New to Forum - Dreaming of Retirement

[exnavynuke]

Quote:

Originally Posted by syd03 Do most people really assume no SS on this forum? I'm not doubting you...just surprised. Maybe the choice to add or not add is mostly age dependent. I suppose if I were 28 y.o. I'd be less likely to factor SS into projections. But maybe we've been doing this wrong all along. DW and I are near-50 and we usually cut our stated SS projections by 65%. But we still include some benefit. Do others think this is reasonable? Too much/too little? Gosh, I'm hoping we can count on at least something modest

I'm 39 and plan for 75% of projected benefits based on the current estimates that it will be able to pay out ~75% when the "shortfall" hits in the 2030's (iirc) if no changes are made in the future.

[Mdlerth]

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Originally Posted by mountainsoft We have a Vanguard IRA... ...My plan is to withdraw about $1300/month from our IRA (about 9% of the predicted value) for the first five years of our retirement... ...When my wife turns 65 we would start receiving about $1500/month for her social security, and could drastically reduce what we need to withdraw from the IRA. Of course, I'll be turning 70 at that time, so we'll have the required minimum distribution to deal with too.

Is this a joint IRA? I plead ignorance. I thought IRAs were individually owned, in which case any IRA assets in your wife's name shouldn't trigger RMDs for another 5 years when Mrs. Mountainsoft hits 70.

Anybody else out there understand this better than I do?

[mountainsoft]

Quote:

Originally Posted by Mdlerth Is this a joint IRA? I plead ignorance. I thought IRAs were individually owned

Our IRA is in my name. Since she has a pension through her work, we set up the IRA in my name with her as the beneficiary if something happens to me.

I do believe IRA's are for individuals, as a husband and wife can each have their own IRA. Unfortunately, we can't afford to max out my own IRA contributions, let alone add another IRA for my wife.

[2017ish]

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Originally Posted by lemming Most people on here assume that they won't get ss at all-too conservative for me. ...

Although I am one of the stupidly conservative ones on this point (since the 80s, so at least I'm consistent!), I think I'm in a decided minority--particularly for those of us age 45/50 and above.

(Am starting to think about what to do with any SS, have to admit, but it isn't yet included in calculations. Unless something goes seriously wrong, which would take us out of any extreme means testing anyway, we will serve as conduits to our kids/grandkids for those monies.)

[Mdlerth]

Quote:

Originally Posted by mountainsoft Our IRA is in my name. Since she has a pension through her work, we set up the IRA in my name with her as the beneficiary if something happens to me. I do believe IRA's are for individuals, as a husband and wife can each have their own IRA. Unfortunately, we can't afford to max out my own IRA contributions, let alone add another IRA for my wife.

Perhaps you don't have to change your overall savings rate at all. What's already in your own IRA will still be available once you turn 59.5. But if you redirected your future contributions into an IRA in Mrs. M's name, then you could delay the RMD hit on those funds for an extra five years. Each could still be the other's beneficiary, but during those critical five years your household could enjoy some extra growth instead of extra taxes. And by then she'd be old enough to make voluntary WDs if the need arose.

Just a thought.

[eastnortheast]

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Originally Posted by rodi The fidelity calculator is here: https://www.fidelity.com/calculators...uidance-center You might have to create a logon - but I don't believe you need to have an account there. It's a good calculator - lets you get into the weeds on some expenses inflating more than others (healthcare!!!! - and in my family's case College!!!!)

Unfortunately, it appears you need to have an account with Fidelity. I do not have an account with Fidelity, and tried to register to allow access to the calculator, but was unable to do so.

[Accidental Retiree]

In other posts, it appears your wife has a public sector pension, so you'll need to check and see to what extent WEP may reduce her social security benefit.

[mountainsoft]

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Originally Posted by Accidental Retiree In other posts, it appears your wife has a public sector pension, so you'll need to check and see to what extent WEP may reduce her social security benefit.

What is "WEP" and how would I know if it applies to our pension and/or social security?

[Accidental Retiree]

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Originally Posted by mountainsoft What is "WEP" and how would I know if it applies to our pension and/or social security?

Go to the Social Security website and search for WEP--Windfall Elimination Provision. Reading that information would be a good start.

[mountainsoft]

Quote:

Originally Posted by Accidental Retiree Go to the Social Security website and search for WEP--Windfall Elimination Provision. Reading that information would be a good start.

My wife's employer DOES withhold Social Security taxes.

Does that mean the WEP would not apply in our case?

[Accidental Retiree]

Quote:

Originally Posted by mountainsoft My wife's employer DOES withhold Social Security taxes. Does that mean the WEP would not apply in our case?

If she has 30 years of "substantial earnings" paid in, then you ought to be OK.

The SS site has a chart detailing for each year just what those earnings comprise.