Hi All,
Looking for feedback; I believe I am in fair to good shape but welcome any feedback I can get.
I'm 60,wife 56 we want to get out of our present jobs imminently. The big question mark is health insurance. We will be on our own. We are all in a waiting pattern now that there is a new administration. My plan, if the election went the other way, was to apply for Obamacare where we was likely to qualify for a substantial subsidy where we were to live off retirement savings (mostly tax free) till Medicare kicks in. (Obamacare subsidies are based on taxable income). We could easily have manipulated our resources to be in a sweet spot for a subsidy.
Given this I feel I must plan on a worst-case-scenario situation. Which means I pay 100%. Looking at health care plans in Massachusetts that appears to be in the 1800-2000 range for a good health insurance.
For us this means I need to be able to maintain about a $$6500-7000 monthly income from my various sources. $5000 for living expenses and $2000 for health insurance. Again, hopefully the new administration will produce something more affordable but I should not plan on it.
I've used Firecalc which seems to indicate we are ok with our 6500-7000 reuirement (high 90% using some scenarios, 100% using others.
Current situation (roughly)
No bills - own home valued at about $340K. Own all 3 cars and 2 small boats. No other foreseen expenses other than the usual.
$900K (about 1/2 401K, 1/2 other stocks/bonds/cash) about 35-40% already after tax.
Pension (no COLA) $1000/mo now or up $1570/mo at 67 (with full survivor benefit)
Max SS for me (approx $2700 at 66, wife about 900 at 62).
Plan is to live off approx 1/2 retirement savings till 65-66 (450K)
Followed by SS/Pension/rest-of-savings (whatever gains I can get over 5-6 years on the remaining 450K)
We both welcome working in retirement part-time as long as it is something we enjoy. Income from this part time work is not very important. It would be nice if wecould pull in another 2-3K this way.
Feedback welcomed
Looking for feedback; I believe I am in fair to good shape but welcome any feedback I can get.
I'm 60,wife 56 we want to get out of our present jobs imminently. The big question mark is health insurance. We will be on our own. We are all in a waiting pattern now that there is a new administration. My plan, if the election went the other way, was to apply for Obamacare where we was likely to qualify for a substantial subsidy where we were to live off retirement savings (mostly tax free) till Medicare kicks in. (Obamacare subsidies are based on taxable income). We could easily have manipulated our resources to be in a sweet spot for a subsidy.
Given this I feel I must plan on a worst-case-scenario situation. Which means I pay 100%. Looking at health care plans in Massachusetts that appears to be in the 1800-2000 range for a good health insurance.
For us this means I need to be able to maintain about a $$6500-7000 monthly income from my various sources. $5000 for living expenses and $2000 for health insurance. Again, hopefully the new administration will produce something more affordable but I should not plan on it.
I've used Firecalc which seems to indicate we are ok with our 6500-7000 reuirement (high 90% using some scenarios, 100% using others.
Current situation (roughly)
No bills - own home valued at about $340K. Own all 3 cars and 2 small boats. No other foreseen expenses other than the usual.
$900K (about 1/2 401K, 1/2 other stocks/bonds/cash) about 35-40% already after tax.
Pension (no COLA) $1000/mo now or up $1570/mo at 67 (with full survivor benefit)
Max SS for me (approx $2700 at 66, wife about 900 at 62).
Plan is to live off approx 1/2 retirement savings till 65-66 (450K)
Followed by SS/Pension/rest-of-savings (whatever gains I can get over 5-6 years on the remaining 450K)
We both welcome working in retirement part-time as long as it is something we enjoy. Income from this part time work is not very important. It would be nice if wecould pull in another 2-3K this way.
Feedback welcomed