Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
I am interested in what you would advise in the following circumstance. This is to be your advice that will be followed to the letter and never adjusted in the future (unless stated in the advice to rebalance or change as time passes in % ownership of asset classes)
Retiring couple ages 58 and 62. 62 year old eligible for $750 per month Social Security now. 58 Year old will be eligible for $1500 per month at age 62. 58 year old could take immediate non-cola pension of $2000 per month now or wait to age 65 for $3,300 non-cola pension - only option available as only retiree from active employment can get early retirement. There is no cash-out offered on pension.
Monthly expenses are $4,000 per month after-tax. Assets consist of 100K in taxable money market account 500K in 401K account. Also a home with a market value of 210,000 and a mortgage of 90,000 and a monthly payment of 700 per month P&I and taxes of $2,000 per year and insurance of 680 per year expenses included in the $4,000 per month after tax.
1000 square foot 2 bedroom condos in this area sell for $110,000 - $145,000 depending on the amenities desired. Couple prefers to stay in their current home but desire to not work is much higher than their home loyalty.
Couple is counting on you for advice and the expectation of never working again while maintaining their current lifestyle, what is your advice to this couple? They will follow it 100 percent to your plan but of course if it fails may be coming in to live with you.
Retiring couple ages 58 and 62. 62 year old eligible for $750 per month Social Security now. 58 Year old will be eligible for $1500 per month at age 62. 58 year old could take immediate non-cola pension of $2000 per month now or wait to age 65 for $3,300 non-cola pension - only option available as only retiree from active employment can get early retirement. There is no cash-out offered on pension.
Monthly expenses are $4,000 per month after-tax. Assets consist of 100K in taxable money market account 500K in 401K account. Also a home with a market value of 210,000 and a mortgage of 90,000 and a monthly payment of 700 per month P&I and taxes of $2,000 per year and insurance of 680 per year expenses included in the $4,000 per month after tax.
1000 square foot 2 bedroom condos in this area sell for $110,000 - $145,000 depending on the amenities desired. Couple prefers to stay in their current home but desire to not work is much higher than their home loyalty.
Couple is counting on you for advice and the expectation of never working again while maintaining their current lifestyle, what is your advice to this couple? They will follow it 100 percent to your plan but of course if it fails may be coming in to live with you.