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Hello. I think that the answer is they are in pretty decent shape, but I wanted to run it by you. Step-dad retired is 62 and eligible for SS which will be $2k per month. Mother will continue to work until she is 62 (currently 58) and makes $55k per year. Her SS will only be like $900 per month, because she came to America when she was 39. Neither one of them has a pension.
Combined assets are $950k in retirement savings. Almost all of it is in 401ks
They have two houses one of which is left over while they lived separately. The one they don’t live in generates about $14k in income per year with low cost. Step dad does all the maintenance. The combined equity in both houses is close to $200k at current valuation. Both houses are halfway through 15 year mortgages so equity will build up fast. The combined house market value is likely $420-450k currently.
Step-dad doesn’t want to wait to increase SS, because he has a history of heart disease in the family.
They are likely going to sell their house, because they are empty nesters and house is too big. However, they don’t want to sell now, because ultimately they want to move to Reno after my mom retires and they don’t want to do two moves.
Cars are 1 brand new (just bough after driving the previous one for 15 years) and one used one that was also recently bought following an accident. So both in good shape.
What do you guys think? Anything obvious that they should do?
I think that the answer is they are in pretty decent shape, but I wanted to run it by you.
Step-dad retired is 62 and eligible for SS which will be $2k per month.
Step-dad doesn’t want to wait to increase SS, because he has a history of heart disease in the family.
Mother will continue to work until she is 62 (currently 58) and makes $55k per year.
Her SS will only be like $900 per month, because she came to America when she was 39.
Neither one of them has a pension.
Combined assets are $950k in retirement savings. Almost all of it is in 401ks
They have two houses one of which is left over while they lived separately.
The combined equity in both houses is close to $200k at current valuation.
Both houses are halfway through 15 year mortgages so equity will build up fast.
The combined house market value is likely $420-450k currently.
They are likely going to sell...because ultimately they want to move to Reno
after my mom retires and they don’t want to do two moves.
what should they do?? enjoy retirement of course with $1.2+ million in assets... what else would they do? I thought you were going to post that they are broke so they need advice.
Hello. I think that the answer is they are in pretty decent shape, but I wanted to run it by you. Step-dad retired is 62 and eligible for SS which will be $2k per month. Mother will continue to work until she is 62 (currently 58) and makes $55k per year. Her SS will only be like $900 per month, because she came to America when she was 39. Neither one of them has a pension.
Combined assets are $950k in retirement savings. Almost all of it is in 401ks
They have two houses one of which is left over while they lived separately. The one they don’t live in generates about $14k in income per year with low cost. Step dad does all the maintenance. The combined equity in both houses is close to $200k at current valuation. Both houses are halfway through 15 year mortgages so equity will build up fast. The combined house market value is likely $420-450k currently.
Step-dad doesn’t want to wait to increase SS, because he has a history of heart disease in the family.
They are likely going to sell their house, because they are empty nesters and house is too big. However, they don’t want to sell now, because ultimately they want to move to Reno after my mom retires and they don’t want to do two moves.
Cars are 1 brand new (just bough after driving the previous one for 15 years) and one used one that was also recently bought following an accident. So both in good shape.
What do you guys think? Anything obvious that they should do?
A SS benefit of $2,000 at age 62 is pretty much that max you can get at the early retirement age, which means he had to have maxed SS earnings for 35 years. Why has he only saved $1,150,000?
A SS benefit of $2,000 at age 62 is pretty much that max you can get at the early retirement age, which means he had to have maxed SS earnings for 35 years. Why has he only saved $1,150,000?
Divorce and a health problem but thanks for the implied judgement
Divorce and a health problem but thanks for the implied judgement
I read it as a valid question wondering if there was something else significant that you hadn't mentioned, and there were.
The divorce is a past issue and might no longer be a concern. However, I have a B-I-L who will be making Child Support payments until age 64 or 65! Are there any monthly alimony or child support payments associated with this divorce that will need to be included with retirement expenses?
The health problems might be a current and future issue that will impact their allowable retirement spending. Previously you mentioned your Step-Dad's family history of heart issues which implied a only a potential future issue.
The current 'Rule of Thumb' for retiree couple health costs is an average of $250,000 for a couple during their lifetime. An early retirement and a personal history of health problems will easily place your parents above this average number.
Do they have post-retirement health care from an employer's plan?
Not trying to be nosy but there might be retirement budget implications associated with both of these items not previously disclosed.
Last edited by MI-Roger; 06-07-2018 at 05:42 AM..
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