[USER]

I opted out of returning to a Corporate Management position 8 months ago after a reorganization (which paid $130,000 annually). Currently, I am pursuing two business ventures with minimal income potential (just starting out – $15,000 per year, with high growth prospects). I don’t want to go back to corporate mgmt (truthfully I’d rather clean office buildings and scrub toilets before doing that!)

At age 57, I am concerned that our finances may not be sufficient for retirement in the future (ideally within the next five years). My husband intends to continue working for another five years (he is currently 63 years old). Our home has a value of $525,000 and we have $385,000 in equity. Additionally, we generate an annual net profit of $20,000 from short-term rentals on Airbnb. $300,000 in equity in this property.

We also have other sources of income: my husband earns approximately $165,000; our combined cash reserves are around $250,000; and we collect 5% interest ($3600/month) on a CD from the sale of our second home in 2023, totaling $650,000 due in 2026. 401k is approximately 475k.

 Furthermore, both my husband and I expect to receive Social Security benefits of roughly $7,600 monthly in about five years. To supplement our financial situation further, we plan to invest $650,000 more into additional short term rental properties which should bring in an estimated net income between $40-$60 thousand.

No loans or outstanding bills etc., other than remaining 140k home mortgage payment and monthly living expenses. Currently runs ~$5000, includes PITI, living expenses: utilities, medical copays, vehicle insurance, home maintenance, gifts, dining, entertainment, pet care, subscriptions etc.)

Despite all these financial resources, I am concerned whether it will be sufficient for us to maintain our current lifestyle during retirement given inflation rates and unforeseen expenses. Should we revise our investment strategy or adjust other aspects such as reducing unnecessary spending? Expert opinions would greatly help guide us towards achieving long term monetary stability.

[M.T]

You didn’t say anything about monthly or annual expenses.

[Kicy]

You seem fine. In 5 years you’ll easily cover your current monthly expenses just from social security. That’s incredible. Sounds like your husband’s salary is enough to cover everything while you get this new business off the ground, so you’re not taking a hit there.

Your net worth is only going to continue to grow, even if you don’t contribute another dollar.

If I was you, I would not be stressed at all.

Suggested: What do you all do for health insurance /coverage when you retire early?

[Cullin]

Oh man I can relate!!!! I had just about the highest-level job I could have where used to work. Luckily, we had a very good pension plan and as I had been working under that plan since age 18 (even through college) I retired at 53 and embarked upon our real-estate investing business (which I have a lot of experience at) and it’s going great. My bet is in 8 years I’ll top my take home from when I was working (hopefully), but yes, my fallback under our pension program was school buss driver so I could finish off the last few years if I needed to jump ship!!!

[Author]

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