For an audio version of this post, please click on the speaker icon (top left).

 

Welcome to this episode of The Doctor’s Bill (Can You Afford It?).

Wonder if you should buy that big ticket item or not?

Well here’s your chance to have a wealth management expert, Johanna Fox Turner, of Fox & Company Wealth Management analyze your overall finances and make a final verdict on whether or not you can indeed swing for the fences and splurge on yourself or whether you should just walk away.

[Johanna and I have no current financial relationship]

Disclaimer:  This is not meant to be a substitute for paid professional advice but only meant to serve as a suggestion/guideline.

 

The following are the details from our submission form:

 

Item/Experience Desired:

Forego golden handcuffs to retire 2 years early

Approximate Cost:

$200k after taxes

On A Happiness Scale of 1-10 (10 Being Happiest), rate what this item/experience will do for you A) Short Term and B) Long Term:

A) 7   B) 5  (it essentially buys me two years of freedom)

Age:

58

Gender:

Male

Occupation:

Health Executive

Marital Status:

Married

Any Children? (If so please provide ages)

28, 23

How Many Years Till Planned Retirement?

Two (or four if I stay for vested payout)

What is your total household income?

$400k

What is your % Annual Savings Rate? (savings/gross income)

30%

Primary Home Equity (Market Value-Debt) [For Renter =$ 0]

$525k

Additional Real Estate Holdings Equity (Market Value-Debt):

$400k

Current Liquid Asset Value (Savings, Checking, Etc.):

$75k

Retirement/HSA Combined Value:

$2.1 million

Brokerage Account (Taxable):

$900k

Miscellaneous Asset Value:

Inflation-indexed pension $50k/year, rental income $24k/year, free health care

Mortgage Balance:

$275k

Student Loan Balance:

$0

Additional Liabilities:

$27k car loan

Future College Plan Funding Needed (Today’s Dollars):

$0

Future Parental Support Funding Needed (Today’s Dollars):

$0

Additional Future Obligation Support (Today’s Dollars):

$0

Any other pertinent information not addressed?

What I am asking is if I can forego my 457f payout.  If I retire at 60 I get $0, but if I retire at 62 I get $200k.

I would use it to pay off the home mortgage.

Could I also just retire at 60, pay off the mortgage out of pocket and meet my retirement income goal of $150k/yr before taxes. (I think at 3% withdrawal rate I can meet my retirement goals now)

 

 

So does this submitter get to break free from the shackles of his golden handcuffs?

 

 

If these were your financials, what would you do?

Would you still be handcuffed to your job to get the carrot?

Or do you break free from your bonds and enjoy your newly found freedom?

 

Click on the Doctor’s Bill Image and find out the verdict:

 

 

After you see the verdict please come back to this page and comment whether you agree or not with the decision (and no cheating by looking at comments first!)

 

 

 

If you would like to submit your own Doctor’s Bill request please fill out the submission form.

 

Note:

If you are in search of financial help, please consider enlisting the service of any of the sponsors of this blog who I feel are part of the “good guys of finance.”

Even a steadfast DIY’er can sometimes gain benefit from the occasional professional input.