#RetirementPlanning #SeniorCitizens #Pension #RetirementIncome
Is my dad financially ready to retire?
Assessing Dad’s Financial Situation
Based on the information provided, it seems like your dad is in a relatively good financial position to consider retirement. Let’s break down his current financial standing:
– Paid off condo worth $950k in a very high cost of living area
– $300k in 401k savings
– $20k in a high-yield savings account
– No outstanding debts
Evaluating Dad’s Retirement Income
In addition to his current assets, your dad will have the following sources of income once he retires:
– $3k per month from Social Security before taxes
– $4k per month from CalPERS pension before taxes, with annual cost of living raises
Factors to Consider
While the numbers look promising, there are a few factors to consider before determining if your dad is truly ready for retirement:
1. Lifestyle and Expenses: Does your dad have a clear understanding of his retirement expenses and how they align with his expected income?
2. Healthcare Costs: Are healthcare expenses factored into his retirement budget, especially as he gets older and may require more medical care?
3. Longevity: Is your dad prepared for a potentially long retirement? Consider his health, family history, and lifestyle choices.
Seeking Professional Advice
It might be beneficial for your dad to consult with a financial advisor who can assess his individual situation, create a personalized retirement plan, and provide guidance on managing his assets effectively.
In conclusion, while your dad seems to be in a solid financial position with his paid off condo, savings, and retirement income sources, it’s essential to consider all factors before making the decision to retire. By evaluating his expenses, healthcare needs, and seeking professional advice, your dad can ensure a comfortable and secure retirement. 🌟
What are his current monthly expenses and what does he estimate them to be after he stops working?
What are his monthly expenses now?
Does he want to stay in the condo? No other debts but yearly taxes, insurance, HOA fees and maintenence costs have to be accounted for. he’ll need a budget laid out.
How much does he get post tax/deductions? What are his expenses?
If his income is greater than expenses and he doesn’t need to worry about expenses raising then yes, other wise no
He makes more in retirement than the average person, hes fine.
It’s gonna be based on expenses and the lifestyle he wants to live… but as a financial planner I don’t meet a lot of people with 7k of guaranteed income per month who can’t retire. Try to stay out of that 401k until RMD time if you’re in a very expensive city.
I would have retired 5 years ago if I was your father. Oh! I did.
Yes. But will need a plan to extract value out of condo. If he plans on dying there it really shouldn’t be part of his net worth.
Look into the Windfall Elimination Provision. It may reduce his Social Security because of the pension.