“We would have reduced our house and probably move to a country with less ownership taxes (we currently live in Texas).” (Photons are models.) – Getty Images/Istockphoto
I really appreciate your column and the tips you provide. I was considering “retiring” early to have more time with my husband in our young years. We were both married for over 20 years. We met when I was 46 and he was 54 years old. Our divorces have caused us a lot of financial losses and we have $ 105,000 combined debt without including the payment of our house, which is $ 2,200.
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I am 51 years old and my husband is 59 years old. He is retired by state work and receives a pension that gives about $ 3,600 a month, as well as health insurance throughout life for both of us. After reaching 62, we believe that its social security will provide approximately $ 1800 dollars a month. In four months he can win Roth Ira, which would pay off our unpaid debt, minus our house.
I earn $ 129,000 a year. I contribute 15% to my 401 (K), which is currently valued at $ 165,000. I also rolled over Old 401 (K) with $ 125,000 to be managed by a financial advisor. Can I refuse to work in three years – when my husband starts collecting social security? At this point, I plan to stop contributing to my 401 (k). How much do you assume that my account will cost when I reached 59 1/2?
The money my financial advisor manages earns approximately 9% annually, and my employer coincides with 6% of my compensation. We would have reduced our house and probably move to a country with lower ownership taxes (we currently live in Texas). What do you think I should do? Should I retire early and join my husband on this new adventure? Thank you in advance for the tips.
Wife
Related: “It flies in front of my morals and ethics”: my father cut my sisters from his six -digit mansion. Do I have to press back?
You will not be able to do with your 401 (k) with eight years. You may also be forced to take your social security benefits before your full retirement age. – illustration of Marketwatch
Think twice before you retire early.
Your husband will have to pay 40% of his combined pension and social security for the payment of your house and this is after using his Roth Ira to pay off your combined debt.
Even if your $ 165,000 $ 401 (K) cost 195,000 dollars after three years – if you take a relatively conservative 6% growth – you will still need that money to last another 30 years. It’s just not enough, even with your husband’s state pension. You will not be able to do with your 401 (K) with eight years and you can also be forced to take your social security benefits before your full retirement age.
By claiming his social security for 62, he also establishes a significantly less than a full amount if he waits. You have a long time until you qualify for social security, and your slightly ejection comment that your husband will win his Roth Ira to pay your debt also pauses me. Do you have a relatively secure income from the six -cyphia and your employer contributes with a 6% match, so why throw it away now just because your husband is ready to retire?
Unless you absolutely hate your job and you don’t feel as if you are sick, there is something to say about these peak years of winning and the meaning, social contact and the structure that your work brings to you. You can miss it when you are gone and even enjoy seeing the back of it, you will surely miss financial independence and security, knowing that you are building a nesting egg for retirement. Do you really want to be so dependent on your husband?
Let’s say, in the name of the dispute that you had $ 400,000 collectively in both 401 (K) in three years. Using the rule of 4%-the sort of 4% of your socket annually for a 30-year period-you will remove $ 16,000 a year. Adults in the United States on average say they will need $ 1.46 million to retire comfortably, 15% over $ 1.27 million reported last year, according to a recent Northwestern Mutual survey. This does not put you in cross -hair for easy retirement.
You are doing well. Hold on. About 75% of the elderly had at least some retirement savings, but 25% have no retirement savings, according to a Federal Reserve report. Often the clue is in the question. If you are worried about your ability to retire, continue to work and accumulate savings. You want more free time with your husband, but will you have more security and more peace of mind?
The Social Security Administration and AARP provide pension calculators that help determine if you have enough retirement money. (As for your other moment, Hawaii has the lowest property taxes according to this Smartasset guide. But that does not necessarily mean a lower cost of life.) You can enter your assets, estimated retirement costs, assumptions for life valuation and tax assessments. Longevity is great unknown. The average American woman who reaches 65 can expect to live up to about 86.7, according to SSA.
If you retire at 54, could you abandon the Social Security request until you can maximize your benefits at 70? Many people – 28.4% of men and 26.5% of women – accept social security when they reach full retirement age, which is between 65 and 67, depending on the year in which a person is born. Meanwhile, 8.4% of men and 9.3% of women are waiting at least 70 to take their benefits, according to SSA.
I wonder how early retirement, however perspective, is your idea and how much pressure from your husband, who is understandable, is eager to embark on his new life after work. Planning can also be fun. What kind of retirement would you like after reducing the size and moving to a new country? It’s great that you are in a happy marriage; This will help you in your retirement years, but will your income meet your retirement goals?
Longevity and lifestyle requires a healthy investment income.
Related: “My wife and I are very grateful”: Our son wants to pay her mortgage before we retire. Will this back be?
Previous columns from Quentin Fottrell:
My husband will inherit $ 180,000. I think we need to invest the money. He wants to pay off his $ 168,000 mortgage. Who is right?
I am at a loss: my boyfriend for almost 10 years calls his elderly parents as beneficiaries and gives them a power of attorney. Am I right to be upset?
“We have no premarital agreement”: Will my wife be able to take my money if I transfer it to my retirement account?
