EasyAsianFrog
Dryer sheet wannabe
Dear all,
Here is my strategic info for starters:
We are:
- Me 50 years old still working
- DW 30 SAHM
- One child 1 yo (yeah, I am a late bloomer)
Current portfolio:
- 401(k) and IRAs: $500k
- After tax investments: $900k
- Employer stock options ready to exercise now: $200k (estimated aftertax)
Our plan is to retire by end of 2015 and relocate our family to DW's birth country of the Philippines. Our current annual expenses are well below $40k, and we have estimated our post retirement expenses drop down to $28k per year when excluding our child's education expenses. This level should be enough to keep our material standard of living at the current level, but with the obvious massive increase in my quality of life as I will be retired.
The rough finanical plan is following:
The after-tax assets and options will go to:
- emergency fund $50k
- income producing fund Wellesley $1M
- the rest roughly $100k to 150k to be held in something stable with the emergency fund and to be used for a house purchase couple of years down the road once we are 100% sure we will stay in the Philippines for the foreseeable future
The pre-tax portfolio of $500k will remain in growth funds until eventually needed
- for our child's education
- for the plan B if things in the Philippines go sour and we choose to move back to the USA or to some other country with higher cost of living.
Additional points to answer some of the most obvious questions:
- Health care after retirement: Fairly low cost decent quality care is available in the Philippines. We will either take a local health insurance or pay as we go or the combination of the two.
- While living in the Philippines is certainly not for everyone, we know quite well what we will be getting into when moving there. DW lived there her first 24 years and I have spent extensive time there for work and vacations over the past 10 years.
- Theoretically, I will be getting $1300 per month from social security and $1000 per month pension starting age 62, but since it is still 12 years I am not really counting on either
- The cost of education is mostly for giving our child an option to enroll in a western university after graduating high school in the Philippines. The quality of schools in the Philippines is a concern, but we are planning to fill the gap by homeschooling a couple of hours per day.
This kind of plan is not something I can easily test with Firecalc or other financial calculators, but based on my best efforts the numbers seem to work. Regardless, I am here to get some constructive criticism and recommendations on the aspects of our financial plan.
Happy to be here!
Here is my strategic info for starters:
We are:
- Me 50 years old still working
- DW 30 SAHM
- One child 1 yo (yeah, I am a late bloomer)
Current portfolio:
- 401(k) and IRAs: $500k
- After tax investments: $900k
- Employer stock options ready to exercise now: $200k (estimated aftertax)
Our plan is to retire by end of 2015 and relocate our family to DW's birth country of the Philippines. Our current annual expenses are well below $40k, and we have estimated our post retirement expenses drop down to $28k per year when excluding our child's education expenses. This level should be enough to keep our material standard of living at the current level, but with the obvious massive increase in my quality of life as I will be retired.
The rough finanical plan is following:
The after-tax assets and options will go to:
- emergency fund $50k
- income producing fund Wellesley $1M
- the rest roughly $100k to 150k to be held in something stable with the emergency fund and to be used for a house purchase couple of years down the road once we are 100% sure we will stay in the Philippines for the foreseeable future
The pre-tax portfolio of $500k will remain in growth funds until eventually needed
- for our child's education
- for the plan B if things in the Philippines go sour and we choose to move back to the USA or to some other country with higher cost of living.
Additional points to answer some of the most obvious questions:
- Health care after retirement: Fairly low cost decent quality care is available in the Philippines. We will either take a local health insurance or pay as we go or the combination of the two.
- While living in the Philippines is certainly not for everyone, we know quite well what we will be getting into when moving there. DW lived there her first 24 years and I have spent extensive time there for work and vacations over the past 10 years.
- Theoretically, I will be getting $1300 per month from social security and $1000 per month pension starting age 62, but since it is still 12 years I am not really counting on either
- The cost of education is mostly for giving our child an option to enroll in a western university after graduating high school in the Philippines. The quality of schools in the Philippines is a concern, but we are planning to fill the gap by homeschooling a couple of hours per day.
This kind of plan is not something I can easily test with Firecalc or other financial calculators, but based on my best efforts the numbers seem to work. Regardless, I am here to get some constructive criticism and recommendations on the aspects of our financial plan.
Happy to be here!