Hi, below is the original post from August of 2018. At the bottom, I've updated my numbers. Thanks for reviewing and your suggestions.
ORIGINAL POST 8/15/2018
I have been trying to figure out how to retire the past 3 years. I have some answers now as to what I might be able to do but I need much more help. And, I would like to retire early if possible. I am almost 49 and my wife is 45. We are empty nesters with the son out on his own and no obligations now.
Combined, we have a little over $600,000 in retirement assets. This does not include, house, cars, etc. Only funds designated for retirement. We are debt free except for the home. Owe 155k on a 260k home with a 3.25%, 20 year loan. This loan was a refi @ 188k in 2016 and I have amortized it where we pay an extra $600 per month. If I change nothing, the loan pays off 8/2027. We have a 2014 car and a 2017 truck that are both paid for and plan to drive for roughly 15 years per car as we did the last cars.
I know that we are a little behind on where our retirement asset balances should be. Fortunately we are able to really play catch up now. Between us this year, we contributed the max and beyond to all our 401/403/457 plans. Wife works for school district and gets 37k pre tax. 18.5 to 403 and 18.5 to 457. Each year going forward we are contributing out of our personal funds around 100k toward our retirement assets. This year, it will be right at 100k, next year a bit more. No longer eligible for Roth’s with combined income of 250k.
Asset breakdown is:
290k post tax money (Roth money plus a Vanguard account we contribute after tax cash to
310k pre tax. 100k in fixed index annuity. Rest in mix of 68% stock/22% bonds.
2017 spending was 95k. 27k of that was mortgage plus extra principal. Beyond that, it includes everything. All groceries, utilities, gas, taxes, insurance, vacations, spending money, medical. Every dollar we spent. Right now, this year we are on track to spend 85k.
My personal projections have us at around 2.1mil in retirement assets at age 60 for me, 56 for the wife. I’ve run Firecalc and it shows a 95.7% chance of this working for 30 years. Right now, we are in TX and perhaps looking to go back to FL to retire, Ft. Myers, Naples, Venice. Somewhere in that area is what we are leaning to. We did live in Ft. Myers for 2 years so we find it quite nice.
However, after saying all of the above. I need help! I feel like I’m spinning my wheels and just want to ensure that we are indeed going in the right direction. I really hate this feeling of being behind. It’s somewhat due to having a lousy job from 2007-2014. Also due to some poor planning on my part. At our age, I feel like we should have at least 800k at a minimum. Yes, I believe we can catch up provided nothing happens to us in the next 11 years.
Thanks for any insight/input. Recommendations?
UPDATE 9/9/2021
Update. 4 years since my post above. I'm now 52, wife 48. Catching up but still feel quite behind. Trying to bullet point this a little more with more concise info.
**1.2 mil in total retirement assets (401/403/457/IRA/Cash) Invested across all accounts is an average of 65% stocks/35% bonds mix.
**Home in post above was paid off 4/2020. Now worth 325k. Rented at present. Annual net income after taxes, insurance, expenses is 12k. (The equity in this rental is NOT included in my total retirement assets above)
**Purchased new home for 408k 6/2020. Owe 363k/2.87% interest/30 yr. Now worth 485k.
**Long term care. Looked into purchasing now and have been advised to wait and begin policy at age 55 as the premium isn't that much more.
**Health insurance. ACA is quite expensive. I've looked into driving a school bus as I can get reasonable health insurance and still be off during the summer.
Thanks for all the suggestions 4 years ago. I took them and tried my best. 60 is still the plan, if possible, I would like to back it up a couple of years if the numbers work. Spending in retirement is estimated at 65k/yr. Firecalc shows me having success. What are my weak points now? How far behind am I at this point? Suggestions?
Many thanks.
ORIGINAL POST 8/15/2018
I have been trying to figure out how to retire the past 3 years. I have some answers now as to what I might be able to do but I need much more help. And, I would like to retire early if possible. I am almost 49 and my wife is 45. We are empty nesters with the son out on his own and no obligations now.
Combined, we have a little over $600,000 in retirement assets. This does not include, house, cars, etc. Only funds designated for retirement. We are debt free except for the home. Owe 155k on a 260k home with a 3.25%, 20 year loan. This loan was a refi @ 188k in 2016 and I have amortized it where we pay an extra $600 per month. If I change nothing, the loan pays off 8/2027. We have a 2014 car and a 2017 truck that are both paid for and plan to drive for roughly 15 years per car as we did the last cars.
I know that we are a little behind on where our retirement asset balances should be. Fortunately we are able to really play catch up now. Between us this year, we contributed the max and beyond to all our 401/403/457 plans. Wife works for school district and gets 37k pre tax. 18.5 to 403 and 18.5 to 457. Each year going forward we are contributing out of our personal funds around 100k toward our retirement assets. This year, it will be right at 100k, next year a bit more. No longer eligible for Roth’s with combined income of 250k.
Asset breakdown is:
290k post tax money (Roth money plus a Vanguard account we contribute after tax cash to
310k pre tax. 100k in fixed index annuity. Rest in mix of 68% stock/22% bonds.
2017 spending was 95k. 27k of that was mortgage plus extra principal. Beyond that, it includes everything. All groceries, utilities, gas, taxes, insurance, vacations, spending money, medical. Every dollar we spent. Right now, this year we are on track to spend 85k.
My personal projections have us at around 2.1mil in retirement assets at age 60 for me, 56 for the wife. I’ve run Firecalc and it shows a 95.7% chance of this working for 30 years. Right now, we are in TX and perhaps looking to go back to FL to retire, Ft. Myers, Naples, Venice. Somewhere in that area is what we are leaning to. We did live in Ft. Myers for 2 years so we find it quite nice.
However, after saying all of the above. I need help! I feel like I’m spinning my wheels and just want to ensure that we are indeed going in the right direction. I really hate this feeling of being behind. It’s somewhat due to having a lousy job from 2007-2014. Also due to some poor planning on my part. At our age, I feel like we should have at least 800k at a minimum. Yes, I believe we can catch up provided nothing happens to us in the next 11 years.
Thanks for any insight/input. Recommendations?
UPDATE 9/9/2021
Update. 4 years since my post above. I'm now 52, wife 48. Catching up but still feel quite behind. Trying to bullet point this a little more with more concise info.
**1.2 mil in total retirement assets (401/403/457/IRA/Cash) Invested across all accounts is an average of 65% stocks/35% bonds mix.
**Home in post above was paid off 4/2020. Now worth 325k. Rented at present. Annual net income after taxes, insurance, expenses is 12k. (The equity in this rental is NOT included in my total retirement assets above)
**Purchased new home for 408k 6/2020. Owe 363k/2.87% interest/30 yr. Now worth 485k.
**Long term care. Looked into purchasing now and have been advised to wait and begin policy at age 55 as the premium isn't that much more.
**Health insurance. ACA is quite expensive. I've looked into driving a school bus as I can get reasonable health insurance and still be off during the summer.
Thanks for all the suggestions 4 years ago. I took them and tried my best. 60 is still the plan, if possible, I would like to back it up a couple of years if the numbers work. Spending in retirement is estimated at 65k/yr. Firecalc shows me having success. What are my weak points now? How far behind am I at this point? Suggestions?
Many thanks.
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