For a long time, I’ve been tracking feasibility of retirement. I poked around the ACA exchanges, ran sims about whether the money would last, etc.
Well, I’m expecting next month now.
We have sufficient cash on hand for at least a year. So no need to liquidate anything at this time. When we do liquidate, I have come to the conclusion that we should start with our ESPP company stocks. We have sold very little over the years, so it is an out-sized portion of our portfolios. It has grown well over the years, so no complaints. But probably about half our net worth is in that one company. Generally not a good practice.
I’ve read (repeatedly) that we should roll our 401Ks into IRAs upon separation. We both have IRAs at Vanguard, so that should be easy-peasy: roll into an existing IRA. From there, we may want to do backdoor ROTHs for as long as that is allowed. We both have ROTHs, also.
I need to have a conversation with HR about current options regarding COBRA, etc. But I will be completing an ACA application in the next month or so. I don’t know the current rule about when I have to submit it (need to look). COBRA will be expensive, but I can use that as a stop-gap regardless.
Mortgage will be paid off in about 2 or 3 years at our current rate of paying. If stocks recover, I may just pay it off at that point rather than maintain a mortgage. Right now I think cash should be going into equities while they’re on sale, and I can liquidate those to pay off the loan when equities have recovered.
Anything jump out at anyone as a bad plan? I realize this was broad brushstrokes. Appreciate any input.
1poorguy (countdown…tick, tick, tick, tick…)