spikeykiller
Dryer sheet wannabe
- Joined
- Oct 26, 2017
- Messages
- 17
Hi,
I’ve been lurking on this great forum for about a year and thought it is about time I introduce myself. I’m looking to RE in the next 12-18 months. Here is my situation.
Male 53. I am 54 next month. DW is 45. We have 3 kids - 13, 11 and 11.
Pre tax accounts: $1.8m
After tax account: $2.6m
Unexercised stock options: $2.2m (current value)
College savings plan: $0.4m
Other savings: $0.1m
Total: $7.1m
Rental real estate worth approx $4.0m and yields $180k/yr in net income.
Primary residence worth $1.2m. Mortgage is $200k.
No other significant debt.
Spending over the past 4 years averaged in the $180-200k range per year. For retirement I am assuming a $240k/yr spend with the additional to cover health insurance and retirement hobbies.
For the rental income I am assuming an effective fed and state (9%) tax rate of 35%. I believe this is very conservative and could be even 30% or lower with the new tax bill. This will yield $117k cash per year.
240-117= $123k that will need to be funded from investments. If I assume a conservative 30% net tax rate from investments (blend of long term, short term and div income). This means that my investment portfolio will need to yield $176k/yr.
At a 3% withdrawal rate, this would require a portfolio of $5.87m.
So I think I am looking good and will be ready. Comments and feedback welcome.
Spikeykiller
I’ve been lurking on this great forum for about a year and thought it is about time I introduce myself. I’m looking to RE in the next 12-18 months. Here is my situation.
Male 53. I am 54 next month. DW is 45. We have 3 kids - 13, 11 and 11.
Pre tax accounts: $1.8m
After tax account: $2.6m
Unexercised stock options: $2.2m (current value)
College savings plan: $0.4m
Other savings: $0.1m
Total: $7.1m
Rental real estate worth approx $4.0m and yields $180k/yr in net income.
Primary residence worth $1.2m. Mortgage is $200k.
No other significant debt.
Spending over the past 4 years averaged in the $180-200k range per year. For retirement I am assuming a $240k/yr spend with the additional to cover health insurance and retirement hobbies.
For the rental income I am assuming an effective fed and state (9%) tax rate of 35%. I believe this is very conservative and could be even 30% or lower with the new tax bill. This will yield $117k cash per year.
240-117= $123k that will need to be funded from investments. If I assume a conservative 30% net tax rate from investments (blend of long term, short term and div income). This means that my investment portfolio will need to yield $176k/yr.
At a 3% withdrawal rate, this would require a portfolio of $5.87m.
So I think I am looking good and will be ready. Comments and feedback welcome.
Spikeykiller