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TOPIC: How much do you need?

How much do you need? 10 months 3 weeks ago #1

  • FrankN
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I do think there are some really helpful tools out there, like the one Fidelity has, that can give you some decent ideas on how much you may need for Retirement. Does anyone use these?
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How much do you need? 2 years 1 month ago #2

  • FrankN
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Without a doubt. Especially as you age, its extremely difficult to predict with any kind of precision.
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How much do you need? 2 years 2 months ago #3

  • MikeJ
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Ouch, that is a ridiculous, not even close to affordable premium and deductible. I would imagine that many people fail to account for medical insurance expenses when doing their initial retirement planning.
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How much do you need? 2 years 2 months ago #4

  • FrankN
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That is unbelievable to me, I don't know how anyone can afford that. I am really sorry to hear that.
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How much do you need? 2 years 3 months ago #5

  • Wanderer
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Oh my ... your health insurance rates are tough for a very large deductible. How can a person afford that?
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How much do you need? 2 years 3 months ago #6

  • FrugalFran
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On that note, Wanderer, I'm curious to see what happens with healthcare over the next four years. It would be so nice if it truly could be affordable for everyone. As it is right now, mine would be set at $1400 a month with an $8000 deductible and I just can't afford it. If I can't afford it now, it makes me worry about what I'm going to do in the golden years.
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How much do you need? 2 years 3 months ago #7

  • Wanderer
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You could research the average life expectancy of a man and woman. This would give you a statistical focus point. Note, one big item everyone needs to get their mind around is health. All the planning you do can be wiped by a major medical event so remember even the best planning may require flexibility. As you age you will absolutely be visiting medical providers more so don't pretend this won't happen. Many young people (my hand is raised have the "no fear" mind set and are in denial). End of lecture.
Last Edit: 2 years 3 months ago by Wanderer.
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How much do you need? 2 years 3 months ago #8

  • FrugalFran
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MikeJ wrote:
X the number of months that you anticipate living

I plan on living forever! :woohoo: Seriously, though, I think this is one of the biggest variables. Unexpected expenses would be the second challenge, but the first is to figure out how long to plan on needing earthly cash.
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How much do you need? 2 years 3 months ago #9

  • MikeJ
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For me, my retirement from the military includes both my military pension and VA disability. While my wife and I can live comfortably within our means with that, I'm only 41 so the idea of retirement is kind of weird. So it's back to school to complete my degree so I can find another job. But without a defined pension, wouldn't the answer to "how much is needed" be whatever that dollar amount is that supports your monthly lifestyle X the number of months that you anticipate living X predicted inflation rates? Of course that won't handle any unexpected, major expenses but I know that I always factor extra money into my monthly budget for savings.
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How much do you need? 2 years 3 months ago #10

  • FrugalFran
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True enough, Frank, but I think the problem is the number the experts come up with. When I look at how much we have and how much they predict we'll need, it scares the bejesus out of me!
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How much do you need? 2 years 3 months ago #11

  • FrankN
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And there are definitely people who can help you determine a range/amount. They have tools and software to help you think about the long-term plans and how much you may need. It won't be correct, but should give you a range.
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How much do you need? 2 years 4 months ago #12

  • FrugalFran
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True enough that there is no solid formula that can help us determine an amount. What I've been going with is the cost of healthcare today plus a little more for rising expenses. It may not be enough at the end of the day, but hopefully I'll be in the ballpark.
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How much do you need? 2 years 4 months ago #13

  • Wanderer
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Yes I find this a tough one to predict. Health insurance co-pays, deductibles, charges not allowed and premiums are and ever moving window. Your idea of keeping funds in the Emergency Fund seems to me a best case scenario.
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How much do you need? 2 years 4 months ago #14

  • Medi
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FrugalFran wrote:
When calculating this, be sure to include expenses like supplemental health insurance and prescriptions. Medicare doesn't cover everything and most of the retired folks I know have to pay some money out of pocket every month for healthcare. I haven't put a dollar amount on my retirement. Right now, I'm just saving as much as possible and hoping it's enough.
I tried to count health-related expenses, but I was eventually lost because I was not sure how much would be enough. It's not like we can predict the sickness. I'm still depending on the health insurance and just saving whatever I can for the emergency fund right now.
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How much do you need? 2 years 7 months ago #15

  • FrankN
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Have you done any more research on putting a dollar amount on your retirement?
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