Wondering about Retirement

[garrynky]

Ok, I've been looking at this board for a while and am impressed by the posts here.  A lot of folks here have done a lot of planning for retirement. I haven't.  Anyway, I am 57, my wife is 55. We currently make about $140,000 a year. We have zero debt other than the house we are in now. We have a house in Oklahoma valued at $125,000 that is paid for.

We have a combined savings of $750,000. I think we could live ok on about $3,500 a month. My Mother is 85 and in another state...Oklahoma...where my house is. She is in a nursing home and my brother lives there and is taking care of her. My daughter, her husband and 18 month old grandson also live there. (I'm in Kentucky now, had to take a transfer to keep my retirement.)

Other than the $750,000 I don't have anything else to retire on. (We have medical insurance that will cost us about $150 a month ... part of my retirement benefit)  If I work two more years, I have a retirement clause where my total retirement will be worth about $900,000. So what I'm debating is...if I quit now..I may get to be around my Mother for a year or two, and my grandson. If I work longer, I will be in a better financial situation. My heart says quit, my brain says work another two years. I've thought about this so much that it's pretty merky to me.  Anyone else been though this? Comments appreciated.

Oh, one other thing. I will get $1,350 SS at 62, my wife will get $1,000 a month then. I really don't include her numbers in planning because if one of use dies, you only get to pick one benefit. My dad died at 58, his 6 brothers all died before 80. My wifes grandmother made it to 101 so she will most likely outlive me so I want to make sure she will have an income. We had our 38th anniversary this weekend. Sort of a rambling post but this is what is on my mind.

Thanks,

Garry

 

[yakers]

Well, it sounds not unlike a lot of my statistics (wife 57, I'm 55, paid off house, my income is about the same and my mother is 85, in another state with some of my siblings, big difference is still have one son in high school). It sounds like you have enough to retire if you want to with that savings, paid off house, medical coverage and SS coming. The idea of working a couple more years for a significant increase in the retirement fund depends on how much you like the work and what other plans you have. Right now I like my work but my manager is retiring and things could change.
So I would start out with what you would want to do, do you like work? Do you have retirement plans that call for a lot of expensive travel? Do you want to build up a nest egg for security, inheiritance or charity?
Most folks here would vote to retire straight away. But you get to make your own decision.

 

[garrynky]

Yakers, thanks for the response. In answer to your questions, my wife and I both like our jobs. Other than getting a little burned out now and then, the work place is ok. We don't have any plans for any major travel, we like the outdoors, camping, motorcyling and just bought a new Miata to play with. More than likely we will spend a lot of time on the lake.

As far as money goes, I hope the check to the undertaker bounces. Still it would be nice to work another 24 months to make things a little more secure. The only reason I'm thinking about quitting now is because I think I could make my mothers like a little more enjoyable by being around to take her places and do things with her.

 

[LovesLife]

Hi Garrynky.

If you stayed working for a few more years, could you arrange for some extra time off so that you could visit your mom more frequently? Any possibility of working part time? Maybe your employer would work with you on this rather than lose you altogether. Good luck.

LL

 

[Martha]

I wonder if you might be eligible for FMLA (family medical leave act) leave of absence to care for your mother. FMLA applies to employers with more than 50 employees and allows up to 12 weeks unpaid leave to care for a seriously ill family member.

Might be worth checking out.

 

[Mr._johngalt]

Yakers, thanks for the response. In answer to your questions, my wife and I both like our jobs. Other than getting a little burned out now and then, the work place is ok. We don't have any plans for any major travel, we like the outdoors, camping, motorcyling and just bought a new Miata to play with. More than likely we will spend a lot of time on the lake.

As far as money goes, I hope the check to the undertaker bounces. Still it would be nice to work another 24 months to make things a little more secure. The only reason I'm thinking about quitting now is because I think I could make my mothers like a little more enjoyable by being around to take her places and do things with her.

Jeez "outdoors, motorcycles, Miatas at the lake". Sounds like our story.

JG

 

[uncledrz]

FMLA idea is a good one. Also trying to get leave or extended time off may be another thought.
I was unclear on the retirement funds. If you stay another two years does the 750 increase to 900, or do you vest in a plan that is valued at 900? If the latter, I would suggest stay. If the former, still a significant increase and worth trying to vest in that amount.

 

[garrynky]

Good suggestions. Maybe I should think about taking more time off and visiting more frequently.

Uncledrz, it's a long story but I have worked for one company for a long time that has changed owners. I rolled over $500,000 combined out of a 401K and pension plan. My wife just turned 55 and has access to $250,000 because it is still with the previous employer. If I stay another 24 months I will have $150,000 in the "new" company 401 and pension plan.

A side note. I made a mistake in rolling the $500,000 over, I am using a financial planner I plan on getting rid of. At the time I was forced into making some quick decisions and have learned a lot since then. My total expense ratio is .7% annually. About $300,000 is in a bond ladder and $200,000 in equitys.

 

[TromboneAl]

You might spend some time figuring out exactly how much you need to live on each year. Look at your spending for the last two years, and adjust based on how things may change.

 

[grumpy]

Have you considered retiring from your present job, moving to Okla. to be near your mother and getting a part-time job there?

Grumpy

 

[JPatrick]

One of my biggest regrets was not spending more time with my Mother during her last years. 
It sounds as if you have come to grips with the importance of that.
It's a very personal decision that only you can make.  Hopefully you will be able find a way to balance it all.

 

[uncledrz]

Uncledrz, it's a long story but I have worked for one company for a long time that has changed owners. I rolled over $500,000 combined out of a 401K and pension plan. My wife just turned 55 and has access to $250,000 because it is still with the previous employer. If I stay another 24 months I will have $150,000 in the "new" company 401 and pension plan.

At $150,000 of new company 401k and pension, I would stay and make the retirement more secure. I know others view this differently, but I think when you go a cushion is nice.

 

[maddythebeagle]

$150 a month for health insurance is a great deal!

 

[Mr._johngalt]

$150 a month for health insurance is a great deal!

I paid that much when I was single and first retired, and not much more now.
However, both policies have many limitations. Still skating along until
Medicare kicks in................

JG

 

[maddythebeagle]

I suspect her 150 bucks/month is not a high deduct. plan? That is something that I havent looked into much (health insurance). My employer will use unused leave hours accumulated (as well as kick in addtional hours at years 20 and 25 but the employee has to pay the full share of the insurance costs, right now that is like 500 bucks per month for singles and the person has to be collecting pension to participate. Earliest that can collect pension is age 55. So if you retire around 45, there would be 10 years of going it alone.

Of course, that might change in the future...