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Considering your required savings rate to get to your goal, your retirement years can be pretty dang extravagant. I'm not saying that's a bad thing, but we make an income close to yours, and our goal is less than half of that.
It's interesting to read different perspectives on "how much is enough for retirement".
We travel a fair amount and I'd expect to do even more of it but nothing too extravagant really. I wanted to the goal to be higher than We need and currently we are well ahead of pace to hit that goal at 65. If we keep this up 65 turns into 60, then 55, 50 etc
We travel a fair amount and I'd expect to do even more of it but nothing too extravagant really. I wanted to the goal to be higher than We need and currently we are well ahead of pace to hit that goal at 65. If we keep this up 65 turns into 60, then 55, 50 etc
I guess DINK makes saving a lot easier.
My gross income is about the same as yours. But being SIOK , my goals are are pretty muted.
When I came up with the number I used current gross income and a 2% draw rate.
Dual income no kids, most of our investments are equity based but my house is my largest asset
At a 2% draw rate, you can live for 50 years after retirement even if the real rate of return on your investments is zero. Don't you think you're being a little too conservative? With no kids, there are no heirs to appreciate your frugality.
At a 2% draw rate, you can live for 50 years after retirement even if the real rate of return on your investments is zero. Don't you think you're being a little too conservative? With no kids, there are no heirs to appreciate your frugality.
My conservative numbers in my 30s if I stay on track will allow me to retire earlier with less if I choose.
I was trying to put together some basic estimate of how much I could save. What rate of returns should I expect from stocks on an average? In excel, do I use the FV function to estimate the accrual of yearly savings?
whats the number people estimate for health insurance ... A couple. Would 2000 be a reasonable estimate?
2000 what?
I estimate about $14,000 per year for a retired couple with Medicare and good (but not awesome) secondary insurance, not including the cost of the secondary insurance itself. This includes co-pays, deductibles, balance billing, procedures not covered, and doctors who don't take Medicare. I assume one relatively healthy person and one needing some medical attention.
Unfortunately I am self-insuring for long-term care. Nobody will sell me a policy.
we are paying about 12k a year for both of us with me on cobra and my wife on medicare/medigap .
another 6k for a long term care policy . we have not gotten to dental or vision yet either which this year was 18k for the two of us for major dental work .
I just want to say this about self insuring long term care.
I was big on self insuring. Why buy an expensive plan when i may be able to pay for it out of assets.
Well money magazine did a feature story on us years ago where they had their team of pros review my own financial road map.
We did well until we got to my wanting to self insure.
They explained some very valid reasons why that was a poor idea and they were right.
If you self insure like any insurance that money has to be always ready and available.
That means in stable low risk investments . You can't risk that money being down in an extended downturn when you need it most.
For the 1% or so of our average gains i can pay for the policy , protect those assets and keep them invested in more potentially lucrative investments.
Plus look back time frames change , they went from 3 years to 5 years and they could change again.
Usually when folks say they will self insure they have no real plan or money set a side. They just hope they do not need what they have which is just their investment portfolio.
The other factor is the stay at home spouse goes in to financial survival mode as dollars start flowing out like water for the spouses care.
Most times money that should go for better care doesn't as the stay at home spouse try's to preserve dollars.
So self insuring may be the worst route to take if you have options.
the other reason we went plan is THE NYS PARTNERSHIP PLAN'S PERKS AFTER THE 3 YEARS COVERAGE RUNS OUT ARE WORTH MORE THAN THE INSURANCE .
It is very important to understand that self insuring still requires very careful planning if protecting assets
Of course the draw back of using irrevocable trusts is you cut each other off from 1/2 the assets since by tax law the stay at home spouse can only get 5% of the principal and what are deemed gains a year.
That can suck if money is wanted.
Medicaid income for the stay at home spouse is capped by law to low levels so it is all well and good you preserved all the assets but now try living off them , it can be tough with the restrictions.
So i recommend if your state offers partnership plans that are total asset protection and not just dollar for a dollar plans that you go for it. The perks after the insurance runs out are worth more than the insurance.
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, my goals are are pretty muted.
