Hi, I am 48 retiring in 7 years.

[atretes1]

Hello, new to this forum not new to other forums. I am 48 with 23 years in a State pension. I can retire in 7 years at 56 with a full 6 figure pension. Current net worth is 1.654 Million with 1 million in rental properties. My only liabilities are $435,847 in rental property debt. I have about 700k invested and hope to have that to 1.5 or 2 million invested in 7 years. Of my invested money all of it is in equities. I am taking the position that my pension and rental income will take the place of bonds. I do keep about 50k in cash to buy properties or run my business. I would like to max out my ROTH, 457 and HSA for the next 7 years. Of my invested money about $120,000 is in traditional 457 money. Because my pension and rental income will keep me in the 24% or higher bracket. I would like to convert all or most of my traditional money to ROTH money sooner than later. I am currently in the 24% bracket, if I don't work to much overtime. I will only convert funds in the 24% bracket or its relative bracket if the tax cuts and jobs act is not extended.

 

[Koolau]

My standard question is to ask if you have run FIRECalc? It should give you a good idea if you are on track for the retirement you plan.

Welcome to the Forum. We hope to see you here often.

 

[atretes1]

My standard question is to ask if you have run FIRECalc? It should give you a good idea if you are on track for the retirement you plan.

Welcome to the Forum. We hope to see you here often.

I have messed with it some. I will be retiring with a pension that is 130% of my base pay also so there's that.

 

[Koolau]

I have messed with it some. I will be retiring with a pension that is 130% of my base pay also so there's that.

An excellent base!! Congratulations on that.

 

[Surewhitey]

Nice pension... Just curious of the safety of it for the next 40+ years and what is the worst case scenario for this?

Assuming that comes with Healthcare too, you have a sweet package.

 

[atretes1]

Nice pension... Just curious of the safety of it for the next 40+ years and what is the worst case scenario for this?

Assuming that comes with Healthcare too, you have a sweet package.

Its a Sate pension so I would say its pretty safe. I also have rental properties and hopefully 1.5 to 2 mill invested by then also. It does not come with healthcare but one of my paid off rental properties could cover healthcare premiums. Half of my rental properties will be paid off in 7 years also.

 

[NgineER]

Hello, new to this forum not new to other forums. I am 48 with 23 years in a State pension. I can retire in 7 years at 56 with a full 6 figure pension. Current net worth is 1.654 Million with 1 million in rental properties. My only liabilities are $435,847 in rental property debt. I have about 700k invested and hope to have that to 1.5 or 2 million invested in 7 years.

Nice work - you are looking solid!
The way I'm reading your post and tax situation I am assuming you are single. I don't think it is a stretch to assume you could get to $1.5M in 7 years with contributions.
How are your rental properties cash flowing? I am a proponent of rental properties to build wealth and diversify, but I often find that properties are held onto for too long when they don't make sense from an income perspective. They might have appreciated a lot and it would make sense to lock the profits in rather than negatively cash flow for appreciation.

We have a handful of rental properties and they have appreciated nicely, but we have also been able to increase rents to keep them cash flowing very well. I am a couple of years ahead of you without a pension. I have more invested assets but also have a family of six to support. You should be golden if you can stick it out.

Rather than doing Roth conversions you could start contributing to Roth 401(k) instead of taking the tax deduction only to pay it back with your Roth conversion.

Good luck - keep us posted!

 

[pacergal]

You are golden with your pension, future SS, and investments--the proverbial 3 legged stool for retirement financials.

Now--what will you do all day when you retire??

 

[stepford]

Of course the details depend on your predicted expenditures in retirement, but i'd imagine with a 6 figure COLA'd pension you'd be fine regardless of your other investments.

 

[atretes1]

Nice work - you are looking solid!
The way I'm reading your post and tax situation I am assuming you are single. I don't think it is a stretch to assume you could get to $1.5M in 7 years with contributions.
How are your rental properties cash flowing? I am a proponent of rental properties to build wealth and diversify, but I often find that properties are held onto for too long when they don't make sense from an income perspective. They might have appreciated a lot and it would make sense to lock the profits in rather than negatively cash flow for appreciation.

We have a handful of rental properties and they have appreciated nicely, but we have also been able to increase rents to keep them cash flowing very well. I am a couple of years ahead of you without a pension. I have more invested assets but also have a family of six to support. You should be golden if you can stick it out.

Rather than doing Roth conversions you could start contributing to Roth 401(k) instead of taking the tax deduction only to pay it back with your Roth conversion.

Good luck - keep us posted!

I am single now. My rentals cash flow $30 grand a year. I have 7 doors. They cash flow pretty good. Half of them will be paid off between 6 and 8 years from now. I would like to max out my ROTH 457, HSA and ROTH IRA plus try and do the conversions. I am only contributing ROTH money now.

 

[atretes1]

Of course the details depend on your predicted expenditures in retirement, but i'd imagine with a 6 figure COLA'd pension you'd be fine regardless of your other investments.

My pension doesn't have a COLA but it will pay me my current base pay plus some. I haven't thought about expenses much. I'm sure I'll travel more. I have no personal debt now except my rentals. I am also shooting for 1.5 to 2 million invested by then also.

 

[atretes1]

You are golden with your pension, future SS, and investments--the proverbial 3 legged stool for retirement financials.

Now--what will you do all day when you retire??

Travel and ride my motorcycle...lol. I'll still have my rental business so I can make myself as busy with that if I wanted to or I could let someone else manage it also.

 

[1242Vintage]

Enjoy that pension!

Am in similar situation; six figure State Pension w/COLA, will draw social security in a few years and a couple of rentals spinning off income every month.

The challenge is figuring out what the next phase of life looks like to you.

 

[latexman]

Welcome aboard!

 

[atretes1]

Enjoy that pension!

Am in similar situation; six figure State Pension w/COLA, will draw social security in a few years and a couple of rentals spinning off income every month.

The challenge is figuring out what the next phase of life looks like to you.

Thanks. I wont have a COLA with mine. I'll probably travel more and maybe pick up the rental business some more. I'll be fine with doing nothing tho...LOL. I've worked hard and have done a lot of overtime through my career.

 

[mebden]

Welcome aboard atretes1