Hello all. I have lurked here for awhile and have enjoyed the various posts and perspectives from members. While some may question the seriousness of this title thread; I think we all have a fear....irrational or valid....as to the question of "Do I have enough" to see me through retirement especially when considering "worst case scenarios" i.e stock markets crash at the start of retirement, unforeseen health issues and related expenses, etc.
Here is our scenario ( me and my wife):
Ages: 55 & 54
Wife will work until next year. I am already retired.
Current assets ( general idea):
Cash: $860,000 = 20%
Stock mutual funds: $2,000,000 = 46%
Bond Mutual funds: $1,460,000 = 34%
Total: $4,300,000
House paid off. No debt of any kind. 2 children. Youngest finished with school in 2 years.
Estimate as best we can that annual expenses to be approx. $80,000/year until age 65 when Medicare kicks in.
This includes taxes, insurance, all fixed expenses, 1 nice vacation per year, health care premiums and deductibles, and also accounts for "unforeseen" expenses.......busted furnace, appliance, etc.
I realize that the amount of cash on hand is ....obscene.... but as we will have to pay for health care out of pocket...... I need to keep taxable income low..... to potentially take advantage of ACA subsidies. ( please no judgements on taking advantage of this I didn't make the rules).
Income between ages of 55 and 62 will consist of muni bond income and some inherited IRA income as well as dividend income from taxable stock funds. Estimate annual income of $45,000/year.
At ages 63 and 62, wife I and will collect pensions (hers is COLA mine is not) totaling $45,000/ year and we will delay SS until FRA or later. Then at age 701/2 RMD's from Trad IRA will kick in. Will do Roth conversion between ages 65-70 as much as possible.
Also no LTC insurance. Will self insure.
So will this work? Any unforeseen problems? Just trying to cover all bases. Thanks!
Here is our scenario ( me and my wife):
Ages: 55 & 54
Wife will work until next year. I am already retired.
Current assets ( general idea):
Cash: $860,000 = 20%
Stock mutual funds: $2,000,000 = 46%
Bond Mutual funds: $1,460,000 = 34%
Total: $4,300,000
House paid off. No debt of any kind. 2 children. Youngest finished with school in 2 years.
Estimate as best we can that annual expenses to be approx. $80,000/year until age 65 when Medicare kicks in.
This includes taxes, insurance, all fixed expenses, 1 nice vacation per year, health care premiums and deductibles, and also accounts for "unforeseen" expenses.......busted furnace, appliance, etc.
I realize that the amount of cash on hand is ....obscene.... but as we will have to pay for health care out of pocket...... I need to keep taxable income low..... to potentially take advantage of ACA subsidies. ( please no judgements on taking advantage of this I didn't make the rules).
Income between ages of 55 and 62 will consist of muni bond income and some inherited IRA income as well as dividend income from taxable stock funds. Estimate annual income of $45,000/year.
At ages 63 and 62, wife I and will collect pensions (hers is COLA mine is not) totaling $45,000/ year and we will delay SS until FRA or later. Then at age 701/2 RMD's from Trad IRA will kick in. Will do Roth conversion between ages 65-70 as much as possible.
Also no LTC insurance. Will self insure.
So will this work? Any unforeseen problems? Just trying to cover all bases. Thanks!