ASK A FINANCIAL ADVISOR!! Money questions? Bring 'em on!!

whierd

What is a reasonable formula for calculating if your IRA/401K & pension are adequate for retirement? Normally we're told that we'll need to save enough so that a 4.5% annual withdrawal (along with any pension or SS) replaces 70% of our pre-retirement income. Is that reasonable?

Well, I would recommend saving enough so that a roughly 5% draw replaces 90% of your income. I do not want my life to change much in retirement.

If I'm already contributing 12% into my 401k, I'm already used to living on 88% of my income. My tax liability will be less due to my reduced income. My expenses will be reduced because, in my case, I'll be driving 350 - 400 miles less per week. Sadly, I'll have to pick up my own health care costs. Which may negate all of these reduced expenses.

I would recommend boosting your retirement contributions to 15% or greater at this point. You're only about 10 years away from retirement so if you are lagging behind at all it is even more important.

In terms of health care costs, I'd look into opening an HSA and start putting money in that. As I mentioned previously in this thread, an HSA is great because it is another tax shelter and the money you put in it can be invested and grows very similar to a retirement account.

Another option, depending on your current health and family medical history, is looking into Long Term Care insurance. This will cover the costs in case you need in home health care, a nursing home, and other types of assisted living care.

whierd

How to have always have money..."Get a hair cut and get a real job, clean your act up and don't be a slob, get it together like your big brother Bob, and get a hair cut, and get a real job."

:huh:

Briko3

What is a reasonable formula for calculating if your IRA/401K & pension are adequate for retirement? Normally we're told that we'll need to save enough so that a 4.5% annual withdrawal (along with any pension or SS) replaces 70% of our pre-retirement income. Is that reasonable?

Well, I would recommend saving enough so that a roughly 5% draw replaces 90% of your income. I do not want my life to change much in retirement.

If I'm already contributing 12% into my 401k, I'm already used to living on 88% of my income. My tax liability will be less due to my reduced income. My expenses will be reduced because, in my case, I'll be driving 350 - 400 miles less per week. Sadly, I'll have to pick up my own health care costs. Which may negate all of these reduced expenses.

I would recommend boosting your retirement contributions to 15% or greater at this point. You're only about 10 years away from retirement so if you are lagging behind at all it is even more important.

In terms of health care costs, I'd look into opening an HSA and start putting money in that. As I mentioned previously in this thread, an HSA is great because it is another tax shelter and the money you put in it can be invested and grows very similar to a retirement account.

Another option, depending on your current health and family medical history, is looking into Long Term Care insurance. This will cover the costs in case you need in home health care, a nursing home, and other types of assisted living care.

You can't just open an HSA because you want to.

whierd

What is a reasonable formula for calculating if your IRA/401K & pension are adequate for retirement? Normally we're told that we'll need to save enough so that a 4.5% annual withdrawal (along with any pension or SS) replaces 70% of our pre-retirement income. Is that reasonable?

Well, I would recommend saving enough so that a roughly 5% draw replaces 90% of your income. I do not want my life to change much in retirement.

If I'm already contributing 12% into my 401k, I'm already used to living on 88% of my income. My tax liability will be less due to my reduced income. My expenses will be reduced because, in my case, I'll be driving 350 - 400 miles less per week. Sadly, I'll have to pick up my own health care costs. Which may negate all of these reduced expenses.

I would recommend boosting your retirement contributions to 15% or greater at this point. You're only about 10 years away from retirement so if you are lagging behind at all it is even more important.

In terms of health care costs, I'd look into opening an HSA and start putting money in that. As I mentioned previously in this thread, an HSA is great because it is another tax shelter and the money you put in it can be invested and grows very similar to a retirement account.

Another option, depending on your current health and family medical history, is looking into Long Term Care insurance. This will cover the costs in case you need in home health care, a nursing home, and other types of assisted living care.

You can't just open an HSA because you want to.

Anyone who has a high deductible healthcare policy can open one. Seeing that he has a 401k, I am assuming that he also has health insurance through them.

whierd

For anyone wanting to do some personal reading on HSAs, here is the Wikipedia link.

http://en.wikipedia.org/wiki/Health_savings_account

debbash68

Wow, reading this and people's concerns, I have to say how lucky we are in the uk to have the national health service! I know it's not perfect, but it takes away a lot of the anxiety about the future! However, everyone has to contribute, whether they want to or not!

Chadomaniac

I want to get into trading because i want to get rich and I'm naive. Tell me how to Forex please?

This !!

rdzilla

If I have a short future on an Aussie government bond and SP CDS on a Singapore corporate what is my interest rate risk profile?

sdonovan4

Stock TSRX what do you think about it?

Briko3

What is a reasonable formula for calculating if your IRA/401K & pension are adequate for retirement? Normally we're told that we'll need to save enough so that a 4.5% annual withdrawal (along with any pension or SS) replaces 70% of our pre-retirement income. Is that reasonable?

Well, I would recommend saving enough so that a roughly 5% draw replaces 90% of your income. I do not want my life to change much in retirement.

