I am 60 years old and have just lost my job for 20 years. Given my age and the current economic situation, I’m looking at the possibility of retiring, at least from a full-time job. My wife is 68 years old and currently working and earns about 50,000 dollars a year and Social Security income is 1,900 dollars a month. She plans to retire in June 2021. I want to wait at least 65 years old to receive my Social Security, which will then be about 2,300 dollars a month. We have about $ 1.4 million in retirement accounts and about $ 400,000 in cash accounts. We have a $ 280,000 mortgage for a $ 1.2 million home and a new 30-year loan with a payment of $ 2,300 per month including property tax. We have no other debt.
I tend to be a saver when it comes to mistakes and spending in retirement will be a learning experience for me. My wife tends to think money is spent. So we don̵7;t just look at whether retirement is realistic, but if so, what our spending will be like to allow for a good but not lavish lifestyle and to prevent all costs from falling behind. to “yes we can, no we can” t-argument “.
See: I am 52 years old, will not live more than 80 and have 1.6 million dollars. ‘I’m tired of both mouse racing and workplace politics.’ Should I retire?
I’m sorry to hear you lost your job but congratulations on getting ready for retirement – that makes you ready to overcome the unexpected, like the present!
Waiting to claim Social Security is a great boost to your benefit, so if you can afford to do so, that’s great. It is normal to retire on mortgage, although some people feel uncomfortable doing so. It all comes down to personal preference, so just make sure no matter what you and your wife do, you’ll be able to pay those bills and have an emergency fund to back up if needed.
I’ll focus on the spending portion of your letter – partly because it seems to be the main concern at the moment, and with good reason. People should have a spending plan, especially when they enter retirement, and even more so when they’re in a relationship with different perspectives on how money is spent. Some people might call this plan a budget, basically it is, but not everyone likes the word budget – it makes them feel limited in using their own assets. Whatever you want to call it, make sure you and your wife grow one by one.
Having a budget not only keeps you from wasting your eggs, but it can also prevent the “yes, we can, no, we can’t” argument.
Brandon Opre, a financial advisor at TrustTree Financial, says the first thing to do is come up with some ways that you can withdraw from your income while still feeling safe. Then, automate the cash flow. This can look like an annuity, creating “regular and steady cash flow” or monthly withdrawals from your check or bank account. “The happiest couples I’ve ever seen in retirement all agree on a certain amount of money to live on, whether they use it or not,” he said.
This is where a meeting with a financial planner will be effective. Janice Cackowski, co-founder of Centry Financial Advisors, says an expert can help you both by creating a financial plan that takes into account all of your assets and liabilities, as well as how to Keep that money up while you retire. “This plan, which should be specific to their particular situation, should include a cash flow analysis that can show them how much they can spend each year and still meet their financial and payout goals. lifetime expenses, ”she said. Keep in mind that these metrics will naturally decrease and change as time goes by, considering various factors such as inflation, taxes and market performance, but advisers usually take all of those into account. that when they plan.
You can personally benefit from this kind of meeting, as it will give you more peace of mind when spending your own money. Frugality is an important factor in money management, but if you don’t calm it down a bit, you can end up with extreme stress and distress towards your retirement.
Joel Cundick, financial advisor at Savant Capital, said: “One of the toughest times for savers is when future deferred payments need to convert to withdraw a small amount each month in response to obligations. “I would say that six months after retirement tends to be a better place for both as long as the distribution is fair: savers, in particular, may feel better when they see a few months of equinox. Coordination does not have many negative effects. about account balances as they feel can happen. ”
Also see: I’m 63, my husband is 70 years old, we’ll have $ 90,000 a year in retirement – how can we claim our Social Security benefits?
Another benefit of a financial planner: they can act as a third party to let you know objectively how your spending is affecting your retirement security. Alex Koury, a wealth management advisor at Hosler Wealth Management, said: Meeting with an expert opens up a dialogue between you and your spouse, to find out why your money habits And the compromises both can make, says Alex Koury, a wealth management consultant at Hosler Wealth Management.
“In many cases, a financial planner can become ‘the bearer of bad news’ and can help decide how much money a couple should spend,” he said. “These recommendations can be agreed and they can be promptly resolved at later times if the planning is not on track.”
Don’t get discouraged by your differing views on how to spend money, says Nicole Gopoian Wirick, founder of wealth strategy. “I find that someone ‘spending’ and ‘saving’ in marriage can very well complement each other,” she said. Consumers encourage savers to live a “full life” while savers provide checks and cash balances. “When properly managed, this stress can be healthy.”
There are more serious questions to ask each other, including: Will the roles at home change? How do you think about retirement? What are your expectations and how does the other person match? What does the transition mean for you both as an individual and as a couple?
Remember to keep your retirement happy and participate in activities that are either free or free. Both of you have not officially retired yet, so now would be a good time to run a test to see what retirement will look like when you are both permanently out of the workforce.
Also, retiring isn’t all about financial management and getting old – it’s time to expand your interests and passions, reinvent your schedule, and develop important relationships. I talked to retirees who had really great advice to stay active in this new chapter. Some couples embark on an adventure, such as buying an RV and traveling around the country, while others create a “pot of activity,” where each spouse writes down the things they want to do for a date for the day and then each week pick one or two out. Whatever you do, enjoy the time.
Have questions about your retirement savings? Email us at HelpMeRetire@marketwatch.com