, 04:36 AM   #5
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In the shade; I'm sure you are aware that the land you own represents a concentration of risk. Add to that the sporadic payments from it represent an abysmal rate of return. Is your reason for hanging on to it, some form of nostalgia or symbolic loyalty to a deceased relative? If either is true I'd recommend that you consult a financial advisor and devise a well thought out plan to systematically divest yourself of the land in a manner that optimizes its value.


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Old 04-25-2017, 05:29 AM   #6
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Golden sunsets, the land has been in my family for a few generations so, yes, I guess there is some sentimental aspect to keeping it. Aside from a little timber money, we have enjoyed it for hunting and fishing but that will subside, for now, as everyone has gotten busier and more spread out. I have, at times, considered selling the more marketable land and putting it into something with a better return but just haven't done it. Your advice to seek some professional advisement on the matter is probably wise, thanks.
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Old 04-25-2017, 07:12 AM   #7
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Golden sunsets, the land has been in my family for a few generations so, yes, I guess there is some sentimental aspect to keeping it. Aside from a little timber money, we have enjoyed it for hunting and fishing but that will subside, for now, as everyone has gotten busier and more spread out. I have, at times, considered selling the more marketable land and putting it into something with a better return but just haven't done it. Your advice to seek some professional advisement on the matter is probably wise, thanks.
Perhaps look into donating some of the land to an animal rescue --- horses, wildlife, farmed animals, etc.
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Old 04-25-2017, 05:08 PM   #8
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evilanne, thank you for the well wishes for my son. I don't suppose I've given a whole lot of thought to a legacy outside of my family itself. My wife and I both want to include community service and charitable giving in our retirement lives.
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