“Hey Help Me Retire,”
I’m in a bit of a pickle with retirement planning and could really use some advice. My husband is eyeing retirement in 21 years while I’m aiming for 25 years down the road. I’ve got health insurance covered through my job, but who knows how much it’ll cost in the future. It’s $536 monthly for a family right now.
We’ve got a 2-family house worth $780,000, with $500,000 left on the mortgage at 3.65% interest. We rent out one unit for $2800 and live in the other, but we’re thinking of switching that up in retirement to make some extra cash.
We’ve also got $70,000 in a HYSA and can save $50,000 yearly after all other savings. Our 529 plan for our kids already has $22,000, and we plan to contribute at least $10,000 yearly.
In terms of retirement savings, we’ve got $265,000 in 403b and IRA accounts. We’ve been a bit slow on retirement savings due to renovations, but we’re ramping it up now.
With a current income of $270,000-$300,000, we’re looking to comfortably live off retirement savings and SS income of $150,000 yearly in a HCOL area. Any tips, thoughts, or criticisms on our plan? I’m all ears!
Cheers,
Seeking Retirement Wisdom
Response from HELP ME RETIRE:
Hello There,
Congratulations on having a clear retirement plan in mind! It’s great that you and your husband have discussed your retirement goals and have a solid financial foundation to build upon. It’s understandable to have concerns about rising health insurance costs and the uncertain future of Medicare. One practical step you can take is to start researching and comparing different health insurance options to have a better idea of what might work best for you both in retirement.
Regarding your 2 family house, it’s wise to consider all possible options, such as downsizing and renting out the larger unit, if necessary. This proactive approach shows foresight and adaptability in planning for your retirement living situation. Keep monitoring the real estate market trends over the years to gauge the potential rental income and make informed decisions when the time comes.
Your savings in HYSA, 529 plans for your children’s education, and retirement accounts exhibit a commitment to your financial future. Continuing to maximize savings and investments in your retirement accounts, like your 403b and brokerage account, will help you achieve your goal of a comfortable retirement lifestyle. Utilizing investment vehicles like VOO, VTI, SPY, and MAIN show a balanced and diversified approach to growing your wealth.
Considering your current and future income sources, including the inherited multi-family house, it seems like you have a well-thought-out strategy in place. To ensure a smooth transition into retirement, it might be beneficial to periodically review and adjust your financial plan as needed based on any changing circumstances. Overall, your detailed approach to retirement planning is commendable and puts you on the right path towards achieving your desired retirement lifestyle.
Best wishes on your journey towards a comfortable retirement!
Warm regards,
HELP ME RETIRE
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