Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are 50.

How will you access the money in your retirement accounts before you turn 59 1/2? It usually comes with a penalty.

OP said they have $1 million liquid.

Not even close to enough.

An alternative would be for one of you to retire and the other to continues to work so you don't have to dip into retirement savings, which will continue to grow, and the other will be able to cover medical insurance.

Given that you seem to want to be retiring, I would seriously ask myself about my spending priorities. Is $90k/year private school tuition a priority? How much I am willing to spend on college? Do I need to keep the big fat mortgage or should I downsize?

Anonymous wrote:I think you need to wait until after college. Hopefully your kids will launch well, get off your health plan. Then the cost would be more manageable. I don’t think you need to keep saving, so if you’re still earmarking a ton to retirement accounts I think you can start enjoying your money now, just let your assets grow. But yeah, personally I would wait until college is paid and done.

I'd wait to "start really enjoying their money" until they are done funding high school at $90K/year and have enough saved for the "rest of college expenses". Then, sure continue to save but also step back a bit and enjoy some of it, at $650K they should be able to do both. But until you get rid of the tuition costs, it's harder

Anonymous wrote:My insurance through the affordable health care act (ACA) at age 63 is $1300 per month with a $7000 deductible. That is for 1 person. I am on a silver plan, the cheapest. I get no rebate as you get no discount if your pay is gross over $49,000 per year in my state.

And in my state, for a 56 yo, the silver plan (EPO) is $1600/month (it was only 1300 last year).
and yes the dedcubitle is $7K/$14K (ind/family).

At 63, it would be $2300/month for the same plan. And yes this is just medical, no dental or vision.
So at 63, we would be paying $4.6K for two of us and let's assume the deductible as well so another $1100/month (not difficult to hit a deducible like that when you are 55+, one medical issue, like arthritis and needing a few X-rays/cat scans or MRI and you are there.

So $5.7K per month for medical insurance and expenses monthly.

It's not cheap and you need to price it out and be aware of the ever increasing costs and don't expect it to be "fixed" anytime soon---we need single payer but that's not likely

I think you need to wait until after college. Hopefully your kids will launch well, get off your health plan. Then the cost would be more manageable. I don’t think you need to keep saving, so if you’re still earmarking a ton to retirement accounts I think you can start enjoying your money now, just let your assets grow. But yeah, personally I would wait until college is paid and done.

My insurance through the affordable health care act (ACA) at age 63 is $1300 per month with a $7000 deductible. That is for 1 person. I am on a silver plan, the cheapest. I get no rebate as you get no discount if your pay is gross over $49,000 per year in my state.

We need a breakdown of your expenses, healthcare costs, mortgage payoff date, etc. But I would say you need to save at least another million (apart from your kids college costs).

OP - For a big decision like retirement timing, you shouldn't crowdsource on DCUM. At a minimum, check out the various retirement calculators online.

Anonymous wrote:

Anonymous wrote:We are 50.

How will you access the money in your retirement accounts before you turn 59 1/2? It usually comes with a penalty.

OP said they have $1 million liquid.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much is your mortgage?

We are aiming for $250k/year after paying off mortgage and kids’ college costs.

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

Yes, because for a couple with a HHI of $650K, you don't have "much saved". A lot has likely been going to private schools. That was a choice, so now you need to finish that and spend 3-5 years saving aggressively.

You need to plan for healthcare for until age 65---that could be $40K+ easily for just 2 of you (when you include the premiums and actually what your copays/deducibles are---even if you don't see a doctor much now, once you hit 50 even if very healthy that starts to change)

Well, we didn’t have such a high income until fairly recently so that’s why we don’t have ‘much saved.’

That is a fair acknowledgment. So were you paying for Private school for the kids before your income jumped to that point?

I personally would continue to work for 5-6 years, get the kid thru college and reassess. But right now, you don't really have enough to retire, pay the last 2 years of $90K, pay for college (whatever is not paid for by the employer) and survive until 85+ and keep living the life you have (with a $4K mortgage/prop taxes). Healthcare and the house will run you 100K (add in the maintenance, gardening, insurance and 100K is a fair estimate I think). You still need to eat, fund your vehicle(s), and every other basic part of life. and you want to travel. But the $90K/year for private HS is taking up a lot of your income after taxes.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much is your mortgage?

We are aiming for $250k/year after paying off mortgage and kids’ college costs.

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

Yes, because for a couple with a HHI of $650K, you don't have "much saved". A lot has likely been going to private schools. That was a choice, so now you need to finish that and spend 3-5 years saving aggressively.

You need to plan for healthcare for until age 65---that could be $40K+ easily for just 2 of you (when you include the premiums and actually what your copays/deducibles are---even if you don't see a doctor much now, once you hit 50 even if very healthy that starts to change)

Well, we didn’t have such a high income until fairly recently so that’s why we don’t have ‘much saved.’

no. wait till kids are out of college

Anonymous wrote:

Anonymous wrote:How much is your mortgage?

We are aiming for $250k/year after paying off mortgage and kids’ college costs.

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

Yes, because for a couple with a HHI of $650K, you don't have "much saved". A lot has likely been going to private schools. That was a choice, so now you need to finish that and spend 3-5 years saving aggressively.

You need to plan for healthcare for until age 65---that could be $40K+ easily for just 2 of you (when you include the premiums and actually what your copays/deducibles are---even if you don't see a doctor much now, once you hit 50 even if very healthy that starts to change)

Anonymous wrote: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.

+1

Think about healthcare and college. I would want to have 100% saved (or guaranteed thru the employer/past employer) for both kids for college before I would even consider retiring.

We are mid 50s, and I'm pricing our ACA plans (we retired but still have for a few years thru "work"). Last year for 2 of us (think 54) was $2300 for just a silver medical (that means $7k/14K ind/fam deductible, no OON coverage)....this year that same plan is now $3300 (no we don't get subsidies---we are rich, retiring at mid 50s). Now add in 2 kids and you'd be at over $4K/month for healthcare with $7/$14K dedcubitles, no dental or vision. So I'd have to assume you could spend $5K/month for it all. That's $60K.
And it's only going to go up as you age, and plans get "worse and cover less" until we get a good single payer system (which isn't going to happen anytime soon).

You won't get SS until at least 62, most likely 65 by the time you are that age.

I personally wouldn't do it. You also will have a mortgage for a long time. I'd work for another 5 years, aggressively save to pay for college, future healthcare and retirement and to be able to pay off the mortgage (wouldn't actually do it if low interest rates, but I'd want to have the $$ available)