I am 57, wife is 54. Here is our current financial situation:
Tax Deferred Assets:
460K in T. Rowe Price Retirement 2010 (My SEP-IRA)
22K in Fidelity Balanced (Wifes 403B) (Potential to grow to 60K, see below).
8.5K in HSA Account
Taxable Assets:
120K in Vanguard 500 Index
151K in Fidelity Money Market Account
10K in Savings Account
House with approx. 220K is paid in full. No debt.
Wifes Health Insurance cost $100/month through her pension. I pay $167 month for a High Deductible Heath Insurance plan with HSA through Anthem. This has being increasing about 15-20% per year.
Wife is retired and draws a pension of approximately 40K/year.
This pension gets an automatic 3% increase each year.
1K each month is added to wifes 403B for the next 3 1/2 years as
part of a buyout. Event with 0% growth, this account shold be valued at 60-65K at that time.
Original Plan:
I originally planned to ER in 2 years at age 59. I was planning on using the 151K in the money market account to "bridge" the gap between age 59 and 66. At that time I should be eligible for approx. 2K in Soc. Sec. This would bring income string to 64K/year which I think would be comfortable. I would then use other resources to supplement any major $ expenses but hope to let it sit for the most part.
New Plan:
Our son recently married and we anticipate grandchildren in 2 - 3 years. We live 350 miles away. Wife and I would like to be able to enjoy the grandkids on more that just a gradual basis. We are thinking of buying a condo near my son's area that we could use 1-2 weeks per month. My son lives in an area that has been rated 1 of the 10 best places in the US to retire by Money magazine in 2 out of the last 5 years so I see other advantages. I am guessing the cost of this condo would be 175-200K. Plus of course the other expenses that go with owning property. This is in an area that has been fast growing, but of course it has been affected by the real estate downturn. It is a much faster growing area that we live in however.
My question for you ER people is this: Does this seem to be a reasonable thing to do? If so, how would you recommend us tapping our resources to pull this off. I had hoped to do at least some traveling after I retired and really don't want to give that up but I guess I'd be willing to do less of that if necessary.
Tax Deferred Assets:
460K in T. Rowe Price Retirement 2010 (My SEP-IRA)
22K in Fidelity Balanced (Wifes 403B) (Potential to grow to 60K, see below).
8.5K in HSA Account
Taxable Assets:
120K in Vanguard 500 Index
151K in Fidelity Money Market Account
10K in Savings Account
House with approx. 220K is paid in full. No debt.
Wifes Health Insurance cost $100/month through her pension. I pay $167 month for a High Deductible Heath Insurance plan with HSA through Anthem. This has being increasing about 15-20% per year.
Wife is retired and draws a pension of approximately 40K/year.
This pension gets an automatic 3% increase each year.
1K each month is added to wifes 403B for the next 3 1/2 years as
part of a buyout. Event with 0% growth, this account shold be valued at 60-65K at that time.
Original Plan:
I originally planned to ER in 2 years at age 59. I was planning on using the 151K in the money market account to "bridge" the gap between age 59 and 66. At that time I should be eligible for approx. 2K in Soc. Sec. This would bring income string to 64K/year which I think would be comfortable. I would then use other resources to supplement any major $ expenses but hope to let it sit for the most part.
New Plan:
Our son recently married and we anticipate grandchildren in 2 - 3 years. We live 350 miles away. Wife and I would like to be able to enjoy the grandkids on more that just a gradual basis. We are thinking of buying a condo near my son's area that we could use 1-2 weeks per month. My son lives in an area that has been rated 1 of the 10 best places in the US to retire by Money magazine in 2 out of the last 5 years so I see other advantages. I am guessing the cost of this condo would be 175-200K. Plus of course the other expenses that go with owning property. This is in an area that has been fast growing, but of course it has been affected by the real estate downturn. It is a much faster growing area that we live in however.
My question for you ER people is this: Does this seem to be a reasonable thing to do? If so, how would you recommend us tapping our resources to pull this off. I had hoped to do at least some traveling after I retired and really don't want to give that up but I guess I'd be willing to do less of that if necessary.