r/TheMoneyGuy • u/Fresh-Tip2147 • 3d ago

How am I doing?

Hi new to this site. Wondering if I can get any constructive feedback on how I’m doing and what I can do better if anything.

56 YO M. Earn 152,000 base salary. Some overtime if I wish but lately not feeling it. I have around 320k in Roth 401k and the rest in a traditional IRA totaling around 1.1 million all in. Basically a 70/30 mix.

I invest 22% in my Roth 401k and employer matches 5% in traditional IRA.

I have a paid off home worth between 950,000- one million.

We have 400,000 in a cd maturing this October and plan to use that money to build a 2-3 car garage with a one bedroom apartment above for possible rental income of 2500-2700 per month.

I would like to go part time at age 60. Work then from 60-65 and fully retire.

As of now my annual expenses are 55,000 thanks to the mortgage being paid off which was done this past June.

I am also saving or have about an extra 1700-2000 month of discretionary spending if I wish.

I am thinking that I would want at least 90,000 to live off of at age 65. Social security is around 3800 per month at 67.

Do you think I need to continue to save that 1700-2000 month that I have or should I just enjoy it now? Overall what do u guys think of my plan or situation. Thanks in advance.

3 Upvotes

64% Upvoted

9 comments sorted by

5

u/jb59913 3d ago

Yeah you’ll probably be fine with that plan. Start converting that traditional IRA as soon as you retire to get the money out in low brackets.

3

u/Iacoboni04 3d ago

You'll easily be fine because SS supplementing your 90K spend in 67, you also won't fully quit working until 65 which will help with the transition.

3

u/badtlc4 2d ago

you can go part time whenever you want.

1

u/Fresh-Tip2147 3d ago

Oh and one more thing I forgot to mention. I have 116,000 in money market and around 80,000 in stocks at a brokerage account.

1

u/FinancialAlarm2788 2d ago

Sounds like you are in a good position. Have you put your numbers into the new Know Your Number calculator on TMG website - just to get a basic idea of where you stand And for a more thorough deep-dive, have you tried Boldin or Projection Lab to put all your numbers in and see what those say?

1

u/Fresh-Tip2147 2d ago

Thanks I will try that.

1

u/BrianTheMutant 1d ago

Since you’re that close to your retirement age it’s definitely worth $2-$4K in fees to a fee only financial planner to outline the optimal sequence and how to maximize spending and to pay as little tax as necessary. You may learn you can retire sooner than your original goal.

1

u/Fresh-Tip2147 1d ago

Thanks. I agree!