Me: 57. Spouse: 45. Both are fortunate enough to have excellent health. Fit, annual physicals, workout regularly, eat healthy, etc.
My annual income (including bonus) is ~$350k. (excluding stocks that are given to me on three year vesting schedule.) Her annual is $65k. Current situation: House value is at $580ish, with $53k left on 2.9% mortgage. $1.4 million currently in investment account that is comprised of 401k rollovers and traditional IRA funds. (Risk score 10 in Wealthfront) $1.25 million in an after tax account. (Risk score 10 in Wealthfront) $240k in Wifes current 401k $205k in my current 401k $230k in 5% rate savings in Wealthfront savings account. $~105k in company stocks are vesting in May 2024. Plan to sell all of that in May and add to the savings account. No consumer debt (cars paid off, no credit card debt).
Goals: I want to get out of the corporate rate race/hell hole by the age of 60. I dont want to HAVE to work beyond then. So assume zero working income for me by end of 2026. We both plan to move to a warmer climate and lower cost of living area. Exploring various parts of Texas to include suburbs of Fort Worth and San Antonio area. New construction Houses on 1 acre (~20-30 mins from Fort Worth for example) that we see that would fit us, are in the $550k to $700k range. (which gets us a LOT more house/land than the areas of Florida I was initially looking at).
Thinking of the following:
Assuming we visit and actually decide on home in Texas, thinking of buying the home next year and placing large downpayment from the cash account. Then have the option of selling current home or renting it out via mgmt company for a few years until depreciation (tax benefit) is used up. But if we opt to simply sell the current house, would use proceeds to pay off mortgage entirely on the new home in order to have no mortgage at all.
Then, thinking of shifting the Wealthfront risk score from 10 to about 3 (wealth preservation and less risk?) on the after tax account, but keeping the 401k rollover/Traditional IRA account at a full 10 risk score, as I dont think I'd need to touch those funds for at least 10 years from date of retirement.
We'd live off of a combination of my wifes working income and me taking ~2% (of our total retirement investment) cash to live off of each year, with me taking that 2% out at start of each year and placing it into a savings account. We dont live extravagantly, but do enjoy a few trips a year to caribbean, mexico, Vegas but at reasonable prices. (no first class, but upgraded premium coach is more our lifestyle).
Is my plan completely out of whack? I realize I should have reduced the risk score of the after tax account a few years ago to reduce stock exposure, but hey, its worked out so far. But not trying to push my luck TOO far.
Appreciate any input.
original posted by olddirtyretarded to r/personalfinance on Sun, 10 Mar 2024 16:00:24 GMT.