Retirement Musings and Budget

[phil5185]

Regarding the paid-for $400k rental- I would put a $300k 30 year mortgage on it. And put the $300k in the SP500 index. On average the index doubles about every 7 years, ie $600k in 7 yrs, $1.2 m in 14 yrs, $2.4 m in 21 yrs, and so on. It takes patience - but DH is only age 42.
.

[debthaven]

resolution it seems like you can afford to retire if you want to, but that you're also hesitant for other reasons. I agree that if you retire now while your DH will still be working for years, you might end up feeling out of sync.

A couple of thoughts:
- could you go down to part time? 
- could you retire but then continue to work for them as a consultant?

Best of luck whatever you decide! 

ETA: Your comments helped me greatly when I was deciding when to retire. I was working too much, but I wasn't ready to stop. I'm very happy working less now.

YMMV of course, but it was the right solution for me. Can you look into something like that? If it meant giving up the management duties that don't thrill you, that could be an additional incentive for you.

[minnesotapaintlady]

Apr 4, 2023 19:11:51 GMT -5 teen persuasion said:

Have you run your numbers thru i-ORP ?

That calculator is cool.  But I wish it didn't assume you died at 92. 

[resolution]

Apr 6, 2023 20:12:02 GMT -5 debthaven said:

resolution it seems like you can afford to retire if you want to, but that you're also hesitant for other reasons. I agree that if you retire now while your DH will still be working for years, you might end up feeling out of sync.

A couple of thoughts:
- could you go down to part time? 
- could you retire but then continue to work for them as a consultant?

Best of luck whatever you decide! 

ETA: Your comments helped me greatly when I was deciding when to retire. I was working too much, but I wasn't ready to stop. I'm very happy working less now.

YMMV of course, but it was the right solution for me. Can you look into something like that? If it meant giving up the management duties that don't thrill you, that could be an additional incentive for you.

I'm so glad that you came up with a schedule that you are happy with!

You are right that I am hesitating for more than the finances, and it would feel really out of sync if I were retired and DH was out there working 50 hours weeks. And then when he comes home he works on renovating the house. However we got this house in the first place because he started going stir crazy after he was done renovating our old house, and he was jonesing for a new project. I will probably keep working at least until the windows are done (maybe by fall), and he starts on something more hobby-like, like rebuilding the library.

It is possible to retire and then work part time for my employer as a consultant, although it would be a bit difficult to arrange due to me being out of state. It is actually something I was seriously considering under my previous manager. However the new manager is the one that is triggering me, so I would have to try to find some other capacity to work part time for a different manager, unless she either settles in or I outlast her.

A lot of it is stupid petty stuff like tone, and she seems to be picking on my coworkers really hard. She was mostly leaving me alone, but every time I think I have reached an understanding with her she does something unexpected. Like on Tuesday night she sent out an appointment for 7:30 wed morning for a meeting for a team I am supposed to start working with on a new project. None of them start work before 8, so one of them responded it was outside their work hours, and she responded that it had to be at 7:30 to accommodate me due to being on the east coast. So I told her I don't want any early meetings and I was available all day, and she seemed to understand, but then after all these people came in to work early the next morning, she opened the meeting by apologizing and saying she had to schedule the meeting early because of me.

So it is stupid petty crap, and I addressed it with her and then with her administrator, but I have been thinking maybe I should just nope out instead of dealing with it. Not really the way I wanted to go after 30 years though.

[debthaven]

Hopefully things will resolve themselves soon ... here's to hoping you outlast her lol.

[saveinla]

resolution - I have started calling out the BS at the office now. Its really petty stuff like with small kids, but I dont want to put ip with it anymore.

If things dont go well, I want to stop working Feb 24, but its mostly because I am getting tired of petty BS as I get older. Good luck and start calling out your boss.

[giramomma]

I would nope right out of there.

Seriously.

I feel you. I have more time until I need to retire. I always assumed I would retire in the same place where I started. I thought I would outlast everyone.

That's a huge nope now.

You'll open your mouth up, enough, and eventually, you'll be targeted.

At least, that's what's happening to me.

