Very timely thread for me and my wife. We are currently renting but also looking at purchasing a condo.FoolMeOnce wrote: ↑Sun Apr 14, 2019 8:03 amIt looks like you'll be withdrawing less than $40k between 61-65. That's what you are taking from taxable, but then putting a significant amount back into 403b and Roth accounts, right? That's a wash for portfolio withdrawals (actually a plus for the tax treatment).blackburnian wrote: ↑Sat Apr 13, 2019 10:58 pmUPDATE
I am the OP, still house-hunting. I have found a condo I like now and am wondering (again) if it is too expensive. My numbers have changed a little from when I first posted, so I am updating. The condo is $635,000. I would pay cash (prefer not to have a mortgage). (Large carryover losses means no capital gains to raise cash.) Should I buy this place, or is it too expensive?
Here are updated stats:
Taxable: $1,950,000, AA 50/50
Savings acct: $220,000 (waiting to be put into house)
Retirement (403b and Roth): $350,000
Age: 61, single, no children, currently renting
Income: $78,000 (putting max into 403b and Roth IRA, so withdrawing some from taxable for living expenses)
Work until: 65
Budget: $71,000/yr (includes estimated monthly costs for new condo; includes Roth contribution, so will be reduced after 65; includes some other expenses that mean spending is more than income)
TIAA annuity: start at 65, expect ~ $16,000/yr
Take SS at: 70, expect ~ $24,000/yr
I figure between ages 61 and 65 I need to withdraw about $40,000/yr for expenses; between 65 and 70, $47,000 per year, and after age 70, about $23,000/yr.
Let's say price of condo plus costs, moving, etc. comes to $660,000. I would have roughly $1.5 million left in taxable, plus about $150,000 in Roth IRA. Is that enough?
If I am right, you are probably withdrawing a fraction of a percent from your portfolio now, and then looking at a 2.8% withdrawal rate for five years followed by a 1.4% rate. That leaves room even for poor returns in the near term. I think you'll be fine.
We are looking in the 600K range. HOA fees in the area range from 400-750/month; property taxes typically range about 2.25% of purchase price (~12-15K/year). We would apply for a mortgage, and not touch VG accounts.
Metrics as of 4/14/19:
Current monthly rent 2800.00
MARCUS MM account 200K - to be used for down payment
Taxable: 3.2 MM (85% equity, 15% tax exempt bonds)
IRAS: 2.1 MM (100% bonds)
SS/pension: ~ 7K per month
Estimated monthly budget: 15K
Should be set our sights higher, lower, continue to rent?Any thoughts or input is appreciated.