No Pension, Can I Still Retire?
09:48 Share

Welcome to the drill on money show. It's saturday, november night, and we are here answering financial questions from you are loyal listeners. We just love you guys. So thanks so much.

If something sing's on your mind, something going on don't have, just give us a hello good a drill on money to com, click the contact us button and write us a note. And if you'd like to join us live and checked box producer mark will do everything he's just the best you know else does. He sends out the free weekly news letter, goes out every single friday. If you have not subscribed that yet, you are missing a treat the free weekly newsletter you'd on the website, jail money dot com OK. Right now let's talk to mark, who's on the line from well.

I want to thank you, joe mark, for taking my call. Love the show. Listen to the pot every morning.

Jill, I need help advice on how to navigate retirement income without a pension. I want to retire two years. I want to relocate for the probably going to have a mortgage. So I need your mojo. Okay.

I got mojo. I got mojo for all of you guys. Okay, I don't worry. I got plenty of IT markwell from sixty .

two when you said .

I is there as your spousal is IT just you it's .

i'm the force to get three kids are all launch two Green kids.

You're gonna retire in two years. At that point, will you have any income besides portfolio income, rental income or anything else is coming into you?

No portal income.

The game plan is two years. Sell your house. How much is the house worth?

It's a condole. It's worth one hundred and sixty, but I I do have a mortgage of eighty thousand left on this. So I only have eighty thousand.

So you would put eighty ground down and get another mortgage, or you just buy something cheaper or you gonna rent. What's your hope in two years?

I hope to go to floria. And probable i've put the condos down there. Probably gonna need to to buy a sort about two fifty to three hundred.

That's .

not a downsize, dude.

All right. So let's see how we're going to pay for that. So tell us about the non retirement assets that you have accumulated non retirement there.

I have seventy five thousand and a broken age, and I have fifteen thousand in the money market.

okay, and fifteen in the money market, okay, got IT. Now let's talk about retirement assets because obviously your sixty two, you could take money out. So what's in retirement assets?

I have one point one million and pretext for, okay, and I have one hundred and ten thousand in a rough. I forgetting .

about the housing for one second. What is the cost for you to live your life? Last six.

seven years i've been living pretty cheap, probably three, five hundred a months, because i've been saving for retirement. But I figured in retirement i'm probably going to need about six thousand a month.

In your mind that six thousand a months s dessel t are you sort of building in a mortal payment to that or not? Yes, okay. So that would include a mortgage. Okay, when you look at social security and your potential social security benefits, what do you have at age, say, sixty seven, whatever you're full retirement ages.

So sixty seven is three thousand, one hundred and fifty five months.

okay. And what's seventy?

Almost four thousand and three thousand, nine hundred and fifty four.

What's the magic of two years from now?

Cobra, you know, I can get cobra for a year. I me just, you know, kind of ready for the next chapter of my life, but if I have worked longer and prepare for that too.

how much you earn right now?

Mark over you know.

it's funny. It's somehow rather like when I when I heard you tell the story, I feel like if you didn't have the house, the change and housing that you may be able to do this. It's this extra money that you need to float your bigger place.

At the very least. Let's just look at age sixty, seventy of thirty one, fifty five or months. And we really need another, let's call IT forty.

We really need like forty, let's say, four thousand just for the heck of IT. We need another four thousand a month. The ask am leaving your non retirement assets alone because Frankly, you kind of need to keep that.

You know, if we were to presume in two years, let's just pretend the markets flat at least in two in two years, we cannot count on the the assets growing dramatically. So if I look at one point, one million, let's just do that one first. And we look at our nice safe withdrawal rate.

That's thirty three thousand, but you've got ta pay tax on IT. I don't know. I feel like you're a little short man.

Yeah, yeah, I really do. mark. I don't know what you think i'm sort of thinking. If you don't do, you hate your job?

No, I like that you do.

I feel like if you could, first of all, cover's expensive. So that's number one. So I feel like you need at least three years and you might need more like for for rish because I want you to build up your non retirement asset base. I'm less interested in you putting money away pretax right now. And when you do your seven thousand in your ira.

is that a raw yeah that's the a OK.

I mean, if you're gona stay in at one hundred sixty thousand level, I think that maybe I could live with IT or even if you said, okay, let me give me another game plan. You say, alright, you know what i'm working right through until I qualifying for medicare and then I am going to move to florida and i'm going to keep working.

I'm going to i'm not going to make a hundred, but i'm going to make fifty and i'm going to do that for five years, age sixty five to seventy. That's what i'm going to do. I mean, that may be something you would prefer. I don't know IT probably also depends a little bit about like how you're feeling completely years healthwise mood wise. But I don't know if you're the kind of person would rather like make that as much money you can for as long as you can then call equity or you'd rather cliques early knowing if to work a little bit doing something for three, four years.

Yeah, I think IT would be the first and probably work as long as I can. And then then coquet z.

what i'd like you to be able to do is be able to work right through until you can clam your social security. You know, if you did IT the year before, then that would be okay. I think that you should count on him and when to worked to him sixty seven, it's not bad.

That's five years is not a big deal. Presumably you keep you know you're able to keep your job and nothing bad happens. We might be able to do IT sooner.

I just think i'd rather have you, your mindset attune to sixty seven or sixty six or sixty seven, and then we can regress. But you know what? I hope i'm wrong. I hope you call me up in three years. You like it's lesson er you're right I got two million dollars.

Everything's great life's fantastic sea latter lady i'm going to buy myself at three hundred thousand dollar condo in vero beach or wherever you're going yeah and and I hope that that's the case. I just want you to be realistic in terms of what your hopes and dreams are. okay.

So let's like get the five year game plan. Five years is actually a really short period of time. Let's just when you're at a time and every year, you can look at your numbers and you can like ping me and say, hey, what do you think?

Thank you so much.

If you have something going on in your life, a real estate transaction, maybe it's an idea about retirement, how you're going to pay for your kids school, maybe you just need a little pump up that things are going OK or on the right track, even if you're really Young, maybe want to change careers, we don't care. We'd love to hear from you. Go to our website, jill, on money to com, click to contact us, but we will get your note.

We really would love to have you on their live with us. That's the most fun. So if you want to do that, check the box.

Mark will do everything else. You can subscribe to us on the auto c APP or whatever. You find your favorite podcast, please try to do something nice for someone else today.

Change your work, change your wealth, change your life. Thank you for listening. He'll talk you tomorrow.

I'm Jenny Fisher and i'm Angela kenza. We are best friends and together we have the podcast office ladies where we revealed every single episode of the office with insane behind the scene stories, hilarious gas .

and ts of laws. Next, see all in the studio every wednesday will be sharing even more exclusive .

stories from the office and our friendship with brand new guests and will be digg into our mail bag to answer your questions and comments.

So join us for brand new office lady. Six point new episodes every .

wednesday plus on mondays we are taking a second drink. You can revisit all the office ladies. We watch episodes every monday with new bonus to bits before every episode.

Well, we can't wait to see you there. Follow and listen to office ladies on the free auto sy APP. And wherever you get your podcast.