« Last post by jgordon1 on Today at 09:45:07 AM »
Well maybe this year you can pay the bill and your brother could "lend" you some money
It sounds like you just need 2-3 years of living expenses for ages 60-62, minus the 10,000 in side gig money. After that the pensions will kick in and cover all but $300 a year, assuming they are inflation adjusted. Then as your side gig winds down, you'll be able to file for SS to replace it. Here's how I would break it down in non-inflation adjusted numbers:
Age Expenses Income Shortfall
60-61 35,000 10,000 25,000
62-67 35,000 34,700 300
67+ 35,000 40,300 -5300 (this is an overage)
So for the first 2 years you just need $25k a year. At a 4% withdrawal you would need $625,000, but that would allow you to withdraw that extra $25k every year in retirement. Do you want to increase your lifestyle that much at at 62, or would you be ok with spending the principle to fund the first 2 years of retirement and starting with a lower retirement account balance? The other option would be to leave it as an inheritance, or some combination of the above.
And depending on whether or not you buy medicare gap insurance (for what Medicare does not cover) at 65, your expenses definitely will go down at 65 when Medicare kicks in. There is a cost table online, but in your situation let's say Medicare is $200 per month, or $2400 per year. Expenses then go down by (8000 - 2400 =) $5600.