| How far do I need to go to retirement |
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rongor
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 27 Jan 2013
Location: south jersey
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| How far do I need to go to retirement |
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I'm 58 and my wife is 59, hoping to retire @ 63 and 64. Between pension and ss looking at about $76500.00 annually. Home bought 11 years ago for 180k with an additional lot, will be paid off in 3 years.Conservatively worth about 260k. 401k and 403b totals 160k. Owe 35 k on second for kids education. Total outstanding debt other than 2nd 15k. ( cars credit car etc) Wife's car paid off next year, my truck paid off in 3 years.Thinking of updating home to max return. (30k) Joint income 150k , plan on selling , down sizing and moving out of NJ to a much less taxing and more Constitutional friendly state . Trying to determine if we are in good shape or if we need to change our planning.
Thanks for your input.
ron
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Sun Jan 27, 2013 6:16 am |
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oldguy
Senior Member
Cash: $ 751.85
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Joined: 21 May 2006
Location: arizona
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It appears that you owe about $50k or $60k on a $260k real estate, ie a $200k equity. And $160k in 401/403s. The $15k debt and the car values probably cancel. So a Net Worth of $420k. With $76k in pensions and tthe plan to downsizre and move from the HCOL area, that should work.
quote:
Thinking of updating home to max return. (30k)
But I would certainly scrap that plan. When you spend $30k on a house, it usually adds $10k to $15k to the appraised value, ie an instant $20,000 loss. I would avoid spending (losing) $20K of your $420k. Clean up the grounds, paint it, and sell it "as is". (You will probably make money on that curb appeal dressup - but don't spend beyond that.
When you relocate, I would take a full 30 year fixed rate mortgage on the new house. US home loans are the least expensive capital in the world, the other 191 nations have variable rates, short term resets, etc. But in the US you can get 3 1/2% to 4% rate, guaranteed for 30 years. That way, you keep most of your $420k in reserve and use it to earn more than the cost, ie more than 4%. And it will be available to supplement your $76k/yr - ie, buy a new vehicles, trips, cruises - and some healthcare help 25 or 30 years from now (hopefully longer  ) (My dad bought a new car at age 91, you never know - there may be 2 or 3 new cars in your far-future).
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Sun Jan 27, 2013 5:08 pm |
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Anton Martin
Full Member
Cash: $ 15.00
Posts: 73
Joined: 23 Nov 2012
Location: Florida, USA
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| Re: How far do I need to go to retirement |
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quote:
Originally posted by rongor
I'm 58 and my wife is 59, hoping to retire @ 63 and 64. Between pension and ss looking at about $76500.00 annually. Home bought 11 years ago for 180k with an additional lot, will be paid off in 3 years.Conservatively worth about 260k. 401k and 403b totals 160k. Owe 35 k on second for kids education. Total outstanding debt other than 2nd 15k. ( cars credit car etc) Wife's car paid off next year, my truck paid off in 3 years.Thinking of updating home to max return. (30k) Joint income 150k , plan on selling , down sizing and moving out of NJ to a much less taxing and more Constitutional friendly state . Trying to determine if we are in good shape or if we need to change our planning.
Thanks for your input.
ron
Well ronger, you are looking like you are going in good direction. As far as moving to NJ is very good move as it is one of the best place to live after retirement. Down sizing is always good move when it comes to retired life.
Good Luck....
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Tue Mar 19, 2013 12:24 pm |
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