Hi to all , new to this forum -
I really appreciate all of the insight that I've been provided already by reading threads on all topics. While I don't have anywhere close to the lingo and acronyms down, I did want to solicit general and specific advice regarding retirement and the max you would recommend spending on a new house that I'd like to have custom designed, employing an architect, and buying land to place it on.
First, a background: I'm planning to retire 7/1/2020, and I'll be 52, my wife will be 57. I am self-employed and own a percentage of a company with a few other people. My company is nearly 20 years old. My income is highly irregular, but for the next 3 years should average conservatively at $500K. My wife works and makes about $50K per year. We have 3 daughters that are 16-25. College is paid for entirely via 529s.
We both are remarried, and no expenses are owed to exes, except -$80K over the next 3 years. Cash on hand is $115K. We have no debt, except our house. We have $110K equity. House is valued at $510K.
We have $1.4M in accessible savings, and $1.8M in retirement, heavily weighted to profit sharing plan funds by 80/20. The PSP will be funded at another $200K for next 3 years. 401k will increase by $50K. Confident in that. Additional savings for those 3 years will be $300K.
After I retire at 52, I have a 15-year buyout of of ownership interest in my company. While not guaranteed anything, the structure is to be paid at a % of income of the company based on ownership. Conservatively, at 50% of expectation, I will NET $100K on average, for those years. Nothing's guaranteed, again.
Monthly expenses have been very high over the last several years due to paying off exes. Average net/month expenses have been $15K. Upon retirement, would average expenses of $10K/month, but need to add in healthcare for 2, at per month of $3K.
My question overall is - given the defined costs, income, etc., what could be recommended as the MAX to custom design a final new home ($125K for land, $50K for architect), to be safe?
Thank you in advance for your thoughts and comments!
I really appreciate all of the insight that I've been provided already by reading threads on all topics. While I don't have anywhere close to the lingo and acronyms down, I did want to solicit general and specific advice regarding retirement and the max you would recommend spending on a new house that I'd like to have custom designed, employing an architect, and buying land to place it on.
First, a background: I'm planning to retire 7/1/2020, and I'll be 52, my wife will be 57. I am self-employed and own a percentage of a company with a few other people. My company is nearly 20 years old. My income is highly irregular, but for the next 3 years should average conservatively at $500K. My wife works and makes about $50K per year. We have 3 daughters that are 16-25. College is paid for entirely via 529s.
We both are remarried, and no expenses are owed to exes, except -$80K over the next 3 years. Cash on hand is $115K. We have no debt, except our house. We have $110K equity. House is valued at $510K.
We have $1.4M in accessible savings, and $1.8M in retirement, heavily weighted to profit sharing plan funds by 80/20. The PSP will be funded at another $200K for next 3 years. 401k will increase by $50K. Confident in that. Additional savings for those 3 years will be $300K.
After I retire at 52, I have a 15-year buyout of of ownership interest in my company. While not guaranteed anything, the structure is to be paid at a % of income of the company based on ownership. Conservatively, at 50% of expectation, I will NET $100K on average, for those years. Nothing's guaranteed, again.
Monthly expenses have been very high over the last several years due to paying off exes. Average net/month expenses have been $15K. Upon retirement, would average expenses of $10K/month, but need to add in healthcare for 2, at per month of $3K.
My question overall is - given the defined costs, income, etc., what could be recommended as the MAX to custom design a final new home ($125K for land, $50K for architect), to be safe?
Thank you in advance for your thoughts and comments!