InTheSticks
Recycles dryer sheets
- Joined
- Jan 24, 2013
- Messages
- 198
I've been reading this forum for a few months. I've learned a lot and wanted to say thank you. I thought I would introduce myself and ask a couple of questions.
I'm 54 and my wife is 59. I work for a megacorp. The job is ok, but I can't travel like I want to while working. So, I'm thinking about retiring in a few years while we are in good health. My wife is retired and manages our rental property. As my screen name says, we live "In the Sticks" with a low cost of living.
I have invested heavily in rental property. It I've owned it for 20 plus years and it is paid off. My thought is to sell it and finance in my early to mid 60s. I'd require at 20% to 30% down with a 15 to 20 year note. I'm doing this to spread out the income. I've owned it long enough that cap gains is going to be significant. There would have to be a prepayment penalty for any borrower. The current value of the property is about 1m. The property consists of 2 apartment complexes that could be sold in two different years to spread out the income. Has anyone else done this?
I'm currently contributing enough to my employer's 401k to receive entire match. There is no Roth option.
Other assets, about 400k in 401k and IRA. Most of the 401k and IRA money is in my name, but some, about 40k, is in my wife's name. She is already 59.5. If necessary, she could withdraw without penalty now. I also own some unimproved land worth about 350k and I owe about 100k on it. House is paid for and no other debts. About 70k in after tax emergency funds.
I'm thinking about retiring in the next 3 to 5 years. We would live off rental income until sold plus wife's SS, which she would be eligible to draw at that time. Her benefit is much lower then mine. I was thinking she could start SS at 62 to 65 when I retire. I would start drawing at 70. If something happened to me, she could switch to my survivor benefit. Would the fact that she started drawing SS before her FRA impact the survivor benefit?
What do you think?
Thanks!
I'm 54 and my wife is 59. I work for a megacorp. The job is ok, but I can't travel like I want to while working. So, I'm thinking about retiring in a few years while we are in good health. My wife is retired and manages our rental property. As my screen name says, we live "In the Sticks" with a low cost of living.
I have invested heavily in rental property. It I've owned it for 20 plus years and it is paid off. My thought is to sell it and finance in my early to mid 60s. I'd require at 20% to 30% down with a 15 to 20 year note. I'm doing this to spread out the income. I've owned it long enough that cap gains is going to be significant. There would have to be a prepayment penalty for any borrower. The current value of the property is about 1m. The property consists of 2 apartment complexes that could be sold in two different years to spread out the income. Has anyone else done this?
I'm currently contributing enough to my employer's 401k to receive entire match. There is no Roth option.
Other assets, about 400k in 401k and IRA. Most of the 401k and IRA money is in my name, but some, about 40k, is in my wife's name. She is already 59.5. If necessary, she could withdraw without penalty now. I also own some unimproved land worth about 350k and I owe about 100k on it. House is paid for and no other debts. About 70k in after tax emergency funds.
I'm thinking about retiring in the next 3 to 5 years. We would live off rental income until sold plus wife's SS, which she would be eligible to draw at that time. Her benefit is much lower then mine. I was thinking she could start SS at 62 to 65 when I retire. I would start drawing at 70. If something happened to me, she could switch to my survivor benefit. Would the fact that she started drawing SS before her FRA impact the survivor benefit?
What do you think?
Thanks!