Hi....appreciate opinions....questions at bottom but main request is on opinion about financial readiness to retire in 2 years. Thank you very much!
Employer 401k, all pre tax
Current balance is ~$3M with asset allocation 60/40 split as follows:
36% Large Cap
11% MidCap
8% international stocks
5% Megacorp stock
35% intermediate term bond fund
5% cash equivalent
Maxing out limits on contributions and catch up for remaining 2 years
Pension
Pension estimate for retirement at end of 2026 is ~$2.2M if I take lump sum option
Plan to invest lump sum at 60/40 AA per above
After Tax Savings
~$700k of which:
100k ibonds as emergency fund
100k in Vanguard at 30/70 AA for 3rd and last child to finish college. Other 2 kids on their own.
Remaining $500k mix of various Vanguard mutual funds and some megacorp stock…to be used for specific purposes that, in the end, are discretionary…e.g. home improvement projects, weddings which are not yet planned, etc. AA is 50/50 for these remaining funds….new aftertax savings of $70k per year going into cash thinking I want lower stock exposure for this portion in event I want to deploy it in short term
Tax Rate:
32% with aggregated rate of 19% per TurboTax
Expect to be 24% upon retirement, aggregated rate of 16-17% post-retirement
State of Residence:
Texas
Age:
Both myself and wife 57, MFJ
Spending
Goal is to maintain current lifestyle so assumptions are based on what we currently spend today for day to day living + vacations + maintaining home etc. That analysis indicates $165k per year in after tax money is needed. My health care premiums will be about same as today until hit medicare
Taxes a wild card in future but I don’t have much Roth so all my pulls from retirement will be taxable…..so thinking about $200k pre-tax pulled per year.
This does not include big items like new cars….we keep our cars 10 years at min so typically buy 1 car every 5-6 years
Questions
1)Opinion on financial readiness to retire in 2 years when we are 59?
2)How think about car purchases and potential replacement of emergency fund in the event I needed to dip into it for a large unexpected event or home repair. If I need $200k per year to live….bump that assumption to $215k or so to account for car and/or emergency replenishment?
Employer 401k, all pre tax
Current balance is ~$3M with asset allocation 60/40 split as follows:
36% Large Cap
11% MidCap
8% international stocks
5% Megacorp stock
35% intermediate term bond fund
5% cash equivalent
Maxing out limits on contributions and catch up for remaining 2 years
Pension
Pension estimate for retirement at end of 2026 is ~$2.2M if I take lump sum option
Plan to invest lump sum at 60/40 AA per above
After Tax Savings
~$700k of which:
100k ibonds as emergency fund
100k in Vanguard at 30/70 AA for 3rd and last child to finish college. Other 2 kids on their own.
Remaining $500k mix of various Vanguard mutual funds and some megacorp stock…to be used for specific purposes that, in the end, are discretionary…e.g. home improvement projects, weddings which are not yet planned, etc. AA is 50/50 for these remaining funds….new aftertax savings of $70k per year going into cash thinking I want lower stock exposure for this portion in event I want to deploy it in short term
Tax Rate:
32% with aggregated rate of 19% per TurboTax
Expect to be 24% upon retirement, aggregated rate of 16-17% post-retirement
State of Residence:
Texas
Age:
Both myself and wife 57, MFJ
Spending
Goal is to maintain current lifestyle so assumptions are based on what we currently spend today for day to day living + vacations + maintaining home etc. That analysis indicates $165k per year in after tax money is needed. My health care premiums will be about same as today until hit medicare
Taxes a wild card in future but I don’t have much Roth so all my pulls from retirement will be taxable…..so thinking about $200k pre-tax pulled per year.
This does not include big items like new cars….we keep our cars 10 years at min so typically buy 1 car every 5-6 years
Questions
1)Opinion on financial readiness to retire in 2 years when we are 59?
2)How think about car purchases and potential replacement of emergency fund in the event I needed to dip into it for a large unexpected event or home repair. If I need $200k per year to live….bump that assumption to $215k or so to account for car and/or emergency replenishment?
Statistics: Posted by GobucksTX — Wed Jan 29, 2025 4:56 pm — Replies 5 — Views 677