LandlordInvestor
Dryer sheet wannabe
So I feel we are on target for an ER at around age 55. Current ages are 40(me) and 43 for wife. We both work full time in mega corp jobs. We have been maxing out 401ks and ROTH’s each year(using the conversion loophole on the ROTH’s) . We have accumulated around $500k in our 401ks and ROTHs. Our monthly spend (with our daughter) is around $10k per month today – I estimate we will spend about $8k per month in retirement. We have 14 years left on our mortgage and have timed this with our ER date. Currently this home is where we intend to stay for the “long haul”.
I have a pension that should pay 1k per month, wife’s pension will include medical coverage and hers will pay about $2.5k per month – COLA adjusted. In addition to these pensions we have been investing in rentals and somewhat created another non-passive pension via rental income. We currently have 8 properties – half of which are paid for. The others will be paid off in 5-10 years. This rental income adds up to around $8k per month – and expenses could be assumed at around 60% of this.
My prediction is we will buy and sell a few more rentals over the years, but probably end around 8 properties at $8k per month gross, $4k per month net (conservative as they will all be paid off at this time).
I feel we are on track to hang it up perhaps even earlier than 55. We would like to do this as we are wearing down from our full time day jobs and managing our rentals. However, I am struggling with how do you fill the gap between the ages of say 50-60 - before you start adding in your pensions and ss? The rental income will really help, but it won’t be enough and I don’t want to withdraw from my 401k until 59.5. I would rather leave the already taxed ROTH until much later. Social security has to wait, pensions don’t start yet…, etc
“Ballpark usher” type jobs are something we are looking at, but we want to travel quite a bit and I anticipate these first few years might be higher spending ER years – How do you fill this gap? Do I need to stop maxing everything out as I get close and build a cash bucket outside of retirement accounts? I am certain we will be in a much lower tax bracket once we retire – so I was thinking we would do ROTH conversions from our pretax 401k enough to fill the low tax brackets. Then start withdrawing this money. Is this the best strategy here?
Thanks - Really enjoy this forum.
I have a pension that should pay 1k per month, wife’s pension will include medical coverage and hers will pay about $2.5k per month – COLA adjusted. In addition to these pensions we have been investing in rentals and somewhat created another non-passive pension via rental income. We currently have 8 properties – half of which are paid for. The others will be paid off in 5-10 years. This rental income adds up to around $8k per month – and expenses could be assumed at around 60% of this.
My prediction is we will buy and sell a few more rentals over the years, but probably end around 8 properties at $8k per month gross, $4k per month net (conservative as they will all be paid off at this time).
I feel we are on track to hang it up perhaps even earlier than 55. We would like to do this as we are wearing down from our full time day jobs and managing our rentals. However, I am struggling with how do you fill the gap between the ages of say 50-60 - before you start adding in your pensions and ss? The rental income will really help, but it won’t be enough and I don’t want to withdraw from my 401k until 59.5. I would rather leave the already taxed ROTH until much later. Social security has to wait, pensions don’t start yet…, etc
“Ballpark usher” type jobs are something we are looking at, but we want to travel quite a bit and I anticipate these first few years might be higher spending ER years – How do you fill this gap? Do I need to stop maxing everything out as I get close and build a cash bucket outside of retirement accounts? I am certain we will be in a much lower tax bracket once we retire – so I was thinking we would do ROTH conversions from our pretax 401k enough to fill the low tax brackets. Then start withdrawing this money. Is this the best strategy here?
Thanks - Really enjoy this forum.
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