Your thoughts please…

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cgm66046

Dryer sheet wannabe
Joined
Sep 12, 2024
Messages
11
Location
lawrence, ks
We are both 60, have $2.3 million in IRAs, stocks, cash. At 65, we have $10,000 per month waiting for us in pension and social security income. We live on a 12 acre property worth around $1.2 million today. I plan on paying off the $385k mortgage in 3 years. We have no other debts.

Our living expenses, without the mortgage, are about $8000 per month today.

I’m struggling to understand if I have enough to retire today.

To those of you who have taken this step, what would you say to us, should we do it?

Thanks ahead of time for your thoughts, I really appreciate it.
 
OP, you need to include taxes when you input your spending on FireCalc.
 
cgm66046 said:
Thank you for your reply. The $8k includes health care and property taxes but not income taxes.
Click to expand...
+1@Lorenzo @FireCalc.

You need to include taxes in your budget, along with emergency spending. Making sure your spending projections are realistic is critical. This included health care, especially if transitioning from employer to individual ACA type insurance.
 
MichaelB said:
+1@Lorenzo @FireCalc.

You need to include taxes in your budget, along with emergency spending. Making sure your spending projections are realistic is critical. This included health care, especially if transitioning from employer to individual ACA type insurance.
Click to expand...
Great advice, thank you
 
Thanks for introducing me to FireCalc, been looking for a good retirement calculator, this is the best I’ve found.

Its really helping me get comfortable with my current situation. Thanks again, I really appreciate it.
 
Check out the Investigate tab, particularly the last option.

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A lot depends on your expenses. By the standards of most I think you probably have plenty. But, only you know what lifestyle you want to live after retirement.

I used two different MonteCarlo calculators and FireCalc to run my numbers. They gave me the assurance I needed to retire after spending a month playing with different scenarios.

FWIW, some of those scenarios included a SS cut of 25% in the early 2030's, and the elimination of the COLA-lite yearly increase in my pension. Tough stuff to say the least.
 
The question you asked was “should we do it?”
My answer: Heck Yeah! That is, if you want to.
We are in similar space. We have more in accounts, paid off house but my pension is only $900 month. I retired seven years ago with much less and we are living a great life.
Retirement is truly great
 
Gallaher said:
The question you asked was “should we do it?”
My answer: Heck Yeah! That is, if you want to.
We are in similar space. We have more in accounts, paid off house but my pension is only $900 month. I retired seven years ago with much less and we are living a great life.
Retirement is truly great
Click to expand...
 
Congratulations to both of you, this is very encouraging.

I have been putting FireCalc thru the paces, it’s really helping. Becoming more comfortable with the numbers, pretty sure we can pull it off.

Thanks again and enjoy!
 
I'm wondering:
Why would you pay off the mortgage (what interest rate is it at ? ) ?

How will you pay off the mortgage without taking a giant income tax hit from selling stocks or taking out IRA/401K money ?
 
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