My wife and I have been saving for some time now, and I feel like we should be able to get to FI within a reasonable time frame. However, I'm worried about passive income when we're ready to retire, because much of it is tied up in traditional retirement accounts and our home! Is there anyone who has been retired for some time who can help with advice about how to manage our portfolio so we can retire during the years before we have access to those accounts without penalties?
Here's a rough of our situation.
We are:
Me & DW, 39 & 34 yo
son & daughter 5 & 3 yo
Expenses (in expensive NYC):
$140K annual after taxes
starting next year, kids will be in public school - if we throw out child care costs + charitable giving, our expenses will be:
$85K annual
Debt:
$85K mortgage @ 3.5% fixed, with 12 years remaining
Total Assets ($1.1M):
Coop apartment: $400K ($485K appraised minus mortgage)
401K: $415K
traditional IRAs: $57K
Roth IRAs: $48K
529 plans: $37K
Brokerage acc'ts: $76K
Savings / checking: $90K
For all the above other than savings / checking, we're invested 95% in equities index ETFs, 5% in REITs. Notice that, of our supposed $1.1m, we really only have $166K in readily accessible accounts!
In addition to the above, when we're finally "of age" we expect some social security benefits (too soon to say what that will look like) and a small pension of about $2400 annual (not inflation adjusted). {edit} FIRECalc gives us an 75% success rate if we retire in 5 years and stay on our savings target, plus sell our apartment and buy in a lower-cost area {/edit}.
Again, I'm specifically looking for advice on how to turn this stash into something we can live on, rather than waiting for my gold watch at 65. Thanks!