SSI income equals monthly spending - can I retire?

I think OP could use this time of working longer to actually add up the spending done per year.
I'm thinking they spend more than is realized.

Maybe OP's spouse didn't work and maybe they had extra expenses due to the disabled child ? Otherwise I have to wonder at the low retirement savings.
Plus still paying mortgage on house at age 62.

This is an engineer job around LA. I'd expect multi-millions saved, so maybe it was spent.

By the way, Welcome to the forum !!
 
You made reference to kids (plural) so I'm wondering how long you have to support them and if you have factored in anything you want to pay for if they are adults (weddings, down payments, etc). Not required to answer here online but you should factor it into your expenses.

I have retiree health insurance so know virtually nothing about ACA but I'd venture to guess subsidies aren't going to help if you make 10K a month in SS. . . which I still find a little difficult to comprehend.
 
This is an engineer job around LA. I'd expect multi-millions saved, so maybe it was spent.
It all depends upon the job. Son1 is 36, an SFO__Bay-Area engineer, and had a sterling [undergrad] academic record. His comp is about 160K annually. Of course, he couldn't afford that job/hobby at a national lab without his wife having a job with comp that is already almost an order of magnitude higher than his...
 
So, how did you come up with $10K for you, your spouse and disabled child? You cannot collect spousal benefits from your spouse if you are collecting yours. Similarly with your wife. Only 1 payment per person. You might have been double counting.
2544+2544*.4+6200

The $6200 is the disability my daughter gets.
 
...and beyond what RH said, you need to look at a possibly expanded budget in retirement.
If not weekly golf, then perhaps European river cruises.
You should focus on your Desired Lifestyle in retirement, not your present lifestyle...
Yes, that is just a minimum amount. I will plan on maybe one vacation per year, also plan for new roof on my house etc. I did read that people often do spend more the first few years, but then actually spend less, and often end up with substantial funds left when they die.
 
Yeah 10k monthly in SS at age 62 even including a dependent sounds too high. Also I would think you would have a decent amount of taxes at this level.
Actually not so much I think. 2/3 of that is SS benefits for my daughter, which are not taxable. I think the tax rate on the remaining SS benefit would be pretty small, if any?
 
It all depends upon the job. Son1 is 36, an SFO__Bay-Area engineer, and had a sterling [undergrad] academic record. His comp is about 160K annually. Of course, he couldn't afford that job/hobby at a national lab without his wife having a job with comp that is already almost an order of magnitude higher than his...
Well, we got into some substantial debt in the previous decade and only got out relatively recently so it should be more saved if not for that!
 
Actually not so much I think. 2/3 of that is SS benefits for my daughter, which are not taxable. I think the tax rate on the remaining SS benefit would be pretty small, if any?
Ah missed the non taxable concept for your daughter. I believe the other SS benefits on a standalone basis would not be taxed.
 
Yes, that is just a minimum amount. I will plan on maybe one vacation per year, also plan for new roof on my house etc. I did read that people often do spend more the first few years, but then actually spend less, and often end up with substantial funds left when they die.
Very much what we experienced - until lately when inflation has increased our spending very significantly.
 
2544+2544*.4+6200

The $6200 is the disability my daughter gets.
Heck, if you are only needing an additional $3561.60 per month from SS because SS is already paying $6,200, which is the bulk of your expenses, then there is nothing to consider.
 
How sure are you on not losing the benefits of your dependent?

If something happened to them would your expenses go down more than what you are receiving?

You might be able to retire anyhow, but I would not want to base it on someone else's benefits.
I could take out a life insurance policy?
 
My name is Todd. I am an engineer/researcher is Los Angeles area. I only just realized I can probably retire! My wife and I are 62, in good health, and I had assumed I would work to at least 65. Now that I realized it is a possibility to retire now, I can't stop thinking about it! Thing is, my wife and I together just through SS can generate right around the same amount we are currently spending (after tax). We have a disabled dependent who is getting a certain amount (we are caretakers), and I calculated my benefits and the spousal benefit if retiring at 62, i.e. now. We currently spend around $10,000 per month after taxes - including mortgage and everything. Our benefits combined with disability for our daughter, would just about equal that, mostly non-taxable as I understand it. PLUS, I have around 1,000,000 in IRA, some other smaller investments, and house equity (though I want to leave that to the kids). We have another $500,000 (fix ed amount) coming from inheritance sometime in the next few years, AND I plan to so some sort of part time side hustle as well. Not counting on that though. We could continue as is, without drawing significantly on the IRA. Of course, I want to get an advisor, look at software such as FireCalc, and model up all the possibilities and optimize everything, but I want to retire now. Am I crazy?!
You’re not crazy. Model out your finances with particular consideration for taxes and healthcare. Need to think through how you will spend your time if not working.
 
