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Post by Deleted on Jun 9, 2022 4:23:17 GMT
I am 10 years away from retirement.
I do not have any pension. My wife and I should get SS. I have paid full SS and medicare tax (ie. my income was more than SS limit) every year. My wife worked 75%.
1. So may be I should do some retirement planning. what does it mean? and would it help? what do you do in it?
2. Are there any retirement calculator that you like?
3. How much should one plan for medical costs in retirement? what is like worst case? median case?
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Post by Deleted on Jun 9, 2022 12:01:05 GMT
I am 10 years away from retirement. I do not have any pension. My wife and I should get SS. I have paid full SS and medicare tax (ie. my income was more than SS limit) every year. My wife worked 75%. 1. So may be I should do some retirement planning. what does it mean? and would it help? what do you do in it? 2. Are there any retirement calculator that you like? 3. How much should one plan for medical costs in retirement? what is like worst case? median case? The day you start working is the time to plan and prepare for retirement by saving and investing 10-20% of your income. At retirement you need enough money and income to last however long you expect to live. There are books and articles about retirement planning, as well as professional financial planners. Individual and couple circumstances vary so that general advice is helpful but modifications are important. Some can begin retirement in good financial and physical shape but for one reason or another, life and retirement does not follow the plan. Spending too much or too little are problems. Fidelity publishes studies about retirement, such as the estimated personal cost of healthcare beyond that covered by Medicare. Without pensions, you should consider deferred annuities for a portion of your retirement savings. They can be contributed to over time or bought lump sum. Your 401 employment plan may offer them. This is for steady income in retirement that you and your spouse will be glad to have during rocky stock and bond markets like the present. |
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Post by Deleted on Jun 9, 2022 12:18:57 GMT
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Post by retiredat48 on Jun 9, 2022 17:10:02 GMT
Hi waffle...briefly:
Assess if you can retire today...or at least determine the amount you are short. Do this assessment by:
Estimate what you will need to spend annually in retirement, using today's prices.
Determine the current amounts of pension, soc security at age 62 or age 66, and any annuities. Subtract this annual income from your spending needs.
Next, determine the shortfall. Now, take 4% (suggested withdrawal amount) of your current portfolios, all investments. (Do not consider home.) Subtract from the shortfall.
If you have this cover3d, you are about financially independent today. Assume you are short ...like $4,000 a year short. Then you need to save 25X this amount, or $100,000 more.
Rinse and repeat every year.
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Suggest read some of the retirement work of James Otar...google him. It is free or $5 to download. Great studies since 1925 on retireee portfolio needs. He's a top guru.
And don't fret if you are ten years away. You have a lot of time to read about retiring on the forums. It is not rocket science. But a behavioral aspect exists...like could you retire at age 48, even with sound finances?? Can you ever retire early emotionally? If not, stop investigating retirement until you get a few years away from plan ned retirement.
Final point...if you have sos sec/medicare, then your medical expenses are quite easy to estimate. Current costs when retired are perhaps $2000 a year for you and spouse, each year. Pay for medicare drug coverage also. Then you want a supplement, that may cost about $5000 annually for you and spouse. This covers just about all medical expenses in retirement.
Example...my spouse is on 3x week kidney dialysis. Her monthly bill is $99,999.99. Medicare approved amount is about $4000. It is accepted by the provider...and medicare pays 80%, or $3200. My supplement (AARP/United Helathcare) pays the rest. My cost: ZERO!!!
What a country!
Best wishes...
R48
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Post by saratoga on Jun 9, 2022 23:14:33 GMT
1. Before you consider any annuity, maximize your Social Security benefit. MaxiFi Planner (Larry Kotlikoff) may be a good tool to maximize SS and do other retirement calculations. Since spouse benefit is mixed in, optimal SS strategy is more complicated than it appears. Sadly, many people leave many thousands of dollars on the table by not doing this simple check.
2. If you retire before SS starts, use the period in-between to do Roth conversions. If you are building a sizable tax-deferred account, you need to be more ambitious in your Roth conversion to avoid `tax torpedoes' after RMD. This year, with depressed asset prices, is a good time to do some Roth conversion, for example.
3. You have time to consider Medicare supplements, etc. Read Retirement Planning Guidebook by Wade Pfau.
4. For a decent free retirement income calculator (just to get a rough idea), you can try Fidelity's or Schwab's if you invest with them.
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