Pros (for retirement)
We have significant savings accumulated (net worth of $5 million) at this stage of our lives
DW could put me on her health coverage at work
No kids - any remaining savings when we are gone would just go to charity
My job often consumes 50+ hours a week, which is one reason why I don't have more hobbies
I feel like I haven't thought enough about what I would do to occupy myself, after retirement
I still like what I'm doing for the most part at work, although less than I did five years ago
No kids - DW and I are on our own, and the boglehead in me wants to keep adding to our financial safety net, with my income
My parents, in their mid-80s, are still alive and I think of myself as their safety net, although they are currently self-sufficient
Our current situation:
- My age: 60. DW’s age: 55, with current plans to work until 62. Both in good health; no kids.
- Both of us work for megacorps with no pension. According to ssa.gov, my projected Social Security benefit would be around $3,200 at full retirement age and $2,200 at early retirement. We have only begun to think about the interaction of my SS benefits and DW’s, and obviously there is a lot to consider there. But based on our savings (below), I would not be inclined to begin drawing Social Security early.
- We live and work in a relatively HCOL area. Our 3,000 sf home was built in 2010 and worth $1 million, and we paid off our mortgage early in 2019. We have no other debt. Our thought is that we would downsize after both of us retire and instead have two smaller residences in lower cost-of-living areas, one warm and one cool.
- I earn roughly $160 thousand per year, plus RSUs that have typically take me well over $200 thousand in recent years; DW earns $100 thousand. We both work in the finance and accounting space, and consulting or part-time opportunities would likely be available to me.
- We have no long-term care insurance and that worries me just a bit.
- In addition to our home, we have accumulated roughly $4 million in savings. Currently my retirement accounts, mostly in 2025 target date funds, are worth $950 thousand. DW’s balances, mainly in 2030 target date funds, are worth about the same. Of the combined $1.3 million in retirement accounts, only about $300 thousand is in Roth accounts.
- Our other savings include taxable brokerage accounts (roughly $1 million, with an AA of 60/30, excluding 10% in cash); high yield savings ($450 thousand) and iBonds ($160 thousand). I also have $500 thousand in RSUs that vested 4-8 years ago and which I didn’t sell (more recently I have always sold on the vest date).
- Looking at Quicken over the past couple of years, our annual expenses seem to run around $75 thousand a year, including some travel.