Glidepath established (hopefully), now what?
Hi, everyone! Long time lurker, first time poster! I have learned so much here – thank you all! A quick introduction and a question: What am I missing? My ten year countdown has begun and I have to get this right. I don’t think I have time for a reboot on this….
Age 49.5 and DW is 43 (she will retire 6 yrs after me). One in college with zero expenses for us (hurray!) Very stable jobs, but the only slightly strange thing is that DW’s employment is at a non-SS institution (mine has SS).
Current 401(k) and 457(b): $950k, with $40k added each year. We will have $450k in after tax cash in 10 years (plain savings acct), with separate cash accounts to replace car and major expenses when we start this new chapter.
My pre-tax AA’s trajectory is moving toward 70/30 by age 60 (with the notion that there will also be cash in the bank, albeit perhaps too much, for our safety cushion).
Current household income: $250k
Our expected expenses will be $70k and no mortgage.
When I pull the plug, I will get 3 years of healthcare from employer (not COBRA), then I will go on DW’s plan for 2 years until I am 65. What to do about DW’s healthcare between 60-65? No idea (which would clearly add to our expenses).
Currently 1 rental property (no mortgage) with modest cash flow. Expect to sell it in 10 years ($160k) and invest the proceeds or just use for added income ($12k/yr).
1 vacation home and one permanent home. In five years our home equity will eclipse mortgage on vacation home and we will sell, pay off vacation home, and move there until (and perhaps during) retirement.
I plan to take SS at age 67 ($30k)
DW has separate, and smaller, 457(b) that we’ll use as simply a bonus (but should still be near $500k when she is done).
Firecalc says I’m fine, but what am I missing? What should I change? I realize that the wheels could fall off at any time over the next decade, but I’m looking at all of these numbers as realistically/conservatively as possible. I do think my tax situation is a disaster, but there seems to be too many moving parts right now to get a clear picture.
Thank you for any insights you might offer!