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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

What do you do for healthcare and how much does it cost all in?  [/quote]

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.   [/quote]

[b]That is eye-opening.[/b]  :shock: [/quote]

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.  [/quote]

Could you provide some thoughts on the 200K$ expense during retirement?  What do you spend it on?  I estimated around $180K$ per year but I was told this estimate may be too low.[/quote]

NP here but I've tried to think about some of this but haven't done a detailed budget. We currently put at least $10k/month on credit cards for a range of expenses - home related, travel, etc. So assuming that keeps up that's $120k to start with. RE taxes are $20k (2 houses). We spend about $8000/year on a cleaning service. We spend a lot on landscaping for both houses too - probably $10k/year with no special projects. We currently spend a ton on insurance and deductibles ($25k+/year) but I assume Medicare will actually be less expensive. Car maintenance and insurance for 2 cars. Home repairs always seem to come up, or home improvement projects - I'd guess they'd average at least $10-20k/year.

Maybe if we sell one of the houses and move to a condo some of the maintenance is lower but then it gets replaced with a condo fee. Or we could do our own cleaning and landscaping, but the reality is it wouldn't be feasible for that long.

I'm sure I'm missing big categories. Anyway I am assuming we will need $200-250k after tax (which is less than we have today).[/quote]

NP.  This is my thought as well that we'll need somewhere between $200-$250K to live decently.  This also doesn't include giving some sort of gifts/big vacation with kids, new cars etc. that would be required.  Not sure what I'm missing and so would love to hear from others.

I'm also not sure if we have enough for that kind of income and also my fear is that the market is high now but what if it falls?  Do you have to withdraw significantly less and will we have to live on significantly less money (I know people say to keep 3 years worth of costs in cash to mitigate that concern but not sure if that works in what % of downturns).

Good discussion.[/quote]

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