My calculations show that we will have plenty to retire on the day we write the last tuition check for college assuming we can continue the same savings rate for the next 5 years
Did I understand this right?
Year 1-5: Continue saving as your are now; $60k to investments + $20k to mortgages
Year 6-9: Pay for college as first priority, excess funds go to investments and mortgages
Year 10+: (Semi-)Retired
I know I need to put a substantial part of the $118k toward mortgages, but can't figure out how much.
I don't think this is a foregone conclusion. You didn't tell us the rate on your mortgages, nor how much income is being generated from the tenants. A low mortgage rate would mean it would be better to invest your money elsewhere. Insufficient income from the rentals would mean you might be better off selling the properties.
So, are we on the right path?
You have achieved quite a good rate of savings; you're definitely on the right path there. Keep it up! You should feel good about this. Not only are you saving at a good rate now, but it also gives you flexibility and room-in-the-budget in case you do lose one of your incomes.
In my opinion, the two riskiest things in your plan are:
(1) The chance of either/both of you losing your jobs. Because you're saving at a good rate now, it seems like you'd be able to continue to pay bills, etc., but it would reduce your ability to save, and therefore extend your future date of retirement. The way I would approach this for myself would be to run the numbers on a bunch of scenarios. Build a spreadsheet that allows you to simulate losing one of your incomes in year #1, year #2, etc., and see how that affects the outcome. Then you can develop strategies for coping with a situation like that, such as reducing expenses, asking your daughter to take on some portion of her college costs, etc.
(2) Whether or not you'll truly have "enough" after year #9. We don't know your details (expenses, particularly), so I can only say that the numbers & timeline
feel a little tight to me. Though if your semi-retirement includes part-time work, maybe that'd make it less tight than I imagine.
You may also have a large unknown in the cost of college for your daughter. Do you have a feeling for what sort of school, and what the cost would be? Is she likely to be able to land scholarships?
Apart from that, and not that you really asked for it, here are some things I would look into doing if I were you:
* 529 plan for your daughter?
* Get that $118k in the money-market working for you. Possibly in the mortgages, but more likely in the market.
* Employee Stock Plans - I sell all my employee-stock-plan shares immediately after purchase (at the discounted price). It's a matter of diversification.
* Traditional IRA may be a better plan for you than Roth IRA, depending on your tax-bracket now vs. where you expect to be in retirement.