53 yrs old with $948,000

[rworell]

Hello all. I’m 53 and DW is 51. We are retired from our careers. We full time live in an RV and work in summer months to support our lifestyle. We would rather not be depending on the summer work and figure out how to utilize the $948,000 we have to live on for the next 30 yrs through investing and such knowing we are yrs away from the 59.5yrs old official age to start collecting.
Looking for some strategy from you all. You have such great advice..
Thanks
Rich-Kathi

 

[aja8888]

Hello all. I’m 53 and DW is 51. We are retired from our careers. We full time live in an RV and work in summer months to support our lifestyle. We would rather not be depending on the summer work and figure out how to utilize the $948,000 we have to live on for the next 30 yrs through investing and such knowing we are yrs away from the 59.5yrs old official age to start collecting.
Looking for some strategy from you all. You have such great advice..
Thanks
Rich-Kathi

Hi Rick & Kathi:

Before going too far about expenses and living on your stash and making investments, have you thought out health insurance costs going forward?

 

[Whisper66]

Welcome to the group. My wife and I have enjoyed talking to folks like you (full time RV'ers...some working in the camps) during our camping trips.
Advice I'd give at this point is be conservative with your savings. Keep any investments simple and low cost. For example....https://www.bogleheads.org/wiki/Lazy_portfolios

 

[rworell]

We have health insurance and would like to do some investments through index funds and withdraw what we need as needed. We live comfortably on $35,000 yearly

 

[38Chevy454]

Assuming your $948K is in pretax 401k or similar accounts, you can set up a 72t withdrawal to get some of the money out now before 59.5 and without the 10% penalty. Just beware of the 72t rules and the fact that you need to do it for 5 years or until 59.5, which ever is longer. So in your case, you would need to do the 72t for 6.5 years, as that is longer than the 5 years minimum.
A person at your brokerage can help set it up, you probably want to set some amount into a separate account that becomes the 72t withdrawal account.

 

[aaronc879]

Whether or you can retire fully depends on several factor with the main one being what are your expenses. Don't forget to include the cost of a replacement RV or future home/apartment costs. I wouldn't necessarily rule out taking money out of IRAs before 59.5 and paying the 10% penalty. If that is needed in order to get you income high enough to qualify for ACA then it could be a good plan. I will likely do that at some point. If you haven't been tracking your expenses you need to start.

 

[disneysteve]

$35,000 expenses x 25 = $875,000. So using the 4% withdrawal rate, you're in good shape if you have $948,000. And that's before adding in Social Security.



Where is that money now? What type of accounts, taxable or pre-tax? It's great that you have health insurance in place.


Have you thought about how long you'll be able to continue the RV thing? Will you still be up for that when you're in your 60s or 70s or 80s? What's the plan for when you can't physically handle that anymore?

 

[rworell]

Correct, we will bring in another $30,000 with SS and about $10,000 with wife’s pension at 62yrs old.

That money is in a a matured mutual fund I’m paying to much for but as luck would have it we eyed one very well. We do plan on living this lifestyle of Rving long term and eventually settling down in a park model type home in Florida years down the road. So I’d like to invest it where we earn and can live comfortably.

 

[disneysteve]

That money is in a a matured mutual fund I’m paying to much for

I'm not sure what that means. Can you explain? And is the money in a taxable or tax-deferred account (like a 401k or IRA)?


Is the current fund performing well? Why are you looking to move it?

 

[old medic]

Welcome to FIRE. We have been in a 5ER 3 1/2 years now. and travel with a smaller camper. 57/52 and both still working. I'll retire this Dec, wife has a few more years to go.
Have you considered camp hosting? stay free and can even make some money.

 

[calmloki]

Live too close to Slab City and Quartzsite and was too close to the edge when younger for the lifestyle to appeal. The new Frances Mcdormand movie Nomadland feels accurate. That said, some good friends, both retired California school administrators with all kinds of spare ducats, spend a whole lot of time in their little trailer on the road. Good fortune, see you down the road.

 

[rworell]

Welcome to FIRE. We have been in a 5ER 3 1/2 years now. and travel with a smaller camper. 57/52 and both still working. I'll retire this Dec, wife has a few more years to go.
Have you considered camp hosting? stay free and can even make some money.

Lol... we actually do the same. We live in our 5th wheel back home in Maine at a CG I work at. Work isn’t hard but it’s our intent to go completely full time in the next 2 yrs and just live off our savings / investments. We’ve workcamped the last 3 yes ��

 

[Surewhitey]

If the stash is in 401k / TIRA's, I'd start rolling some into a Roth to at least maximize the ACA subsidies... I think is around $25-30k/yr for a couple.
$.02