And instead of enjoying all that I should, sort of as the top of my "career," I am worried about how far they are going to take my infractions. I've never had a blemish on my work record.

Until I started opening up my mouth.

[resolution]

UPDATE: In October I finished up the project that I was working on, and it was successfully piloted in November. I decided that I was done, and I gave notice that I would be retiring 12/23/23.

I signed up for health insurance on the Pennsylvania exchange starting Jan 1. There are no income limits for the subsidies in 2024 and 2025, and we got a $630 per month subsidy based on our income (projected 150k). The net cost for the plan that covers myself and my husband is $432 per month. This should work for the next two years. In 2026 the income limits will be back, so we will need to pay full price or look at other options. By then I should know if I want to look around for another job with insurance, or just stay retired and pay full price.

I have a question about spousal IRA's. I plan to keep maxing out both Roth IRAs, since we will need the money for when my husband retires. I know that I am eligible to contribute based on his income, but I don't know if I need to open a new IRA and designate it as a spousal IRA, or can I just keep contributing to the IRA that I already have? Even though I don't plan to work, I will be receiving my sick time payout as "supplemental wages" on a W2 from my employer for the next 3 years, roughly $6k per year. So I will still have some wages, but it will be less than the IRA contribution limit, so some of my contributions would be based on my spouse's income.

[minnesotapaintlady]

Dec 9, 2023 11:07:26 GMT -5 resolution said:

UPDATE: In October I finished up the project that I was working on, and it was successfully piloted in November. I decided that I was done, and I gave notice that I would be retiring 12/23/23.

I signed up for health insurance on the Pennsylvania exchange starting Jan 1. There are no income limits for the subsidies in 2024 and 2025, and we got a $630 per month subsidy based on our income (projected 150k). The net cost for the plan that covers myself and my husband is $432 per month. This should work for the next two years. In 2026 the income limits will be back, so we will need to pay full price or look at other options. By then I should know if I want to look around for another job with insurance, or just stay retired and pay full price.

I have a question about spousal IRA's. I plan to keep maxing out both Roth IRAs, since we will need the money for when my husband retires. I know that I am eligible to contribute based on his income, but I don't know if I need to open a new IRA and designate it as a spousal IRA, or can I just keep contributing to the IRA that I already have? Even though I don't plan to work, I will be receiving my sick time payout as "supplemental wages" on a W2 from my employer for the next 3 years, roughly $6k per year. So I will still have some wages, but it will be less than the IRA contribution limit, so some of my contributions would be based on my spouse's income.

You just keep contributing to your current IRA.  There is no special "spousal IRA", it's just that you are able to contribute to your IRA based on joint income, you don't need to have the income individually.

[TheOtherMe]

You do need to have earned income.  No contributions to any kind of retirement plan if there is no earned income.  

[resolution]

Dec 9, 2023 13:30:18 GMT -5 TheOtherMe said:

You do need to have earned income.  No contributions to any kind of retirement plan if there is no earned income.  

My husband will still be working and he will be earning well above the contribution limits, which is why I want to do a spousal IRA. We file our taxes married filing jointly.

[TheOtherMe]

That's wonderful.  Just wanted to make sure.  Saw too many people when I prepared tax returns who thought they could still put money in to retirement accounts when they only have investment income.

[Rukh O'Rorke]

Dec 9, 2023 11:07:26 GMT -5 resolution said:

UPDATE: In October I finished up the project that I was working on, and it was successfully piloted in November. I decided that I was done, and I gave notice that I would be retiring 12/23/23.

I signed up for health insurance on the Pennsylvania exchange starting Jan 1. There are no income limits for the subsidies in 2024 and 2025, and we got a $630 per month subsidy based on our income (projected 150k). The net cost for the plan that covers myself and my husband is $432 per month. This should work for the next two years. In 2026 the income limits will be back, so we will need to pay full price or look at other options. By then I should know if I want to look around for another job with insurance, or just stay retired and pay full price.

