I will retire in 3 years. Combined income 200K gross . We have 600K in RE equity, 150K stocks, 157K liquid. I am 63yrs old, and my wife is 60. A 3 year plan?

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Answered by Cathy Curtis, Financial Adviser in Oakland, CA
A few things stand out for me as I'm looking at your question. For example, you don't mention how much you and your wife spend annually. In addition, more than half of your non-real estate investments are in cash. If you had a combined income of $200,000, I'd imagine you live a nice lifestyle. You can't spend RE Equity, so it's important to figure out how much you will need to pull from your investments each year in retirement and to also invest those assets to get a sustainable return. Bottom line, there are many more pieces to this puzzle that are needed to develop a three year plan. | 09.20.14 @ 19:36
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 06:33
Answered by MoneyTips Writing Staff, Financial Adviser in Los Angeles, CA
Ebong Eka, CPA shared the following answer with us:

As previously mentioned, your Real Estate Equity isn't liquid until you sell your home and move to a smaller one. How much do you spend a year? Housing costs, bills, debt payments etc. As of now, you have about $307,000 that's potentially liquid and your combined yearly income is $200,000. I don't want to be the bearer of bad news, but you most likely won't be retiring in 3 years unless you have a huge income event (come into some money) or radically reduce your living expenses.


Ebong Eka, CPA and author of Start Me Up, is one of our Top 30 Most Influential People in Personal Finance and Wealth

| 09.22.14 @ 16:49
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 06:33
Answered by Kim Miller, CFP®PRO+ in Redmond, WA
You don't mention how much you expect to get from Social Security. You can get an updated benefit estimate at their website: www.ssa.gov. Are you max funding your retirement accounts? 401ks? IRAs? Between the two of you you can contribute $59,000 to 401ks and IRAs each year - that could make an huge difference. $59,000 times 3 years would more than double the investment assets you mention in your question. So three action items: 1) check on your Social Security benefits, 2) max fund your retirement accounts and 3) consider where you will live and in what kind of home. Good luck! | 10.01.14 @ 22:09
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 06:33
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Answered by

Kim Miller
Kim Miller, CFP®PRO+ in Redmond, WA

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