Thanks for everyone’s help in determining we could retire now, which we will do. With that said, what advice can you give regarding our state of affairs and investments? How would you invest and in what specifically? How much cash on hand (as we are very conservative and would like to sleep soundly at night). Basically, what would you do in this situation if you could blow it all up and work with a clean slate?? As always, your guidance is much appreciated!!
My wife (age 58) and I (age 55) are happily married and have 2 adult age children (one finishing up college soon, expenses funded in 529). We live in a HCOL area, and may or may not move in next few years. Generally happy where we live now tho.
Investable net worth: $5.5M, no debt, excludes real estate below.
Real Estate:
$1.1M primary house (no mortgage)
$500k vacation home (no mortgage, do not rent, $15k to maintain each year,
Which is already included in expenses below If we eventually decide to sell, it would be both properties at same time, rolling net proceeds from both into one retirement home. Otherwise, will start renting vacation home within a few years to cover costs only, and for as long as we keep.
Investments (all over the place and need help allocating and finding options within Vanguard and Fidelity):
$2.7M 401Ks, IRAs
Edited: $2.7M taxable accounts (excludes money set aside for weddings, house deposit help, some house projects in next few years). We have close to $100k in ibonds and plan to continue buying $20k per year, if wise. We have an unusually high allocation of cash and may change that based on what you say!
Aiming for 50/40/10 split.
Retirement Income (in todays dollars):
$48K Social Security (mine, todays dollars, will collect at age 70, no benefit reduction factored in expecting full benefits)
$54K Social Security (hers, todays dollars, will collect at her age 70 which is my age 67, no benefit reduction factored in expecting full benefits)
$26K Pension Annuity (non-cola, collect my age 62)
Annual Expenses: $200k (includes $130k in regular expenditures, $30k in healthcare (but may be cheaper), and $40k in taxes (net 20%). About 33% of expenses are discretionary (travel, misc, charity). Ideally, we would like to keep AGI low through Medicare to reduce / eliminate ACA healthcare premiums - while balancing ROTH conversions?
Will self fund LTC if necessary. Started working on estate planning docs. Currently have $5M umbrella (with adult child still on insurance for now).
Thanks again for your help!
My wife (age 58) and I (age 55) are happily married and have 2 adult age children (one finishing up college soon, expenses funded in 529). We live in a HCOL area, and may or may not move in next few years. Generally happy where we live now tho.
Investable net worth: $5.5M, no debt, excludes real estate below.
Real Estate:
$1.1M primary house (no mortgage)
$500k vacation home (no mortgage, do not rent, $15k to maintain each year,
Which is already included in expenses below If we eventually decide to sell, it would be both properties at same time, rolling net proceeds from both into one retirement home. Otherwise, will start renting vacation home within a few years to cover costs only, and for as long as we keep.
Investments (all over the place and need help allocating and finding options within Vanguard and Fidelity):
$2.7M 401Ks, IRAs
Edited: $2.7M taxable accounts (excludes money set aside for weddings, house deposit help, some house projects in next few years). We have close to $100k in ibonds and plan to continue buying $20k per year, if wise. We have an unusually high allocation of cash and may change that based on what you say!
Aiming for 50/40/10 split.
Retirement Income (in todays dollars):
$48K Social Security (mine, todays dollars, will collect at age 70, no benefit reduction factored in expecting full benefits)
$54K Social Security (hers, todays dollars, will collect at her age 70 which is my age 67, no benefit reduction factored in expecting full benefits)
$26K Pension Annuity (non-cola, collect my age 62)
Annual Expenses: $200k (includes $130k in regular expenditures, $30k in healthcare (but may be cheaper), and $40k in taxes (net 20%). About 33% of expenses are discretionary (travel, misc, charity). Ideally, we would like to keep AGI low through Medicare to reduce / eliminate ACA healthcare premiums - while balancing ROTH conversions?
Will self fund LTC if necessary. Started working on estate planning docs. Currently have $5M umbrella (with adult child still on insurance for now).
Thanks again for your help!
Statistics: Posted by RetireGuy — Mon Aug 12, 2024 8:34 am — Replies 8 — Views 459
