Can we afford to retire now?
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Anonymous
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Can we retire now, and if not, when?
We have 2 kids and 3 million in all our retirement accounts, 1 million in liquid, $700 in home equity (about $600k left to pay) and no other debt. Main expenses besides mortgage is two more years of private school expenses at about $90k a year and then college expenses. About half of the college tuition expenses will be covered through my employer’s tuition remission benefit, even if I retire now. We only only $100k in 529 accounts for each kid though. We are not big spenders in general but love to travel! What do you think? |
Anonymous
| You didn't say your ages or typical spending or spending with extra travel. |
Anonymous
| We are 50. |
Anonymous
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It all depends on your expenses. What is the plan for healthcare? How much is the mortgage and other spending? What will come in from social security?
Offhand I would say no just guessing at what your lifestyle is like but certainly there are people out there who could live off $4 million. |
Anonymous
| No. You have $4m in investible assets, which means you could draw down $160k per year, and you'd have to pay taxes, tuition, and your mortgage out of the $160k annual spend. If I were you, I'd work for at least two more years to cover the $90k per year in private school expenses and see where they land for college, and then reassess. |
Anonymous
No Given the Trump administration's economy and the outlook for next July nope you can not |
Anonymous
Nope. Circle back in 5 years when your kids are almost done with college and you are closer to medicare/SS age. |
Anonymous
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If you said that all you wanted to do in retirement was garden I'd say you could look into it after private school expenses ended. But you don't have enough money to fund private school for two more years, half of college for however long after that, a significant mortgage for a decade at least, travel, and then just life expenses for 35 years.
Save aggressively, finish school, and you should be in a good place to retire a little bit early. |
Anonymous
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How much is your mortgage?
We are aiming for $250k/year after paying off mortgage and kids’ college costs. |
Anonymous
I don't follow your logic. The market today is at an all-time high, and future expectations are baked into current market prices. |
Anonymous
Mortgage and property tax is $4000 a month Our HHI is $650 k. I forgot to mention that too. Looks like we need to keep working! Ugh |
Anonymous
| Keep in mind that one's 50s and 60s are often when serious health issues crop up that portend a big spend on assisted living/nursing care later. If you don't have it yet, look into buying a long-term care policy or whole-life policy with long-term rider. |
Anonymous
Probably makes more sense to retire in 5 years. |
Anonymous
What do you do and what does your spouse do? |
Anonymous
How will you access the money in your retirement accounts before you turn 59 1/2? It usually comes with a penalty. |