My husband and I are 70 years old. We retired at age 62, but my husband quickly returned to work, working two part-time jobs. He is always worried about money. We own a house worth $550,000 but still owe $128,000. We have The interest rate is 2.2%. Her husband says there is no point in borrowing money for repayment. She has no other debts.
We have about $1.8 million in various retirement accounts. Many are in Roth IRAs. We lived very frugally to save this money. We made it, but her husband wants us to live like we didn’t save all that money. He has yet to touch the funds in his Roth IRA.
He still cares about turning on the air conditioning, drives an old cheap car, wears old clothes, and lets me cut his hair. We travel, but only with money from my modest retirement job. We will stay at a two-star hotel. All of our money is in various retirement accounts. Most of these accounts are in his name and I am the beneficiary, even though I worked hard and contributed half of the money. Therefore, withdrawals are not possible.
I feel like I can live a little easier now. He isn’t. He has a 7 year old car so he would like to upgrade. We have never bought a luxury car. I only bought cheap cars.I just want a honda
7267,
or toyota
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He thinks they are too expensive.
What is this money good for us? Isn’t that enough?
look: I want to invest $100,000 in high-dividend stocks, but my wife won’t invest. How can I convince her?
Dear readers
There are more retirees than most retirees, so it’s not necessarily a question of whether there’s enough.
It’s more a matter of how you and your husband find a compromise. Even if a couple has a long and beautiful marriage, they may disagree on how to spend and save money. As long as there is healthy communication and each person feels their needs are being met, it’s fine.
Talk to your husband about why he feels that way. Perhaps he grew up in difficult times, and he never wants to return to such a situation. Or maybe he saw his parents or grandparents lose money in retirement and is worried that it will happen to both of you. You won’t know until you actually try these meetings, and they may be tough, so be prepared. Instead of going into the conversation feeling irritated, try having it while eating your favorite meal.
That said, you also need to meet your own needs. you are right. You worked hard and contributed to your retirement savings, so you should have a say in how that money is spent. You make a very important point about access to money. No one should be locked out of their retirement assets. Discuss access to these accounts when deciding how much you want to withdraw. Your husband may be a careful spender, but you should have equal access.
Your mortgage interest rate is very low. The 30 year interest rate is It is currently hovering around 8%.. Mortgages are not usually considered “bad debt” (unless, of course, they are very expensive and put undue pressure on your daily life). If you can afford the monthly payments, it’s okay to keep the money in a retirement account.
See also: I am 92 years old and will probably live to be 100. I have about $250,000. What are your thoughts?
Running the numbers can also help you on your way to compromise. Look at the big picture. How much money do you need for the rest of your life?
When choosing a qualified financial planner, here’s a rough guide to get you started.
First, determine the withdrawal rate. For years, the rule of thumb has been 4%, but this rule has been hotly debated, with some experts saying it could even be 3%. Convert that 3% to a decimal and divide by the amount you need each year. If you need $40,000 per year and choose a 3% withdrawal rate, divide $40,000 by 0.03 and your total will be just over $1.3 million.
When calculating, take into account all expenses such as groceries, taxes, utilities, medicine, car and home maintenance, and entertainment. Annual withdrawal amounts are subject to change based on inflation, interest rates, market returns, and unforeseen life events.
Other questions: How much is your annual or monthly retirement savings withdrawal? And can or should you reduce it? You may be comfortable taking more withdrawals. (Your husband may not feel comfortable accepting what you say.)
Do you have an emergency fund? Have you already factored in taxes and other expenses? How much is your monthly air conditioning bill? You need to weigh comfort against finances. After all, that’s why you saved for retirement in the first place.
You will become more involved in your own finances and no longer have one person take all the responsibility, but you do not need to radically change your husband. If you’re okay with him wearing old clothes and you don’t mind cutting his hair, leave him alone.
If you’re both still working part-time after retirement, you might want to set short-term financial goals that will give you a little more financial freedom and allow you to travel more. For example, you can also explore Airbnbs ABNB.
Instead of a 2 star hotel. How much can you save by buying a used car compared to a new one? Perhaps there is a way to put the difference into a “fun fund” to use for leisure activities.
If you’ve worked hard to enjoy a financially stable retirement, it’s important that you both enjoy it.
Reader: Do you have any suggestions for this reader? Add them in the comments below.
Have questions about your retirement savings? Email us at HelpMeRetire@marketwatch.com
