Hi all, I have been a visitor to this site for a couple years. I figured I would finally introduce myself as I now have a target retirement date in mind. My wife and I are currently planning to retire or at least go part time at the end of 2024 when we are 53. We both generally like our jobs, and both are fairly low stress stable jobs, but it would be nice to have additional time to spend in different ways.
Here is a little background on us. We live in a HCOL area with a combined salary of 500K. In addition, my spouse receives a 50K bonus. We have two kids 13/10. We currently have no debt having recently paid off our house with proceeds from selling some ISO’s. Home value is roughly 1.35M. We plan to stay in the current house at least 8 yrs at which time both kids will be in college. At that point we will probably move somewhere but not sure where to exactly.
Current investment portfolio is just north of 4M broken into an asset allocation of 55% stock/ 45% bonds and 100% is invested in index funds.
Taxable: 1.19M
Tax Deferred : 2.69M
Roth : 44K
529 : 186K
HSA: 33K
We currently max two 401K’s. My solo 401K (64.5K) and my spouse (30.5K inc match). We also max the HSA account. We plan to allow all HSA money to grow and we pay for medical from our taxable accounts. We have two fairly large rollover IRA’s so we are unable to do a backdoor roth at this time. The 529’s we funded years ago. If college expenses are higher, we plan to supplement with taxable funds.
The goal is to grow the taxable portion of the portfolio by adding any additional dollars available after maxing tax deferred accounts and by selling ISO’s & RSU’s and investing the after tax portion of them into index funds. Unvested ISO’s are worth 1.94M before tax. ½ the shares vest this April ‘21 and the other ½ vest April ‘22. Unvested RSU’s are currently worth 950K before tax with ¼ of the shares vesting each of the next 4 years. At this point we do not anticipate being granted any more ISO’s or RSU’s.
Social Security : If we work through 2024, SS at FRA for me: $2622/mo and spouse: 2714/mo. Using an online calculator it said the optimal strategy would be to take my SS at FRA in 2037 and Spouses at age 70 in 2042. 2043 and beyond we would receive around 69K.
We plan to live off the taxable account when retirement starts and convert as much taxable IRA money to Roth IRA as we can while minimizing taxes.
The hardest thing I think in our plan is to narrow down what expenses we will have in retirement to include healthcare expenses and taxes. We also need to figure out the optimal amount of money to convert to Roth IRA while at the same time try to minimize future taxes. Our current expenses are 120K/yr. I welcome any advice or helpful resources that you think pertain to our situation.
Here is a little background on us. We live in a HCOL area with a combined salary of 500K. In addition, my spouse receives a 50K bonus. We have two kids 13/10. We currently have no debt having recently paid off our house with proceeds from selling some ISO’s. Home value is roughly 1.35M. We plan to stay in the current house at least 8 yrs at which time both kids will be in college. At that point we will probably move somewhere but not sure where to exactly.
Current investment portfolio is just north of 4M broken into an asset allocation of 55% stock/ 45% bonds and 100% is invested in index funds.
Taxable: 1.19M
Tax Deferred : 2.69M
Roth : 44K
529 : 186K
HSA: 33K
We currently max two 401K’s. My solo 401K (64.5K) and my spouse (30.5K inc match). We also max the HSA account. We plan to allow all HSA money to grow and we pay for medical from our taxable accounts. We have two fairly large rollover IRA’s so we are unable to do a backdoor roth at this time. The 529’s we funded years ago. If college expenses are higher, we plan to supplement with taxable funds.
The goal is to grow the taxable portion of the portfolio by adding any additional dollars available after maxing tax deferred accounts and by selling ISO’s & RSU’s and investing the after tax portion of them into index funds. Unvested ISO’s are worth 1.94M before tax. ½ the shares vest this April ‘21 and the other ½ vest April ‘22. Unvested RSU’s are currently worth 950K before tax with ¼ of the shares vesting each of the next 4 years. At this point we do not anticipate being granted any more ISO’s or RSU’s.
Social Security : If we work through 2024, SS at FRA for me: $2622/mo and spouse: 2714/mo. Using an online calculator it said the optimal strategy would be to take my SS at FRA in 2037 and Spouses at age 70 in 2042. 2043 and beyond we would receive around 69K.
We plan to live off the taxable account when retirement starts and convert as much taxable IRA money to Roth IRA as we can while minimizing taxes.
The hardest thing I think in our plan is to narrow down what expenses we will have in retirement to include healthcare expenses and taxes. We also need to figure out the optimal amount of money to convert to Roth IRA while at the same time try to minimize future taxes. Our current expenses are 120K/yr. I welcome any advice or helpful resources that you think pertain to our situation.