Personal: Age 47, DW Age 43, 2 kids - 16, 12 years of age. Kids are expected to attend college in 2 and 6 years respectively. DW is a stay at home parent. We live in US coast and are US citizens.
Networth: Total assets of $5.3M without any debt (Home - $1.6M, Taxable investments - $1.6M, Tax advantaged - $1.4M, International real estate - $0.7M)
Expenses: We expect the annual cost to be $90K including the health insurance. The upcoming college expenses can vary a lot, but we are prepared to set aside $400K in today's dollars.
Job: I work in a tech company with an annual compensation of $500K-$600K. The job is OK with enough political issues, long hours, and stress. It can be draining at times. I would not be in this job if I am not getting compensated this well.
Now, let me share more details about current thinking around retirement plans.
Rationale: I want to make sure that we enjoy the life while our bodies are still in a decent shape. We are already seeing some body pains that can limit our mobility as we age past sixty. The work stress is making me grumpy. I would like to spend more time with kids while they are still at home. DW and I enjoy our time together and doing simple things like cooking in a relaxed environment without stress. We also like to spend some time with our parents while their faculties are still in a good condition, who live in Asia. Once both kids are out of the house in 6 years, we would like to downsize/sell the current house and spend a few years travelling. We have an apartment in Asia which could also be used as a base so that our expenses are even lower. If money is not an issue, I would quit today, but want to be sure that our plans are sound.
Retirement Plan: Here is the current thinking
- Retire in 2021 after saving additional $200K.
- Live in the current house for next 7 years until both kids leave for college.
- Prepared to spend $400K in today's dollars on kids education. Actual cost may vary.
- Health insurance is through ACA.
- Sell the current house in 7 years. Invest the proceedings in taxable account. Move to the apartment in Asia.
- Live in Asia in our paid off apartment and travel once a year to US; Alternatively pay for kids flight tickets for them to visit us.
- While in Asia, let the investments grow in US accounts for 10 years while the expenses are $50K a year.
- After 65 years of age, return to US. Buy a smaller house in US (<=$500K), ideally closer to at least one of the kids
- Spend traditional retirement years closer to kids and grandkids. Leverage Medicare and social security withdrawals after 67