How can a 63-year-old retire successfully? What are the key steps and strategies to consider for a smooth retirement transition? Explore valuable tips, resources, and expert advice on planning for retirement at 63. #RetirementPlanning #FinancialFreedom #RetirementGoals #RetirementAdvice
Retirement Planning at 63
– Assess your financial situation and retirement goals.
– Consider consulting a financial advisor or planner.
– Develop a retirement budget and savings plan.
– Explore retirement savings options, such as 401(k) or IRAs.
Creating a Retirement Timeline
– Set retirement date and milestones.
– Determine when to start Social Security benefits.
– Plan for healthcare costs and insurance coverage.
– Evaluate potential sources of income during retirement.
By following these steps and strategies, you can pave the way for a fulfilling and secure retirement at 63. Get started today! #Retire63 #SecureRetirement #FinancialPlanning
What are your monthly expenses? What will you receive in ss benefits? Retirement is a numbers game.
Start researching LCOL areas, check both of your SS accounts for estimated benefits, keep working until you physically can’t, sell the house, move to the chosen LCOL area.
You may be best served to keep working until 70.
You need to determine your income in retirement – social security for example. Assume you can augment that with 4% of your invested assets. Then compare that to your expenses.
If your income is insufficient, the obvious path is to sell the house and move to a lower cost of living area.
Once you pay off the 50k in debt you may need to start saving for retirement.
Gonna have to keep working unfortunately
90k/yr earnings living in a 900k house is wild
How long has that 100k been sitting in savings?
You can retire at 65 if your spouse gets a real job and continues working. Sorry you are in this situation, but without that you would either have to sell your home or continue working.
You can’t. Sorry. Keep saving and working until you’re 70-72. Hopefully by then you’ll have enough with social security and savings.
Refinancing that down to a 15 year mortgage back in 2017 under 2.8% would have had a paid off house at 70. Shame. They are going to have to sell, downsize and move to a LCOL area. Otherwise, No way to pull this off and have to remain working. Unfortunately, this fits the mold of a Walmart greeter.
If the house is worth 900K you can sell it, net 600K, invest it, move to a LCOL area, keep working for five years and then probably retire. I assume both your jobs could be done somewhere else.
If you can wait until 70 to start taking social security you’ll have more. It seems like it might be worth it to wait even if you have a bridge a few years at the end with part time work. Do you like the outdoors? You could be campground hosts. Or work on a ship. There’s various short term jobs that could be good and you would not have to pay rent.
(I hope the spouse has been contributing to social security.)
Go to [SSA.gov](http://SSA.gov) and figure out what your social security earnings will be based on retiring at different ages. Currently you only have 250k in retirement savings, which if invested conservatively will allow you to withdraw about $10k per year throughout retirement. This + social security is likely not enough to cover your expenses. In all likelihood you are going to need to work until at least 70 to maximize your social security payments and enable your investments grow some more, then sell your house and move to an area with cheaper housing and a lower cost of living.
Retirement is a financial circumstance not an age. Unfortunately you aren’t in financial shape to stop working.
You can retire in Mexico?
Well, if you owe 300k on the home but your home is worth about 900k, then your house has 600k in equity, so that’s good news.
So there are two scenarios:
1. If you want to retire and keep the home, you’re pretty far behind. You are currently at -50k or so in debt + retirement assets. You will need to keep working until you have roughly 25x your desired withdrawal rate to retire safely. You may not be able to reach a safe retirement account any time soon.
2. If you want to retire and give up the home, you are not too far off. You have 600k in equity and 250k in retirement assets. You could buy like a 150k home in an inexpensive area and have about 700k in retirement assets, giving you roughly 28000 per year. This is not great, but once Social Security kicks in you will not be doing too badly. You still have some working years left to build up your retirement savings more.
On that note, your HYSA has too much cash. It’s making decent interest now, but you still have enough time until retirement that you can probably do better if you invest it in mutual funds. You are close enough to retirement that you may not want to put everything into S&P500 index funds. You may want to put a big chunk of that into a target date fund or something that is a bit more conservative than pure stocks.
Also, if your spouse is making around $10/hour in a HCOL, you guys really aren’t going to be able to retire there. Frankly, you guys should have started worrying about retirement a long time ago.
I’d sell the house. Take the $550-600k in equity and find a place in a LCOL area for 150-200k, and you just tripled your retirement savings.
