Size of my portfolio for my age

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Topic Author
BoglesMyHero
Posts: 6
Joined: Tue May 14, 2024 12:11 pm

Size of my portfolio for my age

Post by BoglesMyHero »

I’m in my early 60’s and want to retire at age 67.
I’m married, debt free, have a retirement savings of currently $600,000 and hope to have $800,000-$900,000 by the time i retire.
No pension 😔
Our expenses are currently $63,500/year.
SS should be $53,118 combined at FRA.
We have $95,000 in 5 year 5% CD’s
$22,000 in an emergency fund
$4,000 in a regular savings account.
3 properties worth $1.6 million (all paid off)
We get about $30,000 net in rent from the 2 properties.
We have been a 1 income family our whole life on s modest income.
Put 2 kids through college.
I still feel like a failure at not saving more for retirement.
BradJ
Posts: 627
Joined: Sun Jan 21, 2018 5:06 pm

Re: Size of my portfolio for my age

Post by BradJ »

You have a very decorated "financial milestones" BINGO card, you are far away from a failure. If I add in your SS, the money you get from the property and 4% withdraw rate on the 600,000 I come out to $107,118 a year. Maybe you go wild one year and have a yearly expense of 1000,000....just order the 16 oz beer instead of the 32 oz and your budget will adjust fine. Congrats on the job well done.
Harmanic
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Re: Size of my portfolio for my age

Post by Harmanic »

You can retire now. What are you waiting for?
The question isn't at what age I want to retire, it's at what income. | - George Foreman
rogue_economist
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Joined: Mon Apr 01, 2024 3:52 pm

Re: Size of my portfolio for my age

Post by rogue_economist »

Rent plus the social security comes to well above your current expenses. If you reserve the portfolio for long term care and add to it what you don't spend from social security and rent you should be okay and hopefully have some assets to pass on.

I would not spend 4% of the portfolio as that makes no provision for long term care.
Society grows great when old men plant trees whose shade they shall never sit in
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Rocinante Rider
Posts: 456
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Re: Size of my portfolio for my age

Post by Rocinante Rider »

According to 2022 Federal Reserve data, median net worth for those between 60-69 years old was 394k. 600k in savings plus 1.6M in property with no debt puts you far above the median. Hardly a failure for a modest single income family that put two kids through college. Looks like SS and rental income will cover your expenses, and you won't need to drawdown your other assets at anywhere near 4%, if at all. Congrats!
zag00
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Re: Size of my portfolio for my age

Post by zag00 »

looks like you'll be in good shape - a little tight until you hit FRA but you have options with the paid off real estate you have.
Keep at it, you can see the light.
Harmanic
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Re: Size of my portfolio for my age

Post by Harmanic »

zag00 wrote: Tue May 14, 2024 1:58 pm looks like you'll be in good shape - a little tight until you hit FRA but you have options with the paid off real estate you have.
Keep at it, you can see the light.
That's what I was thinking. Either live off the rent and investment returns, or sell a property and cash flow balance paid. Honestly, $2.2 million is plenty on its own without the bother of being a landlord.

And, OP, don't compare yourself to some of the other high net worth posters on this forum. You have enough, which is all that matters. Also, paying for your kids college is a far better gift than having a huge inheritance for them later on when they don't need it.
The question isn't at what age I want to retire, it's at what income. | - George Foreman
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MillennialFinance19
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Re: Size of my portfolio for my age

Post by MillennialFinance19 »

What is the value of the rentals and what tax implications would you have from selling? If the value is disproportionately high compared to the property value you could look at selling those and integrating them into your portfolio. Might help you sleep at night being a little more "liquid".
VTI and chill until 57...
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Wiggums
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Re: Size of my portfolio for my age

Post by Wiggums »

Your portfolio is well above the average. You have $93k income and $63k in retirement expenses. You have 3 paid for homes. Most of your retirement dollars are tied up in 2 rentals plus a primary residence. You are doing great. I’d verify that you are getting a reasonable return on your rental home properties.
"I started with nothing and I still have most of it left."
Topic Author
BoglesMyHero
Posts: 6
Joined: Tue May 14, 2024 12:11 pm

Re: Size of my portfolio for my age

Post by BoglesMyHero »

By waiting till 67 i’ll get the higher SS rate, will be able to save up more into my retirement account, and then at that time decide to sell 2 of my properties or not.
The house i live in is worth about $400,000, my office is worth about $400,000 or more, and my vacation home is worth about $800,000. My vacation home isn’t renting well right now due to some demographic changes but i make enough to pay the bills, my office does better.
I want to try not to touch my retirement account until age 75 when RMD’s kick in and only rely on that for high unexpected expenses and possible LTC needs.
I’m new to this Bogleheads community and appreciate the responses I got today and hope to contribute as well.
Thank you
momopi
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Re: Size of my portfolio for my age

Post by momopi »

BoglesMyHero wrote: Tue May 14, 2024 12:43 pm I still feel like a failure at not saving more for retirement.
You are NOT a failure.

As matter of fact, you already have it planned and figured out, accomplishing all this as the sole breadwinner.

Yes, someone else always have more saved for retirement than you, just as the grass is always greener on the other side. But that's not a reason to downplay your own success.
WeakOldGuy
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Re: Size of my portfolio for my age

Post by WeakOldGuy »

I would echo what others have said. I think you are doing great.

