My husband and I are planning to retire in 20 years, which will make me 55 and my husband 64. At that point, I imagine both of us will choose some sort of part-time employment, be it volunteer or for pay. We'd like the flexibility of not working if health is a concern, but both like to be busy with activities. I'm not sure how that will change as we enter our 50s and beyond. :-)
Our goal is to move, sell our current home in Seattle (it will need to be fully paid off at that point), and take the settlement from that house & buy a house outright in Hawaii. We're anticipating downsizing, and hope to have additional funds leftover to cover taxes, insurance, start up costs (furniture), etc on our new home.
Obviously, we're a long way from making this a reality, but planning for retirement requires a bunch of steps along the way, so I am looking at 1 year, 5 year, 10 year, etc plans to get us there and make sure we are no track for retirement. We also have other financial goals related to our children, like sending them to college, so you'll so those goals weaved in as well.
Here are the things I can currently think for our retirement plan:
- Primary residence fully paid off (we're 5 years in to a 30 year mortgage, so we'll need to accelerate payments to make this happen). Goal is to pay this house off in 15ish years - so have it paid off by 2027.
- Vacation home fully paid off. We may or may not sell this house when we retire, but it will need to be paid off. We're aggressively paying this off, and my goal is to have this house paid off by February, 2017.
- Fully fund our kids college accounts. We're currently saving in GET accounts, and I have 40% of tuition credits saved for our oldest, and 37% for our youngest. (Our kids are 5 1/2 & 4 1/2.) I'm still wrestling with how much we will need to save, so more to come as I work on this goal.
- I've run quite a few simulations on how much money we will actually need to retire, and I'm just not sure I have a firm answer. I'm using $6,000,000 as our current target, but I'm sure that will get revised along the way.
- Retire with no debt (credit card, auto loan, etc).