FOR ALMOST 25YRS I HAVE BEEN LIVING ON A BUDGET IT IS TAKING A TOLL ON MY LIFESTYLE IF I AM SAVING TO MUCH I WILL BE 50 YRS OLD NEXT YR IF I SHOULD BACK OFF AND START TO ENJOY LIFE MORE IT HAS GOT TO EVERY MONTH I SAVE MORE THAN I SPEND
OK, I’m impressed! You might have gone overboard, but it’s hard to know without knowing more about your situation. This is where a Certified Financial Planner comes in. But just for starters, go to Vanguard’s Nest Egg Calculator where you can easily get a rough idea of how long your money will last, depending on how long you work, your costs for living in retirement (it includes medical costs) and other variables. This link is also prominently posted on my website, TerrySavage.com.
One other thing you might consider. One of the greatest unprotected costs of living longer is the potential need for long term custodial care — not covered by Medicare or supplements. If you have enough savings, you might want to consider buying a combo life/LTC policy to lock in this coverage. If you don’t use it your heirs get the death benefit. Or if you really need cash, you can borrow from the policy. Contact MAGA LTC at 800-388-2227 for specifics. Or read this recent column on the subject.
And please do write back and tell me how the numbers worked out when you use the calculator. I’m going to be wondering about that — and about your definition of “more fun”!