My wife and I have $7,000 in pensions, $140,000 cash, plus $3,500 in Social Security. Can we afford to retire?
“There is Tricare to cover the costs on Medicare due to military service. We are both very healthy right now.” (The subject of photography is a model.) – Getty Images/Istockphoto
I am thinking of retirement at the end of the year. I am married and I will receive a two -month retirement payment; $ 3,600 from military service and $ 1,500 from public service. The total predicted monthly living cost will be covered by these and savings, travel and so on. Will make it completely disposable for.
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I don’t have much savings, only $ 140,000 between the cash savings and savings plan. Every month, our total host will be slightly above $ 7,000, and after taxes, medical, teeth, visual expenses and life insurance will be about $ 4,000. My wife will be 65 years old in January and I will hit that age after 13 months.
My 20 -year -old wife is a Japanese citizen and lives as a permanent resident in the USA. He did not work in the United States and did not have enough work in Japan to be entitled to social security. When I retire, his only income will benefit my social security. I will record in the survivor-freeda plans for military pension and public service rent.
With the increase in Social Security, if I foresee my wife and a one -time payment of $ 240,000 life insurance, it will give him about $ 5,000 a month. He will take it too Spouse benefitsBased on my work record while I am still alive. Due to my military service, there is Tricare to meet the costs on Medicare.
We are both very healthy right now. I think we’re financially good to retire. What is your advice?
My answer falls to the edge of a razor. Military service may receive much more physically and mentally wages. You deserve this time.
I have a theory in your letter. You have taken care of your military and civilian careers and the necessary care and you give the same matter to your decision on whether or not. The answer is, of course yes, given your pension and social security advantages, you can support yourself and your partner in retirement, which is based on settling less than all your social security income by demanding them before the age of 70. Better if you can demand and delay your social security.
Normally, I call on people to hang out until they are 70 before they demand social security, especially if they are healthy. The increase in life cost will enter your income for 30 years. Moreover, you and your partner may need long -term care. However, you and your spouse have more than 40% of your total monthly income after all your basic costs are paid. Your wife will benefit from the benefits of social security while living, and if you die before that, the benefits of the survivors.
Considering that you have been married for 10 years, your wife is entitled to 50% of the value of your social safety, Even if it doesn’t work And/or only worked for a limited time. He would receive 100% of social security assistance, which was 67 for everyone born in 1960 or later, in full retirement age and would receive a less amount from the age of 62 to the age of full retirement at any time. If he waited until 70, your wife would get about 8% more per year.
For retirees, a two -year cash expenditure is recommended, but I shake an amber flag: you may be a little tense if you need money for care in your home or other unexpected expenses. Most retired by IRAS and/or 401 (K) and retired want to be a cash pillow to avoid entering investment accounts in the bear markets such as 2000-2002 (Tech Bubble) and 2007-2009 (Subprime Mortgage Accident).
Considering that you have a guaranteed, fixed military and civil service salary, you will not worry about the EBBS and flow of the stock market, such as the 401 (K) or IRA, and millions of Americans approaching the retirement age. This is a great weight from your mind, and finally it includes travel and discovering new hobbies when you decide to hang your work boots and decide to enjoy all your time together.
For those who will benefit from investments, T. Rowe Price He recommends that pensioners have a portfolio of 60% of stocks and 40% bonds recovered from the above -mentioned bear markets in two years. “The exact amount you want to have depends on your risk tolerance and the amount you save,” he adds. “Another advantage of taking a balanced approach is that a bear market stocks and bonds rarely decrease.”
There is a lot to say about a military pension on your investment strategy and peace of mind. “To have a more guaranteed income means you don’t have to withdraw too much from your investments” First commandFort Worth is a Broker seller based in Texas. “This can affect how you choose to allocate these funds, and allow you to focus on potentially short -term liquidity and focus on long -term growth.”
“Your military retirement income can also offer you more options to build a budget, or he adds. “An approach that needs to be taken into consideration is the use of guaranteed income resources to pay your fixed expenses – such as military pension and social security – use the income produced by your investment portfolio to pay for optional expenses.
You and your spouse’s three main income sources (pensions), variable (investments) and one-time (inheritance or bulk payment from an old employer)-your most large source are happily guaranteed. This is a nice place. “If your expected expenses significantly exceed your expected income, the first command says, ır It may be a sign that you need to adjust your goals or push your planned retirement date back.”
But that’s a summary, so you know what’s in question by demanding social security early. In the full retirement age of 1960 or later, you will receive 100% of your social security advantage in the age of 67, and if you demand from the age of 62 to the age of full retirement, you will receive a less amount. If you wait until the age of 70, You get approximately 8% more a year. Some consultants say you can work roughly in the same way, even if you start buying your benefits at the age of 62 or 70.
As you recommend, your wife may be entitled to receive a third of your social security assistance even if there is no right to work or low benefit in your own work recording. While both of you liveAccording to the Social Security Administration. The benefits of survivors are more generous. “A widow is suitable for 71% (60 years old) and 100% (in full retirement) about what the spouse gets before he dies.” You can learn more Here About such benefits.
The financial argument should delay social security assistance as long as possible, especially if you seem to be healthy. Almost all workers between 45 and 62 should wait until 65 to gather social security. This Working Certificate One of the researchers at the University of Boston and Atlanta Federal Reserve Bank. The fact that more than 90% of people waited until they reach the age of 70, but only 10% seems to do.
Keeping this in the context for your retirement: Early arguing social security, for the median worker approaching retirement, households for life for life reduces $ 182.370. “Optimizing a 10.4% increase in optimizing, typical workers’ lifetime expenditures, Yazar said the researchers wrote. “For a quarter, life -long expenditure earnings exceed 17%. However, not everyone has a combined pension of $ 5.100.
The longer you can wait, the better. There is no big hurry to retire tomorrow. This seems to be a strong situation to demand your social security assistance, but this is not necessarily right for everyone, ”he adds.“ For those with health problems, it may make more sense to demand their benefits early. And those who need social security to retire can give a higher value to stopping working when they are still relatively young. “
You both know your own lifestyle. If you feel 100 % ready, go for it.