At your full retirement age, it looks like your SS and rental income would more than cover your expenses. This is assuming that the rental income keeps up with inflation. So I'd say just stay the course, you are doing well.
On investing; I have lots of questions, many opinions, and little knowledge. A dangerous combination. Be warned.
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Watty
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Re: Size of my portfolio for my age

Post by Watty »

BoglesMyHero wrote: Tue May 14, 2024 12:43 pm I’m in my early 60’s and want to retire at age 67.
I’m married, debt free, have a retirement savings of currently $600,000 and hope to have $800,000-$900,000 by the time i retire.
No pension 😔
Our expenses are currently $63,500/year.
SS should be $53,118 combined at FRA.
We have $95,000 in 5 year 5% CD’s
$22,000 in an emergency fund
$4,000 in a regular savings account.
3 properties worth $1.6 million (all paid off)
We get about $30,000 net in rent from the 2 properties.
We have been a 1 income family our whole life on s modest income.
Put 2 kids through college.
I still feel like a failure at not saving more for retirement.
You probably did not intend it but this sounds like a humblebrag. :oops:
humblebrag: to make a seemingly modest, self-critical, or casual statement or reference that is meant to draw attention to one's admirable or impressive qualities or achievements.
https://www.merriam-webster.com/dictionary/humblebrag
BoglesMyHero wrote: Tue May 14, 2024 12:43 pm I’m in my early 60’s and want to retire at age 67.
There are lots and lots of details to consider but you can likely retire long before you are 67 and maybe even now if you want to. There is a suggested guideline for asking portfolio questions and if you post your information in that format(more or less) you will likely get some good feedback on when you can retire.

viewtopic.php?t=6212

This web site is also very good at suggesting the optimal time to start Social Security.

https://opensocialsecurity.com/
Topic Author
BoglesMyHero
Posts: 6
Joined: Tue May 14, 2024 12:11 pm

Re: Size of my portfolio for my age

Post by BoglesMyHero »

And you sound like a humble critic
260chrisb
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Re: Size of my portfolio for my age

Post by 260chrisb »

BoglesMyHero wrote: Tue May 14, 2024 12:43 pm I’m in my early 60’s and want to retire at age 67.
I’m married, debt free, have a retirement savings of currently $600,000 and hope to have $800,000-$900,000 by the time i retire.
No pension 😔
Our expenses are currently $63,500/year.
SS should be $53,118 combined at FRA.
We have $95,000 in 5 year 5% CD’s
$22,000 in an emergency fund
$4,000 in a regular savings account.
3 properties worth $1.6 million (all paid off)
We get about $30,000 net in rent from the 2 properties.
We have been a 1 income family our whole life on s modest income.
Put 2 kids through college.
I still feel like a failure at not saving more for retirement.
I'm guessing if you hadn't bought real estate as investments you'd have a lot more in your retirement accounts. That sir does not make you a failure but perhaps wise and diversified. Your 600K can turn into 8-900K by the time you retire especially if you continue to contribute to it. Your expenses are high but you have good future income that is not job related. You've done very well and if it were me I'd find a way to retire before 67. I don't understand what you mean by combined SS at FRA after saying you have always been a single income family?
bradinsky
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Joined: Sat Jul 21, 2018 6:32 am
Location: Ohio

Re: Size of my portfolio for my age

Post by bradinsky »

OP,
When I look at your stats, I basically see mine/ours. Actually, yours are probably a little better but we’re doing fine. You should be proud of what you’ve accomplished! Hanging around this site & reading about the high earners can sometimes make you feel like a pauper :D
Keep up the good work!
Topic Author
BoglesMyHero
Posts: 6
Joined: Tue May 14, 2024 12:11 pm

Re: Size of my portfolio for my age

Post by BoglesMyHero »

My wife worked enough before we got married and up until we had children then she has stayed at home ever since but my company gave her a very small check every week just to make her eligible for SS. She SS will be 50% of what i get.
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Sandtrap
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Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: Size of my portfolio for my age

Post by Sandtrap »

BoglesMyHero wrote: Tue May 14, 2024 12:43 pm I’m in my early 60’s and want to retire at age 67.
I’m married, debt free, have a retirement savings of currently $600,000 and hope to have $800,000-$900,000 by the time i retire.
No pension 😔
Our expenses are currently $63,500/year.
SS should be $53,118 combined at FRA.
We have $95,000 in 5 year 5% CD’s
$22,000 in an emergency fund
$4,000 in a regular savings account.
3 properties worth $1.6 million (all paid off)
We get about $30,000 net in rent from the 2 properties.
We have been a 1 income family our whole life on s modest income.
Put 2 kids through college.
I still feel like a failure at not saving more for retirement.
Medical Insurance and health needs now and at age 67?

Employer paid retirement health insurance?

Or reliance on Medicare "Original" and supplementals at age 65?

Be very careful of health insurance and health care needs prior to Medicare. It can deplete a portfolio quickly and unrecoverably.

Your rental numbers are marginal.

Need more info.
Please Edit your original post to include info per the forum portfolio review format that "watty" linked.

j🌺
Wiki Bogleheads Wiki: Everything You Need to Know
James.534
Posts: 312
Joined: Thu Feb 04, 2021 1:34 pm

Re: Size of my portfolio for my age

Post by James.534 »

I think you are doing fine, but...

I would figure out if you want to be a land lord in the future and what is the opportunity cost of the properties. For example, if you have two properties netting 30k that are worth 1 million. Right now 1 million buys a MM account a 50k a year return with no work. You should be getting a significant premium in return above safe money. Eventually, if you are going to sell the properties, when is the right time financially to do so, so it does not affect your taxes and medicare.
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