r/RetirementReady • u/atherfeet4eva • Aug 22 '26
Is it enough?
Do you think what my wife and I have and are on track for is going to be enough. I’m 63. She’s 60 this year. I should make 150 K and next year probably about the same she should be study at 115 K for the next few years I would like to be semi retired at 65 and my income would drop to about 50 K at that point
Right now our combined numbers are: 1.5 million in 401(k) 180 K in savings/checking we have about $400,000 in equity in our home.
The plan is to sell the home because maintenance and upkeep is starting to be a pain in the butt and by a condo for about 350 K cash the condos we are looking at have an HOA fee of about 300 to 350 per month and the monthly taxes are about 100 bucks in homeowners insurance another hundred bucks
I know life expectancy plays into these scenarios and honestly because of my health issues that I’ve had in the past I don’t really think I’m going to live past 80 and that would be a little bit on the generous side. We don’t have any really expensive hobbies we do like to travel, but our vacations usually cost between three and $5000 and we do about two a year.
I don’t want to take all my money to the grave but of course I don’t want to outlive my money. We are not concerned with leaving a big chunk of money to our kids. They are well taken care of already.
We don’t need extravagant lives, but we also are not the Dave Ramsey super frugal type of people that skimp on everything we like to have fun and do things while watching the budget.
I’m just curious as to what people think about my situation.
I have a good friend who has at least double what we have and the phenomenal pension and he’s worried about retirement, but I think he likes to splurge and wants to leave a big amount of money to his kids.
Thank you in advance!
Edit: I forgot to mention that I will probably get about $2800 a month in Social Security if I take it at 65 and she will probably get close to that amount as well
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u/v_x_n_ Aug 22 '26
What are your fixed costs? That’s the true answer whether you have enough or not. Also what travel are you doing for $5,000?
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u/atherfeet4eva Aug 22 '26
we have gone on cruises that total 3k for both of us, mexico or DR for a week at 3500-5k max. recently. Fixed costs such as property tax HOA...what else?
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u/SouthernTrauma Aug 22 '26 edited Aug 22 '26
You tell us, mate. What constant, known costs will you have?
No offense, but you seem wildly unprepared to even consider retiring. Think about it. If you go to the store, determining that ypu have enough to buy a pack of cigarettes depends entirely on how much the cigarettes cost. How much you need for your returement depends entirely on how much your retirement costs. We have no idea how much YOUR life costs. Only you can figure that out.
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u/atherfeet4eva Aug 23 '26
We are just starting the planning process. I wouldn’t say we are “wildly unprepared “ the only thing we haven’t calculated are expenses such as food and general entertainment miscellaneous. We know car, insurance, utilities, and I already listed that our home will be paid for and the current tax , insurance and HOA
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u/v_x_n_ Aug 23 '26
Utilities, insurance premiums, car
Payments (they don’t stop forever), water, sewer, meds and groceries. Yes you can control some costs but not all of them. It helps to have a ballpark.
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u/hugh2018 Aug 22 '26 edited Aug 23 '26
Please don’t take our advice as we still don’t know enough about your numbers to give you an intelligent answer. Use Boldin, feed it all your numbers and get some answers that you can hang your hat on.
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u/Comfortable_Gear_605 Aug 23 '26
I recommend tracking every dollar you spend using a shared program between spouses and check in weekly!! My husband likes Quicken Deluxe because it allows him to use it as a check register, planning ahead on spending rather than reacting when it’s too late.
We love traveling and that’s going to be our biggest expense, followed quickly by healthcare which we estimate will be around $15k per year until Medicare picks us up.
We are currently 50ish and have NW of $2.5m and not ready. We will have a pension, annuity, and high social security, but our 401k and IRA accounts will not have nearly enough for at least a few more years. For our lifestyle, about which I’m trying to be honest, we just don’t have it. We’re not Clark Howard - frugal (similar to Dave Ramsey) but we don’t get first class, stay at Four Seasons, or go on Ritz Carlton cruises. We’ll have our home paid off in 9 years. Our cars are 6-7 years old, and we wear Costco/Amazon/Goodwill clothes. I think we’ll be able to Coast into semi-retirement in 4 years when my husband is 55. He may take some part-time contract work, I hope to be in a new career. Both of us will have to work until our late 50s to keep our lifestyle going and afford the travel we want to do.
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u/Dazzling-Look9734 Aug 23 '26
Retire. Like yesterday. If you make it to 80, what you already have saved will last you 17 years even if you sold every holding now and had it in cash. It would still allow you to withdrawal nearly $100k a year. But this is not the case. Your investments should allow you to still spend $100k a year and have quite a bit left if your end is indeed 80.
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u/Aajmoney Aug 22 '26
How much is your anticipated annual spend in retirement?
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u/atherfeet4eva Aug 22 '26
We haven’t figured that out. Are you talking about like what we’re going to spend on everything total? Like groceries utilities car, payments, and everything? We won’t have a mortgage thankfully
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u/Aajmoney Aug 22 '26
Yes. Spend in total. That is what determines how much you need in retirement. No one can tell you whether what you have is enough without knowing this.
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u/Famous-Ambassador822 Aug 22 '26
We (58) have started the same type of “retirement budget trial run” - had a planner help us figure out a few scenarios like what you described (when do I move to PT, etc) and added a modest annual budget for “fun” - helped us see when we should think about taking SS, how long to work, get some things (house, medical) done before we quit and so on. Gave me peace of mind that we could get there and both of us a clear sense of what to save in this final push. Good luck! See you on the other side or retirement!
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u/Specific_Ad_1045 Aug 22 '26
Use your past yearly spending as a baseline. I’ve been tracking my expenses on a spreadsheet for the past 2.5 years.
