Dad is feeling burnt out at work and asked if I could help him figure out if he can retire. I’m thinking that he needs a couple more years to keep it comfortable. Here’s the numbers:
Income: $70,000 Savings: $36,000 Portfolio: $725,000 (50% in 2030 Target Date, 50% in S&P 500 Index) SS - Estimated at $2700/month ($32,000/year)
Only outstanding debt is mortgage at $45,000 left, 2.75% interest rate so only making the minimum payments and it’ll be done in under 3 years. Monthly spend is high, probably like 6-9k/month. House is valued at 500k but no plans to ever move out.
4% safe withdrawal rate (non-inflation adjusted) has the portfolio giving out $29,000/year, bolstered by another $30,000/year from SS to about $60,000/year. That gives about $5000/month to spend from my math, lower than needed from the spend. Should I tell him he needs a few more years to get more breathing room?
Thank you!
Submitted December 06, 2023 at 10:39PM by neil99x https://ift.tt/WAOBxzg
