Dear wife and I have hit a crossroads and a milestone with our net worth and savings and we would like to get a critique and response from the Boglehead community as to the wisdom of retiring completely with what we have.
We are 57 and 54 respectively and live in Pennsylvania. She has a job that she enjoys and can probably work either full-time or part-time to supply benefits for the next year or two if she desires. I am desperately in need of a change and my employment is neither enjoyable nor promising for the future.
We have a child that should be headed to college in two years and we have funded the financial requirements through a 529 to our satisfaction.
Our house has a net worth of $500,000 and is paid off and we have no other debt.
We were taxed last year at 28% and 3% or slightly over for the state of Pennsylvania
We have approximately 3 million in taxable funds that are all divided in either Vanguard Schwab or Fidelity low-cost index funds. We do have a slight small cap value tilt of about 5%.
The remaining 1.9 million we have is in retirement counts either 401(k) or traditional IRA and we have about $100,000 of it in a Roth
Total assets equal $5m excluding home
Our asset allocation is 53/37/10.
We spend $155,000 annually and have monitored that expense for the last three years.
We live in a high cost-of-living area and could move if we needed to and we do eat out a ton. In other words, some of our expenses could likely come down 15 or $20,000.
Social Security should be about $34,000 for me at age 70 and for my wife about $22,000 at age 62. Those numbers anticipate a 25% cut in benefits and future contributions.
Questions:
1) Are we financially reasonable to pull the trigger?
2) Is it reasonable to think we can spend a little bit more from now until 65 on healthcare and travel and we will spend less from 65 onward due to slowing down with age and Medicare.
3) Has the above scenario played out for those retired? Did you spend more the first ten years of retirement and less in the second decade of retirement?
We are 57 and 54 respectively and live in Pennsylvania. She has a job that she enjoys and can probably work either full-time or part-time to supply benefits for the next year or two if she desires. I am desperately in need of a change and my employment is neither enjoyable nor promising for the future.
We have a child that should be headed to college in two years and we have funded the financial requirements through a 529 to our satisfaction.
Our house has a net worth of $500,000 and is paid off and we have no other debt.
We were taxed last year at 28% and 3% or slightly over for the state of Pennsylvania
We have approximately 3 million in taxable funds that are all divided in either Vanguard Schwab or Fidelity low-cost index funds. We do have a slight small cap value tilt of about 5%.
The remaining 1.9 million we have is in retirement counts either 401(k) or traditional IRA and we have about $100,000 of it in a Roth
Total assets equal $5m excluding home
Our asset allocation is 53/37/10.
We spend $155,000 annually and have monitored that expense for the last three years.
We live in a high cost-of-living area and could move if we needed to and we do eat out a ton. In other words, some of our expenses could likely come down 15 or $20,000.
Social Security should be about $34,000 for me at age 70 and for my wife about $22,000 at age 62. Those numbers anticipate a 25% cut in benefits and future contributions.
Questions:
1) Are we financially reasonable to pull the trigger?
2) Is it reasonable to think we can spend a little bit more from now until 65 on healthcare and travel and we will spend less from 65 onward due to slowing down with age and Medicare.
3) Has the above scenario played out for those retired? Did you spend more the first ten years of retirement and less in the second decade of retirement?
Statistics: Posted by hsklos — Thu Jun 20, 2024 6:04 pm — Replies 5 — Views 658