When should I retire?

I have $1,000,000 in my 401(k) and am 48 years old. My wife and I have a $550,000 house paid off with no debt. We have $200,000 in CD's and cash. I have a pension that assures I will receive $1,200 per month for life. Currently, I maxed out on my 401(k). We save $35,000 per year on top of both of our 401(k)'s. My wife is 50 and she also maxed out her 401(k), but plans to retire at 52. My question is when can I or should I retire?

Retirement, 401(k), Retirement Plans
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September 2017

Good question, though one of the primary items necessary to answer it is still needed: How much money do you and your wife need/want to live off of? Other items that would likely be beneficial in determining your ability to retire: your and your wife's expected Social Security benefit, your wife's 401k assets, expected inheritance (if applicable), personal and/or family health history/longevity, etc.

Example, you could likely retire right now, from what information you shared, if you're willing to live off about $3k-$4k/mo. before taxes.

On a related note, when you do decide to retire, you may be best served to draw off of your CD's and cash for living expenses while converting your pre-tax 401k assets (assuming most/all of your 401k is pre-tax) to Roth. It looks like you've set yourself up very nicely to do some quality tax-minimization.

 

 

September 2017
September 2017
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September 2017