Good article on retirement savings and spending

[CTR0022]

So you never spend your principal in retirement? Can you explain why? I just retired at 54 with a comfortable plan but I do plan on spending some of my principal if I live to 80/85.

Getting into the principal is fine at that age, even at 70 should be fine. But if you getting into your principal before 60, then you probably won't be retired for long or won't be " living" much.

To many variables to be able to give anyone advise. All I know is for me to retire in my 50s i better have atleast $120k net profits coming in every year from my investments. And in 10 years I will likely need closer $200k.

I don't think this inflation is going away anytime soon, the government has printed way to much money and devalued the dollar.

[ThisLadyHunts]

Another variable to take into account is the possibility of long term healthcare needs. Though you may say they’re not a part of your plan, circumstances may arise that dictate otherwise.

How do you plan for this when you 1) don’t know how much you need and 2) you don’t know how long you’ll need it.

My parents spend over $12,000/month just for room, board, and basic medical care on premise when needed. You sign an annual contract and, each year, there is a (minimum) 3-4% increase built in to the terms. This year, the increases were 12-15%.

In terms of meeting major medical needs, Medicare, Hospice, and, to some degree, the VA, have been incredibly helpful. However, given the financial solvency of these institutions and all of the discussion about cutting entitlement spending, I’m not sure how dependable these resources will be in the not too distant future.

[Huntingfool]

Another variable to take into account is the possibility of long term healthcare needs. Though you may say they’re not a part of your plan, circumstances may arise that dictate otherwise.

How do you plan for this when you 1) don’t know how much you need and 2) you don’t know how long you’ll need it.

My parents spend over $12,000/month just for room, board, and basic medical care on premise when needed. You sign an annual contract and, each year, there is a (minimum) 3-4% increase built in to the terms. This year, the increases were 12-15%.

In terms of meeting major medical needs, Medicare, Hospice, and, to some degree, the VA, have been incredibly helpful. However, given the financial solvency of these institutions and all of the discussion about cutting entitlement spending, I’m not sure how dependable these resources will be in the not too distant future.

You can buy Long Term Care insurance that includes an adjustment every year to keep up with the cost of living increases. Wife and I bought policies years ago that will cover our cost if we are in a nursing home, assisted living, or home health care. You can choose how many years the policy will pay (the average stay in a nursing home is 2 years) - you can even get a policy that will pay for lifetime.

[Monark]

Find a good financial advisor, word of mouth reference from your friends is a good place to start. I self managed my retirement accounts until I was about 2 years from retirement. I did OK but good have done a lot better with the right FA. I am a retired engineer, good with numbers but she knows things only someone with that background could possibly know. I sleep better at night.

[miket]

I have no idea what is in store health wise, but I absolutely will not be going into a nursing home. The day I can no longer care for myself is my last day on this planet.

My kids have all be warned of the consequences of attempting to force it.

[Huntingfool]

I have no idea what is in store health wise, but I absolutely will not be going into a nursing home. The day I can no longer care for myself is my last day on this planet.

My kids have all be warned of the consequences of attempting to force it.

Sir with all due respect I get what you are saying - however having witnessed multiple family members go through this you may not recognize when you can no longer take care of yourself. So I pray for you that you make plans - have a written agreement from an attorney that you do not want to be recesitated if and when the time comes - otherwise your family cannot overrule a doctor

[M16]

If I need a calculator to tell me what I need to retire on, then I wasn't probably smart enough to get there in the first place.

That’s a fact.

[trophyhunter01]

Don’t fly coach so your kids can fly first class…lol. Save save but allow yourself to spend some as well and enjoy your hard work. None of us getting out of this alive.

[scubasteven25]

Find a good financial advisor, word of mouth reference from your friends is a good place to start. I self managed my retirement accounts until I was about 2 years from retirement. I did OK but good have done a lot better with the right FA. I am a retired engineer, good with numbers but she knows things only someone with that background could possibly know. I sleep better at night.

Exactly this. I "thought" I was doing great managing my own investments for 16 years and honestly didn't do bad. Once I linked in with my current wealth management company who I found via word of mouth, my returns got better and my stress went down. I don't even worry about it anymore and just enjoy the quarterly statements.

[brokeno]

You don’t want to be the richest person in the Cemetary.