Author Topic: CASE STUDY: Checking out at age 52?  (Read 2590 times)


  • 5 O'Clock Shadow
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  • Posts: 2
CASE STUDY: Checking out at age 52?
« on: February 11, 2018, 01:46:43 PM »
Here is my situation
1,050,000 to 980,000 in 401Ks, Roths and Annuities (mostly 401ks)
Both 51
Can retire at age 52 with a combined annuity of 65k (does not rely on savings from above)
3 homes, 1 is residence, 2 are rentals with a net worth of 525k  - income from rentals is 2400/month without expenses
Total remaining mortgage of 180k
No credit card debt
No other debt at all
2 late model cars with low mileage
Eligible for Social Security, but not factoring it in
Combined current income of 165k gross
We have normal utility bills (electric, water, internet, etc.)

Here is what I want to do:
Sell all homes and move to Jacksonville, NC (or rent one and sell other 2??)
Buy a modest home cash (under 200k)
Get new jobs that are MUCH less stressful making 40k to 75k between the both of us either part time or full time
Be able to continue to pay for Long Term Care Insurance (300 a month for both of us)
We both will get partially subsidized health insurance after retirement
Enjoy each other and recreate a bit more


  • Stubble
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  • Posts: 201
  • Location: Midwest U.S.
Re: CASE STUDY: Checking out at age 52?
« Reply #1 on: February 11, 2018, 03:34:03 PM »
There are lots of links across the forums to help here, and I'd recommend starting with some of the sticky-ed threads. And, always, cfiresim.

The first thing I would say is: probably you're in awesome shape, but we need to see your expenses (including rental-related) as you project them in retirement to more fully answer the question.

The way I see the income side of the equation per year, assuming 3-4% withdrawal:
Keep all homes:
30,000-40,000, pre-tax, from $1 million invested assets.
65,000 from annuity
28,800 from rentals
That's $123,000-133,000, before tax.

Sell all homes:
invested assets = 1000000+0.96*525000-200000 = 1.3 million
(current assets + sell price less commission, assuming 525000 is net of remaining mortgage, - price to buy new home)
40,000-52,000, pre-tax, from invested assets.
65,000 from annuity
That's $105,000-117,000, before tax.

Plus social security.

I wouldn't use these rough numbers to make a decision one way or the other, but more to say "we'll probably have $100,000 to $130,000 coming in before taxes, is that in the ballpark of what we need/want in retirement?" From your income of $165K my guess is yes but obviously that's up to you all and there are lots of other factors at play here that are opaque to us (e.g. your risk tolerance), things to consider much more in depth before you make big changes, etc.

At this level of assets I'd turn heavily towards what are our expenses going to be and how sure are we of that. In your shoes If my post-taxes "optimal lifestyle" expenses were <= $90,000 I wouldn't work another day unless I wanted to.


  • 5 O'Clock Shadow
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  • Posts: 41
Re: CASE STUDY: Checking out at age 52?
« Reply #2 on: February 12, 2018, 12:33:05 AM »
Sounds like a good rough draft.  You might want to consult a real estate tax specialist - selling real estate always comes with some tax ramification - capital gains, depreciation recapture, prior years write-offs, etc.  Might be able to rent one out, sell one, and possibly 1031 one to the location you want - just thinking out loud here - I am not an expert in this area.  Also - really get your expenses locked down - figure in taxes, medical, dental, insurance, etc.


  • 5 O'Clock Shadow
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  • Posts: 2
Re: CASE STUDY: Checking out at age 52?
« Reply #3 on: February 12, 2018, 05:26:56 PM »
Update on bills (anticipated)

Food   400
Long Term Care   300
Hair/Beauty   150
House Repair   100
Medical   500
Dental   100
Vision   50
Car Insurance   150
Kids Presents   200
Eating Out   150
Computer   100
Cell Phones   200
Real Estate Tax   300
Electric   150
Water   100
Internet   100
Fun   200
Clothes   100
Gas   100
Misc   100

Total = 3550 to 4000 a month


  • Bristles
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  • Posts: 307
Re: CASE STUDY: Checking out at age 52?
« Reply #4 on: February 16, 2018, 12:26:54 PM »
Dump the LTC Insurance; you and your wife will be grossing 65k from annuities (pensions?) without having to tap your tax-deferred savings and that more than covers your monthly spend.  You're golden; between SS and letting your investments grow for another decade or so plus what you've got coming in from your rental properties you should have no need to work at all after 52.  Factor in the subsidized health insurance and I'd say you've got some nice decades of life ahead of you, congratulations.