Current yearly investments: (approx. $150k/year -- 401k $67k, $48k taxable account, $14k Roth IRA, $20k mega backdoor Roth)
DEBT ($200k left on mortgage at 2.25%)
ASSETS w/ asset allocation around 80% stocks/20% bonds
- ~$2 million in 401K
~$1 million in Vanguard brokerage account
~$500k Roth Accounts
~$50k cash
~$30K in EE bonds
- ~$600k home equity
~$300k in 529 for one 13-year-old child
Social Security: Mine at 62 -- about $28k; Wife at 70 -- around $48k (obviously, these are subject to reduction as new laws dictate)
Health care post-retirement: subsidized by employer at current rate and eligible for Tri-care at age 60.
Spending: Currently around $150k/year (not including income taxes) but includes $35k for private school. College hopefully will be covered by 529s. We might travel a bit more during the go-go years, so let's keep spending at $150k/year.
I've learned a ton from Bogleheads and am just now starting to read up on things like IRMA and being pushed into a high tax bracket because of RMDs (a good problem to have, admittedly). How I can try and minimize those issues I'm still trying to figure out...I suppose if we retired at around 55 then we could do around five years of Roth conversions but after that, I think we're extremely limited. So back to the questions:
(1) What can we do to be more tax efficient, now and going forward?
(2) Is working past around 55 make little sense since our spending will largely be covered by pensions at 60 (with a cushion once SS kicks in at 62 and 70)?
Thanks in advance for your thoughts!