62 with a 12 and 14 year old....$5million plus rental income

[wcs6071]

Hi Everyone!

I'm 62 with $3.8 million in 401k/IRA's and $1.3 million in taxable accounts
Also have $200,000 in a 529 plan for my two daughters (7th and 9th grade)
Allocation is 70% stocks (etf's)/30%(bonds).
Also have $50,000 in HSA.
I have no mortgage on primary home worth $600,000 and 4 rental properties worth $660,000 that are paid for and net $4000.00 per month.
I could retire now and collect Social security income of $5300.00 per month until my girls turn 18. Don't know if that's a good idea or not as benefit would drop to $2300.00 month after they turn 18.
We spend about $150,000 per year.
I'm one of those people that always thinks he's broke.
My current income from my job is $120,000 annually.
I'd love to retire and get a trawler and cruise around while still being a good family man...............clock is ticking I don't want to wait too long but on the
other hand don't want to be irresponsible.
Any feedback would be much appreciated.
Thank you

 

[WhenIsItTime]

I'm one of those people that always thinks he's broke.

This comment will win you friends here!

You didn’t share anything regarding your current employment satisfaction level or work/life balance. Also somewhat unique your annual spend exceeds your gross salary but you have assets and rent income to cover. That’s good practice for retirement.

At 62, I’d be thinking about taking control of the one thing you can’t buy - time! Also, I chose to do it while kids are at home and before they leave for college/life.

 

[wcs6071]

Thanks for the feedback. My income has fallen over the years due to pay cuts (big corporation) Job satisfaction is a 2 on a 10 point scale.

 

[Amethyst]

I take it SS doesn't pay you anything for full-time students living at home?

 

[wcs6071]

Thanks for the reply Amethyst
Dependents get 50% of my full benefits SS until they reach age 18.

 

[Teacher Terry]

Retire!

 

[ivinsfan]

Ok tell us what the real issue is because it isn't money.....

 

[wcs6071]

Thanks for the feedback ivinsfan....
I guess when you work your whole life there is a fear of the unknown.
My wife is 50 and doesn't work. I'll have medical insurance that will increase.
I need to convince myself to let go of the security blanket.....
Sure would like to get that trawler though (that will cost 250k and have about $1000.00
per month in expenses)

 

[RE2Boys]

Thanks for the reply Amethyst
Dependents get 50% of my full benefits SS until they reach age 18.

And you will be asked by the SSA to certify what you spent your dependent's SS benefits for their welfare.

 

[ivinsfan]

Thanks for the feedback ivinsfan....
I guess when you work your whole life there is a fear of the unknown.
My wife is 50 and doesn't work. I'll have medical insurance that will increase.
I need to convince myself to let go of the security blanket.....
Sure would like to get that trawler though (that will cost 250k and have about $1000.00
per month in expenses)

Work on some of your numbers and see if that helps....including the cost of insurance and how much your spouse will need if you pass first. put it down on paper....ask some questions if you don't know what you don't know you can't help yourself.

 

[frayne]

Are you bragging or complaining ?

 

[wcs6071]

Just looking for some reassurances (or discouragement)........I grew up poor and am straight commission sales. I always thought the end of the world was around the corner so I saved every dime I could (for last 40 years). It's difficult to switch to the "spend it mode". I have a lot of interests outside my job and know I wouldn't be bored.
I'm just trying to convince myself to relax and pull the trigger.

 

[pb4uski]

.... I could retire now and collect Social security income of $5300.00 per month until my girls turn 18. Don't know if that's a good idea or not as benefit would drop to $2300.00 month after they turn 18. ...

Check our https://opensocialsecurity.com/ to see what your optimal claiming strategy is.... yours is an interesting case... put aside the kids and it would probably be DW claim at 62 and you at 70... but add in the kids and it makes is much more interesting.

Click on the Advanced Options checkbox at the top left of the page.

 

[ivinsfan]

And you will be asked by the SSA to certify what you spent your dependent's SS benefits for their welfare.

how's that a problem...

 

[ivinsfan]

Just looking for some reassurances (or discouragement)........I grew up poor and am straight commission sales. I always thought the end of the world was around the corner so I saved every dime I could (for last 40 years). It's difficult to switch to the "spend it mode". I have a lot of interests outside my job and know I wouldn't be bored.
I'm just trying to convince myself to relax and pull the trigger.

where's your RE budget....that's your very first step. how much will you ACTUALLY spend and how will you pay for it.

 

[wcs6071]

Thanks for the link...great site.. Decisions , decisions..

 

[wcs6071]

RE?

 

[HI Bill]

I assumed that your $150K budget will hold in retirement, and include health insurance. If so, subtracting your rental income and SS, and not factoring taxes, I get a 1.5% WR on your investments. This means subtracting your trawler and adding $12K per year to you budget is easily handled with your assets. At 62, the clock is ticking on your remaining healthiest years. Time to FIRE and enjoy the fruits of your labor. 2 weeks notice sounds good to me!

 

[pb4uski]

RE?

Retire Early

 

[braumeister]

RE?

Acronyms and Slang Frequently Used on the Forum

 

[wcs6071]

Thanks for that!

 

[ivinsfan]

Retire Early

technically not that early I guess but having younger kids and a younger spouse is a bit of wild card.

 

[wcs6071]

Thank you HNL Bill. How would it look if you bumped the 150k to 200k?
I really appreciate your input.

 

[Franklin]

Just looking for some reassurances (or discouragement)........I grew up poor and am straight commission sales. I always thought the end of the world was around the corner so I saved every dime I could (for last 40 years). It's difficult to switch to the "spend it mode". I have a lot of interests outside my job and know I wouldn't be bored.
I'm just trying to convince myself to relax and pull the trigger.

Speaking for someone near the same age and FLOATING on my boat as I speak......get the trawler! You only have some many seasons of your life.
I came ashore today just to attend a doctors appointment then immediately went back out.....with a smile! BTY, it took me 2 years to get to this point of letting it go!!!

 

[tb001]

Thanks for the reply Amethyst
Dependents get 50% of my full benefits SS until they reach age 18.

Double check the 5300/mo figure. There’s a family max that might apply.

Overall, with 5mm and 150k spend, it would be a no brainer for me, as long as that spend included health insurance, taxes, college etc and I felt feasibly confident in the expense numbers.