Hello Wise Ones,
Iíve been reading ER for a few years and find the knowledge of the peeps here to be quite helpful so I finally gained the courage to post our financials with other details. DH would like to retire when 401K hits 1M, which is very close (may even wait till April 2021 - warm weather). How ready might we be is the question?
DH, age 63; DW 61
DH current salary: $135,800
DW self-employed: profits go back into business. DW may retire with DH.
DH: 401K, $946K (60/40)
DH: after tax $37K
DW: SEP & IRA: $159K (60/40)
DH: private pension, no cola (all company funded)
Non-union: $37K/yr. (3,083/mo.) with 75% J/S
Union: $8,868K/yr. ($714/mo.) with 55% J/S (heíll use this as pocket cash, not for expenses), golf, beer, Ö
OR Lump sum at age 63: $491K; age 66: $556,662. Weíre thinking of taking annuity vs lump. Thoughts?
(not including union pension); with union: $45,868/yr.
Liquid: $110K (Includes funds toward vacation, repairs, car fund, general savings. Should first 3 be included?)
Company stock: $33K
Him: $36K at age 66.6
Her: $18K at age 66.10
. House paid off, worth $480K (paid $188K). Plan to downsize in next 2/3ish years to a 1 floor house in same area which will cost close to current home sale price due to the RE boom. Not wise, but, current house has too much landscape upkeep and pool that will keep us the wrong kind of busy during our elder years. Hired help = $ out the door; we prefer to keep it in our own pocket.
Iíve been tracking expenses for several years. Current annual expenses including taxes are $66K ($5,500/mo.). This also includes current LTCI premium of $5,100/yr. for both. As noted, annual expenses also includes savings toward new car replacement, car/home repairs, and travel. During retirement, Iím guesstimating
with Medicare and supplemental health insurance for us, along with escalating LTC premiums, and more travel, yearly expenses may be approx. $88K+/yr. I may be high here but unknowledgeable with retirement health costs. Luckily, we live in a state that does not collect state tax in retirement.
Not necessary to leave an inheritance. I ran firecalc but donít truly understand it yet. Will need to play around more.
What are your thoughts from the provided info regarding 28-30 years of retirement funds needed to live comfortably while we continue to question ourselves? Also, when is the best time to start backdoor Roth?
Pension: $37K (not including union pension)
Current Expenses: Monthly $5,500 / Annually $66K
Guesstimate Retirement Expenses: $7,333/month; $88K/annually