Dear MarketWatch,
Hey there MarketWatch,
Here’s my story! I’m 53 years old and my partner is 59, and we have 3 kids.
Currently, I make $160,000 a year at my one job, which I dislike, and I bring in between $22,000 and $27,000 from my secondary job, which I love. My husband is self-employed and makes between $150,000 and $250,000 a year. We also have $100,000 in disposable funds.
When it comes to investing, we’re currently investing roughly $70,000 annually. We have $1 million in retirement funds, a mix of IRAs and mutual funds along with some tech stocks. In addition to that, we own two homes– one worth $1 million and the other worth $750,000. We have a $100,000 mortgage between the two. I’m also the main insurance provider, and honestly, insurance coverage is my biggest concern.
We provided $100,000 to help our oldest child buy a home, and we plan to do the same for our other two kids once we sell one of our homes. I also have a pension of $50,000 a year when I’m 62, if I leave in a year, but that will increase by $3,000 for each additional year that I stay at my main job.
My partner will likely hand over his business to 2 of our kids and will collect some residual income from it. Ultimately, we want to sell our cheaper home and buy something smaller with the funds, and give $200,000 to our remaining kids. We might also sell both homes and purchase something smaller and easier to maintain.
So, the big question: How long do I need to keep going? Can you help me weigh the pros and cons of early retirement, and advise me on when I can afford to leave my job?
See: Will our Social Security checks be lowered? My partner has a school pension and I’m a veteran.
Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com
Dear Reader,
Insurance must be your biggest priority– if only… because it could quickly become one of your largest expenses if you retire early.
But don’t let that scare you…the decision of when to retire depends on many personal and financial factors, and you’ll need to weigh the pros and cons before you make that move. After all, if you can afford it and it won’t affect your needs or wants down the road, why not consider it? You can tackle some of the other major stressors, like healthcare, later on.
If you currently carry the primary insurance coverage, and you leave that job, either you or your spouse will need to get private insurance. That can be quite costly — $1,500 to $1,800 for a couple in their 50s — and you’ll need to have coverage until you each turn 65. Your partner would have 6 years remaining until he’s eligible for Medicare,