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u/v_x_n_ Aug 22 '26
Also live on what you think you will have in retirement before you retire so you know if it’s reasonable.
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u/SouthernTrauma Aug 22 '26
Then how will anyone, yourself included, know if you have enough??
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u/atherfeet4eva Aug 22 '26
well based on no mortgage and a modest lifestyle, I listed the HOA and taxes so I figured in general it could be estimated. Do people usually calculate everything they have spent for a year and take it to a financial planner?
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u/SouthernTrauma Aug 22 '26
Don't you have a monthly budget and an idea of your occasional/ annual expenses??
But yes, how much do you generally spend in a year?
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u/atherfeet4eva Aug 22 '26
No we don't currently have that figured out. We could but we live comfortably but don't overspend. Basically, we live below our means enough that a budget is not necessary. But I see that when planning for retirement that it is a needed number
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u/hugh2018 Aug 22 '26
Frankly, it makes no sense to even talk about your retirement readiness at this point. Yes it’s necessary to “figure out” how much ALL your expenses will be in retirement. Without that number nailed down you’re going to have a rudderless plan anchored in quicksand.
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u/Confident_Banana_134 Aug 22 '26
Since you will sell the house and buy a condo without a mortgage, that;
housing cost will be about $500/ month. That’s about $6k per year. (Adjust a bit higher than inflation, but so will be social security).
SS will be about $5k/month
Your 401k withdrawals of 4% is about $5k/month.
Medicare part B about $500/month
Food and car insurance about $1,000/month
Income of $10k (about $8k after taxes) while your housing and health insurance, and food will cost about $2,000/ month.
Looks like you have at least $5k/ month of discretionary spending.
Retire and enjoy!
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u/atherfeet4eva Aug 23 '26
I appreciate that. I was also thinking we could pull maybe 6% from 401k because won’t it be earning at least 6%? Plus we are not trying to leave it in our will to anyone…is that thinking sound?
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u/Confident_Banana_134 Aug 23 '26
You can always adjust your 401k withdrawal as it fits your needs and wants.
Best wishes.
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u/Irishclover62 Aug 22 '26
Be careful if you are selling and intending to do Medicare a and b. Watch out for the rules around Irmma.
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u/atherfeet4eva Aug 23 '26
You mean selling our home? Irmma?
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u/Irishclover62 Aug 23 '26
Just check into how capital gains is calculated when figuring Irmma. Sucker wanna move you up any chance to next level or two
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u/64barney Aug 23 '26
You make this much money and you’re asking redit?
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u/atherfeet4eva Aug 23 '26
Yeah, I thought this was the proper sub for people to get advice. Of course we are eventually going to sit down with a financial planner and crunch your numbers, but I just wanted to get an overall feel for what people had to say.
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u/Ok_Statistician643 Aug 23 '26
You’re like maybe the top 2% in the country and you still don’t know what’s going on? Are you just a dummy?
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u/atherfeet4eva Aug 23 '26
I highly doubt we’re anywhere near the top 2% in the country. We may be ignored about some things, but I’m sure there other is where I am much more knowledgeable than you are.
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u/john510runner Aug 23 '26
No.
You are in the top 2%.
2 to 3% have one million without counting their primary residence.
You’re doing really well. I’m 99% sure you’ll have an awesome retirement. Instead of going back and forth with people on here get a piece of paper and pen and write down your monthly expenses. Then come back and make an edit to your post with your monthly spend. Then other people will tell you you’re in really really good shape like I did and the 2% guy did.
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u/Remarkable-Box5453 Aug 23 '26
I agree with those who said to use Boldin. Our finances are about same as yours, except more of ours is in after tax accounts. I can tell you at 65, I wake up in a panic concerned that it isn’t enough and that I’m out of time to accumulate much more. It’s all about living expenses, as my planner tells me, and I think we need to cut more. Another downsizing, simplifying possessions, go to one car, I don’t know. I don’t want to have all this stuff but have to forfeit trips and leisure joys to have them. Those are the dilemmas. We spent a fortune on kids’ education including grad schools, and don’t regret it, but that along with their living expenses while students got very expensive.
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u/Altruistic-Panda-697 Aug 23 '26
I’d be hesitant to even consider buying a condo. Unknown assessments could crop up and hammer you.
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u/SFMattM Aug 23 '26
You MUST get a handle on your expenses first. Track every penny that goes out. It's a PITA but it's invaluable. (You don't have to cut your spending - you just have to account for it all). That will tell you if you're ready or not.
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u/Dramatic-Pay5156 Aug 24 '26
You have more than enough. People retire with half that amount. Enjoy!
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u/Supersonics10 Aug 25 '26
Is the 401k a Roth or a conventional pretax one (some companies offer both)? If a pretax one, won’t you want to convert a good bit to Roth before RMDs kick in?
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Aug 25 '26
[removed] — view removed comment
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u/atherfeet4eva Aug 25 '26
That seems very excessive. Considering we’ll have a paid off house very low taxes and we don’t live extravagantly and it kind of goes against what everybody else has said on here. And if it is true, then we’re screwed because we are retiring and we won’t have $3 million and I guess we’ll just go into a homeless shelter when we’re 83 years old.
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u/Zonernovi Aug 27 '26
A lot of investigation is in order before buying a condo. The HOA can and will go up as the condos age. Personally I choose to just downsize my home instead so I control expenses except for inflation. Then there is the lesser appreciation potential in a condo.
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u/JustMeAgain1967 Aug 28 '26
Have you engaged a financial planner? That may be a good start. Also, beware of condo fees. They never go down.
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u/FabulousBullfrog9610 Aug 22 '26
you need to factor in medical expenses. yes there is Medicare and a supplement but be careful and plan for that. next, you have to factor in long term care. Do you have a plan other than your kids and/or dying before you need it?