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

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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]

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

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.[/quote]

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.  [/quote]

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