Retirees whatcha living on?..........

[Bonasababy]

I have nothing of value to add to this thread. I appreciate everyone being open and honest about their situations to help get a grasp of where I'm at.

Wife and I both maxing out Roth IRA's, we'll both have a bit of VA money coming in, she'll have a pension as well which would take care of the healthcare aspect. Nowhere near where I want to be, but according to most of the calculators I've checked, we should be OK. She gets pretty mad at me for insisting on saving/investing as much as we do, I try to tell her that no one gets mad for having TOO much money at the end of it all.

You will find many who said they wish they could have saved more! And it doesn't take much more to really add up over the course of 35 to 40 years!

Been drilling that into my kids and all the younger folks at work.

One strategy a coworker has is a good one IMO--each time he gets a raise he rolls most of that into more retirement.

Couple of other thoughts--Roth is great for what it is, but you balance will build a lot faster in pre-tax. No one has a crystal ball but I think having some in both likely works out best for many. How much in Roth is more of a question than how much in pre-tax IMO. At least now you can convert pretax to roth later closer to retirement--if that makes sense. And you will know a LOT more about your tax situation in retirement then than you do now...a key factor in deciding between Roth and pre-tax.

We are probably best lumped into the mid to upper middle class--and our taxes will be LESS in retirement than while working. A fair amount less it appears. We haven't stuck much into roth and what we have we are letting grow and not drawing from.

 

[westbranch]

I have been doing a lot of reflecting on this lately due to life changes. Due to the way I grew up and older parents that did not have money to retire I have been a bit obsessed with it since my early 20s. Wife and I are currently 36 with no kids. She is in a career change and should start full time work early 2026. It would take a drastic scenario to not end up with more money than we need at 60ish when I can retire. No nieces/nephews and family needs minimal financial help. We are currently living on about 47% of my gross income (before tax and savings). About 26% of my gross is going towards business debt payoff. Once that debt is paid off in ~5 yrs and wife is working full time our take home cash flow will be stupid. Especially compared to what our income was 5 yrs ago. I don't want too much lifestyle creep but it seems like we'll be able to spend a decent amount money. I don't want to be 85 and wishing I had done fishing trips to Argentina and Mongolia or hunts in Canada and Alaska. Or dead at 65 not having done some big trips/travel or other fun. It's a bit of a mind F that I will need to start shifting my mindset in a few years.

I have been doing Roth IRA conversions the last couple years and will again in 2025. Probably not in 2026. But I will probably keep my employee 401k deferrals as Roth as long as its allowed and same with my wife's. Very familiar with our personal tax situation and with future projections a lot of Roth will be ideal.

 

[Straight Arrow]

you’re probably wrong on this one.

It's not the first time!
However, I truly believe Hank lives a happier and more balanced life than Mr. Musk, with a different but IMO more important wealth.

 

[mtmiller]

Well, about 24 hours for me to make my Fork in the Road decision from Musk. He promised to pay me through September and I don't have to show up. Seems like a sweet deal. What could go wrong?

 

[Bonasababy]

Well, about 24 hours for me to make my Fork in the Road decision from Musk. He promised to pay me through September and I don't have to show up. Seems like a sweet deal. What could go wrong?

Sounds like not many takers. I bet some big law firm is very interested in representing those that have taken it after they reneg on the deal!

 

[Southern Elk]

Well, about 24 hours for me to make my Fork in the Road decision from Musk. He promised to pay me through September and I don't have to show up. Seems like a sweet deal. What could go wrong?

He should at least pay you through the end of hunting season.

 

[BuzzH]

Sounds like not many takers. I bet some big law firm is very interested in representing those that have taken it after they reneg on the deal!

Going to be tough to do, when they state you relinquish your rights as an employee if you sign, just sayin'.

 

[BuzzH]

Well, about 24 hours for me to make my Fork in the Road decision from Musk. He promised to pay me through September and I don't have to show up. Seems like a sweet deal. What could go wrong?

Well, I mean nothing really. Feel free to take that vacation of your dreams!

