My thinking is similar. That leads to about $250k / year, which is enough to keep the beer fridge, wine rack, and Bonanza tanks stocked, as well as a couple of international trips each year.
As I posted earlier, using my numbers a few months back my age was 81. A little more complicated figuring out how much earlier to take it, but yeah, 82 pretty much boils it down.
and since I worked up the spreadsheet, I'm nearly but not totally convinced that this is spot on. At this moment, anyway, taking it at 62 is my plan even though I almost certainly won't need the money at that point
Yes
Ouch!
The context of this comment is that there are people who need their SSA to be part of their retirement financial planning. In my discussions with those people, most but not all waited until 70 for the higher monthly benefit which supplements their other monies in their late 70s and 80s. Everyone else took it at 62 or 65 when they signed up for medicare.
I never looked at an overall savings amount as the goal, but rather how long will my “pot of money” last when spending X amount per month as the monthly amount was easier and more accurate to calculate, if that makes sense. Then I multiplied that monthly expenditure by 396 which gave me the money pot size I needed to have and when I got there, I jumped.
maybe it should have been called the "unaffordable beer act"
That price is with no subsidy. We’ve been able to play the taxable income game so far. I retired after the temp changes were made that softened the cliff. So even I go over a bit, I still get something. If that expires, though, I have to be pretty careful.
It’s unfortunate that we have to learn from experience like that. It happened to us, too, but slightly different circumstances. You’re absolutely right, get all the different powers of attorney snd advanced care directives set up well before you need them. Good luck with that, and take care of yourself.
Considering the deficit at this point, you could say it's more so paid with inflation. And given how much of the world uses the dollar, its more like the world as a whole who's handling it
We're going through all of that now. I asked about that, and our attorney told me we don't need to do that now - we can just name the trust as the beneficiary of the retirement accounts, and said there's a "transfer on death" that can be used for everything else. I wonder if that varies from state to state? I'll bring that up again the next time we meet with him. I see a lot of property around us that's titled in the name of trusts, so I wonder about that.
State death tax rules can vary, and other asset protections can vary. Titling property in a trust is a way to work around some inheritance taxes and other ownership transfer issues. There’s a lot involved, your lawyer might have looked at your particular situation and thought TOD was best.
Yes. In our case we're using the trust to avoid dumping our entire estate on our heirs in one go, which could (we hope, anyway) have adverse tax and/or lifestyle impact. We're having the wills and trust done at the same time, by the same attorney, along with medical POA and living wills. I've got a laundry list of questions for him the next time we meet.
I don’t think IRAs can be put into a trust. They are “individual” retirement accounts. The beneficiary can be a trust.
There are always state variations but not all that much on the subject of using revocable trusts as an estate planning tool. There are really two goals - avoiding probate and generation-skipping (all the asset and tax-related stuff is for irrevocable trusts) If anything, there is probably overuse for the non-probate goal. It's really a discussion between estate professional and client, but for example, there's typically not that much gained by moving a home held in joint tenancy with survivorship into a trust unless the idea is to avoid the probates associated with the joint owners both dying at the same time.
As mentioned, it can vary state to state. There are even several states where TODs/PODs are not 100% honored in all cases. I went with a Testamentary Trust which is held within my Will and provided what I needed done to include that Trust is listed as beneficiary as needed. Regardless, local attorney should give the best advice along with an accountant as required. But one thing to keep in mind, if you plan to move your domicile to another state be sure your original plan will transfer in full to your new location.
Man sorry to hear about that. I took a job the next county over from my parents after retiring from the Army. One of the reasons was that I knew at some point I’d have to help my parents with their medical issues. Between my dad’s diabetes, CKD, back pain and my mom’s Parkinson’s, I’m gonna have my hands full soon. Final years in life can be a long, drawn out process of in and out of hospitals. Unfortunately an expensive process as well.
Good point! That's not in the cards for us. We had planned to move years ago. but our kids kept on popping out grandkids here so we're kind of stuck. Plus I'm married... and not in the mood to buy another house and then spend the next 10 years and at least the cost of the house doing remodel work to make it "just right"...
Yeah, the other knee.
This is one of the many things I have in mind to sort through soon after I retire. I was talking to a friend a couple days ago about my idea to retire soon. He's a few years older and has been thinking about this stuff for a while. He said something about my need to find something to keep from getting bored. While that is a possibility to a degree...it theoretically shouldn't be much of a problem because I have a fairly big list of things such as this that I'd like to address, BUT I know there will be days when "I just don't feel like it today"
This is one example of how broken the system has become. Gov subsidizes healthcare, healthcare costs skyrocket, people who are able look for ways to beat the system, our leaders decry a broken system (that they broke) saying they need to do more to fix the system.