If I'm already contributing 12% into my 401k, I'm already used to living on 88% of my income. My tax liability will be less due to my reduced income. My expenses will be reduced because, in my case, I'll be driving 350 - 400 miles less per week. Sadly, I'll have to pick up my own health care costs. Which may negate all of these reduced expenses.

I would recommend boosting your retirement contributions to 15% or greater at this point. You're only about 10 years away from retirement so if you are lagging behind at all it is even more important.

In terms of health care costs, I'd look into opening an HSA and start putting money in that. As I mentioned previously in this thread, an HSA is great because it is another tax shelter and the money you put in it can be invested and grows very similar to a retirement account.

Another option, depending on your current health and family medical history, is looking into Long Term Care insurance. This will cover the costs in case you need in home health care, a nursing home, and other types of assisted living care.

You can't just open an HSA because you want to.

Anyone who has a high deductible healthcare policy can open one. Seeing that he has a 401k, I am assuming that he also has health insurance through them.

Group health plans are almost exclusively NOT high deductible health plans.

whierd

What is a reasonable formula for calculating if your IRA/401K & pension are adequate for retirement? Normally we're told that we'll need to save enough so that a 4.5% annual withdrawal (along with any pension or SS) replaces 70% of our pre-retirement income. Is that reasonable?

Well, I would recommend saving enough so that a roughly 5% draw replaces 90% of your income. I do not want my life to change much in retirement.

If I'm already contributing 12% into my 401k, I'm already used to living on 88% of my income. My tax liability will be less due to my reduced income. My expenses will be reduced because, in my case, I'll be driving 350 - 400 miles less per week. Sadly, I'll have to pick up my own health care costs. Which may negate all of these reduced expenses.

I would recommend boosting your retirement contributions to 15% or greater at this point. You're only about 10 years away from retirement so if you are lagging behind at all it is even more important.

In terms of health care costs, I'd look into opening an HSA and start putting money in that. As I mentioned previously in this thread, an HSA is great because it is another tax shelter and the money you put in it can be invested and grows very similar to a retirement account.

Another option, depending on your current health and family medical history, is looking into Long Term Care insurance. This will cover the costs in case you need in home health care, a nursing home, and other types of assisted living care.

You can't just open an HSA because you want to.

Anyone who has a high deductible healthcare policy can open one. Seeing that he has a 401k, I am assuming that he also has health insurance through them.

Group health plans are almost exclusively NOT high deductible health plans.

A high deductible plan has a deductible of $1,200(roughly) for an individual and $2,400(again, roughly) for a family. Many group plans qualify.

Also, if you have nothing to contribute, why are you even posting?

rdzilla

If I have a short future on an Aussie government bond and SP CDS on a Singapore corporate what is my interest rate risk profile?

I'm waiting, Mr. Financial Planner.

Being a financial planner and knowing about actual investing rarely go hand-in-hand

whierd

If I have a short future on an Aussie government bond and SP CDS on a Singapore corporate what is my interest rate risk profile?

I'm waiting, Mr. Financial Planner.

Being a financial planner and knowing about actual investing rarely go hand-in-hand

Are you talking to me or the OP?

Briko3

What is a reasonable formula for calculating if your IRA/401K & pension are adequate for retirement? Normally we're told that we'll need to save enough so that a 4.5% annual withdrawal (along with any pension or SS) replaces 70% of our pre-retirement income. Is that reasonable?

Well, I would recommend saving enough so that a roughly 5% draw replaces 90% of your income. I do not want my life to change much in retirement.

If I'm already contributing 12% into my 401k, I'm already used to living on 88% of my income. My tax liability will be less due to my reduced income. My expenses will be reduced because, in my case, I'll be driving 350 - 400 miles less per week. Sadly, I'll have to pick up my own health care costs. Which may negate all of these reduced expenses.

I would recommend boosting your retirement contributions to 15% or greater at this point. You're only about 10 years away from retirement so if you are lagging behind at all it is even more important.

In terms of health care costs, I'd look into opening an HSA and start putting money in that. As I mentioned previously in this thread, an HSA is great because it is another tax shelter and the money you put in it can be invested and grows very similar to a retirement account.

Another option, depending on your current health and family medical history, is looking into Long Term Care insurance. This will cover the costs in case you need in home health care, a nursing home, and other types of assisted living care.

You can't just open an HSA because you want to.

Anyone who has a high deductible healthcare policy can open one. Seeing that he has a 401k, I am assuming that he also has health insurance through them.

Group health plans are almost exclusively NOT high deductible health plans.

A high deductible plan has a deductible of $1,200(roughly) for an individual and $2,400(again, roughly) for a family. Many group plans qualify.

Also, if you have nothing to contribute, why are you even posting?

It is contributing. You're giving incomplete information that leads people to believe something that isn't normally true. The deductible isn't the only deciding factor, and your limits are from last year, not this one. Googling information and passing it off as financial planning is dangerous to people that take your advice as complete truth and if you're FINRA licensed, the disclaimers in this thread aren't going to keep you from getting sued....and your E&O won't cover you. If you're licensed, you should know better and if you're not, you shouldn't be giving financial planning advice.

BTW, this will be my last post to this thread. Just giving a heads up to you and everyone that thinks this thread is a good idea. If someone needs real advice, seek out a professional.