As I approach retirement, I’m plagued by an unsettling feeling of uncertainty. Despite my intellectual confidence, my heart whispers doubts about my financial readiness. The unknowns of the market and the loss of a steady income stream weigh heavily on my mind. My wife, 60, and I, 57, are planning to retire within the next three years. While she may choose to work part-time, I’m determined to leave the workforce behind.
Our combined Social Security income is projected to be substantial, but we’ll need to bridge the gap until it kicks in. We’ve got a comfortable nest egg, with a mix of tax-deferred retirement accounts, Roth IRAs, brokerage accounts, and cash. Our goal is to create a sustainable income stream that will support our desired lifestyle without depleting our resources.
To achieve this, we’ll need to organize our assets into distinct buckets, each serving a specific purpose. The tax-deferred accounts will provide a foundation for our retirement income, while the Roth IRAs will offer tax-free growth. Our brokerage accounts and cash reserves will serve as a buffer, allowing us to cover expenses until Social Security begins.
By grouping our assets into these buckets, we’ll be able to visualize our financial landscape more clearly and make informed decisions about how to allocate our resources. We’ll need to consider our tax burden, investment strategies, and cash flow requirements to ensure a smooth transition into retirement.
While there are many unknowns, I’m determined to confront my fears and create a solid plan for our golden years. With careful planning and strategic decision-making, I’m confident that we can overcome our financial anxieties and enjoy a comfortable, secure retirement.
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