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Old 04-11-2014, 03:40 AM
 
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being cash poor with only 50k to go a lifetime would scare me to death. my dental bills have been half that. a roof , new furnace or medical emergency can eat that up .

i agree , i would be prepared to have to do a reverse mortgage if major expenses not in the budget hit ,as they tend to .
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Old 04-11-2014, 03:44 AM
 
29,764 posts, read 34,848,700 times
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Quote:
Originally Posted by mathjak107 View Post
being cash poor with only 50k to go a lifetime would scare me to death. my dental bills have been half that. a roof , new furnace or medical emergency can eat that up .

i agree , i woul;d be prepared to have to do a reverse mortgage if major expenses not in the budget hit ,as they tend to .
Actually being in retirement heightens our perspective on what we needed and are either concerned or thankful for. The ability to continue to save is one of the biggest mattresses to sleep,on comfortably along with the taxable accounts to put them in.
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Old 04-11-2014, 03:53 AM
 
Location: Central Massachusetts
4,800 posts, read 4,842,106 times
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Quote:
Originally Posted by texdav View Post
I say a lot depends o where you live and your life style.try living on that for a few months but consider inflation also.
I too agree.

Quote:
Originally Posted by TuborgP View Post
How to access that home equity needs to be considered. Taking out a regular home equity loan involves debt and monthly payments. Reverse mortgage is another set of realities.
This too is important.


Quote:
Originally Posted by AADAD View Post
We have worked hard. Did not invent anything not so far won the lottery. At retirement in about 6 years we will have the following:

1) a paid off home worth about $300k. Rents for $2100/mo
2) social security monthly income around $4500/mo
3) about 50k in savings 401k.

As I read I am concerned that we don't have a lot in savings. Do you think we will be ok?

Thanks fellow travelers.
First I will ask a couple of questions that need to have more clarification since you didn't give much information. You can be general as you were in the opening but we will need these answers.

1) home paid off is good. Will you be selling it in retirement to make your savings bigger? Will you be taking out Home Equity loans for income? Same line you mention $2100 rental income. Does this mean you are renting it out and living in another place? How much are you paying for rent or is this another home you have a mortgage on?

2) SS income is good though is that at your peak or is this early (age 62)?

3) Are you still putting in your matching? Are you maxing out? Are you doing catch up? Do you have any other retirement savings? Do you have your emergency fund of living expenses that covers 3 to 6 months income or more? Any Roth's or other savings?

The last thing is have you thought about your budget after retirement? That is as important as how much resources. For example my dad is retired and living on 2k a month and he is okay but he does have to have Kraft Macaroni and Cheese night more often then me.
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Old 04-11-2014, 03:56 AM
 
71,463 posts, read 71,629,249 times
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Quote:
Originally Posted by TuborgP View Post
Actually being in retirement heightens our perspective on what we needed and are either concerned or thankful for. The ability to continue to save is one of the biggest mattresses to sleep,on comfortably along with the taxable accounts to put them in.
what more can i say, that sure is a comfort.
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Old 04-11-2014, 05:03 AM
 
Location: in the miseries
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San Diego is A veryexpensive place to live, so?
Also are you renting half your home?
I don't think you have enough.
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Old 04-11-2014, 05:13 AM
 
Location: Baltimore, MD
3,745 posts, read 4,213,572 times
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Quote:
Originally Posted by AADAD View Post
We have worked hard. Did not invent anything not so far won the lottery. At retirement in about 6 years we will have the following:

1) a paid off home worth about $300k. Rents for $2100/mo
2) social security monthly income around $4500/mo
3) about 50k in savings 401k.

As I read I am concerned that we don't have a lot in savings. Do you think we will be ok?

Thanks fellow travelers.
House could drop in value (duh). Rentals require upkeep. Reverse mortgages could become a thing of the past. One spouse will die. (Do you have life insurance?)

Cash is king. Start socking away as much as possible.
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Old 04-11-2014, 10:26 AM
 
Location: Whidbey Island, WA
12,270 posts, read 11,315,840 times
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Thanks for your answers and suggestions. I plan to retire at 66. At 70 my SS would be >3k per month.

The home is rented in Alaska near Elmendorf AFB and produces the cash flow. It is very easy to rent so I don't anticipate any downturns. It is a condo so major exterior is covered and interior upgrades were done. Carpet paint every two years. Will not drop in value from 2008 to now increased 12%. Major AFB and Army bases closely argue for continued rental rates increase. Good prop management firm. We plan to travel to Alaska during retirement but then rental and travel is paid by Travel Nurse Co.

We are an R.N. and realtor respectively. I can do a travel assignment 13 week once maybe twice per year and make about $20k per 13 weeks. Wife can sell 1 property for anywhere between 10K- 60K depending on sale price property value.

I know the cash is king makes me a little uncomfy but I don't see our monthly income declining from a low of $4500 to a high of $5500. We plan to file and suspend when I reach 62 this year.

I can up my contribution to 401k but you are correct we pay $2450/month in lease here in San Diego. We are looking for land to place a modular unit on with a well and go solar this year. Cost most likely 1K/month for a 89K piece of property and house unit plumbing solar etc.

The advantage to being an experienced RN is high and I can work pretty much anytime. If I do I will absolutely max out the savings plan offered.

When to actually start collecting my SS is a question. Fairly good health here. Wife the same.

Emergency fund is a question as is money for travel etc. Both vehicles paid off.

Life insurance around 500k between work and private.

Thanks for your thoughts....
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Old 04-11-2014, 12:11 PM
 
4,571 posts, read 7,053,444 times
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remember the old saying...it's not how much you have, it's how much you spend. People certainly live on alot less. As an experiment, you might try to really cut back on all unnecessary spending and see how much you can save...you'll be surprised! And everything eventually needs to be repaired or replaced, even our own bodies
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Old 04-11-2014, 12:46 PM
 
Location: in the miseries
3,302 posts, read 3,577,100 times
Reputation: 3810
You can't file and suspend at 62 only FRA.
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Old 04-11-2014, 02:51 PM
 
29,764 posts, read 34,848,700 times
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Quote:
Originally Posted by luvmyhoss View Post
You can't file and suspend at 62 only FRA.
This reflects the need for them to take a step back and reconsider their assumptions.
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