Hi all,
After years of reading and learning from this forum, I am hopeful that DH and I are in a position to retire, but I would appreciate input from the forum members. DH is 67 and I am 62 next week; DH has been retired for two years, and I would like to retire in December 2019 when I am 62.5. DH has health concerns that will likely affect his longevity, which is a significant motivation for retiring now instead of a few years from now.
As far as income and assets, our income sources will include a non-COLA pension ($21K with survivor benefit), $48K in social security (total for both with DH already receiving SS and me taking it at 63.5), and $11K net income from a condo we own with no mortgage, for a total retirement income of about $80K/year before taxes. The rental condo has more than kept pace with inflation over the 12 years we have owned it, and has always rented immediately. The market value of the condo is about $270K.
Aside from the assured income streams, we have about $930K in other assets, and own our home with no mortgage. No other debt. Based on current spending, we will spend between $85K-$95K/year inretirement, including health insurance and taxes. DH is on Medicare, and I have health insurance through my state retirement system at a rate that should not change much between now and Medicare age. No LTC insurance, but our home is worth >$500K, and if necessary, we could sell if one of us needs assisted care, while the other moves into the condo. (Both are in the same city.)
The $930K is divided between Roth ($210K) and traditional IRA ($140K) with the remainder in taxable brokerage accounts. The accounts are a mix of equity index funds, bond index funds and a few stocks that I will convert to index funds over the next year or so. In addition, we will have $30-$40K in cash/CDs. I expect we will draw $20-25K/year from the retirement accounts, although there may be years when we take less.
Compared to some on this forum, we will have a more modest retirement, but I think we our assets will provide for all of our needs and many wants. I am interested to hear whether others think this plan looks workable. Comments welcome, and if I have missed something important, I'd rather address it now than after I've left my job.
Thanks!
After years of reading and learning from this forum, I am hopeful that DH and I are in a position to retire, but I would appreciate input from the forum members. DH is 67 and I am 62 next week; DH has been retired for two years, and I would like to retire in December 2019 when I am 62.5. DH has health concerns that will likely affect his longevity, which is a significant motivation for retiring now instead of a few years from now.
As far as income and assets, our income sources will include a non-COLA pension ($21K with survivor benefit), $48K in social security (total for both with DH already receiving SS and me taking it at 63.5), and $11K net income from a condo we own with no mortgage, for a total retirement income of about $80K/year before taxes. The rental condo has more than kept pace with inflation over the 12 years we have owned it, and has always rented immediately. The market value of the condo is about $270K.
Aside from the assured income streams, we have about $930K in other assets, and own our home with no mortgage. No other debt. Based on current spending, we will spend between $85K-$95K/year inretirement, including health insurance and taxes. DH is on Medicare, and I have health insurance through my state retirement system at a rate that should not change much between now and Medicare age. No LTC insurance, but our home is worth >$500K, and if necessary, we could sell if one of us needs assisted care, while the other moves into the condo. (Both are in the same city.)
The $930K is divided between Roth ($210K) and traditional IRA ($140K) with the remainder in taxable brokerage accounts. The accounts are a mix of equity index funds, bond index funds and a few stocks that I will convert to index funds over the next year or so. In addition, we will have $30-$40K in cash/CDs. I expect we will draw $20-25K/year from the retirement accounts, although there may be years when we take less.
Compared to some on this forum, we will have a more modest retirement, but I think we our assets will provide for all of our needs and many wants. I am interested to hear whether others think this plan looks workable. Comments welcome, and if I have missed something important, I'd rather address it now than after I've left my job.
Thanks!