Hello, brand new here to the forum, I hope to get some good advice and be helpful to others as well. I am looking to retire in the next 3-9 months and would love some advice. I have watched 1000 youtube videos, listened to podcasts, read books, etc. but would like real people’s perspective.
I have been tracking all of my monthly expenses this year and spend an average of $7200 per month.
I’m 44 and my wife is 43. I am a police lieutenant and my wife works out of the house. Three daughters 1 college grad (RN) one current college (tuition scholarship) and one Junior in HS.
401k $175,000 (still contributing max) 80/20
457 $440,000 (still contributing max) 80/20 I can access this penalty free at retirement
403 $140,000 (this is a DROP - deferred retirement account – Access at 59.5)
HSA $70,000 (employer contributed 100% of this and adds $150 per month
Cash $136,000 (High interest savings)
Brokerage $115,000 (SCHD, JEPI, VTI, VOO mostly with a few small shares in single stocks like V and F)
House: Value 800,000 (170k mortgage at 3.25) $600k +/- equity
Vac. Home: Value $750,000 paid off
TOTAL planning on is about 1M, and 1.6M when I sell my house
INCOME
Pension: $70,000 per year (2% cola annually and wife gets 80% survivor benefit)
SS: we will both collect however my wife’s will be very small. Not sure the age to collect yet.
My plan is to sell our current house as we would have approximately $600k tax free to invest, and move to our paid off vacation home.
This year we have spent $7200 per month, and that includes our current house PTI of 1600 + 500 in utilities, that we will no longer spend in retirement once the house is sold.
I am totally guessing what retirement spending would be, but my basic expenses as of now, minus our current house are about $5100 per month. I feel that I could spend 9-10k per month and be ok?
Between my pension and cash my plan would be to keep my MAGI low for ACA coverage.
My biggest fears:
Leaving a good career that is stressful yet rewarding
health insurance during retirement for 20 years
Running out of money and wishing I would have just worked 1-2 more years as a high earner.
What am I missing? Thank you!
I have been tracking all of my monthly expenses this year and spend an average of $7200 per month.
I’m 44 and my wife is 43. I am a police lieutenant and my wife works out of the house. Three daughters 1 college grad (RN) one current college (tuition scholarship) and one Junior in HS.
401k $175,000 (still contributing max) 80/20
457 $440,000 (still contributing max) 80/20 I can access this penalty free at retirement
403 $140,000 (this is a DROP - deferred retirement account – Access at 59.5)
HSA $70,000 (employer contributed 100% of this and adds $150 per month
Cash $136,000 (High interest savings)
Brokerage $115,000 (SCHD, JEPI, VTI, VOO mostly with a few small shares in single stocks like V and F)
House: Value 800,000 (170k mortgage at 3.25) $600k +/- equity
Vac. Home: Value $750,000 paid off
TOTAL planning on is about 1M, and 1.6M when I sell my house
INCOME
Pension: $70,000 per year (2% cola annually and wife gets 80% survivor benefit)
SS: we will both collect however my wife’s will be very small. Not sure the age to collect yet.
My plan is to sell our current house as we would have approximately $600k tax free to invest, and move to our paid off vacation home.
This year we have spent $7200 per month, and that includes our current house PTI of 1600 + 500 in utilities, that we will no longer spend in retirement once the house is sold.
I am totally guessing what retirement spending would be, but my basic expenses as of now, minus our current house are about $5100 per month. I feel that I could spend 9-10k per month and be ok?
Between my pension and cash my plan would be to keep my MAGI low for ACA coverage.
My biggest fears:
Leaving a good career that is stressful yet rewarding
health insurance during retirement for 20 years
Running out of money and wishing I would have just worked 1-2 more years as a high earner.
What am I missing? Thank you!