I just turned 50 years olds and my wife and I current work for NYC with out three children, one in elementary school, one in HS, and one in college. I will be eligible to retire in about 8 years with a full pension of about $75K and medical insurance covered. Currently we are taking home about $175K between my wife and I.
We have about $70K liquid, most of which is in a HYS account making about 4% and a bank and brokerage accounts, another $80 in IRA's, and $280K in a TDA making a steady 7%.
Our take home income is about $9100 and our expenses are around $6200. Part of this is a mortgage payment, car loan, and insurance.
I will shortly have about $3000 from side hustles and stocks I'm looking to sell for a loss in my brokerage account.
I'm looking for advise as to I should do with this $3000 and what my next moves should be. Any ideas would be appreciated.
What should my next steps be with 8 years till retirement
byu/asmithcwp002 infinancialindependence
Posted by asmithcwp002
2 Comments
Take your annual expenses and multiply by 25 & 30 years. 25 is minimum needed. Your case is different as you have pension & medical covered.
With your pension do you still collect social security? When does mortgage pay off and how much is that?
I’d figure out what you and your will wife will get from SS. If you both get SS and you have a pension (do you get full survivor benefits?), you may just need to bridge the gap between when you collection pension and your SS kicks in.
That being said, you can do $8,000 a year into your IRA (ROTH or traditional, traditional may be better for you given current income and how close you are to retirement). Its $7k a year +$1k/year extra for those over 50. That would probably be my first priority.
If you have a 401k or 403b or other retirement account type, I’d try to get as much into that as I could as well.
You can save up quite a bit in 8 years with a $2900 monthly surplus if you make it a priority.