‘I’m not looking to leave any money to the kids’: We’re in our 60s with $1.5 million in IRAs. Can we retire next year?

I’m 64 and my woman is 65. We person $1.5 cardinal successful 401(k)s and IRAs and $90,000 successful a Roth IRA. We are looking to discontinue adjacent year. I volition person $3,000 successful a monthly pension that my woman volition inherit upon my death. She volition person $2,600 successful Social Security, and I americium reasoning of waiting until 67 erstwhile I would get $3,800.

Our existent wage combined is $210,000. We person 2 homes with a superior owe of $500,000 astatine 2.75%. Our different location has a owe of $300,000 astatine 2.75% with a affirmative currency travel rent of $800 aft paying our owe payment. We person 2 challenges: taxation optimization and ensuring our wealth lasts.

• ‘I’m terrified I’ll beryllium stateless erstwhile my husband, 76, stops working’: We lone person $100K. What happens to radical similar us?

• ‘It’s heartbreaking’: My relative died and her estranged hubby has taken possession of her home. Can we evict him?

• Gen Z would alternatively chopped Social Security benefits for existent retirees than wage higher taxes to prevention the program

I besides person a health-savings relationship done enactment with $300,000 to assistance america with aesculapian expenses. I’m not looking to permission immoderate wealth to the kids different than astatine slightest 1 of the homes. The properties are worthy astir $1 cardinal each. What proposal tin you supply astir our program to discontinue successful 2026?

Now I’m 64

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Congratulations connected not leaving immoderate wealth to your kids! (Aside from 1 oregon some of your homes, which is simply a sizeable and generous inheritance.) I’ve said it earlier and I’ll accidental it again: Your assets are not your children’s inheritance unless they yet upwind up successful their slope relationship upon your death. Until that happens, it’s your money.

Given your properties, rental income, aboriginal Social Security benefits, pension and much than $1.5 cardinal successful status funds, you are successful a precise bully place. In fact, betwixt your Social Security and pension, you person an income of $112,800 per twelvemonth guaranteed for life. And that’s earlier you dip into your IRA oregon your yearly $9,600 nett connected your rental.

If you took 4% a twelvemonth from your IRA — and you are intelligibly much than capable to instrumentality acold little than that — you volition person different $63,600 a year, bringing your expansive full to $176,400. If your withdrawals are controlled, taken with the proposal of an accountant, and you debar withdrawals during a marketplace downturn, past you won’t request to adhere to the 4% rule.

In your favor: (1.) You are not required to trust solely connected your IRA. (2.) You person a ample HSA with $300,000 to screen decades of healthcare tax-free. (3.) You person rental income that much oregon little offsets the outgo of your housing. (4.) You tin summation your cashflow by selling 1 of your homes. (5.) And you don’t request to interest astir leaving wealth behind.