Retire at the end of 2021

[big8pointer]

I am 62, will be 63 this coming November. DW will be 54 this August.

I am looking towards putting in for retirement at the end of this year after 34 years in I.T.

We recently sold our townhouse in northern NJ and will be moving into a new build in a 55+ community in SC. This will lower our monthly expenses considerably. I have gone through estimating yearly expenses and have come up with $3,500/month, includes mortgage P/I, utilities, insurances, food, etc....

I plan for myself and DW to pickup a healthcare plan on ACA, then myself switch to Medicare at 65. There are plans with $0 monthly premium that are pretty comparable to the plan I have currently with employer with regards to co-pay and out of pocket max. We will qualify for subsidy given our MAGI will be below the threshold of $68K.

My investment accounts....

IRA -$500,000
Brokerage - $87,500
ROTH IRA - $124,000
401k - $98,000 in TROWE Capital Appreciation Fund
401k - $58,000 in TROWE Stable Value Fund
Cash Accounts (IRA/CD/Savings) - $150,000

DW investment accounts...
ROTH IRA - $54,000
IRA - $62,000
SIMPLE IRA - $1,700
Cash Accounts (IRA/CD/Savings) - $41,600

No credit card debit and no auto loans.

Working to end of year, I would be able to save at least another $6,000 into our savings account.

My stock IRA/Brokerage accounts currently have accrued dividends of $72,000, which should be close to $96,000 by end of year. These accounts are generating $41.5K dividends per year.

I plan to use this dividend $$ to live on until I sign up for S.S. at full retirement age of 66y 8mth., which at that time will add @ $33K per year income.

Appreciate thoughts on pulling the trigger!

 

[Alvin Tostig]

We did a similar move in 2019 when I was 63 at that time and wife was 59. From northern NJ also to coastal North Carolina..in a community, but not exclusive to 55 plus...although 95% are in that age bracket.

With no debt your number look fine. The key will be continuing to get the ACA for your wife for the next 10 plus years at zero or a low premium. Just make sure you know all the items that are included in your MAGI for the ACA...I know its listed on their website.
Let's also hope the ACA is here to stay.

Good luck! Welcome to the club.

 

[qwerty3656]

I guess I always thought people were alot older when they moved into a retirement community.

 

[beernutzbob]

I guess I always thought people were alot older when they moved into a retirement community.

IMO the increased interest is a result of more people wanting to live where they don't have to worry about other people who can't/won't control their kids.

 

[big8pointer]

IMO the increased interest is a result of more people wanting to live where they don't have to worry about other people who can't/won't control their kids

One of the reasons that brought us to 55+ in SC, aside from the fact of no more winters to deal with in NJ.

And it's not all old people. We see many folks in our community who are late 50's early 60's. There are many social gatherings held, a real feel of a close knit community. That's what we wanted.

 

[Finance Dave]

You look great! Since your living expenses are fairly low, you don't have a serious tax bracket problem...but I always like getting as much in ROTH accounts as possible so you can manage taxes later.

Congrats!

We are considering moving to the Carolinas also...but for us we are thinking North Carolina. We have an elderly relative that's keeping us in the midwest for now.

 

[big8pointer]

Thanks Dave for reply.

Good luck to you when your time is right to make the move to Carolinas!

 

[cyber888]

It seems fine to me. You're at an age where you can collect SS. Did you factor in taxes with the $3,500/mo ?

I am 62, will be 63 this coming November. DW will be 54 this August.

I am looking towards putting in for retirement at the end of this year after 34 years in I.T.

We recently sold our townhouse in northern NJ and will be moving into a new build in a 55+ community in SC. This will lower our monthly expenses considerably. I have gone through estimating yearly expenses and have come up with $3,500/month, includes mortgage P/I, utilities, insurances, food, etc....

I plan for myself and DW to pickup a healthcare plan on ACA, then myself switch to Medicare at 65. There are plans with $0 monthly premium that are pretty comparable to the plan I have currently with employer with regards to co-pay and out of pocket max. We will qualify for subsidy given our MAGI will be below the threshold of $68K.

My investment accounts....

IRA -$500,000
Brokerage - $87,500
ROTH IRA - $124,000
401k - $98,000 in TROWE Capital Appreciation Fund
401k - $58,000 in TROWE Stable Value Fund
Cash Accounts (IRA/CD/Savings) - $150,000

DW investment accounts...
ROTH IRA - $54,000
IRA - $62,000
SIMPLE IRA - $1,700
Cash Accounts (IRA/CD/Savings) - $41,600

No credit card debit and no auto loans.

Working to end of year, I would be able to save at least another $6,000 into our savings account.

My stock IRA/Brokerage accounts currently have accrued dividends of $72,000, which should be close to $96,000 by end of year. These accounts are generating $41.5K dividends per year.

I plan to use this dividend $$ to live on until I sign up for S.S. at full retirement age of 66y 8mth., which at that time will add @ $33K per year income.

Appreciate thoughts on pulling the trigger!

 

[big8pointer]

Did you factor in taxes with the $3,500/mth ?

Yes I did. I figure a net taxable income of @ $10,000/year after taking the standard deduction of $24,800. Our 2020 tax return reflected a tax rate of 9.89%, so talking @ $1,000 net federal taxes due.

 

[Nick12]

I am 62, will be 63 this coming November. DW will be 54 this August.

I am looking towards putting in for retirement at the end of this year after 34 years in I.T.

We recently sold our townhouse in northern NJ and will be moving into a new build in a 55+ community in SC. This will lower our monthly expenses considerably. I have gone through estimating yearly expenses and have come up with $3,500/month, includes mortgage P/I, utilities, insurances, food, etc....

I plan for myself and DW to pickup a healthcare plan on ACA, then myself switch to Medicare at 65. There are plans with $0 monthly premium that are pretty comparable to the plan I have currently with employer with regards to co-pay and out of pocket max. We will qualify for subsidy given our MAGI will be below the threshold of $68K.

My investment accounts....

IRA -$500,000
Brokerage - $87,500
ROTH IRA - $124,000
401k - $98,000 in TROWE Capital Appreciation Fund
401k - $58,000 in TROWE Stable Value Fund
Cash Accounts (IRA/CD/Savings) - $150,000

DW investment accounts...
ROTH IRA - $54,000
IRA - $62,000
SIMPLE IRA - $1,700
Cash Accounts (IRA/CD/Savings) - $41,600

No credit card debit and no auto loans.

Working to end of year, I would be able to save at least another $6,000 into our savings account.

My stock IRA/Brokerage accounts currently have accrued dividends of $72,000, which should be close to $96,000 by end of year. These accounts are generating $41.5K dividends per year.

I plan to use this dividend $$ to live on until I sign up for S.S. at full retirement age of 66y 8mth., which at that time will add @ $33K per year income.

Appreciate thoughts on pulling the trigger!

Good luck to you. With you coming from NJ, you won't find real bagels, pizza, or diners where you are relocating to.

 

[big8pointer]

Good luck to you. With you coming from NJ, you won't find real bagels, pizza, or diners where you are relocating to.

Thanks Nick.

We did find a place with good pizza. A good bagel hard to find and diner's non-existent. That's the bummer. We did manage to find pretty good Chinese food while down there last few times.