Pay no attention to having absolutely no authority of any kind to do it, no indication from congress to fund it, and of course who cares about those silly USC codes on admin leave.

Well, and being such an "unproductive public sector" employee, I'm too lazy to remember to sign anyway.

 

[mtmiller]

Buzz, you worry too much.

 

[Nick87]

What could go wrong?

The cheese in the trap is usually free.

 

[Johnny Bravo]

Sounds like not many takers. I bet some big law firm is very interested in representing those that have taken it after they reneg on the deal!

I heard like 1%, or about 20,000 sent the email back. If it sounds too good to be true, it usually is.

 

[LopeHunter]

I knew we would be fine to retire in our 50s though we kept working several more years because I liked the team I built and was a desk job with minimal stress. I averaged 20 hours of “heads down working” per week plus got to be Superman now and then to quickly set guidance for the company’s owner when curveballs hit us (tariffs, Covid, key employee died in his sleep, lost a supplier to bankruptcy) then the rest of my time was spent coaching up my team or surfing hunting websites.

My wife retired four years before when I retired 12 months ago. We actually found out the past year we are spending less as we now do multi-state roadtrips now rather than on first class flights to multi-week vacations overseas. We eat at home more. No expensive hobbies except big game hunting. No expensive vices. No child support or alimony. We owe $0.

We did not cut back on spending for meals nor entertainment. We did not downsize our primary house. We did transition to one car and one house.

I have zero stress other than health. Retired with four years of cash-like holdings so have reduced the risk our assets crater in value during our early retirement years (looking at you 2008).

Yes, I likely could likely earn more if held less cash but cash yields over 4% currently. I sleep soundly.

Our draw down is throttled to no more than 3.5% per year.

I excel at all things math/statistics as a guy on the spectrum so I earned a CPA and MBA before went to the dark side to B2B sales. Tracking income, expenses, cash in and out is zero effort for my brain.

I built a spreadsheet where each month I plug in current asset values (takes me 10 minutes to pull that data) which I key in then the imbedded equations calculate the post-tax value based on a 3.5% drawdown each asset.

Those estimated cash flows aggregate by investment type to convert to post-tax monthly cash flow if draw down investment assets at 3.5% per year. A total net worth also aggregates plus a “sell everything today paying all taxes due in one year” net amount.

We could throttle back spending to 70% of what spend now, if felt the need. As it is, we are worth more now than the day I retired.

We both are taking Social Security before full retirement age. I win that bet unless live beyond 78. Is not a key source of income for us so will finally get direct money from Uncle Sam after decades of me carrying the water in that relationship. Lost a few close friends the past few years that never saw a penny.

Have had a blessed life other than health issues that began two decades ago. Was dealt a great hand of cards at birth and I played them quite well. Not everyone had those advantages.

 

[Mallardsx2]

I knew we would be fine to retire in our 50s though we kept working several more years because I liked the team I built and was a desk job with minimal stress. I averaged 20 hours of “heads down working” per week plus got to be Superman now and then to quickly set guidance for the company’s owner when curveballs hit us (tariffs, Covid, key employee died in his sleep, lost a supplier to bankruptcy) then the rest of my time was spent coaching up my team or surfing hunting websites.

My wife retired four years before when I retired 12 months ago. We actually found out the past year we are spending less as we now do multi-state roadtrips now rather than on first class flights to multi-week vacations overseas. We eat at home more. No expensive hobbies except big game hunting. No expensive vices. No child support or alimony. We owe $0.

We did not cut back on spending for meals nor entertainment. We did not downsize our primary house. We did transition to one car and one house.

I have zero stress other than health. Retired with four years of cash-like holdings so have reduced the risk our assets crater in value during our early retirement years (looking at you 2008).

Yes, I likely could likely earn more if held less cash but cash yields over 4% currently. I sleep soundly.

Our draw down is throttled to no more than 3.5% per year.

I excel at all things math/statistics as a guy on the spectrum so I earned a CPA and MBA before went to the dark side to B2B sales. Tracking income, expenses, cash in and out is zero effort for my brain.

