Greetings! My wife and I would like to retire in about 10 years. We are in our early/mid-40's now.
Here is our basic overall situation:
55K RothIRA
60K 401K
130K RothIRA
420K 401K
50K REITs, stocks, crypto
(then some reserve cash, not a whole lot -- a few months worth)... Say roughly $715K altogether.
PENSION: ~$1200/mo in 15 years (at age 55 for me)
We are debt free (house and cars paid off). We do have 1 daughter, and thankfully we are all fairly healthy. Our daughter will be ready for college also in about 10 years.
Before taxes, we're at about $215K combined income now. Since paying off the house, we've now maxed out both our 401K contributions (we've set my wife at 20% contribution to accelerate her 401K, since she's slightly older and will reach 55 about 5 years before I do).
Last year I converted all our mutual funds into ETFs (with a few exceptions). I'm not sure yet if that was a good idea.
The spread of our RothIRA/401K is altogether approximately: 10% bonds, 15% foreign/emerging markets, then the 75% rest is largely US stocks. Within the stock allocation, I did two main categories: broad index and sectors. Within the sectors category, there is obviousy some overlap with the index funds, but I tried to focus more on small and mid caps.
While another "2008" could hit anytime, I'm not too concerned about it since those seem to recover within 2-3 years. But I am gradually increasing the balance of bonds.
My questions are:
- Is an advisor from Personal Capital worth it? I believe their cost is 0.95%? My concern was they seem to want to take at least 200K (basically the RothIRAs) into their own account. They boast a high retention (>97% I think) and say you can cancel anytime, but it's going to be some time moving accounts around (and associated fee's, maybe weeks to settle?). But they try to balance things with the portion under their control, relative to whatever else you've declared as having.
- Our home isn't bad, but not really an ideal retirement home. I would like to relocate eventually. Is it worth to considering buying land now? Our home as it is now is ~$5000/year in property taxes. I'd have to pay property taxes on land too, such as if I bought 2-5 acres further out of town?
- At what point is your own "corporation" worth considering? Are there tax-savings to this? If we've maxed out RothIRA, 401K, HSA -- what might be a better place to put $50K? Is sponsoring or buying/building a business feasible, or is that more of a 6-figures-to-get-started thing?
- My wife is very concerned about health care costs, if we were to try to retire earlier (or at least before our daughter finished college). Obviously a critical procedure or cancer would probably wipe anybody out. But for the more typical maintenance and prescription type health care, is $1200/mo feasible? (I know it all depends where you live -- but in general, private health care isn't like $10,000 a month?)
- Is it possible to kind of "coast" between 50-55 (using 72t?), then pension becomes available at 55, then RothIRAs become available at 59.5? Then SS becomes available at 62?
Thank you!
Steve
Here is our basic overall situation:
55K RothIRA
60K 401K
130K RothIRA
420K 401K
50K REITs, stocks, crypto
(then some reserve cash, not a whole lot -- a few months worth)... Say roughly $715K altogether.
PENSION: ~$1200/mo in 15 years (at age 55 for me)
We are debt free (house and cars paid off). We do have 1 daughter, and thankfully we are all fairly healthy. Our daughter will be ready for college also in about 10 years.
Before taxes, we're at about $215K combined income now. Since paying off the house, we've now maxed out both our 401K contributions (we've set my wife at 20% contribution to accelerate her 401K, since she's slightly older and will reach 55 about 5 years before I do).
Last year I converted all our mutual funds into ETFs (with a few exceptions). I'm not sure yet if that was a good idea.
The spread of our RothIRA/401K is altogether approximately: 10% bonds, 15% foreign/emerging markets, then the 75% rest is largely US stocks. Within the stock allocation, I did two main categories: broad index and sectors. Within the sectors category, there is obviousy some overlap with the index funds, but I tried to focus more on small and mid caps.
While another "2008" could hit anytime, I'm not too concerned about it since those seem to recover within 2-3 years. But I am gradually increasing the balance of bonds.
My questions are:
- Is an advisor from Personal Capital worth it? I believe their cost is 0.95%? My concern was they seem to want to take at least 200K (basically the RothIRAs) into their own account. They boast a high retention (>97% I think) and say you can cancel anytime, but it's going to be some time moving accounts around (and associated fee's, maybe weeks to settle?). But they try to balance things with the portion under their control, relative to whatever else you've declared as having.
- Our home isn't bad, but not really an ideal retirement home. I would like to relocate eventually. Is it worth to considering buying land now? Our home as it is now is ~$5000/year in property taxes. I'd have to pay property taxes on land too, such as if I bought 2-5 acres further out of town?
- At what point is your own "corporation" worth considering? Are there tax-savings to this? If we've maxed out RothIRA, 401K, HSA -- what might be a better place to put $50K? Is sponsoring or buying/building a business feasible, or is that more of a 6-figures-to-get-started thing?
- My wife is very concerned about health care costs, if we were to try to retire earlier (or at least before our daughter finished college). Obviously a critical procedure or cancer would probably wipe anybody out. But for the more typical maintenance and prescription type health care, is $1200/mo feasible? (I know it all depends where you live -- but in general, private health care isn't like $10,000 a month?)
- Is it possible to kind of "coast" between 50-55 (using 72t?), then pension becomes available at 55, then RothIRAs become available at 59.5? Then SS becomes available at 62?
Thank you!
Steve
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