We are 50 years old and hope to retire in 5 years at 55.
We have four rental properties that we are planning to sell due to lower returns from remote management and rising property taxes and insurance costs. We also try to simplify our portfolio.
So we plan to sell one property each year. After paying off mortgages, all the taxes and other selling costs, we can get $200 net from each of the sales.
So from 2025-2028, each year, we will have about $200 k that we could use to fund our early retirement.
Other assets include $1.6 million in pretax 401k and 200k in Roth IRA. We will continue to contribute the max for pretax 401k and backdoor Roth for the next 5 years.
If we retire at age 55, we will take interest/dividends from pretax 401k and the fill the expense gap (about 100k annually) with the taxable account that we are going to fund with the rental sale proceeds until one of us takes ssn at 62. We will try to limit our magi for aci subsidy if possible. After taxable runs out, we will use Roth.
What should we buy in our taxable account to provide stable low risk income for ages 55-62? How should we invest the $200 rental sales each year so we can start withdrawing 100k for expenses at age 55?
We are currently at 24% tax bracket if that helps.
Your help is appreciated.
We have four rental properties that we are planning to sell due to lower returns from remote management and rising property taxes and insurance costs. We also try to simplify our portfolio.
So we plan to sell one property each year. After paying off mortgages, all the taxes and other selling costs, we can get $200 net from each of the sales.
So from 2025-2028, each year, we will have about $200 k that we could use to fund our early retirement.
Other assets include $1.6 million in pretax 401k and 200k in Roth IRA. We will continue to contribute the max for pretax 401k and backdoor Roth for the next 5 years.
If we retire at age 55, we will take interest/dividends from pretax 401k and the fill the expense gap (about 100k annually) with the taxable account that we are going to fund with the rental sale proceeds until one of us takes ssn at 62. We will try to limit our magi for aci subsidy if possible. After taxable runs out, we will use Roth.
What should we buy in our taxable account to provide stable low risk income for ages 55-62? How should we invest the $200 rental sales each year so we can start withdrawing 100k for expenses at age 55?
We are currently at 24% tax bracket if that helps.
Your help is appreciated.
Statistics: Posted by ZTX55 — Mon Dec 30, 2024 12:00 pm — Replies 0 — Views 38