Once in Medicare (over age 65), the cost is less than $30k for two, even with a fair amount of IRRMA.1/ We seem to be burning about 16.5k to 17.5k per month. Let's use the middle number 17k, so annually about 204k.
2/ Add about 30k for healthcare through ACA, for a total of 234k.
3/ Most of our retirement savings is pre-tax, so will likely pay about 20% effective taxes, so we will need a total of 292.5k. Let's round it to 300k.
4/
@4% safe withdrawal rate, that will be 7.5m
@3% safe withdrawal rate, that will be 10m
So anywhere between 7.5 to 10m in today's money.
5/ Is this roughly correct?
Are you planing on getting SS income at age 70?
The deferred 401K/IRA will continue to grow, before RMDs. That is why it best to mostly have fixed income part of asset allocation in deferred 401K/IRA.
Adding RMD and SS can push one in a higher tax bracket.
MFJ at 24% marginal tax bracket is 27.8% after adding 3.8% NIIT, if the income is over $250k (and some of the income is investment income).
Retire at $10M is safe.
Statistics: Posted by wwhan — Tue Oct 22, 2024 11:27 pm — Replies 2 — Views 95