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I’m think only we can appreciate this thought.
Who remembers this?
Gotta say I LOL’d at this.
It will never be the same again
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That gives you about $140k per year in income (4% of $3.5M). Make a budget and figure out if $140k will be enough.
Plus up to $48k/yr SSA at your retirement age
Plan for Healthcare until you are at Medicare age.
You need to provide more specifics, OP. May help. Your age, retirement age, your current investment allocation.
F
OP - lots of internet resources out there, YouTube channels etc to get some basics
Its really important to estimate what income you need/want first - how much a month or year you need to cover your expenses - bills, travel, gifts, rainy day (health, house, car bills). Don’t forget taxes and health insurance
Then you need to inventory your income sources - pensions, SS, 401k, rental income, other sources (sale of stock, dividends, interest)
High level figure out if your income meets your expenses
Then you got to look at taxes and which buckets you want to get from and in which order
For example - selling stock from a taxable account will require long term cap gains tax at 15% on the growth portion only - whereas anything you extract from a 401k or IRA will require you to pay income tax on the whole amount - at the income rate band you fall into
Research - 3 bucket strategy (good start on how to order your various investments/income sources, order to extract from, how to hedge against market drops etc etc)
Research - sequence of return issues
Research - tax amounts on different sources - interest, dividends, cap gains, income tax
Research - health insurance and ACA
Research - social security, when to draw, spousal benefits
Research - Roth conversions
Consider engaging a fee based financial advisor to review you portfolio and needs and give you recommendations - steer away from employees of brokerages - they’ll try and sell you their service/management/investments
Thx EY2. You are super helpful.
F
For Monthly expenses, where do we take the money from ? Having used to a monthly pay check, finding it difficult to wrap my mind around, apart from social security how do we withdraw from our savings ? Do you trim a small % from investments ? That sounds daunting with the fear of running out of capital, probably it’s irrational fear. That was the reason looking for a resource that can Be used as a guide
OP, no responses to your query, huh?
Sorry, did not get time to login to FB.
We are 62 and 56. Both still working, spouse planning to retire at 65. Me - want to retire at 59 or even sooner. 2.5 M in 401K + IRA, 600K in Vanguard, around 200 K in Employer stocks, 400 K investment home bought new, yet to rent it out. All of the above both of ours together.
2 kids - college taken care, Daughter’s wedding done. No mortgage on both the primary home and investment home. TIA
OP - I am almost in the same financial position - except my spouse already retired. Since we live in a LCOL, we feel very confident. Would suggest you consider a tax-optimization withdrawal strategy. We have focused on after-tax savings to balance out the pre-tax retirement savings which should reduce our tax liability by about $300k.
Wow, it’s a good place to be, OP. Well done!
Much to be grateful for.
Thank you 🙏🏼 yes, grateful every single day. Started from scratch, came to this country with $40, a job, loads of hopes and dreams, no credit card !! We lead a pretty modest and contended life, we do go on good vacations, try to help people as needed, but all mindful and planned.
Life had been busy with work and kids all along, saved diligently, still not able to wrap my mind around retirement. Hence posted the question.