‘I really want to enjoy life next 15 years traveling w my wife and enjoying family and friends’: Seeking your advice on our current situation. Can we retire now and not worry about running out of money if we live until 90?

Hey Money Minder,

I need some advice from you savvy financial folks. I’m a 62-year-old dude and my wife is 64. I’ve been grinding it out in the corporate world for 30 long years. My current job is a nightmare – short-staffed, long hours, and I can’t stop thinking about work even on my days off. I really want to retire, but I’m a total worrier when it comes to money stuff.

We’ve got $1.5 million in our IRA and I’ve got another $1 million coming my way in ten years (long story, but trust me on this). Our mortgage payment is $3200 a month, and I’m freaking out about paying for Obamacare health insurance until I hit 65 and can get Medicare.

All I wanna do is enjoy life for the next 15 years – travel with my wife, hang out with family and friends. We’re looking at spending around 11-12k a month for the next 15 years (that covers everything – mortgage, healthcare, travel, you name it).

In about 10-15 years, we plan to sell our house and downsize to a sweet townhome that we’ll pay for in cash, no more mortgage for us. We’ll probably hold off on Social Security until 67, which will bring in $4000 a month.

So, here’s the burning question – can I retire now and live worry-free until we’re 90? I’d really appreciate any advice you can give. Thanks a ton!

Response from THE MONEY MINDER:

"Hello There,"

It’s understandable to feel overwhelmed by the stress of your current job and the uncertainty surrounding retirement planning. It sounds like you have put a lot of thought into your financial situation, which is a good start. With $1.5 million in your IRA and the potential for additional income in the future, you have a solid financial foundation to consider retirement.

To address your concerns about running out of money, I would recommend consulting with a financial advisor who can help you create a detailed retirement plan. They can assess your current financial situation, factor in your future income streams, and provide guidance on how to structure your savings and investments to sustain your desired lifestyle in retirement.

Regarding healthcare costs between retirement and Medicare eligibility at 65, you may want to explore different health insurance options and estimate potential expenses to ensure you have a realistic budget in place. Planning ahead for healthcare costs can help alleviate some of the financial stress associated with retirement.

Considering downsizing to a more affordable home in the future is a wise decision to reduce expenses and eliminate mortgage payments. Additionally, deferring Social Security until age 67 can maximize your benefits and provide a more substantial monthly income later on.

In summary, retiring now is a viable option given your financial resources, as long as you have a well-thought-out retirement plan in place. Working with a financial advisor to address specific concerns and develop a comprehensive strategy can help you feel more confident about your decision. Enjoying life, traveling, and spending time with family and friends are important aspects of retirement that you deserve to embrace.

Best of luck with your retirement planning journey, and may your next chapter be filled with joy and fulfillment.

Farewell from THE MONEY MINDER.