Retiree medical expenses
I just read your 1/25 piece about retiree medical expenses. In it you refer to lump sum amounts that need to be saved to cover expenses ($360,000+/-). This same methodology is used in Fidelity and numerous other articles. But nowhere, and i mean nowhere, have i found a clear MONTHLY expense listing showing Medicare premium, supplemental plans, etc. I know those can swing wildly based on plan. But even some type of MONTHLY overall expense would go a long way for those of us trying to plan. Since most planning programs are based on a monthly income and expense calculation. Can you look into that please and see if you can outline the monthly expenses.
Terry Says
I think those studies are meant to show you that if you have saved, perhaps $1 million for retirement, and think you’re really doing well, you should be factoring in higher medical costs. So if you retire at age 65, as these studies assumed, and you expect a 20 or 25 year retirement, divide that amount (nominally today and you’ll have to adjust for inflation) by say 20 years, and then by 12 months.
And if you’re figuring your monthly withdrawals to cover expenses, in addition to Social Security, you’ll see what a bite they can take out of your spending.
Or better yet, don’t estimate. Instead go to a fee-only FIDUCIARY financial planner who will do it accurately for you! Find that kind of planner at www.Wealthramp.com.
