Looking at what you say you have and say you make, I'm wondering what your spend rate is. It is hard to estimate retirement possibilities without understanding your spending. I wonder where has all the money gone?
Retired spend for living expenses, insurance, gifts, health care deductibles will be less than $80K/ yr. I've been tracking & projecting future spend rate for past couple of years. Farm expenses on " off years" another $5K to cover cash flow gaps.
Spend forecast is well within pension. Brokerage account will be for "extras" described below.
Money isn't issue for our lifestyle , we are blessed and live within forecasted pension income.
I just needed to hear perspectives on walking away from additional $300K. It will mostly be used on local charities, non profits, and grandkids. You all have been helpful with insights, thank you.
I do plan on spoiling my wife with some overseas travel depending on annual brokerage account returns. As much as $25K a year.
Over next ten years trips to Canada, Italy, South Africa, Holy Land, Czech Republic, Spain, England, France, Germany, Scandinavia, and also parts of USA we haven't seen such as Alaska and Hawaii. She has been a great wife & we plan to travel while still healthy. We have a lot of fun when we travel.
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Bingybear, You ask, where did the money go, fair question:
High salary has been only in past 8 years, bonuses were inconsistent over the 8 years due to company missing some key business plan goals. Worked my way up the ladder from very bottom.
-saved 10 to 15 percent into 401K since 1988 . This was great advice from my dad.
-Another 5% annually in past ten years into a brokerage account.
-setback annually into deferred compensation, value is at $275K payable at retirement.
- had a modest home built, paid mortgage off in 15 years.
-Bought an 80 acre farm, 30 head of F1 beef cattle, used tractor & equipment including barn, fences, pens, etc. Have no debt on it.
- have a sideline higher risk investment of $150K that appreciated 40% in six years. It's value has plateaued so will start selling off post retirement.
- Home remodel was $60K for our 25th wedding anniversary gift to each other. Now have set aside cash for new roof, HVAC, both being installed this month. Intent of trying to avoid major expenses in retirement.
- wife loves to swim so we installed an inground pool, flagstone fire pit sitting area , and flagstone elevated terrace was $125K, cash payment. This was our big splurge we saved for our 30th anniversary 2 years ago.
Paid for kids 4 yr college educations & room and board at state college. Started gifting $20K annually to grandkids 529 plan.
10% giving annually to local charities & church tithes.
This will increase in retirement based on brokerage returns. My wife does enjoy our local small community charity work and wants to be generous supporting them.
I have two local non profits that I will be involved in. Additionally will be involved in our church's local effort to assist widows and single moms in need with free handyman type repairs. This could require up to $5K a year, I would cover materials along with my labor. There are four other retired men on this team. They have skills but not financial means.
Cars paid cash, no debt for 20 years. I drive a 12 year old ,very basic F150 truck. Wife has a Honda, she got 9 years out of her last vehicle.
Each kid got a modest used car as a HS graduation gift to start out. At college graduation each got a 2 week trip to Europe. They were very good kids, no trouble, and have worked at paying jobs since high school at 17 years old. They know the value of a dollar.
This Spring we paid $325K cash for youngest child's 2014 small house, we're getting monthly payback on principle and interest at IRS minimum interest rate.
It was a good value but pricey since it's within ten minutes commute of downtown in a major urban area. Wanted to keep the money "in the family" and avoid mortgage bank profit margin markup .
Other child & husband have a small home his family helped with.
Thanks again for your replies, I consider your feedback to be a gift.
