Trying to determine our FI target number but I need to account for health insurance and taxes. I have some idea about our taxes using tax brackets, but no idea about health insurance between retirement and 65/Medicare.
Is 30k/year a good enough estimate for no subsidy? It doesn't have to be super precise but needs to be in the ballpark. We are a family of 3.
Our expense right now is around 175k (I know it is too high!). Let's add 25k for travelling during retirement. Add 30k for health insurance. That is 230k total after tax. With standard deduction, it will take 275k in pretax (ours is mostly pretax) to be able to spend 30k for health insurance and 200k for everything else. And this is assuming no state taxes.
At 4% withdrawal rate, we need 6,875k
At 3.75% withdrawal rate, we need 7,333k
At 3.5% withdrawal rate, we need 7,857k
We have 2,250k and aiming to save 250k/year. Assuming a 4% real return, it will take us 13 years to reach 7,857k. Coincidentally, I will be 55 in 13 years for the rule of 55.
Questions:
1/ please check my math
2/ are my assumptions on the ballpark? I understand that outcomes are draws out of a distributions but I am looking for an unbiased point estimate.
Is 30k/year a good enough estimate for no subsidy? It doesn't have to be super precise but needs to be in the ballpark. We are a family of 3.
Our expense right now is around 175k (I know it is too high!). Let's add 25k for travelling during retirement. Add 30k for health insurance. That is 230k total after tax. With standard deduction, it will take 275k in pretax (ours is mostly pretax) to be able to spend 30k for health insurance and 200k for everything else. And this is assuming no state taxes.
At 4% withdrawal rate, we need 6,875k
At 3.75% withdrawal rate, we need 7,333k
At 3.5% withdrawal rate, we need 7,857k
We have 2,250k and aiming to save 250k/year. Assuming a 4% real return, it will take us 13 years to reach 7,857k. Coincidentally, I will be 55 in 13 years for the rule of 55.
Questions:
1/ please check my math
2/ are my assumptions on the ballpark? I understand that outcomes are draws out of a distributions but I am looking for an unbiased point estimate.
Statistics: Posted by Dalexh32 — Fri Mar 08, 2024 3:29 am — Replies 3 — Views 345