My name is Todd. I am an engineer/researcher is Los Angeles area. I only just realized I can probably retire! My wife and I are 62, in good health, and I had assumed I would work to at least 65. Now that I realized it is a possibility to retire now, I can't stop thinking about it! Thing is, my wife and I together just through SS can generate right around the same amount we are currently spending (after tax). We have a disabled dependent who is getting a certain amount (we are caretakers), and I calculated my benefits and the spousal benefit if retiring at 62, i.e. now. We currently spend around $10,000 per month after taxes - including mortgage and everything. Our benefits combined with disability for our daughter, would just about equal that, mostly non-taxable as I understand it. PLUS, I have around 1,000,000 in IRA, some other smaller investments, and house equity (though I want to leave that to the kids). We have another $500,000 (fix ed amount) coming from inheritance sometime in the next few years, AND I plan to so some sort of part time side hustle as well. Not counting on that though. We could continue as is, without drawing significantly on the IRA. Of course, I want to get an advisor, look at software such as FireCalc, and model up all the possibilities and optimize everything, but I want to retire now. Am I crazy?!
I don’t want to be the negative guy here, but here goes.

Things to consider.

You or your spouse becomes disabled or dies. Could the survivor live on the cash flow prior to 73 or mandatory RMDs? Tax basis for the survivor? Single?

Consider rolling IRA to Roth. If you don’t have one, you and your spouse should each create one and fund prior to retirement.

Medical?? Medicare is still expensive if you add in part D and supplentbto
Cover deductible. The advertised Commercial plans have lots of limitations on coverage and layers of approval process. What can you tolerate?

What happens if the market takes a 40% downturn for a few years and you are relying on pulling from your accounts?

$500K will get you roughly $2K per month. Is your IRA or future investment fee free?

What is your cushion for balloon expenses. Major car or house repairs? Car replacement following a week that totals one and leaves you 39-40K short of the new car price? My new roof was over $25K. If you lose homeowner’s insurance, can you cover a loss? (Assumes you own a home).

Do you plan to live the same lifestyle? Vacations, dining, etc.

My cost of living for the basics went up when I retired. Lost some employer covered expenses and all the utilities went up from added use. On top of that, utilities are about 2.5X more than they were due inflation and price increases.

Before you pull the trigger, run the worst case scenarios.

All the best and enjoy everyday.
 
Simple questions for OP to consider. What will be INFLATION LIKE IN 2. 5. 10.20 Years?
What is the guarantee someone may get a catastrophic accident or disease?
Who will rule USA in the future? What will that be like?
What about medical care between 62
& 65 when you qualify for Medicare? Or 65 age may go up ?
 
Since $6,500 of the income comes from SS disability payment for caring for your child, if you lose your child for whatever reason, you lose that SS payment. That is 2/3rd of your income. Can you and your spouse live on your own and spousal SS + retirement savings?
 
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I suggest you watch the videos from Root Financial. I would also join their academy and purchase the software from Right Capital. It is the best retirement software I have seen.
 
First of all, most likely that you are referring to SS (regular retirement) and not SSI (an income/ asset restricted program)
Second, the idea that age 65 is Full Retirement Age for SS is incorrect - that went away years ago. If you file before your FRA, your SS benefit will be reduced for life.
Is this dependent you daughter? If so, when either you or your spouse files for SS, she would then get the Disabled Adult Child benefit when either of your file for SS. And you might consider the spouse with the smaller SS benefit to go ahead and apply (depending on their yearly earned income). Then the higher benefit spouse would be eligible for the Child in Care benefit (also depending on income). This will allow that other spouse to delay filing for their own benefit to get more over their lifetime.
 
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I would run the numbers 3 times assuming you die (what your spouse's finances would look like both expenses of replacing you and what you do, and income) and then vice versa. And assume atleast 1 of the 3 of yall have a life changing illness and need inhome or institutional care. and look at those numbers. Caregiving is expensive as hell and will only go up as boomers age and immigration policies change. Also I would think atleast some of your social security would indeed be taxable atleast based on todays rules. 3rd agree dont count a penny of potential inheritance. Also assume high inflation.
 
"We currently spend around $10,000 per month after taxes - including mortgage and everything. Our benefits combined with disability for our daughter, would just about equal that, mostly non-taxable as I understand it."
We factored in our spending levels and anticipated health insurance / co-insurance costs as DW needs infusions every 8 weeks for RA. While our numbers on paper were good before retiring, we decided to go on a spending diet with the goal of reducing spending by 10%. Our house was paid off so that wasn't an issue as were our cars, etc., so no long-term debt to deal with. Once we got in the habit of cutting back, it became sort of automatic and we realized we were actually spending about 20% less so instead of spending the "savings", we put the difference in T-Bills and built a ladder. It's not a huge return but it's safe and it's easy to set up and manage. It worked for us (and still does) as we'll take T-Bills when they mature and splurge on a trip or two.

Your mileage may vary. Good Luck.
 
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