Mile Markers and Decision Points
A modern proverb says, “to make God laugh, make a plan.”
Financial plans are just that, plans. Without knowing the (financial future) we can only save so much and adjustments may be needed.
I foresee us having to assess our conditions and make adjustments, if needed:
Do we continue with my (current/past) employer’s Health Plans?
Assuming higher premiums? More affordable than ACA, and more flexible in options. If my spouse works until I am 65 (5 more years), she can retire at 60 but will need health coverage on the open market.
Relying on the ACA may be at risk of political influence, as well as variable discounts based on income.
She also desires the option to leave her employer and go to school for a year.
If we continue my employer’s health coverage—even if slightly higher than her employer’s family health coverage—my employer would allow us th ensure our kids are covered until they are 26 (10 years after my retirement).
When I turn 65, I can enroll onto Medicare, but cost varies by income (IRMAA). Staying on my employer plan allows me Medicare discount, unaffected by income, and can choose to remain in our current medical coverage.
Decision: Yes, continue with Employer Retirement Healthcare—but if my spouse’s employer offers Dental & Vision to enroll in just that.
Can I find consulting work of 1/3 my prior income (with no benefits)?
Only for a few years, may cushion any market shocks.
Staying relatively connected to colleagues and relevant skills.
May help retirement spending (mental shift from accumulation to decumulation).
Don’t stress about it if it doesn’t come.
Decision: depending on my spouse’s career path and our fortunate financial situation, I should not feel obligated nor seek out consulting with my last employer. At least not for 6-9 months to let them appreciate the void in my absence. 😎
What if markets strike a major correction?
Historically, US Market corrects once a decade. Over time, Index investments recover in a few years—even if job loss and certain company closures occur. Timing can impact financial outcome—e.g. if a recession or correction occurs at the start of retirement compared to a decade later. Option to adjust discretionary spending, but not required.
We may halt pre-tax retirement contributions.
May move 529s into more conservative holdings.
I am currently 25% cash/ bonds/ CDs/ deferred income.
My spouse is employed at a non-profit, and I can start my Pension at any time. My plan is to hold off on my pension for a few years to maximize the benefit. And my plans are to select the lower benefit with 100% survivor inheriting my pension.
My oldest attends a private school and has a scholarship. Their 529 covers the first 2 years, when I retire. And my youngest has the same.
I propose to not sell major holdings at a loss—wait out a few years for a recovery.
Can ask our tax preparer if there is. My tax loss harvesting.
How to fund the remaining half of college expenses?
We are generous and believe in higher education, and to avoid college loan debt.
We invested in 529s for both kids, one already in college and the next to start in 3 years. This covers half of their expected. We can contribute roughly $15k/yr after taxes.
My retirement age of 59.5 years allow me to use pre-tax (tax deferred)retirement funds at no penalty—includes living expenses, ROTH Conversions, and college.
Beyond that, kids may carry a small amount of college debt if the choose a school outside of our budget.
When & Where to relocate in retirement?
While my wife’s commute should be addressed, we have chosen to stay put until our daughter leaves for college (3 years).
While I feel blessed to have had this home while we worked and raised our family, it is not our ideal retirement home.
We are building our Needs & Wants List—prioritizing healthy living over commute and school districts.
We assume to sell our home, exceeding our cost, to fund most or all of our next home and avoid a mortgage.
Go-Go or Slow-Go?
Based on our age difference, my wife would retire 5 years later, if she chooses to. Her line of work and culture can be more fulfilling and stimulating. It is not without stress and has a long commute.
Our travels together would be moderate, limited by her ability for time off.
In 3-5 years, we should reassess how the market and our investments held up. Do we make short-term adjustments? Move and hope to reduce living expenses? Would our (then) college graduate be semi or fully independent?
I would expect my option to consult to have ceased, while my wife may capitalize on that early to reduce her commute.
God willing our health holds up—or we adjust our plans
What if markets are good?
If the US Economy weathers the current administration and “hope” in the next, do we use only what we need or “bank” good years?
Only to support our adult-kids get a leg up, or to add luxury or experiences that we did not plan for.