I’m 66, we’ve greater than $2 million, I simply need to golf – can I retire?

I at the moment have about $1.6 million in retirement accounts. My spouse (60 years outdated) has about $600,000 in varied common and retirement accounts. We have a 16-year-old daughter at residence attending highschool and faculty in a twin enrollment program. If she stays with this system she’ll have her bachelors at 19. While in highschool she takes faculty lessons and we pay no tuition whereas she’s in highschool. 

Our month-to-month bills are about $9,000-10,000 monthly together with medical insurance for my spouse and daughter. We personal our modest single-family residence with no mortgage. Taxes and insurance coverage are at the moment about $6,000 per 12 months. We at the moment don’t have any debt, apart from an American Express and Visa that we repay each month.

I’m on Medicare. I get walloped for a double premium for half “B” as a result of I’m thought of a high-wage earner. The two of us are in affordable/regular well being for a few outdated farts.

I need to throw within the towel on May 5 and play extra golf. Can we do it?

See: We’re in our 60s and have misplaced $250,000 in our 401(okay) plans — can we nonetheless retire?  

Dear reader, 

Congratulations on saving a lot on your retirement. That’s a beautiful accomplishment alone!

Because I don’t have your whole financials in entrance of me, nor am I a monetary planner constructing a complete plan on your retirement, I can’t say for sure in the event you can retire. However, it does clearly sound such as you’re doing effectively and that you simply’ve been planning. Instead of telling you to go for it or not, I’m going to supply just a few issues to think about earlier than you choose up your mid irons. 

More than $2 million (you and your spouse’s financial savings mixed) is some huge cash — I’m not suggesting in any other case — however in relation to retirement, it doesn’t imply you’re mechanically good to go when you hit the million-dollar mark. There are so many components, a few of which you talked about like healthcare and debt, in addition to saving and spending. 

I harp on spending evaluation so much however to me, it’s so essential when deciding if and easy methods to retire. Why? Because that is one thing that, for probably the most half, you’ll be able to management. That’s a fairly highly effective feeling. 

So my first suggestion: Review these AMEX and Visa statements, in addition to cash that comes out of any checking accounts, and just be sure you’re spending the way in which you need and have to spend. When you retire, you gained’t have that part-time revenue anymore, and whilst you could also be itching to get on the inexperienced, you’ll even be stressing out in the event you don’t have sufficient inexperienced in a decade or two. You’ve advised me what your Social Security advantages might be and what your common month-to-month spending is, however I might counsel actually poring over your spending and assessing how snug you’ll be in the event you proceed to spend that approach whenever you retire. 

Check out MarketWatch’s column “Retirement Hacks” for actionable items of recommendation on your personal retirement financial savings journey 

There’s a second half to that evaluation, which is how a lot cash you propose to withdraw out of your retirement accounts. I’m unsure in case your spouse remains to be working, however regardless, the more cash you’re taking out of these accounts each month, the much less there may be accessible to develop over time. Taxes additionally play a component right here, relying on in the event you’re withdrawing from a standard or Roth-style account. Those taxes might take a bigger chunk out of your spending cash, in addition to doubtlessly provide you with a heftier tax invoice come tax time. 

Think about this when your daughter goes off to varsity, too. She might not be there lengthy if she continues together with her hybrid highschool and faculty programs (which is fantastic, by the way in which), however do you propose to pay for her tuition, and if that’s the case, the place is that cash coming from? Advisers inform me on a regular basis: you’ll be able to take a mortgage for faculty, however you’ll be able to’t take one for retirement. It is perhaps useful to have a separate financial savings account earmarked for schooling, in the event you don’t have already got a kind of or some type of faculty financial savings account like a 529 plan, so that you simply’re not draining your retirement account for a tuition invoice. 

One final bit about that — plan for the sudden. What will you do if a significant expense arises? Will that cash additionally come from a retirement account, or do you may have an emergency account put aside to cowl it? Saving some huge cash for retirement is superb, but it surely’s not the one process people have to handle… developing with a Plan B, and perhaps even a Plan C and Plan D, is important too. 

Also see: Are you planning for retirement all flawed? 

Next, earlier than retiring, examine the way in which your cash is invested. What’s your asset allocation like, and does it want to vary? Don’t make alterations simply to make them — and positively don’t make them simply since you learn the markets weren’t doing so sizzling that day — however have in mind this cash does have to develop for many years to help you and your spouse, so you will have to strike that stability. Reaching out to a certified monetary skilled, comparable to a licensed monetary planner, may help you make sense of what one of the best funding combine is, however in any case, log in to your account or name up the agency the place your accounts are situated and examine that asset allocation. 

Also, you talked about you’re already on Medicare. I might counsel taking the time now — effectively earlier than open enrollment — to evaluate your present and anticipated future well being bills, after which assess how useful your present protection is for you. I do know you talked about you and your spouse are in affordable well being, but when there are any operations or companies you assume you could want subsequent 12 months, it’s higher to begin reviewing what plans present you one of the best protection on your scenario so that you simply’re not paying extra out of pocket than crucial. This is an train you don’t have to do instantly, however it’s going to definitely aid you really feel extra ready come the top of the 12 months when it’s time to maintain your present plan or change for one thing else. 

As an apart, you’ll ultimately pay much less in Medicare Part B premiums when your modified adjusted gross revenue declines. Those premiums are primarily based in your tax returns from two years prior. 

You sound like you might be heading in the right direction, which is fantastic. I might simply warning you to tie up just a few free ends earlier than resigning so as to tee up with out worrying. 

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Have a query about your personal retirement financial savings? Email us at HelpMeRetire@marketwatch.com