Monday, 22 January 2018
The flu took a lot out of our lives. I didn’t get it, but Mr. 182 did. He was miserable, and I have never seen him so ill in the 25 years of our lives together. He is still coughing badly, but other than that he is doing fine. Because he was so sick, we didn’t address what we felt to be issues in this refinance of our house, but last Friday morning I was off work and he was well enough to discuss the details. The final decision is to proceed with the refi, fixed for 30 years at 4.25%. There is no prepayment penalty, so once things are done with other financial issues, we will decide where our priorities lie.
Yesterday, I really thought through my retirement date. Based on what information I have about the school district, I decided I won’t retire until August 1, 2019. There are 555 days left! Setting a date was based on a number of reasons. As a teacher, I like working in the summer as it is extra income. There is also a potential golden handshake, if not this year, then in the next fiscal year. I will begin to pull my social security in November 2018, with a 25% deduction (or more) for tax purposes.
With the refi of the house, our proposed house payment will be about $1100 less than what we currently pay. That will put us ahead on debt reduction. When I take social security, I will be older than 66. This allows me to work without income limitations, and will add about $1200-$1400 to our monthly income after the tax deduction. The extra money should, in theory, pay off all credit cards, increase savings, and put a better financial cushion behind us. Once I retire, I will have my pension in addition to social security. Our income will be lower, hopefully enough to drop our percentage even more. Once the debts and income are squared away, Mr. 182 will increase his pre-tax deductions.
There are a lot of caveats! As this is only the third week into the 2018 tax season, and the IRS and Congress are in upheaval with the government shutdown, who knows what the final amounts of taxes and such that will need to be paid. Nobody really knows at this point. Final mortgage figures are not definite, just approximate. We hope to close by the end of February so our March house payment will be lower. If a golden handshake comes this spring, and is worthwhile to take, I’ll do it. I will probably take my pension, but hold off on my claiming my social security, just to make it past the 66 age marker. Thus, while we have made our plans, life still happens, and we will have to meet the changes and adapt.