Hi, 53 expat Aussie planning for ER

[buckyballs]

Hi to all, having found this forum during the last week or so.

I am 53, expat Aussie in US supporting DW and 2 college kids. Look forward to ER as soon as can afford, but also may be pushed by changes at MegaCorp and increasingly looking at financials. Appreciate all advice on what is possible and future planning

Investments are $500k cash earning around 5% (DW wants to sleep nights) and condo valued at $300k lived in by kids. Main home $600k and would downsize if market was better. Retirement now would come with either $85k COLA pension or $1.2m lump sum (A$ based but these are US$ numbers and I'm exposed to e/r movements). No debt. Pension/lump sum increasing with years at MegaCorp

Concerns are health insurance (heart attack few years back and diabetes, and while now OK lots of drugs & may mean I am uninsurable or high cost). Uncertain whether to ER back to Oz (less costly insurance, favorable tax environment when retired) or stay in US. Also whether to elect pension or lump sum on ER - no doubt DW will want pension but I'd also like to leave more for kids if I do kick the bucket early.

Look forward to advice and ongoing productive membership of the forum.

 

[DangerMouse]

Welcome Buckyballs. My DH and I are also Aussie expats based in the US.

With regards to your healthcare question, we have decided we will make Oz our home base when we RE, because DH does have a couple of medical conditions and if we had to pay for health insurance in the US that would probably mean us working thru to 65 when we qualify for Medicare.

BTW if you choose Oz, you might want to think about transferring some of your cash back as you can get 7.25% in Oz. Also I can't see the USD recovering against the AUD anytime soon.

 

[Martha]

I'd encourage your wife to educate herself about investments. It might help her sleep at night and realize that much in cash is risky too.