How much do you need for retirement

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The problem is you don't know what RXs you will need in the future, and the 1%/month is put in there to prevent people from waiting until they will actually benefit from Part D to sign up for it. Same principle as not selling insurance on a burning house, or having a waiting period before flood insurance becomes effective after purchase.
 

Mark from MA

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I've had an investment advisor since I was 28.
So.....here's the question. Do they advise you to take some profit at times? Or do you just let it ride?

I never got a call from my guy who manages my wifes, when the dow peaked......but I took profit in my and my wifes 401K when it did. I then put it back in at dow 30-32K and its gone back up.
Had I sat on my hands I would have lost that profit. Just like my so called advisor did.

If they are active its great....but anyone can let it ride, and skim 1%
 

paul73

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Do they advise you to take some profit at times?
yeah, right...

i am looking at the FSENX in my IRA right now and wonder the same thing, as winter just begins. it is at +72.9% now, for me, into $69k from $40k.
good luck getting any advice from %1 guys on this.

1668622669753.png

ps. i actually cannot fathom that there are people out there who give away the %1 of retirement nest egg to leaches.
 
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We are putting aside maximum matching funds for both of our primary job companies, but nothing beyond that. I'd rather pay off debt and build things to make myself fully independent than have a giant nest egg. I also can't do nothing, so I'll at miminum work the two business I've created at least part time forever and hopefully get to mentor/apprentice more people and pass on skills.
 

EJFudd

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The problem is you don't know what RXs you will need in the future, and the 1%/month is put in there to prevent people from waiting until they will actually benefit from Part D to sign up for it. Same principle as not selling insurance on a burning house, or having a waiting period before flood insurance becomes effective after purchase.
Again, that particular issue I understand and not a problem. My problem is that no Part D plan in my area saves me even one dollar per year. I'm paying for Part D and getting nothing for it. :confused:

Perhaps despite the fact that I am on more meds than I can count, I'm not on the right meds for which Part D can actually save me some money? o_O

Even my good wife is confused about it and she generally understands such things. 🤔
 

Coda

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If you want to know if you have enough $$$ to retire get a Financial Advisor.

That is a much better plan than asking strangers on the internet. Just too many variables and different situations.

Just an opinion from someone who is recently retired.
 

richc

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Under the old rules, an inherited IRA had to be liquidated over the life expectancy of the recipient, using the same RMD distribution table as for your own IRA, but the drawdown started the year after (or of, forget which) death, not when you reached 70.5.

Under the current rules, the drawdown starts immediately but it's over 10 years, not the inheritee's life expectancy.

A friend has listed the IRA's of his children as beneficiaries of the money he has in his IRA. He claims this is a perfectly legitimate way to avoid distributions until his offspring reach withdrawal age.
 

CoastieRon

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Good planning because not many people do. For many it is the opposite as they are buried in debt.
The last thing I want to have happen to me is ending up like my parents. A lot of the information on here has been good, and in-line with what I have done (down to the revocable trusts, etc). Right now I am moving around a good number of investments into higher yielding dividend paying stocks. As DCA stocks get above water, I'm moving them into ETFs etc.
 

murf4321

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Under the old rules, an inherited IRA had to be liquidated over the life expectancy of the recipient, using the same RMD distribution table as for your own IRA, but the drawdown started the year after (or of, forget which) death, not when you reached 70.5.

Under the current rules, the drawdown starts immediately but it's over 10 years, not the inheritee's life expectancy.

I believe the old rules for non-spousal inherited IRA RMDs required that the beneficiary switch to the single life expectancy tables to calculate the factor. Then from that year henceforth, you subtract 1 from that original factor vs. consulting the table every year.

Either way, it’s now moot.

Also, the IRS still hasn’t given final guidance on RMDs with the current new IRA rules for inherited IRAs. Initially it was believed that beneficiaries could opt not to take anything in certain years so long as it was fully distributed by year 10. However, that is now being disputed by the IRS. They are waiving any penalties for ‘20, ‘21, ‘22, but starting in ‘23 folks will still be required to take some distribution annually with the full amount gone by year 10.

As is the case always, the federal government can’t get their shit together and the tax code grows in assclown f***ery.
 

MGnoob

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A trust is exactly how you make it harder for someone to know who owns the property. Unless you name it The One-Eyed Jack Trust.
I made this mistake with every trust and business I’ve ever owned. I’ve had several lawyers laugh at me and how stupid it is now I just make up wild names…
 

mitch28

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If you want to know if you have enough $$$ to retire get a Financial Advisor.