I built a spreadsheet where each month I plug in current asset values (takes me 10 minutes to pull that data) which I key in then the imbedded equations calculate the post-tax value based on a 3.5% drawdown each asset.

Those estimated cash flows aggregate by investment type to convert to post-tax monthly cash flow if draw down investment assets at 3.5% per year. A total net worth also aggregates plus a “sell everything today paying all taxes due in one year” net amount.

We could throttle back spending to 70% of what spend now, if felt the need. As it is, we are worth more now than the day I retired.

We both are taking Social Security before full retirement age. I win that bet unless live beyond 78. Is not a key source of income for us so will finally get direct money from Uncle Sam after decades of me carrying the water in that relationship. Lost a few close friends the past few years that never saw a penny.

Have had a blessed life other than health issues that began two decades ago. Was dealt a great hand of cards at birth and I played them quite well. Not everyone had those advantages.

What did you do for healthcare? I assume you fully retired prior to 65. Can you shed some more light into that subject. Costs, practicality etc etc?

There are a lot of us that have or will have plenty of money to retire early but are trapped by the insurance dilemma.

 

[BuzzH]

What did you do for healthcare? I assume you fully retired prior to 65. Can you shed some more light into that subject. Costs, practicality etc etc?

There are a lot of us that have or will have plenty of money to retire early but are trapped by the insurance dilemma.

Maybe try contacting your elected officials and let them know about your dilemma.

 

[Treeshark]

There are a lot of us that have or will have plenty of money to retire early but are trapped by the insurance dilemma.

This is where Roth money (and to a lesser extent money kept in a brokerage account) becomes very useful.

Keeps on-paper income low, helpful for those using the exchange.

 

[npaden]

I’ve been on MediShare for 6 or 7 years now. $10,000 deductible and premiums are $600 per month for a 56 and 54 year old plus an 18 year old. Wife has had knee surgery and a few other medical issues and it has worked fine when needed.

 

[Jwill]

I have been putting money into my HSA (parked in an S&P index) and not using it, with plans to use it for insurance/medical stuff in retirement. I agree with some of the other posters, lots of uncertainty in how much I might need...

 

[grizzly_]

I have been putting money into my HSA (parked in an S&P index) and not using it, with plans to use it for insurance/medical stuff in retirement. I agree with some of the other posters, lots of uncertainty in how much I might need...

The triple advantage of HSA is something more people should use as a retirement tool instead of an annual tax benefit, IMO

 

[antelopedundee]

Getting by with Medicare A&B plus a catastrophic plan. Medicare covers most everything and the emergency plan has been a lifesaver.
I only paid $3000 out of my $500,000 bill for cancer treatments.
New eye lenses were $30.
ER visit for hernia was $18.

I am having a hard time getting a PCP in NM or a visit to dermatologist.
All the references for skin Dr. have proven fruitless. 1 out of business and the big one with 5 offices is not taking any new patients.

I could find no drug plan that will cover my cancer meds for a reasonable price nor supply them regularly.
Getting one cheap, another thru cost-plus and the expensive one free, because I'm a poor.

It's wise to compare regular Medicare supplements with the Advantage plans. I don't see how they can cover what they say and return any or all of your Part B premium. Never bothered to look that deeply into a MA. So I have a supplement and a separate dental plan. I'm amazed at how little out of pocket expense I've had under Medicare. The providers are essentially doing charity work IMO. Part B is a bargain compared to what a private policy would cost. I have never been refused treatment because I am a Medicare recipient.

 

[Bonasababy]

The triple advantage of HSA is something more people should use as a retirement tool instead of an annual tax benefit, IMO

This is where more people should be advocating for a Health Care Savings Plan. Only eligible to use after retirement. Grows like a retirement plan and often allows similar investments. Some of them--if they partner with low cost mutual fund companies--have funds with even lower than normal fees. Really builds up over time.

Don't believe they are very common. Ours we have no choice in contribution levels, but the employer kicks some in too.

The kicker with health care costs is the high cost of paying for it until we reach medicare age.

Of course who knows where medicare will be in 4 years--Musk has just been given access to all Medicare and Medicaid data systems.