I'm new to this website so please be kind.
I'm 32 and my husband is 51. We have two young children. I'm a CPA but now a stay at home mom. I will go back to work when our twins turn 2(they are 4 months now). My husband currently bring home $4500 a month after taxes and 401k. Our expenses are $4000 a month. We have 40k in retirement accounts and 200k in the banks. We have no debts except our mortgage 220k at 3.5% 15 years fixed and 8 years left. My husband wants to retire at 62. He will probably get $1500 a month from social security. I will carry the family health insurance when I get back to work in about 1.5 year. I would like to retire at 50. Can we afford to have him retire at 62 and I'm at 50? What can we do to start this journey? Thank you.
Although your expenses will drop when the mortgage is paid off, I'll assume that they will stay @ $4k/month now and in retirement (they might rise or fall, which is for you to figure out). You don't mention what your net savings are (if he's maxing out 401k or what). I'll assume he is.
DH's contribution - $17k savings/year in 401k for 9 years, added to the 40k, growing @ 2% real return would be roughly $200k in 2012 dollars when he's 62. Also assume $200k in savings grows @ 2% real return.
DH's cash flow
$1,200/month SS (that's $1,500/month in 2021, reduced for 2%/year for inflation to get back to 2012 dollars)
$583/month from 401k, assuming 3.5% withdrawal rate
$700/month from taxable investment account (your $200k growing after 9 years)
$2,483/month total cash flow in 2012 dollars when DH retires @ 62.
Your contribution -
Assume $17k savings/year for 15 years (ages 35-50), with 2% real return would be roughly $300k in 2012 dollars when you're 50. That $300k would provide $9k in 2012 dollars at a 3% withdrawal rate, or $750/month.
So when you retire at 50, your DH cash flow + yours would total roughly $3,200/month (in 2012 dollars), if he receives SS @ age 62.
Because you are so much younger than your husband - and if he has decent longevity genes in his family - it would make sense to strongly look at delaying his SS until he's 70. It would maximize your survivor's benefit, and increase his benefit. The only exception would be if your total earnings record (including the years you had $0) would be more than your spousal benefit.
The big unknowns are what your salary/net savings would be while both of you are working, and what your expenses are projected to be during retirement. If you're able to save significantly more when you're working, and/or your expenses are less than $4,000/month after the house is paid off, it would tip the scales much more in your favor.
As of right now, your plans look possibly doable, but in my personal opinion, somewhat on the 'marginal' side of the continuum for my comfort. Some members of the forum - given your retirement age at 50 - would opt for a conservative 3% (or slightly less) withdrawal rate, while others would sleep soundly at night with a 4% withdrawal rate.
As a reference, I'm 36, and am planning to hopefully retire @ 47-49 with about a 2.8% withdrawal rate (living off of dividends/interest, and letting the stash grow with inflation).
We have no debts except our mortgage 220k at 3.5% 15 years fixed and 8 years left.
I'd strongly look at refinancing that mortgage. For example,
PenFed Credit Union is offering a 10 year fixed @ 2.50% with zero points, about $3,700 closing costs. All you have to do to qualify is pay a one-time $20 fee to a non-profit national military family association. Plus, you can get 5% cash rewards back on all gas purchases with their credit card!