Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There is zero reason why someone with $1-2 million does not have the resources to pay for health insurance. As I said, even with crappy insurance (expensive with high deductible) what's the bill? $50,000 a year will certainly cover it unless there are some very unusual circumstances...
this does not say it refers to just the op , it says "someone " which means all , which is why i commented . . medicare and a supplement that covers you fully is not cheap either , an f-plan in our area is 6200 a year for a couple , social security is 3216 for a couple and a drug plan is 864.00.
that is assuming income is at the lower end . a couple can pay 7200.00 a year just for medicare at the higher end . we tripped that one year because we sold an asset before we were retired . they go back 2 years to set your premium amount so retired or not anything sold 2 years before counts ..
ok so we play nicely. I'm one of the last of the Mohicans, my company offered pensions and retiree health care. They stopped offering it in 2012 but I was grandfathered in. I called today and if I activate it when I'm 58 it will cost me 500 bucks a money for medical and dental (no vision) and a 2K deductible. no doctor copay for normal stuff.
So many variables. Here's a simple answer that's probably not helpful.
Deduct cost of kids, aim for that income.
Count on SS, you have no choice. Plan on working part time the first few years. You'll probably want to. I retired at 56. Six months later, went back to work part time in my field. Actually made so much I was tempted to go full time. If that isn't available to you, develop something else.
Cost of living is huge. We moved from D.C. area to the Rockies, the real ones, not Boulderado. 18 years later we didn't need the IRA MRD dollars. Did fine on SS and DW's retirement, which included virtually no co-pay medical and drugs, great dental and vision care, for only $180/mo. That, of course, was huge for us. Of course, Medicare added 104 or so for each of us, doubling our costs without providing any benefit. But that's government for you.
Now we are in SoCal and easily spend everything we get from SS, IRAs (principal still growing) and a couple other investments.
So your chances of a successful (read affordable) early retirement will increase by moving to an area with lower living costs asap. Oddly, many of them are better places anyway. Less traffic, fewer people, more land for your home, fewer people, cheaper housing and especially, fewer people!
I've noticed your communication style is very confrontational. There is no need to be mean spirited on C-D.
Same with you. Pot's calling cattle black. What mean spirited have I wrote? If the truth hurts then so be it. My style of communication is brutally honest and not mean spririt. If you can't take it, put me on ignore list.
One more time with feeling. BabyJuly said she was scared to death (I am paraphrasing), and others should be as well, about the prospects of bridging healthcare for 6 years to Medicare with $1-2 million stash. That is totally ridiculous.
Feel free to spin out of control with your collective analysis (that includes mathjak), but it is nonsense.
I'm out...
Exactly, BabyJuly likes to exaggerate and when it's called upon, she said somebody's mean spritited. I know you meant for her to cover the 6 years before Medicare is taking over. Pretend to be scared to death is BS, stands for bull****. Hell yes, I'm in full mode confrontation now.
Most of the estimates on this thread ignore the fact that your retirement account is likely to keep growing over the long term in your retirement years. If you look at your past 20 years saving for retirement, it will help you better estimate your future gains. Of course future gains are not guaranteed, it's only an estimate.
In our case, the average rate of return is about 8% per year, averaged over the past 20 years. Some years we gained over 30%, some years were in the low single digits. There were years that were losses, but we recovered from the losses by leaving the money invested, instead of panicking, pulling the money out of the market when the market tanked.
The 4% withdraw rate is a pretty safe rate that will keep your principal constant over the long term. If you don't need to worry about leaving money for someone to inherit, you could draw down your retirement accounts at a higher rate. In our case, my wife was a high income earner and I am a high income earner. We are extreme savers, living off of part of one income. We also both have pensions, which allows us to increase the risk in the diversified investments.
You should also think about the Rule of 72, how long it has taken your retirement savings to double over the past 20 years. If you can get a 8% rate of return, your retirement accounts will double every 9 years. Our retirement accounts doubled much quicker, since we are extreme savers. If you don't have pensions, then you'll need to be more conservative, especially in your retirement years.
Moving to a lower cost of living area would really boost your standard of living. There are plenty of lower cost areas that aren't in the middle of nowhere. Snowbirding is expensive, and it's a hassle maintaining two homes, a thousand miles apart from each other. You might also seriously consider moving to a no income tax state, especially if you have a high retirement income stream. You should think how much state income taxes you'll be paying on the money you withdraw from your pretax retirement accounts. It's a very wise idea to look for a single level home for your retirement years, to help future proof your house.
So, to answer your question, how much money will need to be saved really needs much more information. What is your risk tolerance? How's your health? Do you want to pass money onto someone else? How well have you prepared for retirement over the past 20 years?
The 4% withdraw rate is a pretty safe rate that will keep your principal constant over the long term.
this is not true at all . principal varies . it is the income it strives to keep constant on an inflation adjusted basis . principal can be anywhere from zero left to 2x what you started with .
90% of the time over 30 years a 60/40 mix has left you with more than you started with and 67% of the time it has left you with more than 2x what you started with . so principal is anything but constant .
Last edited by mathjak107; 08-04-2017 at 03:30 AM..
ok so we play nicely. I'm one of the last of the Mohicans, my company offered pensions and retiree health care. They stopped offering it in 2012 but I was grandfathered in. I called today and if I activate it when I'm 58 it will cost me 500 bucks a money for medical and dental (no vision) and a 2K deductible. no doctor copay for normal stuff.
good deal. I pay 6k a year just for medical and a 4k deductible with only 2 primary doctor visits allowed a year not subject to the deductible. prescriptions have no deductible nor lab .
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Sorry, OP for the distraction on your thread. Yes, we do play nicely here.
