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Alright alright alright,...., I will leave SS out of my calculations.
1. What tax rate do ya'll use for the future income in your calculations.
2. How much inflation do ya'll use? I am thinking 3%.
I think I will need $60k per (in today's money) in my retirement.
I am using 20%, so I will need $72K per year.
You're good.
When we turned 65 our taxes went way down, and so did our overhead. The house is paid for and in our county they give seniors a property tax break so that our property tax went all the way down to 900/year.
Because we have only used money that is in savings, we haven't paid any income tax since we retired. After all, saved money is ours and has already been taxed.
Probably in 2015, I will begin to unwind stocks. If long term capital gains apply, we will pay some taxes then - maybe. But not much.
But I gotta caution you: We are low key people. We have a high net worth and I like that, but our idea of a night on the town was to go see The Lone Ranger and eat at Olive Garden. The movie was great (we got in on a gift card I got for Father's Day) and the meal at Olive Garden served to remind us why we would rather fire up the grill at home.
The cars are paid for - my truck paid for since 1992 - and we may not ever have to buy another, although we probably will. But when we do, it'll be 2 years old.
We went to Bermuda for a week in May, so don't think we are stay-at-home misers. We like to think we live life with a plan. Part of that plan consists of watching our health.
So, right now, That Woman is at water aerobics and I walk 2 miles a day along with some stretching and weight lifting. Eventually - some day - we may have health challenges and that may eat into our fortune, but it doesn't feel like it's going to happen today.
*Edit*.....I forgot to tell you. About 5 years before I retired we figured out what our retirement income was going to be, and we started living on that amount. That was important because it made our transition from working to non-working seamless; no change in spending habits.
You're good.
When we turned 65 our taxes went way down, and so did our overhead. The house is paid for and in our county they give seniors a property tax break so that our property tax went all the way down to 900/year.
Because we have only used money that is in savings, we haven't paid any income tax since we retired. After all, saved money is ours and has already been taxed.
Probably in 2015, I will begin to unwind stocks. If long term capital gains apply, we will pay some taxes then - maybe. But not much.
But I gotta caution you: We are low key people. We have a high net worth and I like that, but our idea of a night on the town was to go see The Lone Ranger and eat at Olive Garden. The movie was great (we got in on a gift card I got for Father's Day) and the meal at Olive Garden served to remind us why we would rather fire up the grill at home.
The cars are paid for - my truck paid for since 1992 - and we may not ever have to buy another, although we probably will. But when we do, it'll be 2 years old.
We went to Bermuda for a week in May, so don't think we are stay-at-home misers. We like to think we live life with a plan. Part of that plan consists of watching our health.
So, right now, That Woman is at water aerobics and I walk 2 miles a day along with some stretching and weight lifting. Eventually - some day - we may have health challenges and that may eat into our fortune, but it doesn't feel like it's going to happen today.
*Edit*.....I forgot to tell you. About 5 years before I retired we figured out what our retirement income was going to be, and we started living on that amount. That was important because it made our transition from working to non-working seamless; no change in spending habits.
Thank you for replying and comments.
1. When did you retire?
2. Did your SS payment amount change?
3. how long can we leave money in 401k? Are you pulling most income from 401k or Roth
Most of planning is to have my retirement savings in 401K. I start Roth in about a year.
Its about time someone speaks who is actually drawing SS. All this talk about SS want be here when we retire is just clown talk. I call this kind of talk "marketing".
I enjoy keeping things as simple as possible by all means. SS will be here and anyone who thinks different is just guessing. Show me black and white where it says SS want be here in 30 years, then we can talk.
It's possible SS will be there for you. But the question to ask yourself is: "What is the consequence if I'm wrong?". There's little downside to being wrong if you didn't plan on getting it and it ends up being there. However, there's a BIG downside if it's not there, or much less than you expected, and you were counting on it.
Congress can declare war on Canada any time it wants to as well.
More hyperbole. Not appreciated .
And BTW, the SS formula has already been changed and will likely be again (as well as the less generous way they calculate the CPI)...so the precedent is already there.
It's possible SS will be there for you. But the question to ask yourself is: "What is the consequence if I'm wrong?". There's little downside to being wrong if you didn't plan on getting it and it ends up being there. However, there's a BIG downside if it's not there, or much less than you expected, and you were counting on it.
You are correct!!
I did two scenarios for my retirement goals 1) with SS, 2) without SS. With the govt slashing SS benefits by 25%, it makes good practical sense to calculate future income with SS and without SS. Better than safe then sorry. Even if I calculate to not have enough, atleast I am fully aware of the shortfall
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