Ok here goes: 54 - still working full-time for now, and my Husband is 57 - retired, and our children have recently “launched.” We currently live in a HCOL and have zero debt:
Salary: $150k
Investments: $5,300,000 in various investment vehicles that total 40% stocks, 40% bonds, 20% cash. 65% of investments are in post-tax accounts, 35% pretax.
Real Estate: $1,150,000 primary residence, no mortgage. $500,000 second home, no mortgage, no income (will use then sell around age 65/68).
Pension: $25k, non-cola, commences at age 62.
Social Security: approximately $77k combined (todays dollars), if both deferred to age 70, which we will likely do in case we both live past mid 80’s.
Expenses: Average $220,000 in today’s dollars, as I banded a few different periods during retirement (Go-go, slow-go, no-go). This includes taxes (25% total assuming future increases and high state taxes) and healthcare premiums (using $38k per year average in todays dollars for life, based on some guesstimates that include ACA then Medicare and supplemental). Can trim about 1/3 of expenses through cuts such as travel, charity, and misc., if necessary.
Assumptions include only 1% real net of inflation returns annually on investments, and 7% inflation on healthcare premiums. Lumpy expenses such as autos, grad school, weddings, financial gifts to kids, deck replacement, new roof, window replacement, condo upgrades, and other big items etc are backed out of investment total, so in other words, all covered and not included here.
Inheritance: expected, but like others on this board have posted, will go towards any long term care needs forecasted out over next in the future. If no inheritance then will self-insure LTC needs.
Missing anything? Ready to pull trigger on retirement this year. Thank you!
Salary: $150k
Investments: $5,300,000 in various investment vehicles that total 40% stocks, 40% bonds, 20% cash. 65% of investments are in post-tax accounts, 35% pretax.
Real Estate: $1,150,000 primary residence, no mortgage. $500,000 second home, no mortgage, no income (will use then sell around age 65/68).
Pension: $25k, non-cola, commences at age 62.
Social Security: approximately $77k combined (todays dollars), if both deferred to age 70, which we will likely do in case we both live past mid 80’s.
Expenses: Average $220,000 in today’s dollars, as I banded a few different periods during retirement (Go-go, slow-go, no-go). This includes taxes (25% total assuming future increases and high state taxes) and healthcare premiums (using $38k per year average in todays dollars for life, based on some guesstimates that include ACA then Medicare and supplemental). Can trim about 1/3 of expenses through cuts such as travel, charity, and misc., if necessary.
Assumptions include only 1% real net of inflation returns annually on investments, and 7% inflation on healthcare premiums. Lumpy expenses such as autos, grad school, weddings, financial gifts to kids, deck replacement, new roof, window replacement, condo upgrades, and other big items etc are backed out of investment total, so in other words, all covered and not included here.
Inheritance: expected, but like others on this board have posted, will go towards any long term care needs forecasted out over next in the future. If no inheritance then will self-insure LTC needs.
Missing anything? Ready to pull trigger on retirement this year. Thank you!
Statistics: Posted by HCOLeen — Sun Jan 21, 2024 6:03 pm — Replies 4 — Views 245