FINANCIaL
FIELd NOTES
The Hidden Taxes In Tax-Free States
Moving to an income tax-free state in retirement may not lead to the tremendous savings retirees expect. The question to ask yourself when considering a new location is “How is this government funding itself?”
Oftentimes, the answer in states like Texas is property taxes. For example, in several counties in Texas, the property tax rate is over 2%, whereas it might be .5% to 1% in states with income taxes…
When Should You Take Social Security?
I’ve written extensively in the past about the decision of when to take Social Security.
But recently I came across this beautiful decision tree on when to take Social Security that I had to share…
How Much Income Do You Need To Replace In Retirement?
A common rule of thumb is that retirees will spend on average 80% of their pre-retirement income. In practice, however, I have seen the “replacement rate” vary greatly from person to person.
For some, their work keeps them very busy, so the first few years of retirement are filled with long-awaited travel plans that lead them to spend more. For others, the simplicity of life allows them to eat more at home and travel less, which leads to a decrease in spending…
How Much Does Private Healthcare Cost Before Medicare?
Retiring before 65 when Medicare begins can bring significant healthcare costs as early retirees are forced to find private healthcare plans.
When considering premiums and out-of-pocket health care expenses, $1,000/month per person is typically a good estimate, although it varies by the type of plan selected…
Should You Sign Up For Medicare If You Are Still Working?
When retirees turn 65, they typically sign up for Medicare unless they are covered by a federal or state government health care plan. However, if you are still working when you or a spouse turns 65, that becomes a bit trickier…
RMD Age Changing Again? SECURE ACT 2
Legislation that was approved in The House toward the end of March has the Required Minimum Distribution (RMD) age set to change again if fully approved.
The proposed legislation would not change the RMD age for anyone who has begun required distributions, only for those who haven’t yet…