midwestguy
Recycles dryer sheets
Hello, Been on this forum for about a year. Would be in much better financial situation if I found this earlier. There is a lot of great information and great support. I will try to be as thorough as possible without boring everyone.
Myself; 59 years old, wife 59, 3 children, 3 grandchildren
Financial situation.
401k - $1,700k (mostly stock funds)
IRAs - $1,100k
Real estate - $1900k (rental and our house) very conservative numbers
Cash - $255k
Differed income - $638k (payable in 18 months for a period of 9 years)
After tax funds - $1707k
Total - $7300k
Also will eventually inherit $2000k. Mom is 86 and has some health issues. Hopefully she will pull though and live for 5 to 10 years.
Asset mix
Cash 4%
real estate 25% (including house)
bonds 10% (after tax bond money is in municipal bonds)
stock 52% (almost all mutual funds and ETFs)
differed income 9%
Work situation
Working for Mega-Corp for 38 years. Finally after all this time worked my way up to a good salary (200k plus bonuses of 200k to 400k). bonuses are paid in 6 months (May) and in 18 months until our company goes public. Recently have been reassigned to a new job and don't have a lot to do. Money is embarrassing considering what I do. It is also very stress full taking such a salary with my current responsibilities. I believe I will either be let go, or kept until the company goes public. Wife makes 85k and will probably retire this year or next and go part time for a while.
Rental property.
I own various rental property and do quite a bit of remodeling myself with my middle son. Overall the property is probably about break even due to the construction projects we are recently doing and paying my son.
Other income
I will start receiving differed income in 18 months (the account with 638k) This money is in an account earning about 4%. It will be paid for a 9 year period. I estimate it will be about 75k/year. My mom also gives us 36k/year. This is only because she gives the same amount to my brothers (one of them rely on this).
Family situation
Oldest son, out of the house and independent. Daughter is out of school and self sufficient. She is living at home but will most likely move within a year. My middle son is working for me managing my rental property and doing remodel projects. He is living in one of my buildings. He has had difficulty and is just getting his act together. I would like to keep him working for the next year or two until he gets more on his feet. His salary comes out of the rental income.
Expenses
We currently spend about 15k/month. I know this sounds like a lot but we have high taxes, travel a lot, eat out quite a bit (almost every night), and have a lot of support functions such as cleaning people, landscaping etc. My wife spends a quite a bit of money and I don't see this changing anytime soon.
Hobbies.
Mostly working. Most of my friends are at work. Outside of work, mostly working on my properties.
Questions
1. Can I retire with the current spending habits (15k/month)? I also would like to leave my children money, ideally $2000k each ($6000k total) What would my spending need to get to in order to accomplish the this or is it unrealistic?
2. Should I retire? I seem to get board being on vacation for more than a week. All of our friends are working. Most of them will move out of the area when they retire. I am thinking either after May bonus or possibly in 18 months.
3. Do we have the appropriate asset mix?
4. When should we take social security? Will the differed income of approximately 75K/year affect this?
Thanks in advance for any help. I know there is a lot of knowledge in this forum.
Myself; 59 years old, wife 59, 3 children, 3 grandchildren
Financial situation.
401k - $1,700k (mostly stock funds)
IRAs - $1,100k
Real estate - $1900k (rental and our house) very conservative numbers
Cash - $255k
Differed income - $638k (payable in 18 months for a period of 9 years)
After tax funds - $1707k
Total - $7300k
Also will eventually inherit $2000k. Mom is 86 and has some health issues. Hopefully she will pull though and live for 5 to 10 years.
Asset mix
Cash 4%
real estate 25% (including house)
bonds 10% (after tax bond money is in municipal bonds)
stock 52% (almost all mutual funds and ETFs)
differed income 9%
Work situation
Working for Mega-Corp for 38 years. Finally after all this time worked my way up to a good salary (200k plus bonuses of 200k to 400k). bonuses are paid in 6 months (May) and in 18 months until our company goes public. Recently have been reassigned to a new job and don't have a lot to do. Money is embarrassing considering what I do. It is also very stress full taking such a salary with my current responsibilities. I believe I will either be let go, or kept until the company goes public. Wife makes 85k and will probably retire this year or next and go part time for a while.
Rental property.
I own various rental property and do quite a bit of remodeling myself with my middle son. Overall the property is probably about break even due to the construction projects we are recently doing and paying my son.
Other income
I will start receiving differed income in 18 months (the account with 638k) This money is in an account earning about 4%. It will be paid for a 9 year period. I estimate it will be about 75k/year. My mom also gives us 36k/year. This is only because she gives the same amount to my brothers (one of them rely on this).
Family situation
Oldest son, out of the house and independent. Daughter is out of school and self sufficient. She is living at home but will most likely move within a year. My middle son is working for me managing my rental property and doing remodel projects. He is living in one of my buildings. He has had difficulty and is just getting his act together. I would like to keep him working for the next year or two until he gets more on his feet. His salary comes out of the rental income.
Expenses
We currently spend about 15k/month. I know this sounds like a lot but we have high taxes, travel a lot, eat out quite a bit (almost every night), and have a lot of support functions such as cleaning people, landscaping etc. My wife spends a quite a bit of money and I don't see this changing anytime soon.
Hobbies.
Mostly working. Most of my friends are at work. Outside of work, mostly working on my properties.
Questions
1. Can I retire with the current spending habits (15k/month)? I also would like to leave my children money, ideally $2000k each ($6000k total) What would my spending need to get to in order to accomplish the this or is it unrealistic?
2. Should I retire? I seem to get board being on vacation for more than a week. All of our friends are working. Most of them will move out of the area when they retire. I am thinking either after May bonus or possibly in 18 months.
3. Do we have the appropriate asset mix?
4. When should we take social security? Will the differed income of approximately 75K/year affect this?
Thanks in advance for any help. I know there is a lot of knowledge in this forum.