Retiredmajor
Recycles dryer sheets
Hey all, I introduced myself a few months ago and thought I was retiring on June 9th, but I'm still working part-time. This is something I agreed to and I'm fine with it. It actually feels pretty good and is a nice transition as opposed to stopping work "cold turkey"!
But, I would like your thoughts on our situation and whether or not an Annuity, using part of our nest egg, is a good idea. I love that I found this site and I've done a lot of reading here. There is a lot of wisdom here and I would like some!!
Out finances:
- Need $72,000 per year to live on
- I'm almost 61 and will draw SS when I'm 62. DW is 10 months behind me and will also draw SS at age 62
- Our combined SS when we are both drawing will be $31,200 annually
- I have a military pension of $15,000 annually (tied to COLA)
- We have a nest egg of $700,000
- We have savings of $30,000
I'm wondering the wisdom of turning $400,000 of our nest egg into a Joint Survivor Immediate Annuity which I think will pay approx $1600 per month or just over $19,000 annually (online calculators gave me this estimate).
If I did that, we would have guaranteed income for life of: SS $31,200 + Pension $15,000 + Annuity $19,000 = $65,200.
We would still have $300K in a nest egg to hedge inflation. In addition, our home will be paid off in 9 years and then my expenses drop by $16,000 annually. At that point we wouldn't need $72,000 per year to live on , but more like $56,000 - $60,000.
We have Tricare Health insurance because of my military service, so healthcare costs are not a big concern.
So....what do you think?
And thanks! Major
But, I would like your thoughts on our situation and whether or not an Annuity, using part of our nest egg, is a good idea. I love that I found this site and I've done a lot of reading here. There is a lot of wisdom here and I would like some!!
Out finances:
- Need $72,000 per year to live on
- I'm almost 61 and will draw SS when I'm 62. DW is 10 months behind me and will also draw SS at age 62
- Our combined SS when we are both drawing will be $31,200 annually
- I have a military pension of $15,000 annually (tied to COLA)
- We have a nest egg of $700,000
- We have savings of $30,000
I'm wondering the wisdom of turning $400,000 of our nest egg into a Joint Survivor Immediate Annuity which I think will pay approx $1600 per month or just over $19,000 annually (online calculators gave me this estimate).
If I did that, we would have guaranteed income for life of: SS $31,200 + Pension $15,000 + Annuity $19,000 = $65,200.
We would still have $300K in a nest egg to hedge inflation. In addition, our home will be paid off in 9 years and then my expenses drop by $16,000 annually. At that point we wouldn't need $72,000 per year to live on , but more like $56,000 - $60,000.
We have Tricare Health insurance because of my military service, so healthcare costs are not a big concern.
So....what do you think?
And thanks! Major