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Our Retirement Plan - Are We Ready Financially?

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Retiredmajor
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Our Retirement Plan - Are We Ready Financially?  Reply with quote  

Hi all, I'm a new member here and would like your input and thoughts on our retirement situation. I've been reading posts here for a while and like the collective wisdom! Thanks in advance. Here's where we are:
- I'm 60, spouse is 59
- I plan to retire at age 61, at the end of this year. she is retired now
- We need income of about $6000 per month for the next 9 years and then $4650 per month after that, when the house is paid off
- We have $700,000 in a nest egg and $35,000 in savings. Nest egg is 80% stocks, 20% bonds
- We have no other debt other than house payment
- I have retirement income right now of $1254.00 per month for life, tied to a COLA
- I will have part time income of about $30,000 for the next 2 years
- We plan to wait for full retirement age for SS, 66 and 4 months for me 66 and 6 months for her
- I will get $2600 per month SS, she will get $1200 per month SS at full retirement age
- Until then (5 years) we will have my part time income, my pension and draw from our nest egg

I don't think I missed anything. What do you think? Are we ready?

Major
Post Sun Sep 03, 2017 2:10 pm
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oldguy
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quote:
We have $700,000 in a nest egg and $35,000 in savings. Nest egg is 80% stocks, 20% bonds


One option would be to refinance the house with a 30 year, fixed rate loan, probably under 4%. And add that money to your $700,000 nest egg (I'm assuming that your 80/20 portfolio has a return that is higher than the 4% that you would be paying for the loan? Otherwise you would have used some of the $700k to payoff the house).

But either way, it sounds like you've got things covered!
Post Sun Sep 03, 2017 5:52 pm
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baileyshaw437
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Yes you are ready  Reply with quote  

Yes I think you are more than ready because I think that you’re your pension will be enough to pay your house loan. Best Essay Writing Service
Post Wed Sep 13, 2017 9:48 am
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Cslovacek
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Don’t refinance now! You should pay off your home, then not touch your nest egg again for some number of years. Live on pension + part time work.
Post Wed Oct 18, 2017 1:53 am
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lukenlow
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Thanks for the valuable advice, they helped me to establish my business 192.168.O.1
Post Wed Oct 18, 2017 1:00 pm
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boatswain2PA
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quote:
Originally posted by oldguy
quote:
We have $700,000 in a nest egg and $35,000 in savings. Nest egg is 80% stocks, 20% bonds


One option would be to refinance the house with a 30 year, fixed rate loan, probably under 4%. And add that money to your $700,000 nest egg (I'm assuming that your 80/20 portfolio has a return that is higher than the 4% that you would be paying for the loan? Otherwise you would have used some of the $700k to payoff the house).

But either way, it sounds like you've got things covered!


Why would a 60 year old want to take out a 30 year loan, and all of the risks associated with debt.

Better to pay the house off as soon as you can which lowers your annual cost of living.

With $35K cash (6 months of expenses), and $700K nest egg (assuming in retirement accounts) you are doing well, however approaching retirement with 80/20 split may be too risky. If the market tanks, the $560K you have in stocks may turn into $280K. You may not be able to touch that for 3-5 years until the market recovvers.

Perhaps increasing your cash reserves to one year (maybe $35K cash, and $35K in rolling CDs), and reducing your 80/20 split to 60/40 (or wherever your risk level is).

Also, if you're retired military, go to the VA. If you did 20 years of service there is a good chance you would be able to get service rated disability.
Post Mon Oct 23, 2017 3:04 pm
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