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SWR / Health exp / Taxes in retirement
Old 10-09-2013, 05:05 AM   #1
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SWR / Health exp / Taxes in retirement

I'm new here, having heard about it from I posted this question there and someone recommended I post it here.
I'm 46 and hope to be able to retire, or at least be FI, by 55. My current expenses are $40,000, not including taxes and employer-based health insurance.
If I retire at 55, I'm estimating I'll need to withdraw $50,000 from my portfolio, with $5,000 of the going to taxes (fed inc and CT inc taxes), $5,000 going to health insurance, and another $5,000 for health expenses (to cover deductibles, etc.) (I'm very health now and hope to be at 55, though things will obviously deteriorate from there.)
Any guidance on estimating taxes and health exp would be much appreciated.

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Old 10-09-2013, 06:22 AM   #2
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In ER your taxes may be close to nil if you are living on savings. Mine is (or could be if I managed my income to do so)

For health insurance and deductibles I think the best that you can do is to peg it off today's costs.

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Old 10-09-2013, 06:26 AM   #3
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It seems impossible to predict what health care and taxes might be in 9 years. Maybe double the health costs as they have increased way beyond inflation every year and keep taxes the same as today. And revisit both every year, and keep tracking your other expenses.
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Old 10-09-2013, 12:40 PM   #4
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Fidelity RIP does a great job on future healthcare costs. You have to open an account, but you don't have to fund it.

Its a bit of pia to setup, but you can add assets from other sources. Of course you have to add current HC expenses.

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