Estimated Annual Expenses in retirement: $90K (without taxes)
(Based on detailed Quicken data we've collected for 20+ years!)
Those expenses are pretty high. With your pension and portfolio, you can absolutely support spending that much. But with a number that high, I feel like there's got to be some cutting that could be done. I'd recommend posting more details about your budget. Even if you can afford to spend that much, if you trim waste from you budget, that gives you more to spend on other things, like travel, your child, etc.
1. We plan to spend a few years converting the 401K to Roth from age 58+. Maybe $130K per year and paying the taxes from our Brokerage account. Any concerns with this plan?
2. We're being fairly aggressive in our Vanguard accounts due to our Pension and cash-on-hand. Trying to make sure we factor in some growth to offset a non-COLA Pension. Would you do the same?
3. We've been cleaning up the VG fund placement over the years. Last year did some TLH in Brokerage to remove VBLTX and reallocated Bond fund in 401K to account tax placement. Wary of cleaning up the Brokerage more due to current taxable gains costs, but any suggestions are welcome.
4. No Long term care insurance, but we've earmarked about $1M in our budget to (hopefully) account for this.
5. With the $60K annual Pension, I think we are "OK" but looking for any advice on how we can further maximize. Would like to be able to leave a legacy to our child and donate/travel in our next phase.
Thoughts/suggestions... How comfortable should we feel?
1. It sounds reasonable-- I assume you've modeled your taxes on this, what did that say?
2. Yes.
3. If you do any charitable giving, gifting stocks from your taxable account can be a great strategy.
4. I'd be comfortable with forgoing LTCI in your situation.
5. The main way you can optimize your results would be to take another look at that budget. I feel like a wasteful fool much of the time, and I don't spend 90k a year.
