kavm
Dryer sheet wannabe
This is my first post to introduce myself on this forum, share the outline of our situation and begin to learn from and interact with this community.
Facts:
Plans:
The key questions relating to the retirement that interest us are:
Hope to learn from the collective wisdom of this community and, where possible, contribute.
Facts:
- 59+; wife 58+
- I am working but in transition - waiting to find out about a position
- Spouse is a professor in a public university
- While no financial or tax background, I am financially fairly literate and capable of mathematical reasoning / research to analyze the decisions
- No children - leaving legacy to heirs not a significant consideration
- Approximately 4M in tax deferred retirement savings; approximately 2.5M in post-tax savings; condo paid for; no debt; max contributions to Social Security - so the benefit should be close to max for one of us; spouse has worked on social security exempt jobs - so will only receive the spousal benefit
- Overall, happy with our professional lives, so retiring early is not a goal. Neither is working very late in life.
Plans:
- Next 6-8 years - A bit unclear. The job situation I am waiting to materialize is in a different and expensive city (though in an income tax free state) - and will force us to live apart and maintain two residences for some time until resolved. But, it will compensate generously for the trouble, should it happen. Until that is resolved one-way or the other, it is hard to be clear about how we are spending the next 6-8 years.
- Retirement plans (beyond 6-8 years) are a bit unformed. Our ideas/options - to be examined a bit closer to retirement, include:
- Retire in place - We love where we live and our condo. There are retired folks living in the building and it is suitable for independent living in an older age.
- Retire to California - Seems like as one gets old, the weather becomes important. So, we have a tentative interest in living in coastal California. The main concern there is taxes, and housing cost.
- Retire to Germany - My wife is a dual citizen and is native of Germany. We like a lot of aspects of that. So, there is some thought of retiring there. That said, it is not the plan right now.
The key questions relating to the retirement that interest us are:
- Financial decision making, particularly optimizing the conversion/distribution from the tax-deferred plans, which are a very significant part of our portfolio. I saw some on-going threads on this topic that were discussing exactly this topic.
- Late life financial and care management plans for those without family members: As shared above, we have no children. And, since both of us are immigrants - we also do not have relatives that are nearby; foreign relatives are not familiar with the US financial system to be much help. So, the late retirement stage where one may lose some faculties and/or partner - the management of care and financial assets for us would need be third party, with little supervision. So, strategies for managing that are of interest - though we are still some distance away from this.
Hope to learn from the collective wisdom of this community and, where possible, contribute.