As an extended time retiree my portfolio has increased while I am living the life I want. We do plenty travel etc, but I am neither interested in spending more or building my wealth. Maybe we will need it for long term care or leave a legacy. This is reality.... Excellent presentation and insight.
I’m close to retirement, and hopefully that’s my plan as well. I’m planning on using my pension for day to day expenses, and then about $10k/year for”unplanned” expenses, such as home repairs. And then have about $29k/year for travel. In my mind that’s generous to myself, and I doubt I’ll need to spend more unless I need long term care at some point.
The reason I want a significant amount of money at the end of my plan is for a possible assisted living facility situation or long term care. Purchasing a LTC plan at this point would cost $6000/year and only a portion of care would be covered. This expense would greatly limit my enjoyment in retirement to pay for something that may not happen.
It seems 2 Social Security payments for a married couple along with any Pensions would cover most retirees monthly costs. Especially considering that the house is paid off, there isn't any car payments, and the kids are out of the house, and don't need much help. I thought a way to help the adult children might be to gift them enough yearly to fund a Roth IRA. Or when they get older, gift them enough to perform Roth conversions. Of course converting your own Traditional IRA'S to Roth IRA's is best when wanting to leave an inheritance.
The problem is for singles, only ONE SS income, but housing, automobile, insurance, utilities, etc are all same as for a couple. The SS should give more to singles, especially considering 'use it or lose it', i.e. when they pass away all is lost, there are cases where single people contributed for 30-40 years and died before collecting a single penny. Couples are given all kinds of options to maximize SS.
As an extended time retiree my portfolio has increased while I am living the life I want. We do plenty travel etc, but I am neither interested in spending more or building my wealth. Maybe we will need it for long term care or leave a legacy. This is reality.... Excellent presentation and insight.
I’m close to retirement, and hopefully that’s my plan as well. I’m planning on using my pension for day to day expenses, and then about $10k/year for”unplanned” expenses, such as home repairs. And then have about $29k/year for travel. In my mind that’s generous to myself, and I doubt I’ll need to spend more unless I need long term care at some point.
The reason I want a significant amount of money at the end of my plan is for a possible assisted living facility situation or long term care. Purchasing a LTC plan at this point would cost $6000/year and only a portion of care would be covered. This expense would greatly limit my enjoyment in retirement to pay for something that may not happen.
It seems 2 Social Security payments for a married couple along with any Pensions would cover most retirees monthly costs. Especially considering that the house is paid off, there isn't any car payments, and the kids are out of the house, and don't need much help. I thought a way to help the adult children might be to gift them enough yearly to fund a Roth IRA. Or when they get older, gift them enough to perform Roth conversions. Of course converting your own Traditional IRA'S to Roth IRA's is best when wanting to leave an inheritance.
The problem is for singles, only ONE SS income, but housing, automobile, insurance, utilities, etc are all same as for a couple. The SS should give more to singles, especially considering 'use it or lose it', i.e. when they pass away all is lost, there are cases where single people contributed for 30-40 years and died before collecting a single penny. Couples are given all kinds of options to maximize SS.
Great content, thanks, Eric!
Our pleasure!
Very much appreciate the content!
Thank you
Great presentation! Does inherited fixed deferred annuity (lump sum) have a step-up cost basis?
Thank you, unfortunately they do not
You can also give it to Uncle Sam who is definitely not a 501(c) entity.