My wife and I have $ 7,000 pensions, $ 140,000 cash and $ 3,500 social security. Can we afford to retire?

At the end of the year, I was thinking about retirement. I am married and will receive two monthly pension benefits; $ 3600 from military service and $ 1,500 from civil service. Our forecast monthly subsistence costs will be covered with them, so our $ 3,500 total social security income is completely disposable savings, travel, etc.

I don’t have much savings, only about $ 140,000 between cash saving and a cost -saving plan. We will have a total of $ 7,000 each month, and after tax, medical, dental, vision costs and life insurance, the total cost of living will be around $ 4,000. My wife will be 65 in January, and I will have that century in 13 months.

My 20 -year -old wife is a Japanese citizen and lives in the US as a permanent resident. She did not work in the US and did not have enough work for years in Japan to get into her social security. Her only income when I retire will be the benefits of my spouse from my social security. I will include my wife in Survivor-Benefit plans for my military pension and civil service annuity.

They will give about $ 5,000 a month with the increase in social security if I pre -assess my wife, as well as a lump $ 240,000 life insurance benefit. According to my work records, she will also receive spouse benefits and I am still alive. For my military service, we have to cover the tricare costs exceeding Medicare.

We are healthy enough at this time. I think we are good at retiring. What is your advice?

Thinks

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My answer falls to the edge of the razor. Military service can take much more toll physically and mentally. You deserve this time.

I have the theory of your letter. You have put a lot of hard work and a decent check in your military and civil career, and you include the same consideration in your decision or retirement. The answer is, of course, yes, you can support yourself and your wife in retirement, taking into account your pension and social security benefits, which I think are less than your social security income, demanding them up to 70 years. If you can retire and set aside your social security, it is even better.

Usually I would urge people to hang until they are 70 years old before they demand social security, especially if they are healthy. Increasing the cost of living will eat your income within 30 years. In addition, you and / or your wife may need long -term care. But you and your wife have more than 40% of your monthly income when all your basic costs are paid. Your wife will benefit from social security spouses’ benefits when you both live and have survived benefits if you die against her.

Given that you are married for 10 years, your wife would gain 50% of your social security value, even if she has not worked and / or worked only for a limited time. It will receive 100% of its social security benefits throughout the retirement age, which is 67 years old for anyone born in 1960. Or after that, it would receive a smaller amount if she claimed at any time from the age of 62 to the full retirement age. If she waited up to 70 years, your wife would receive about 8% more a year.

Retirees are often recommended for two -year cash expenditure, but I am waving the Amber flag: you can still leave yourself slightly stretched if you need money for your home care or other unexpected expenses. Most retirees with IRA and / or 401 (K) want to have a cash cushion to avoid their investment bills markets such as 2000-2002. (Tech Bubble) and 2007-2009 (subprime mortgage disaster).

You will not worry about the stock market EBBS and flows such as millions of Americans approaching the retirement age with 401 (K) or Ara, given that you have a guaranteed, fixed military and civil service. This is a huge weight from your mind and should give you confidence when you finally decide to hang your work shoes and enjoy all the time together, which hopefully includes travel and discover new hobbies.

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For those who will invest in investment, Rowe Price recommends retirees to have a portfolio consisting of 60% shares and 40% bonds that have recovered from the bears’ markets within two years. “The exact amount you want to have also depends on the risk of your tolerance and your saved amount,” he adds. “Another advantage of a balanced approach is that bears are rarely reduced at the same time during the stakes and bonds at the same time.”

There is a lot to say about the benefits of your investment strategy and peace about the benefits of your investment. “With more guaranteed income, you will not have to withdraw so much money from your investment,” said First Command, a mediator-traveler, located in Fort Worth. “This can affect how you choose to distribute those funds, which can allow you to focus less on short -term liquidity and more long -term growth.”

“Your military pensions can also provide more budget opportunities,” he adds. “One of the ways to consider is the use of guaranteed income, such as military pension and social security, for fixed costs and using your investment portfolio income to pay for your discretion.

Of the three main sources of income of you and your wife, (pension), variable (investment) and one-off (inheritance or disposable benefits from a former employer)-your greatest source, happily, guaranteed. It’s a great place to be. “If your expected expenses are significantly exceeded by your expected income,” says the first team, “it may be a sign that you need to make changes to your goals or repel the planned retirement date.”

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But here is a repetition, so you know who risks when you demand social security early. You get 100% of your social security benefits throughout the retirement age, which is 67 years old for everyone born in 1960. Or after that you will get a smaller amount if you demand from 62 years to full retirement age at any time. If you wait up to 70 years, you will get about 8% more a year. Some advisers say it can handle it at about the same way, whether you are starting to use your benefits for 62 or 70 years.

As you offer, your wife, even if she has no job records or little benefits from your job records, can receive from a third to half of your social security benefit before you both live, the Social Security Administration reports. The benefits of survivors are more generous. “The widow can be from 71 % (at the age of 60) to 100 % (full retirement age) of what the spouse has received before them death.” You can learn more about such benefits here.

The financial argument shows that people should postpone their social security benefits as long as possible, especially if they are in good health as you seem to be. Based on the working document of researchers of the Boston University researchers and the Atlantic Reserve Bank and the Federal Reserve Bank of the Bank, virtually all employees should wait up to 65 years. More than 90% of people should wait for 70 years, but it seems that only 10% does.

As for your retirement context: The requirement that social security early reduces the lifelong household discretion from $ 182,370 to the average employee approaching, according to the document. “Optimization will increase 10.4% of the typical lifetime of employees,” the researchers wrote. “For one of the four costs of a life period, the increase in a life period exceeds 17 percent, but not all have a $ 5,100 combined pension.

The longer you can wait, the better. Tomorrow is not a great rush to retire. This seems to be a powerful case where you are expected to require your social security benefit, but it is not necessarily fair to everyone, “adds First Command.” For those who have health problems, it may make it more meaningful to demand their benefits early.

You both know your lifestyle. If you feel 100% ready, go to that.

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“She started to grow my mother,” my stepmother married after my father died. How can I demand my legacy?

“My wife and I are very grateful”: Our son wants to pay our mortgage before retiring. Will it get caught?

“Is it ethical?” I want to leave my home to my children from their first marriage – not my second husband.