I have a question about spousal IRA's. I plan to keep maxing out both Roth IRAs, since we will need the money for when my husband retires. I know that I am eligible to contribute based on his income, but I don't know if I need to open a new IRA and designate it as a spousal IRA, or can I just keep contributing to the IRA that I already have? Even though I don't plan to work, I will be receiving my sick time payout as "supplemental wages" on a W2 from my employer for the next 3 years, roughly $6k per year. So I will still have some wages, but it will be less than the IRA contribution limit, so some of my contributions would be based on my spouse's income.

congratulations!!!

[Rukh O'Rorke]

Dec 9, 2023 11:07:26 GMT -5 resolution said:

UPDATE: In October I finished up the project that I was working on, and it was successfully piloted in November. I decided that I was done, and I gave notice that I would be retiring 12/23/23.

I signed up for health insurance on the Pennsylvania exchange starting Jan 1. There are no income limits for the subsidies in 2024 and 2025, and we got a $630 per month subsidy based on our income (projected 150k). The net cost for the plan that covers myself and my husband is $432 per month. This should work for the next two years. In 2026 the income limits will be back, so we will need to pay full price or look at other options. By then I should know if I want to look around for another job with insurance, or just stay retired and pay full price.

I have a question about spousal IRA's. I plan to keep maxing out both Roth IRAs, since we will need the money for when my husband retires. I know that I am eligible to contribute based on his income, but I don't know if I need to open a new IRA and designate it as a spousal IRA, or can I just keep contributing to the IRA that I already have? Even though I don't plan to work, I will be receiving my sick time payout as "supplemental wages" on a W2 from my employer for the next 3 years, roughly $6k per year. So I will still have some wages, but it will be less than the IRA contribution limit, so some of my contributions would be based on my spouse's income.

oh - I also wanted to ask - did you situation improve any since the OP? Looks like sp500 is up about 11%!

Any upgrades on pension or soc sec numbers? I think soc sec went up quite a bit due to reconfiguring where the bends go? Newer number were posted in Nov I think.

[resolution]

Dec 10, 2023 13:11:48 GMT -5 Rukh O'Rorke said:

oh - I also wanted to ask - did you situation improve any since the OP? Looks like sp500 is up about 11%!

Any upgrades on pension or soc sec numbers? I think soc sec went up quite a bit due to reconfiguring where the bends go? Newer number were posted in Nov I think.

My position is slightly better than it was in April when I posted.  Net worth is up around 60k. Stocks are up quite a bit, but the value of my rental fell. The pension is up by $110 per month, so there was some improvement. Also the health insurance is $100 less than I anticipated.

I don't plan to use any investments in the near future; we will start drawing on them when my husband retires, which is likely at least 8 years away. I am still planning to max out both IRAs and make additional investments into our taxable brokerage account. I am debating throwing another 10k into ibonds before the end of the year. I haven't bought any in 2023. I will probably cash out last years ibonds in 2024 and buy the new ones with the higher fixed rate.

[Regis]

Congratulations!  You've explained what you're retiring from, but what are you retiring to?

[resolution]

Dec 11, 2023 9:01:46 GMT -5 Regis said:

Congratulations!  You've explained what you're retiring from, but what are you retiring to?

I'm not 100% sure what I am retiring to, part of me is just tired and wants a break. I may end up looking for a second career if I get bored at home.

One priority will be getting my house in order. We moved into a large historic home in 2020, and we have been working on renovations ever since. I would like clean it thoroughly and keep it clean, rather than just picking a couple of tasks every weekend. The downstairs is decorated in a Victorian style, but it is very sparse, so my mother-in-law is going to help me make additional decorations for it. I plan to do a lot of sewing and painting. I would love to add stenciling on a few of the ceilings and possibly a large mural along the staircase wall.

I plan to start going to the gym every day and get in better shape. For the past year I have been going three times a week, but it is always rushed because I go after work and need to get home to make dinner at a reasonable hour. I also love to go on walks and hikes, so I would like to spend more time at the C&O canal and visit various parks in PA.

Other than that, I like to read and to play video games. I do a lot of boring technical writing at work, and I think it would be fun to try my hand at writing fiction.

When my husband retires, we would like to do more travelling, but while he is still working we are just taking one trip per year. He has brought up having me travel with a friend whose husband doesn't like to travel, but I have mixed feelings about taking off and leaving him home alone.