We are planning for me to retire Jan 2024, and DW to retire Jan 2025.
Some background on us:
We have no debt, home is paid off. Two adult independent kids. LCOL area. No pensions, no inheritances, no employer health care benefits when we retire. Our fed tax is 22% and our state is 6%. We have always managed our finances on our own and plan to continue doing so. Mostly low cost diversified index funds.
I'm 57 85k salary
401k - 940,000
R401k - 80,000
RIRA - 295,000
Plan to take SS at FRA (67)- 34,000 yearly
DW is 51 110k salary
401k - 250,000
RIRA - 525,000
Plan to take SS @ 62 - 23,000 yearly
Joint Brokerage - 50,000
Joint Online savings- 100,000
Our 2022 spending will be 59,000 and this is consistent with the last couple of years.
Our annual contributions are:
Both max out RIRA (7,000 each)
Both max out 401k, (27,500 each) except beginning 3rd Qtr this year I stopped contributing and instead send that amount to the online savings account. We would like to build up 3 years worth of spending in this account. (My employer contribution is not dependent on me contributing)
Brokerage account 12,000 yearly.
We add to online savings account when possible.
We don't anticipate our annual spend being any less in retirement, it may even increase a bit.
We probably won't pull from the retirement accounts until 1/2025.
We plan to manage income to qualify for an ACA subsidy.
We estimate our total spend in early retirement including taxes and health care to be under 100k.
On 1/2025 we plan to begin pulling from my 401k, while watching our MAGI, then using Roth/Brokerage/Savings to fill in any gaps.
Do you see any holes in our plan, or ways we could improve?
Thank you
Some background on us:
We have no debt, home is paid off. Two adult independent kids. LCOL area. No pensions, no inheritances, no employer health care benefits when we retire. Our fed tax is 22% and our state is 6%. We have always managed our finances on our own and plan to continue doing so. Mostly low cost diversified index funds.
I'm 57 85k salary
401k - 940,000
R401k - 80,000
RIRA - 295,000
Plan to take SS at FRA (67)- 34,000 yearly
DW is 51 110k salary
401k - 250,000
RIRA - 525,000
Plan to take SS @ 62 - 23,000 yearly
Joint Brokerage - 50,000
Joint Online savings- 100,000
Our 2022 spending will be 59,000 and this is consistent with the last couple of years.
Our annual contributions are:
Both max out RIRA (7,000 each)
Both max out 401k, (27,500 each) except beginning 3rd Qtr this year I stopped contributing and instead send that amount to the online savings account. We would like to build up 3 years worth of spending in this account. (My employer contribution is not dependent on me contributing)
Brokerage account 12,000 yearly.
We add to online savings account when possible.
We don't anticipate our annual spend being any less in retirement, it may even increase a bit.
We probably won't pull from the retirement accounts until 1/2025.
We plan to manage income to qualify for an ACA subsidy.
We estimate our total spend in early retirement including taxes and health care to be under 100k.
On 1/2025 we plan to begin pulling from my 401k, while watching our MAGI, then using Roth/Brokerage/Savings to fill in any gaps.
Do you see any holes in our plan, or ways we could improve?
Thank you