“We would reduce our house and probably move to a country with lower property taxes (we currently live in Texas)”. (Photo themes are models.) – Getty Images/Stockphoto
I greatly appreciate your section and the advice you provide. In the past, I was wondering that I had more time with my husband in my younger years. We were both married for over 20 years. We met when I was 46 and was 54 years old. Our divorce has caused us a lot of financial losses, and we have a total debt of $ 105,000, excluding the payment of our home, which is $ 2200.
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I am 51 at the moment and my husband is 59 years old. He withdraws from public work and receives a pension that begins about $ 3,600 a month, as well as for both life -long health insurance. When it reaches 62, we believe that his social security will provide approximately $ 1800 a month. He can refine Roth IRA in four months to pay our unpaid debt by minus our house.
I earn $ 129,000 a year. I contribute to my 401 (K) 15%, which is currently valued at $ 165,000. I also went around the old 401 (K) with $ 125,000, which is managed by a financial advisor. Can I quit work in three years – when my husband starts collecting social security? At that time, I plan to stop contributing to my 401 (K). How much do you think my account would be worth it when I reach 59 1/2?
The money run by my financial advisor earns about 9% a year and my employer corresponds to 6% of my compensation. We would reduce our house and probably move to a state with lower property taxes (we currently live in Texas). What do you think I should do? Should I retire early and join my husband to this new adventure? Thank you in advance for your advice.
The wife
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You will not be able to leave 401 (K) for another eight years. You can also be forced to consume your social security benefits until full retirement age. – Marketwatch illustration
Think again before going out early.
Your husband will have to pay 40% of his combined pension and social security for paying your home, and this is after he will use his Roth IRA to pay your total debt.
Even if your $ 165,000 401 (K) was worth $ 195,000 after three years – assuming that 6% growth is relatively conservative – you will still need that money to stay for another 30 years. It is simply not enough, even with her husband’s state pension. For another eight years, you will not be able to withdraw from your 401 (K) and you can also be forced to take your social security benefits until full retirement age.
By stating that his social security was 62, he also reports much less than the full amount if he waited. You wait a long time to get social security, and your slightly thrown comment that your husband will purify your Roth Ira to pay your debts, and also gives me a pause. You have a relatively safe six -digit income and your employer contributes to 6% of the matches, so why throw it out now because your husband is ready to retire?
Unless you completely hate your work and feel that it is frustrating, you need to say a lot about these years of the biggest earning and the meaning, social contact and structure of the job you bring to you. You can miss it when you are gone, and even if you enjoy seeing his butt, you will definitely miss financial independence and security knowing that you are building a nest egg for a pension. Do you really want to be dependent on your husband?
Suppose you have had $ 400,000 in the total 401 (k) S. in the arguments for three years using 4% of the 4% of your nest each year in 30 years-year-in-a-year you will take $ 16,000. According to a recent Northwestern Mutual study, US adults will need averaging $ 1.46 million on average. It does not help you easily retire.
You are fine. Keep. Based on one federal reserve report, about 75 percent. Adults retired, but 25 % There were no savings in retirement. Often a hint is a question. If you are worried about your ability to retire, work and accumulate savings. You want more leisure time with your husband, but will you have more security and more peace of mind?
The Social Security Administration and AARP provide pension calculators to help determine if you have enough money to retire. (When it comes to your next point, Hawaii has the lowest asset fee according to this guide from SmartSet. But that does not necessarily mean lower living costs.) You can introduce your assets, expected pension costs, life interference assumptions and tax assessments. Longevity is high unknown. According to SSA, the average US woman, which reaches 65, can expect to live around 86.7.
If you retire at the age of 54, could you give up a claim for social security before you can maximize your benefits by 70? Many people – 28.4% of men and 26.5% of women -, taking into account the year when a person was born, seeks a full retirement age, which is between 65 and 67 years. Meanwhile, 8.4% of men and 9.3% of women wait at least 70 to benefit their benefits, the SSA reports.
I wonder how much an early withdrawal, as exciting as it may be, is your idea and how much your husband, who understands, wants to start your new life after work. Planning can also be fun. What kind of retirement would you like when you have reduced size and move to a new state? It is great that you are in a happy marriage; This will help you in your pension, but will your income meet your pension goals?
Longevity and lifestyle require healthy investment income.
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