Hello all!
I would love some suggestions for my particular situation and one which I am sure many older people who have stepped into the FIRE zone can attest to: Starting late to investing enough.
My question is: what investment accounts are best used for someone who is NOT planning to retire early but wants to pay $0 in tax?? When I retire I do plan to retire .. no further income other than what comes in from social security and my investments.
I am 54 (almost 55) and have about $19,000 in retirement accounts. My house will be paid off in December and my wife and due to our excellent health our renew for 20 years of term life (even at our ages) is a mere $45 for $300,000 of coverage. We have no debt and my credit rating is 790. I have just received 3 credit cards in an attempt to make use of sign-on bonuses for travel that we would like to do (Chase Sapphire Preferred, Southwest Rapid Rewards business card and Southwest Rapid Rewards personal card - I am about to get the companion pass with the amount of sign-on bonuses I will soon be getting.)
My question is this: My plan is to retire at 67. I want to live on $50K each year from investments. I will draw $2,200 each month ($26,400 yearly) from social security. This leaves $23,600 to take care of on my own. At an 8% rate of return for 12 years, and needing $590,000 ($23,600 x 25) I need to set aside $2,437 each month.
What's the best investment location for me? I have access to 403(b), Roth 403(b), IRA, Roth IRA, and a standard investment account.
It is unfortunate that I didn't come across those in the FI community sooner (Go Curry Cracker, Mr. Money Mustache, J.L Collins, etc.) I chose, instead, to pay for all of my 4 children's college educations (with them working to do the same) and to pay off my house and keep other debt as zero while making about $50,000 per year.
Thank you to all who can give insight on this issue.
Mike
PS ... I would love to see spreadsheets created in the FI community that would address these type of questions. I have created a spreadsheet that can help some .. but I don't have enough of a handle on the particulars of when one type of investment would be better suited to someone (based upon age, or other criteria) to build a spreadsheet that would actually give me greater clarity.