Retire

I want to retire in two years, my wife and I have $3 million saved but we’re worried about our son with special needs — what can we do? – MarketWatch

Summary

I’m almost 60, my wife is 57, and I want to retire by 62. Currently, I am earning roughly $125,000 to $150,000 a year, which supports my family. My wife stopped working at age 43 to raise our child, who is now nearly 18 and has moderate-severe Autism. I have no debt and own three houses. I live in one, one is empty (inheritance) and one is rented. I pay a mortgage on the home I live in ($1,350 a month, with only 20 payments left), and the other two are paid off. Cumulatively, they are worth…….

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I’m almost 60, my wife is 57, and I want to retire by 62. Currently, I am earning roughly $125,000 to $150,000 a year, which supports my family. My wife stopped working at age 43 to raise our child, who is now nearly 18 and has moderate-severe Autism. I have no debt and own three houses. I live in one, one is empty (inheritance) and one is rented. I pay a mortgage on the home I live in ($1,350 a month, with only 20 payments left), and the other two are paid off. Cumulatively, they are worth on the market an estimated $2.6 million. I plan to rent the empty home but I’m not sure when since it is a little sentimental to me because my parents lived there until they passed not so long ago. Once rented, both rentals will bring in $6,000 per month. Other than the homes, I have $2.2 million in my 401(k), my wife has $600,000, we have $150,000 in savings, and $100,000 in my brokerage account. I don’t plan to apply for Social Security until Full Retirement Age at 66. I will apply for Medicare at 65 as will my wife and we are both in average to good health.

My main concern is my son, he needs full-time care and will never be able to support or live on his own. There are resources available to him, such as a regional center, Medi-Cal, in-home support services, and government funds, which all contribute to his life away from mom and dad when we retire. I don’t want to worry about my son’s happiness and well-being in a state system, so I was planning to contribute toward his other resources so he can live in the best possible care and ensure to the best of my ability that he will be taken care of and happy when we are not around. I plan to contribute around $100,000 a year on top of the other resources previously mentioned, which is close to another $100,000 a year. Is this enough? 

I would also like to maintain or elevate my lifestyle when we retire. Do you think this is feasible for our retirement and my son’s future?

Thank you,

R  

See: How to plan your retirement when you have children with special needs

Dear R, 

It is so wonderful to see how much you’ve saved for your and your wife’s future and how you are planning for your son’s as well — kudos to you. 

You’re asking really important questions, and ones many other families are weighing as well. Retirement planning and special needs planning go hand in hand, especially for parents who are worried about their childrens’ well-being during and after their own lifetimes. You have to strike a delicate balance between taking care of your children, but also not putting yourself at risk of falling short in retirement. 

You and your wife have amassed a really wonderful nest egg — more than $3 …….

Source: https://www.marketwatch.com/story/i-want-to-retire-in-two-years-my-wife-and-i-have-3-million-saved-but-were-worried-about-our-son-with-special-needs-what-can-we-do-11637080922