What is your net worth if you are 55 years of age

[Anonymous]

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Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

[b]how are you able to draw down 200k per year without having to pay federal taxes?[/b]

NP, here, and I'm interested in this too. We draw down 100K tax free from municipal bonds. I would love to hear about other options.

To answer the question, we haven't yet accessed our retirement accounts for the most part and when we do more of that I expect we will be paying more taxes. Since retiring we've been living largely off of dividends, capital gains, and principal from a brokerage account that was already taxed long ago, etc. And we have deductions: the health care expenses, mortgage interest (we've deliberately not paid it off), real estate taxes, etc. Whatever we've been doing, in the past six years we haven't paid a penny in federal taxes although we've paid DC taxes.

[Anonymous]

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Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

[b]how are you able to draw down 200k per year without having to pay federal taxes?[/b]

NP, here, and I'm interested in this too. We draw down 100K tax free from municipal bonds. I would love to hear about other options.

To answer the question, we haven't yet accessed our retirement accounts for the most part and when we do more of that I expect we will be paying more taxes. Since retiring we've been living largely off of dividends, capital gains, and principal from a brokerage account that was already taxed long ago, etc. And we have deductions: the health care expenses, mortgage interest (we've deliberately not paid it off), real estate taxes, etc. Whatever we've been doing, in the past six years we haven't paid a penny in federal taxes although we've paid DC taxes.

PP, I always appreciate your insight. --BondGirl

[Anonymous]

Both early 50s: 3 pensions, about 2 million in home equity, 1.5 million in 401(k)s, 1.2 million on stock.

[Anonymous]

Properties - $67 million
Stocks - $119 million
Art/jewels/collectibles - $185 million
Yachts/cars/helicopter/jet- $72 million
Various cash/treasuries/liquid funds - $63 million

[Anonymous]

It is really funny. Compare this thread to the 35-40 year old thread. It seems like the younger people have MORE money than this crowd, which is most likely BS.

[Anonymous]

I had been feeling good about our numbers, now, after reading all this, not so much.

56 and 61, $1.3 million in retirement accounts, both still contributing the max annually. HHI had been about $250, went up to $350 recently. $475k in stocks/mutual funds. One about to start college, with the merit she received, plus the $$ in 529, that is covered. 2nd still in HS, assuming private college with no aid, we will use 529 and either cash flow or some from the $475k to cover that. House, conservatively guessing, is worth about $980k, we owe $150k which will be paid off when our youngest is a senior in college.

Plan to retire when 2nd is done with college, assuming the younger of us can figure out reasonable health care.

[Anonymous]

Anonymous wrote:I had been feeling good about our numbers, now, after reading all this, not so much.

56 and 61, $1.3 million in retirement accounts, both still contributing the max annually. HHI had been about $250, went up to $350 recently. $475k in stocks/mutual funds. One about to start college, with the merit she received, plus the $$ in 529, that is covered. 2nd still in HS, assuming private college with no aid, we will use 529 and either cash flow or some from the $475k to cover that. House, conservatively guessing, is worth about $980k, we owe $150k which will be paid off when our youngest is a senior in college.

Plan to retire when 2nd is done with college, assuming the younger of us can figure out reasonable health care.

PP, you are doing fine with those assets....paying off your mortgage will significantly reduce your monthly expenditures. The Affordable Care Act fixes that the Dems are (hopefully) about to put in place in their COVID response bill should be a big help for your health care costs when the time comes.

[Anonymous]

Anonymous wrote:I had been feeling good about our numbers, now, after reading all this, not so much.

56 and 61, $1.3 million in retirement accounts, both still contributing the max annually. HHI had been about $250, went up to $350 recently. $475k in stocks/mutual funds. One about to start college, with the merit she received, plus the $$ in 529, that is covered. 2nd still in HS, assuming private college with no aid, we will use 529 and either cash flow or some from the $475k to cover that. House, conservatively guessing, is worth about $980k, we owe $150k which will be paid off when our youngest is a senior in college.

Plan to retire when 2nd is done with college, assuming the younger of us can figure out reasonable health care.

I think you are in great shape. You already have $1.8 million in savings, should pay off your mortgage and educate two children before retirement.

[Anonymous]

We are very, very fortunate financially. I'm in my early 50s and my spouse is in mid-50s. I inherited quite a bit of money, so take all of this with that in mind. Net worth is probably around $20 million. We are both retired from jobs for the most part. We have income streams from some part time work and real estate investments.

[Anonymous]

56. Around $9m, $5m stocks/bonds, $1m cash equivalents, $3m equity. Worked our butts off, live below our means.

[Anonymous]

Anonymous wrote:Both early 50s: 3 pensions, about 2 million in home equity, 1.5 million in 401(k)s, 1.2 million on stock.

Hmmm SUS

[Anonymous]

Anonymous wrote:56. Around $9m, $5m stocks/bonds, $1m cash equivalents, $3m equity. Worked our butts off, live below our means.

Congrats! But why not enjoy it and live at your means? You've earned it!

[Anonymous]

Anonymous wrote:Properties - $67 million
Stocks - $119 million
Art/jewels/collectibles - $185 million
Yachts/cars/helicopter/jet- $72 million
Various cash/treasuries/liquid funds - $63 million

Forgot to mention $3.7 billion in Bitcoin.

[Anonymous]

Anonymous wrote:

Anonymous wrote:56. Around $9m, $5m stocks/bonds, $1m cash equivalents, $3m equity. Worked our butts off, live below our means.

Congrats! But why not enjoy it and live at your means? You've earned it!

Thanks and fair question. It’s because I’d like to retire soon and have enough to not worry about having enough. Plus life’s pretty good without having to spend a ton of money.

[Anonymous]

55 and wife is 56 -- I estimate our net worth at about 3M. That includes 1M in retirement accounts and +/-2M in real estate, including 6 income generating rentals. No debt.

Like the bazillionnaire PP, we pay almost nothing in taxes after deducting expenses for running the rentals and health care.