That is a much better plan than asking strangers on the internet. Just too many variables and different situations.

Just an opinion from someone who is recently retired.
Question- what company is your financial advisor from?
Recently retired here. Thanks!
Mitch
 

1776

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Obie1

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I am my own financial advisor. I studied it in college and read hundreds of books, subscribed to the WSJ and Barrons, etc.. I put every penny possible into my 401(k) from the moment it was offered. I invested aggressively through good times and bad and then moved most to cash a few years before I retired. It was (is) worth well over $2m when I retired. I haven't touched it since I retired 2+ years ago other than to move it to a self-directed IRA where I can trade as often as I like with no tax consequences (I bought AAPL one day and sold it at a nice profit the next day).
I have Medicare and BC/BS Bronze supplement, which takes care of most things, though I wish I had gotten dental coverage. I get a little over $3K deposited in my account each month from SocSec--looking forward to that big raise next year. I cover most expenses, including buying my kid half a house in San Diego, from cash built up in my brokerage account. I don't worry about 4% or any of that crap--if I want to buy something or go somewhere, I do. Some months I spend very little, others I spend a lot (just bought a new vehicle for $50K). The house, four cars, two boats, and all other toys are paid for--I don't intend on ever taking another loan. If I start to run out of money, I'll change my lifestyle. If I end up in a nursing home, I have a contingency plan.
I know this isn't an approach for everyone, but I busted my ass (averaged 50+ hours a week) for 42 years and the last thing I'll do is become a slave to a planned retirement approach. If I see a mint Colt Python at a reasonable price, I won't be worrying if it will fit into by 4% budget. YMMV

My financial advisor advice: save as much as you can--in your 401(k), IRA, and non-tax advantaged vehicles. If you are young invest aggressively and don't look at statements more than few times a year. Open one or more mutual funds that you treat as a regular monthly bill--send a $100 every month and increase the amount as you get raises. One day the state of Massachusetts will declare you rich.
 
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bigbravehog

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And apologies to the peanut gallery in general, but asking this question here is like asking the heart attack question here. Wow. Just wow. Blissful ignorance is the phrase that comes to mind. LOL

this thread has delivered. The responses regarding life insurance, trusts, lawyers, financial advisors, etc has given me much information to think about.
At 61, I'm late in the game as far as financial planning, but I have been putting away 401k and 403b for 35 years, so I'm doing ok.
My retirement plans are mediocre, between watching re-runs and traveling the country on my bike.
 

bigbravehog

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TLB

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this thread has delivered. The responses regarding life insurance, trusts, lawyers, financial advisors, etc has given me much information to think about.
At 61, I'm late in the game as far as financial planning, but I have been putting away 401k and 403b for 35 years, so I'm doing ok.
My retirement plans are mediocre, between watching re-runs and traveling the country on my bike.
There is a ton of knowledge on this site. I've never understood posts like you quoted. Do you need to sort through and perform your own evaluation on the info? Of course.
 

mav

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Without yet reading through everything yet....too many variables. Where? Own? Rent? Medical conditions? Between $750k to $3M+ without knowing everything.

The problem with even trying to predict using a wide range like that is you don't know what the future inflation rate will be. FWIW, at 8% (what we have seen in 2022), it takes less than 9 years to cut the value of your savings in half. So, if you were at 3M, 9 years later you're at 1.5M. If you had planned on a lower inflation rate, you are screwed.

The best advise I can give you is: stay healthy, cut your expenses so you can get by on half what you originally budgeted, retire to a state with a low cost-of-living and low tax burden. Everything else is just conjecture.
 

ReluctantDecoy

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The problem with even trying to predict using a wide range like that is you don't know what the future inflation rate will be. FWIW, at 8% (what we have seen in 2022), it takes less than 9 years to cut the value of your savings in half. So, if you were at 3M, 9 years later you're at 1.5M. If you had planned on a lower inflation rate, you are screwed.

The best advise I can give you is: stay healthy, cut your expenses so you can get by on half what you originally budgeted, retire to a state with a low cost-of-living and low tax burden. Everything else is just conjecture.

It wasn't meant as an actual range. The point was to say "who knows?" given the lack of variables. "Between 1 dollar and a trillion", would have been better exaggeration to convey that.
 

EJFudd

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The best advise I can give you is: stay healthy, cut your expenses so you can get by on half what you originally budgeted, retire to a state with a low cost-of-living and low tax burden. Everything else is just conjecture.
And the best financial planning advice that I can give is: Choose your wife wisely... 'cause an ugly divorce destroys even the best of financial planning. 🤔
 
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