Sell the home and move to GA or Alabama. Buy a decent $250,000 with 3 bed two bath house with cash. Use the remaining 600k you have to pay cash for 3-4 section 8 single family rental properties using rootstock.com and use a property management company to run them so they’re hands off. Those will bring in $800-$1200 a month each. You have no mortgage and bring in up to $4000 a month. Congratulations you’re retired. Part time income can help pay for extra vacations and toys, etc. Don’t wait till you’re 70 to retire, tomorrow isn’t promised. So many people never see a single day of retirement because of accidents.
Sell your house. To not pay capital gain, buy another affordable small condo in LCOL area and with the remaining money buy another house in the MCOL area and rent it.
No mortgage on 1st and rent coming from 2nd should be good income to pay for your bills.
Continue working till you want to start getting Social security. Budget well and make sure to plan for a medical emergency.
Hopefully you can make it work. If you need help, let me know, I can help with all numbers and set you up to live happily.
I agree, working at Walmart full time for your husband would be a better job to get insurance as well as high income. Best of luck!
I am just a random dude with zero experience except a thought experiment:
Let’s assume total assets are $850,000 before Social Security kicks in 5-7 years…couldn’t one hypothetically invest this amount into a conservative portfolio earning between 5-7% per year and use that money to live on?
At 5% return the interest would be approximately $42,500 per year or a budget of $3.542 per month.
At 7% return, the interest would be $59,500/year or $4,958/mo.
So hypothetically if you can keep your expenses between $3,500-$5,000/month… you can live off the returns indefinitely.
Would a reverse mortgage in this situation makes sense to tap into the equity from the house so you can avoid having to move?
You’ll likely need to keep working. Go to ssa.gov and try to find out what your benefit would be. Then, use the 4% rule to see how much you can get from your 401k per year. Once you can cover your expected monthly expenses you can retire.
Realistically you can’t.
How much will you both get when you’re able to take Social Security?
He is a barber. Therefore, prolly makes well over 20k. But, may get paid in cash most of the time and only claims the 20k. May actually make 60k.
You could be well served by developing your own accounting consultancy, your own home business, which will afford you a LOT of deductions that will help at tax time.
Becoming a paralegal or certified taxes expert is very lucrative and you’ll work when you want, appreciating the crush between January and June. It will take time however, and proper self marketing to build a steady custome base. Paralegals can work in any state because unlike attorneys, paralegals are not bound to a specific state licensing board. In other words, a paralegal certification is valuable nationwide. Specialties can be taxes and real estate transactions, brokering FSBO transactions.
I would think about selling the house fairly soon, and taking that 500K profit and putting it into a much smaller and affordable home. The market is going to start its downward shift soon, the bubble is going to pop within 2 years, best to get out at the top.
Think about retirement villages in the HCOL areas, even a senior’s trailer park is more affordable and they can be gorgeous and cost effective.
Hubby can continue his trade, you do taxes and accounting, on your own hours and your own time, on a strict budget, and with what you have, it’s doable. Offering home hair and grooming services is again, very lucrative, especially if gearing these services to house bound seniors and less-abled.
Reversed mortgage …
When you are ready
I would start looking at another country with a lower cost of living.
Can y’all retire in the Caribbean?
>*We live in a HCOL area and are beginning to worry about retirement, and if that will ever actually happen. How can we do this?*
I don’t want to sound flippant, but it doesn’t sound possible where you’re at now… and it doesn’t sound likely even where you’ll be in a few years. Not if you stay in the same place. I would start looking into other parts of the country that have a more reasonable cost-of-living.
Hell, you could even expand your horizons and look at other parts of the world. That’s where I’m at when it comes to retirement planning… you could live fairly nice life in many parts of the world off of the interest of 750k (600 for the house + 150k savings). Even more so if you are getting social security on top of that. I’m up to live well and travel back to the US as needed.
Wait until the IRS starts taxing “unrealized gains”.
Whew.
What are your yearly expenses? now? wen you are retired? what will your SS be? subtact that.
Multiply by 25, tat gives an idea you need in investments to retire ( don’t count home)
My humble opinion. How many people leave in that house? Is it just you and your SO? Then here is the plan. Sell it and either go rent or go cruise living. Put everything in a high yield account which should bring you about 3.5k. México, Costa Rica, salvador or some others you’ll live like a king if cruise is not your thing. Otherwise I need more details about the house.
Only way is to sell the house and move to a lower cost of living area. Buy cheaper and get the spare capital working for you
You can sell everything and live on a cruise ship for 28 years 🤷🏽
Moving to a low cost of living area is the biggest and most practical lever ya got.